Good morning, tradersā¦
Jeff here.
You need to hear thisā¦
Most market participants are passive investors, regular folks who automate a bi-weekly contribution to an index fund and call it a day.
I call this the āset it and forget itā mentalityā¦
These people usually have no idea what theyāre investing in. Plus, theyāre limited to a small handful of choices: mutual funds and ETFs that mirror the major indexes, created by Wall Street institutionsā¦
Recently, Iāve heard these long-term investors worrying about their portfolios. Theyāre nervous about the market being near all-time highs. I donāt blame them.
But theyāre addicted to a dangerous drug called ābuy and holdā¦ā
And with no other moves in their arsenal, theyāll be unable to do anything if the broader market goes into a trend reversal.
This is a huge problem. Itās why Iāve built a 25-year career based on short-term, in-and-out options trading.
Today, I want to help you kick the habit of āpassiveā investing and start thinking like an āactiveā traderā¦
Let me show you how to kick the habit of ābuying and holdingā and start trading like a Wall Street proā¦
Buy and Hold: A Dangerous Addiction
The vast majority of traders and investors are addicted to the drug of ābuying and holding.ā
The main reason is that itās easy ā¦ and most people are lazy.
The average person is simply unwilling to research individual companies, read macroeconomic reports, listen to conference calls, etc.
But beneath the surface, the problem is actually deeper and more concerning than thatā¦
This bogus narrative, pushed by financial news media and Wall Street, says that retail traders will never beat the broader market.
Listen ā¦ this is completely, totally, and utterly false. Itās just what the big boys at hedge funds want you to think.
Guess what Wall Streetās #1 product is? ETFs. They make boatloads of money from the passivity of investors.
Make no mistake: This is why theyāre always telling people to buy index funds.
They donāt want you to trade. They donāt want you to beat the marketā¦
No, they want you hopelessly addicted to buying and holding, like a junkie looking for a fix.
I know this because I worked on Wall Street for many years. But trust me, thereās a better way to manage your portfolioā¦
Why Active Trading Beats Passive Investing
Imagine being a long-term investor in 2000, 2008, or 2022 ā¦ holding a huge basket of stocks, powerless to do anything but watch them tumble lower week after week, month after month.
That sounds terrible, especially when thereās such a better alternative ā trading.
When you engage in short-term trading, thereās no need to sweat downside moves in the overall market.
Pay attention to them, sure, as these moves can lead to amazing setups in individual stocks.
But you donāt have to let the overall market control the direction of your portfolio the same way a long-term investor does.
Take it from me. As a trader, I have the tools and strategies to navigate such conditions.
For example, I can:
- Use The Money Link strategy to take a market-neutral position by going long and short on two correlated stocks at the same timeā¦
- Use my GAMMA Code system to exploit algorithmic mispricing in options contractsā¦
- Buy puts on industry leaders to protect against broad index downturnsā¦
- Buy calls on volatility to hedge against downside riskā¦
I can still have long-term holds (in a separate account) while simultaneously taking advantage of the powers that short-term trading providesā¦
This flexibility allows me to adapt to changing market environments and stay profitable even when the broader market is struggling.
8 More Advantages of Trading
Avoiding (or Capitalizing on) Long-Term Downtrends: Traders can potentially avoid long-term downtrends in markets or individual assets by employing shorter holding periods.
Possible Quick Returns: Short-term trading can potentially offer quicker returns compared to long-term investing where you may have to wait decades for serious gains.
Capital Recycling: Traders can reuse their capital multiple times within a short period, potentially amplifying gains. Investors have their money tied up for years.
Leveraging Market Volatility: Short-term traders can potentially profit from market volatility by capitalizing on short-term price fluctuations. They can also use VIX calls as volatility insurance on their entire portfolio.
Adaptability: Traders can quickly adapt to changing market conditions (and learn to do so), modifying or reversing positions as necessary.
Entry and Exit Flexibility: Traders have the flexibility to enter and exit positions quickly, potentially limiting losses or taking advantage of brief opportunities. Meanwhile, many 401k and IRA investors canāt touch their money until theyāre 59 years old.
Skill Development: Short-term trading forces the rapid development of trading skills and knowledge, as traders frequently analyze markets and companies. This is healthy, you should know what youāre investing in. In contrast, most everyday Americans who invest know little about the stocks they own or how the market works.
Liquidity Management: Short-term trading allows for better liquidity management, as traders can easily convert positions to cash. Meanwhile, 401k investors wonāt be able to access their returns until theyāre 59 years old.
Look, Iāve been trading for decadesā¦
Iāve heard every bit of fear, uncertainty, and doubt directed at people like YOUā¦
Big institutions try to stir this anxiety, making traders think the market is an insurmountable beast theyāll never overcome.
But donāt forget the story of David vs. Goliathā¦
Youāre David, the market is Goliath.
And armed with the right slingshot, even the most unsuspecting underdog can slay the proverbial giant.
Happy trading,
Jeff Zananiri
P.S. My proprietary AI-powered GAMMA Code system, which can detect algorithmic glitches in real-time with a 90% accuracy rate, has already led to explosive gains like 216% on CHWY calls in 24 hours* and 200% on QCOM puts in 48 hours!*
Claim your 50% off GAMMA CODE membership before itās too late!
*Past performance does not indicate future results
