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Why You Need an Active Trading Strategy in This Environment

by | May 16, 2022 | Options, Stocks

The moral of the story in this market environment is you can sit still, make mistakes and suffer… Or you can have an active trading strategy that shines by putting you into trades for brief periods of time. 

This is the year for this type of trading because of how crazy things are, which creates a ton of new opportunities every day. The key is avoiding landmines and zeroing in on the best places to be for snapback rallies. 

For example, let’s take a look at a trade we took last week in PayPal Holdings Inc. (Nasdaq: PYPL) for our Burn Notice strategy. Thursday morning, we saw glimmers of hope for a reversal in deeply oversold stocks.

And then the rally failed. 

When that happens and we get another pop in futures, the “smart money” goes right back after those same oversold names. It’s kind of like poker…

They give you their tell of what stocks they want to hit before they do it. Smart people and those who are paying attention, watch those same names and then pounce.

So we entered a trade in PYPL Thursday before the close and exited the following morning at the open for a 33.1% gain.*

For the sake of full disclosure and total transparency, from Dec. 15, 2020, through May 12, 2022, the average return on options — including both winners and losers — is 2.01% overnight, on a minimum of four trades per week. 

PayPal was a big home run for us to close the trading week, and you can’t take anything for granted. 

There are a lot of people out there who aren’t doing what we’re doing — being active traders — and they’re suffering for it. They’re chasing stocks on up days, buying at the worst time, selling at the worst time…

And that allows us to use their bad fills and bad decision making to get into exciting, explosive trades like the 31.1% gain in PayPal!*

It’s all about being active and getting in while the getting is good. 


P.S. Tired of getting whipsawed? I am, too…

One day the S&P 500 is down 4%…Then up 3% the next… 

Rinse and repeat. That’s why I gave away my FIVE favorite stocks to load up on for overnight moves.

Avoid the whipsaw from 9:30 a.m. to 4 p.m… And take advantage of these 16-hour overnight moves! 

Get the Stocks Poised for Overnight Moves 

P.P.S. I’m rolling out an all-new option for my readers and traders to receive alerts, analysis and other updates in real time — and anyone can sign up! When it comes to trading, every second counts. And in choppy markets like these, often driven by headlines, stocks can make big moves in a flash.

That’s why I want you to get my latest trading ideas and market updates as fast as possible. So I’m happy to announce I have a new Telegram channel dedicated to getting my latest analysis to you even faster!

Telegram is an instant messaging app that allows me to get trade alerts, ideas, videos and watchlists to you in a matter of seconds.

Get more information on how to join here!

*Stated results are atypical for given period. Past performance is not indicative of any future results. Trade at your own risk. 

WRITTEN BY<br>Jeff Zananiri

Jeff Zananiri

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