Let me give you a little advice.
No one can tell you where a stock is going to go overnight.
That includes tomorrow, a week from now, or any point in the future.
Every single stock has a chance of crashing to the ground.
And every single one has a chance to double your money.
We don't know what it's going to do based on future earnings or news on the company.
If we did, being a trader wouldn't be a thing. Investors would be the only ones out there.
So that brings me to the main reason I'm reaching out to you today...
Call spreads.
Call spreads are the worst trade that you can ever put on the market.
Unlike a regular call where you only care if a stock goes up...
Calls spreads are made when you think a stock is going to only go up by a certain amount in a short amount of time.
You see the problem here, right?
You're putting extra restrictions on your own trade, and making it so it's even MORE likely to be wrong.
If you're confused or don't believe me...
Click here or the video below to get more info on the worst trade in the stock market...
So, now you hopefully get it.
My advice if you ever thought about doing a call spread is to stop while you're ahead.
Stick to what works, and trade around the VWAP.
Target your trade with a plan, understand your risk, and never hold overnight positions.
In this market, you're going to get crushed if you try and predict what's going to happen.
Join us in the Warlock's World, and trade what works.
As always, feel free to drop me a line with questions or comments to [email protected].
I'll see you all tomorrow morning!
The post Why call spreads are the worst trade you can make appeared first on This Is VWAP.
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