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Table of Content
Insights
💫 Top ‘Must Know’ News on Wall Street?
$SMCI joins the S&P 500, The Elon Musk effect, No rate cuts
❓When to trade options vs futures. (education)
📈 Stock Market Roadmap for 02.11.24 + 3 Dividend stocks we like!
Insights, levels, trade ideas, March outlook for stocks.
💻 Our first group educational live stream on Sunday, March 10th, at 7:30 pm Eastern time. Click here if you haven’t signed up to ensure you receive an invite link on Thursday!
Gains
Discord Profits
Banger after banger.
$SMCI
Bought $SMCI 940c for $500 per contract.
Sold at $920.
Total profit = $420 per contract.
$SMCI (round #2)
Bought $SMCI 945c for $260 per contract.
Sold at $800.
Total profit = $540 per contract.
The list is below!
Of course, there are always losses. It’s all about the net profit. Keeping losses small is very important.
News
Attack on Elon Musk?
Exhibit A.
Lawyers seek nearly $6 billion in Tesla stock after getting Musk pay package struck down
Exhibit B.
Exhibit C.
Thoughts:
I don’t bet against Elon or the companies he creates. Do I question some of his decisions? Absolutely. But the current trend of attacking Elon does not tell me that $TSLA or X are worsening or that he can’t handle pressure as a CEO. In my opinion, this is just noise.
If you are a $TSLA investor, focus more on how the company is performing with harsh economic conditions. This is the same for any CEO and company. Some news is just noise.
Joining the S&P 500
Congratulations to $SMCI
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Will the Fed Cut Rates?
—
This analysis says no. Read why?
Valid points are being made.
However, I'm afraid I have to disagree because Ally Bank sent me this email cutting my savings rate by .5 basis points. 🫠
Anything is possible.
Understanding your trading instrument
You see traders on Twitter posting how they are switching to futures versus options due to not dealing with option premiums and expiration dates.
The reality is people think that this one advantage makes trading futures easier. Though it has its advantages, the truth is that if you suck at trading, you will lose no matter what.
YOU HAVE TO UNDERSTAND WHEN TO TRADE FUTURES VS OPTIONS.
Don’t understand what Futures Trading is?
Watch the video below!
When to trade Futures. (continued)
Sometimes, if you have a big-cap stock like Apple or Amazon, you know that a good earnings report could move the general market. Instead of trading the company, you can trade the index as a sympathy trade.
Futures are great when trading after-hours or overnight sessions.
When the market is volatile, you have various divergences between companies, option premiums, and the index.
For example, just because Apple is green doesn’t mean the index needs to be.
Futures can be a reliable tool and indicator of market weakness when large caps are green but the index is weak. (it’s the same if you reverse the scenario)
Side note: the one great thing about watching futures is the context. You get tons of data watching an overnight session. Key levels are created overnight, which offer clues for the morning session.
When to trade Options.
Options are great when you want to define your risk. You only can lose what you put in. With futures, your losses are unlimited unless you have a stop loss set overnight.
If you have a strong directional bias from the index and want to maximize returns, options can be more suitable.
Options are beneficial when you want to take advantage of specific events, such as earnings reports, since you can have a predetermined risk and reward trading the individual company instead of an index.
Key note #1: You can use E-mini levels to give you directional bias, and you can use options to ensure you have a maximum loss per trade.
Watch this video below for more details!
Understanding your timeframe
Time is a major factor in investing and trading.
The timeframe in this context is being used to describe how long it takes for a price target to be achieved; it can also correlate to us as humans.
Example 1: Older Age
We don’t know when God will call our names to join the heavens, but if we are 70 years old unless we are buying growth stocks and starts ups that can be passed down to our grandchildren or children, it’s only normal not to expect to see your total return on investment in your lifetime.
This is why swing trading and dividends are essential: When you know your time frame and the goals you want to accomplish, you can still triple your return on investment with various strategies and financial instruments.
Example 2: Younger Me
If you are 18 years old, why don't you take on riskier investments with good fundamentals and technicals? You have time on your side based on the year you were born.
Some opportunities passed us because we were too young. You can take advantage of the future.
—
I always get asked, Why didn’t I buy real estate in 2008? My response is, “I was in Junior high! I was still flirting with girls for lunch money!”
You get my point.
Understanding your timeframe and goals is very important if you are invested in the stock market, real estate, art, crypto, etc.
Monthly Livestreams
Vote only if you haven’t voted already.
The first stream date is pending March 3rd, 7:30 pm Eastern time.
(Save the date)
A reminder email will come out on Thursday for those interested!
Entering Paid Content
On Deck:
- Trade Setups
- Observations
- Companies that may break into all-time highs next
- Inflation & Rate Cuts
- 3 Dividend Stocks that can be great investments
PLEASE NOTE:
I mention key levels and trade ideas every week.
For example, I mentioned
$TSLA at 180, now 204.
$NFLX at 600, now 614.
(plenty more, of course)I don’t revisit much. You only know if I entered a trade if you are in our Discord Alerts.
If I gave a trade idea 3 weeks ago and it’s already running, unless I really like the trade, I won’t update on continuation unless asked in the comment section.
The point is to revisit emails or write down your thoughts in a separate journal or notes app on your phone. This makes it easy to refer to ideas and thoughts at work, shopping, or eating.
Let’s get to it.