trading strategies

Right now in my paid research services, we almost always trade market extremes; the more extreme the move, the bigger the profits – like the 200% gain we made on VIAB the other day.

But the kinds of extremes we play depend in large part on the market's "narrative," the prevailing sentiments driving stock prices – up or down. That's why we align the bulk of our trades with that narrative.

At the moment, we're mostly looking at strong stocks, in quality companies, caught up in broader mechanical pullbacks. When the stock "snaps back" we see gains on the price and even bigger profits on trades we make on those shares. 

It sounds simple, and it's tough to argue with the profits. All this is happening because the market is telling us that it favors moves higher right now, and so a bullish overall stance is the right one to take.

If you really think about it, the stock market closely resembles a living, breathing entity.

It's not a person, I mean, but more like an organism composed of millions and millions of cells.

It's each cell that's the person or institution making investment and trading decisions.

While individuals make buy and sell decisions, the pulse of the market and the general movement of the market, one way or another, is more often than not driven by the collective psychology of the organism.

If you understand the collective psychology that's moving the market, you can be exactly where you need to be almost all the time.

When you trade and invest based on the trend, you play stocks from the "long" side (the buy side) when the market's heading solidly, convincingly up.

And you play from the "short" side (short selling or put buying) when the market's trending down.

You'll find it's hard not to make money.