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… especially in a bear market.
Don’t ask me to explain it. I can’t.
Longtime readers know I’m a contrarian at heart. I look for lower-risk trades, which by nature tend to be out of favor. And we 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. 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 traded for seven times its earnings and paid a 7% dividend. Besides, we had sold uncovered put options on Macy’s three times previously.
Those trades generated returns of 15.3% in 12 days, 12.9% in 45 days, and 28.3% in 27 days.
For an unloved stock, those are favorable gains in a short period…
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, then I know there’s a good chance it’s going to 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.
As a contrarian, I look at this bear market and see opportunity. But many folks are worried about the large losses in their portfolio.
In stark contrast to last year, pretty much every stock in the market has been hammered this year. The S&P 500 is down over 20% since January.
But with my recommendations, you could have profited at least 50 different times this year.
Here’s what I want to put on your radar now…
There’s a $4 trillion event right around the corner that could cause dozens of popular stocks to freefall overnight, causing a market “snap.”
The result? A rapid-fire barrage of profit opportunities on some of the biggest stocks in the market.
In my entire 40-year career in the markets, I’ve seen this kind of setup only a few times before. Unfortunately, because most folks are glued to the television watching the financial talking heads, they’ll miss it.
Failure to prepare for this snap could be devastating, especially if you’re a buy-and-hold investor.
So for folks managing their own money, this may be the most important event you need to pay attention to right now…
That’s why I recently held a special briefing to help readers fall on the right side of this market “snap.”
This could be your chance to recoup your losses this year and potentially reap decades’ worth of gains.
So click here to watch… this briefing won’t be online for long.
Best regards and good trading,
Editor, Market Minute