I’ve been trading the market for nearly four decades.
I started when I was just 19 years old. Soon, I was managing money for some of California’s wealthiest residents. By the time I was 42, I was able to retire.
So, what do I credit for my success?
Doing the opposite of what everyone else is doing.
It’s simple, really…
The most unpopular trades are the most likely to be profitable.
Don’t ask me to explain it… I can’t.
If you’ve read any of my newsletters, then you know I’m a contrarian at heart. I look for lower-risk trades that, by nature, tend to be out of favor. And then profit as the trend reverses…
But human emotions never change. Everyone wants to be in the hot stocks and the hot sectors. Risk isn’t a concern for most folks. Their focus is on the reward.
So back when I originally started recommending trades in the retail sector – even though we had tremendous success trading retail stocks up to that point – my subscribers were ticked off.
For example, I recommended selling uncovered put options on Macy’s (M) a few years ago. We weren’t betting on a big rally in Macy’s shares. We were just betting the stock wouldn’t fall much further.
To me, it seemed like an easy bet.
At the time, Macy’s was trading for seven times earnings and paid a 7% dividend. Besides, we had sold uncovered put options on Macy’s three times previously.
Those trades generated 15.3% in 12 days, 12.9% in 45 days, and 28.3% in 27 days.
Those are enormous gains in such a short span of time… especially when it was unfavored by the market. So, I figured my subscribers would willingly jump at the chance to sell another series of uncovered put options on Macy’s when I recommended the trade a few months later.
You wouldn’t believe the vitriolic email I received after that recommendation.
That’s when I knew for sure we had a winning trade.
You see… when even the folks who know I’m a contrarian trader HATE a trade I’m recommending, I know there’s a good chance it will be a winner.
So after recommending the Macy’s trade – which generated better than a 13% gain in 36 days – I got more aggressive in the retail sector.
I told subscribers to buy speculative call options on Bed Bath & Beyond (BBBY).
That trade produced a 117% gain in just two weeks. But you wouldn’t believe the heat I took on that recommendation.
Folks thought I was nuts. Some people canceled their subscriptions because of it. And the feedback I got… well… let’s just say it was less than flattering.
Fast forward to today…
Despite soaring inflation, mass layoffs, and foreclosures, the market has been on a tear.
Investors seem to have gotten carried away in the same emotion that led to the bull market over the past two years… before it came crashing down to reality.
Reality hasn’t changed… Inflation is still here. Interest rates are slated for more increases. And a recession is looming over the horizon.
In fact, I believe we’re headed toward what could be the most devastating crisis in modern history. An event similar to the Great Financial Crisis of 2008 is knocking on our door…
This crisis could wipe out YEARS of your wealth and retirement savings in as little as 60 minutes.
Most folks won’t even see it coming. Many will get slaughtered… As they bid up overpriced stocks, chasing the highs that come along with rising share prices.
As a contrarian, though, I’m skeptical. This market will come down to earth… and soon. This crisis is just days away…
But I’m not worried… When the market is crashing and everyone panics, I do my best trading. 2008 was one of my best years ever.
Going against the grain helped me retire a millionaire at just 42. That’s why I want to share my technique to profit – even in a crisis – that could show triple-digit gains in just a matter of hours.
You need to act fast. This crisis is right around the corner…
Make sure to attend my special briefing on August 17 at 8 p.m. ET, so you’re not caught off guard.
Your retirement could depend on it…
Best regards and good trading,
Editor, Market Minute