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The big thing about this market right now is if you’re getting married to stocks… if you’re hoping to pick the bottom… sitting in names for too long…
You will get run over by the pain train at some point.
So the key is to keep your inventory of holdings fresh, keep it moving and keep trading.
That said, what do PayPal and Nucor have in common?
On the surface, they’re both stocks and American companies…
And that’s true, but here’s the good part… Both are stocks we traded in Burn Notice, bought on the close and sold within the first few hours after the opening bell the next day, locking in gains between 23.52 (NUE) and 33.10%* (PYPL) in the options!
For the sake of full disclosure and total transparency, from Dec. 15. 2020, through May 12, 2022, the average return on options — winners and losers — is 2.01% overnight. And there’s a minimum of four trades each week!
Burn Notice is a fade strategy where we put on positions in the last hour to few minutes of trading, and then we get out the next morning… And on to the next trade!
Hit it, quit it and get the heck out, and do it all over again the next day. That’s the name of the game right now.
Stop trying to pick bottoms… trying to be a hero and call every market move. The trick is to find oversold and overbought stocks, hold them for a few hours and flip them in the morning!
That’s how pros make money when the market is a whipsaw of volatility.
Check out my short video above and let’s discuss.
Also send any topics you’d like me to cover to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel for all the latest.
P.S. Wondering What Stocks to Buy in a Down Market?
Stop trying to time these bottoms… You’ll get killed.
Instead, traders should focus on overnight moves… And that’s why I went live this week to share my “16-hour jumps” strategy…
Avoid the whipsaw from 9:30 a.m. to 4 p.m and take advantage of these 16-hour overnight moves!
*Stated results are atypical for given period. Past performance is not indicative of any future results. Trade at your own risk.
