Happy Friday the 13th, traders…
Jeff here.
Do you ever feel like you’re doing everything right — following your rules, sticking to your risk management, etc. — only to watch your trades go red, time and time again?
You’re not alone. Most traders get stuck early on in their journey, wondering why their account won’t grow, no matter how hard they try…
The answer is usually simple: they’re chasing.
Inexperienced traders tend to buy calls when a stock is ripping higher and puts when it’s tanking lower, thinking they’re riding the wave.
But in swing trading — where you’re holding positions overnight or longer — chasing the momentum can land you in trouble.
By the time you jump in, the move is often almost over. And when the market starts to pull back, even just a little, options premiums get crushed.
A small reversal can wipe out 30-40% of your premium in the blink of an eye.
But there’s a better way to approach swing trading — one that focuses on timing your entries and exits for maximum gains (while minimizing risk)…
With that in mind, let me show you how to use a contrarian edge to stop chasing the end of the move…
The Contrarian Edge
You can’t treat swing trades the same as day trades. In day trading, it often makes sense to trade with the immediate, near-term trend, because you’re getting in and out quickly.
But when you’re holding positions overnight (or longer) you need to think differently. The big money is in massive reversals, not brief extensions.
That’s why my approach with Burn Notices is all about buying dips and shorting rips. Instead of chasing the momentum, I position myself before the next move starts.
I often buy contracts that are red on the day, giving me more room for profits the next day.
How to Stop Chasing
For Calls: Look for oversold stocks. Check for a 14-day relative strength index (RSI) under 30 or key support levels holding. These are signals that sellers are running out of steam, creating an opportunity for buyers to step in.
For Puts: Focus on overbought stocks. You want to see an RSI over 70 or the chart struggling to break resistance levels. These setups suggest that buyers are exhausted, and a pullback is likely.
This approach takes patience and discipline. It’s not as flashy as trading breakouts, but it’s far more effective for swing trading.
Better entries mean better risk-reward ratios. You’re buying low and selling high — or vice versa.
Why Chasing Doesn’t Work
Here’s where most swing traders go wrong: they treat it like day trading. They see a stock moving, fear they’re missing out, and jump in.
But in swing trading, those late entries are deadly. A stock that’s already overbought or oversold doesn’t have much gas left in the tank.
Worse, when the move reverses — which often happens overnight — they’re caught holding the bag. Those options premiums get crushed, and the account takes another hit.
If you want to grow your account — stop chasing.
The crowd buys calls when stocks are flying and puts when they’re tanking — don’t be another straggler in the crowd…
Be the trader who steps in when everyone else is too scared (or too greedy) to think straight.
Swing trading isn’t about catching every move. It’s about catching the right moves, with the right timing, for the biggest gains.
So, next time you’re about to hit buy on a call during a green streak or a put during a sell-off, ask yourself: “Am I chasing?”
If the answer is yes, it’s time to be patient and wait for a better entry. This shift in mindset can make all the difference.
Better entries, bigger gains, and, most importantly, consistent growth. That’s how you win the swing trading game.
Let’s make some money,
Jeff Zananiri
P.S. If you’re ready to capitalize on the profits my AI-powered GAMMA Code system has been delivering me every week — 145%, 235%, 630%, and even 900% — all in 24 hours or less* — then now is the time…
TODAY, December 13 at 4:00 p.m. EST, my buddy Danny Phee is hosting a SPECIAL LIVE WORKSHOP to show you how to start weaponizing GAMMA for huge overnight gains.
Time is running out — Don’t miss your chance to join.
*Past performance does not indicate future results
