Happy Monday, traders…
Jeff here.
You need to hear this…
Many traders find themselves on a never-ending quest for the “perfect” trading strategy.
They “hop” from one method to another, on a quest for the secret recipe that promises quick and easy profits.
But here’s the hard truth: there’s no magical shortcut in trading … and constantly searching can lead to big problems.
It’s easy to get swept up in the excitement of discovering new strategies, indicators, or patterns that promise to be your ticket to wealth.
But trust me, strategy hopping is a recipe for disaster.
I’ve been trading professionally for over 25 years, and I can tell you from experience that sticking to a few proven strategies has been the key to my success.
Rather than chasing after every new method that comes your way, it’s far better to focus on mastering a few reliable strategies.
By doing so, you’ll be able to gain a deeper insight into how they work, identify their strengths and weaknesses, and adjust them to fit your unique trading style…
With that in mind, let me show you why strategy hopping is not the answer. Then, I’ll break down my three favorite trading strategies…
My Favorite Short-Term Trading Strategy
My time trading on Wall Street taught me that the stock market has a predictable rhythm, with most of the easiest gains happening overnight.
It all comes down to how Wall Street hedge funds are required to re-positions themselves into the market close, exposing their moves on my scanner.
Over the last ten years, the volume of assets managed by passive equity funds in the US has grown dramatically, exceeding $11.5 trillion, based on Bloomberg Intelligence data.
This increase has led to a concentration of trading activities towards the end of the trading day.
Active traders flock to this liquidity, creating a “perfect storm” of increased end-of-day trading activity.
By focusing on these overnight moves, which I call Burn Notices, I take a lot of the guessing games out of my trading.
If I had to start my career over with a small account today, I would trade this strategy exclusively…
And I haven’t even gotten to the best part yet…
You don’t have to trade perfectly to make money with this strategy.
It’s more about understanding the broader trends and moods of the market, which takes away a lot of the stress and pressure associated with day trading.
Every week, I share the trades I find inside my flagship research trading service — the Burn Notice Alliance.
Here’s what you’ll get by signing up:
- 🔔 4 new trade alerts every week (over 200 opportunities per year)
- 👨🏫 Stock tickers and complete instructions for your options trade
- ⭐ My proprietary ranking system for position sizing
- 📖 Full trade analysis and follow-up game plan
But you can’t see ANY OF THIS if you don’t join NOW…
Stop missing out — CLICK HERE NOW TO JOIN THE ‘BURN NOTICE ALLIANCE’!
But aside from Burn Notices, there’s another strategy that I use all the time…
My Favorite Mid-Term Trading Strategy
Burn Notices only happen during a specific window and they’re always single overnight holds.
So, when I want to put on a slightly longer-term bet, I move to another tried-and-true method…
The strategy I’m talking about is called The Money Link.
Before I dive into all the methods I use when looking for money links, let’s review the basics.
The Money Link is a market-neutral trading strategy involving matching a long position with a short one in two stocks with a high correlation.
The key idea is to capitalize on the divergence in the price movements of these two stocks.
If you’ve ever heard of a “long/short hedge fund,” this is exactly what those funds are doing.
Big institutional funds are never 100% long or 100% short. Usually, it’s much closer to 50/50%.
On the contrary, many retail traders seem to think they must choose one side of the trade and stick to it — but this is a fallacy.
So, here’s how The Money Link works…
Choose two stocks that historically move in relationship to one another. They could generally trade inversely to each other, or maybe they follow each other.
These pairs are often in the same industry or sector, as they are likely to be influenced by similar economic factors.
The stocks should have a high correlation, meaning they exist in similar sectors/industries and/or move in tandem under similar market conditions.
The trick is to look for moments when the prices of the two stocks diverge unusually, indicating one stock is overperforming or underperforming the other.
One example would be buying (going long) the underperforming stock and selling (going short) the overperforming stock with the expectation that the underperforming stock will rise and the overperforming stock will fall, converging back to their historical mean averages.
You could also make a Money Link trade betting on the continued direction of two stocks.
For instance, If Stock A was down 30% in 2023 and Stock B was up 30% — and they exist in the same sector — you might make a bet on those trends holding.
The goal is to amplify your gains when the long stock goes up while simultaneously making gains on the short stock going down.
Bottom Line: I use Money Links or mid-term trades and Burn Notices for overnight plays.
My Favorite AI Trading Strategy
Trading in 2024 is a whole new ballgame compared to just a year or two ago.
Many people fail to realize that up to 90% of trades are now executed by algorithms without any human intervention…
It’s no wonder major players like Goldman Sachs, Citigroup, and other big institutions are pouring $10 billion annually into technology for their algorithmic trading systems.
But here’s the exciting part — despite these sophisticated Wall Street algos and High-Frequency Trading systems making it tough for regular traders to keep up…
I’ve discovered a unique error that occurs daily in the red-hot options market due to the rapid pace of quotes and transactions.
To take advantage of this, I built my proprietary AI-powered GAMMA CODE system, which can detect these glitches in real-time with a 90% accuracy rate, leading to explosive gains like 216% on CHWY calls in 24 hours* and 200% on QCOM puts in 48 hours!*
And today, I’m giving you a special opportunity…
If you’re one of the first 500 people to claim your spot today, I’m offering an unbelievable 50% discount.
Plus, as part of today’s special offer, you’ll be able to test-drive everything my GAMMA CODE has to offer for your first 90 days.
Stop missing out on slam-dunk setups — Click here now to be one of the first 500 people to claim a GAMMA CODE membership.
3 More Reasons to Avoid Strategy Hopping
Consistency and discipline are everything in the options market.
Switching your approach regularly will only disrupt your flow and make it difficult to develop a coherent and effective game plan.
This inconsistency can lead to stress, as you may find yourself constantly second-guessing your decisions and lacking confidence in your chosen path.
On the contrary, the more consistent you are in your system, the more confidence you’ll gain.
Another significant benefit of this is improved risk management.
By focusing on gaining expertise in just a handful of strategies at first, you can develop a clear understanding of their risk-reward profiles.
This knowledge is invaluable, as it allows you to be disciplined and stick to your plan, helping you to minimize losses and protect your trading capital.
Invest the time to thoroughly understand and practice a select set of proven strategies — and commit to them.
WARNING: Success in trading doesn’t come from the strategies themselves but from how effectively you execute them.
By sticking to these three proven trading systems, I have no temptation to strategy hop.
If I see the setups, I trade them. And if I don’t, I sit on the sidelines and wait for a better opportunity.
Stop the endless search for the next big thing … and start honing your skills with a few proven strategies.
Happy trading,
Jeff Zananiri