Want to know what separates the successful traders from the duds?
They can be your worst enemy.
Emotions can get the best of you at the absolute wrong times. They’re what tells you to stay in a trade to squeeze out a little more gains … or to panic and sell on a dip just before things turn around.
But that is just the tip of the iceberg.
Emotional traders also end up second-guessing trades, procrastinating, feeling FOMO (fear of missing out), making revenge trades, making sucker trades and even totally missing trades!
This list is long.
But here’s the thing.
It’s not hard to overcome your emotions. All you need is a profitable strategy.
For me, that starts with a clear-cut buy signal that I can lean on no matter what: my Profit Trigger. Following it has saved me from second-guessing myself, the FOMO trap and countless losing trades.
And, of course, there have been some losers too, nothing is foolproof.
But the winners more than make up for them!
I’ll show you one of them today.
My Prime Example
A trade last year in Tesla (Nasdaq: TSLA) is just one example of many.
It’s the one I want to break down today.
I recommend trades on Tesla a lot. It has delivered some of the biggest returns for my readers. We trade it often — 11 times since 2017.
My trigger on the stock is simple.
If the company beats earnings expectations by at least 5% and shares jump higher at the open by more than 5%, that’s a buy signal.
This trigger tripped on January 30 last year.
The electric vehicle maker was already on the move before shares shot to the moon in 2020. When my Profit Trigger hit, this stock had surged 200% in five months.
Take a look.
I sent a trade alert out right away. In my alert, I had this line: “This is a pattern we don’t want to pass up.”
If you let your emotions get the best of you, this is one trade you would likely have passed on…
That’s the thing with an earnings event.
Everyone wants to gamble on the announcement and try to get it right.
Then when the stock jumps or falls 10% after the announcement, most traders think that’s the best it’s ever going to get. They walk away.
Boy are they missing out.
When a stock hits my Profit Trigger, I jump in right away – no questions asked. Emotions have nothing to do with it.
Because I know the gains can be double or triple digits – and in 30 to 60 days on average.
Our Strategy Pays Off
It paid off big time in Tesla.
Take a look at the next three days.
That’s a 45% pop in just four days.
The first half of our option snagged a quick 50% gain in four days…
But the second half jumped out to a 438% gain just the next day!
Just like that, those who wanted to take their profits and run were wishing they hadn’t.
This rally came at the beginning of the massive run for Tesla’s stock in 2020.
If it wasn’t for my Profit Trigger tipping me off to the continued move, I likely would not have tried to chase the stock higher. But we did and it paid off.
That’s the power of following a profitable strategy. It helps you jump in, even if your gut tells you something different.
Emotions are some of the biggest enemies to profitable traders.
But a sound strategy is the No. 1 way around it.
I just finished putting together a presentation that lays out all the details to my “Ultimate Trading Strategy.”
If you don’t have a simple strategy to follow day in and day out, I encourage you to watch this presentation and find out all the details behind my approach.
You’ll see my colleague and Wall Street veteran Charles Mizrahi and I break down how you can use this strategy, too.
Editor, Quick Hit Profits