Expert Interview: How You Can Double Your Profits From Earnings
- We’re putting the finishing touches on a video that you’ll need to see to believe.
- Our team is going to show you how easy it is to make 100% gains every month.
- Check out this exclusive interview with Chartered Market Technician Chad Shoop to learn more about our revolutionary video.
The excitement here in our Winning Investor Daily offices this week is palpable!
We can’t give you all the details until Tuesday … but we’re revealing a video then that you absolutely cannot miss.
Trust me — if you’re looking for ways to make money hand over first (and who isn’t?) — keep an eye out next week.
Our team is showing you how you can make 100% gains … every month! We’ll reach out to you as soon as this revolutionary video is ready.
In the meantime, I can give you a sneak peek.
I interviewed my colleague (and Chartered Market Technician) Chad Shoop — the architect behind all the details our team is sharing with you next week.
He gave me a brief rundown on the video beforehand.
Here’s a transcript of our conversation.
Work Smarter, Not Harder
Kristen: You mentioned that your new strategy allows everyone following it to “work smarter, not harder.” Can you elaborate on that?
Chad: That’s right. See, most investors run around analyzing every little piece of data that comes out.
Their time is wasted tracking dozens of signals, waiting for one to provide a new opportunity.
That’s a lot of hard work.
I like to work smarter. I only have one signal that will trigger a new trade for us. I call it my Profit Trigger. And it only comes up, at most, four times a year.
That means, instead of tracking dozens of signals every day of the year, I only watch a stock four days a year. That’s the most a single stock can trigger a new trade for me.
I track around 80 stocks. So, instead of watching for dozens of signals on hundreds of stocks, which gives us thousands of possible trades, I only track four days out of the year, for just 80 stocks — just over 300 possible trades.
This allows us to take only the most profitable trades and ignore the rest of the market’s noise.
Kristen: You make it sound so easy. Tell me more about the Profit Trigger you used when designing this strategy. How does it edge out the competition?
Chad: My Profit Trigger is the key to this simple approach. I mentioned it only occurs four times a year.
See, my Profit Trigger is an earnings announcement. They happen just four times a year. It’s the single most important day for each stock.
However, investors tend to trade earnings announcements completely wrong.
They spend all of their time and resources trying to figure out what a company will report and how the stock will immediately react. This is a losing game. It’s too random to predict and impossible to make consistent gains from.
So I flipped this approach on its head.
I understand earnings news is important for a stock, but the initial move is only part of the data. The reality is that after the earnings announcement, we get a better idea about how the stock will trade over the next few weeks and even months.
It’s with this price move, the one that comes after a company announces earnings, that we capture massive returns with my simple approach.
Kristen: That sounds like a great approach. But let’s be realistic. The S&P 500 Index is up about 21% this year. On average, that’s about 2% growth per month. You’re saying there’s a way to make 100% gains every month? How?
Chad: I know — it almost sounds impossible. And it may be if you are used to only buying stocks a certain way. You can only reasonably expect to generate a certain amount of profits if you buy stocks.
As you mentioned, the S&P 500 is up just 21% this year. But with my system, we have grabbed gains of 50% in a single day, and gains of 104%, 158% and 180% in just weeks.
That simply isn’t possible in the same time frame when buying stocks.
You’d be lucky to find one stock to go up 50% in a month, but in a day is practically unheard of. I’m not investing in penny stocks either. These are stocks that make up the S&P 500 — the same index that was up just 21% this year.
But we are grabbing one triple-digit gain after another.
We’re pocketing these massive gains thanks to the power of options. I know some people don’t like the sound of trading options. Maybe they’ve lost money. Or maybe they are just confusing. But trust me, they are just as simple as investing in a stock.
And options are a game changer when it comes to investing.
To be able to make gains like that — 50%, 100%, even 200% — while the market is up just 21% is incredible. And once you get a few trades under your belt, you’ll be locking in huge returns in weeks in no time. Maybe it will happen with your first trade!
It’s that common. In fact, in October alone, we grabbed gains of 31%, 50%, 50%, 50% and 180%! In that time, the S&P 500 rose by 4.3%.
The Right Way to Trade Earnings
Kristen: When you put it like that, it sounds crazy not to follow your system. Now I want to ask you about earnings.
I’ve read about people betting on a stock before earnings and making a ton of money when the company’s report is surprisingly good. But you argue they’re trading earnings the wrong way?
Chad: Yes. I understand we are missing out on a big move when the company announces earnings. And it’s tempting when you see how some are realizing huge returns in a single day.
The problem is they don’t tell you about their losses.
It’s like a gambler who goes to the casino every night. They will spend a fortune chasing down one big hit. They’ll be super excited when their quarter bet turns into $1,000, but they don’t tell you that they have spent $10,000 at the casino over the last year, trying to win that $1,000.
People who make money on earnings do the same thing. They are losing a ton of money, but when one of those trades hits, they brag about it. This goes back to working smarter, not harder. They are placing hundreds of trades just to find the one that will hit it big.
We only trade a dozen or so times every earnings season — and more than half of those trades are going to deliver solid profits. That’s a track record no one betting on earnings can provide. If you have unlimited funds, go ahead. Spend it all chasing the few you’ll get right.
But if you want to make consistent profits with gains that can hit 50% in a single day, and triple digits in weeks, then you want to follow our modified approach to trading earnings.
Kristen: The casino analogy really hit home for me. Great explanation. OK, final question. At the end of 2018, stocks tanked. On December 1, the S&P 500 hit its low for the year. What if something similar happens between now and the end of this year?
Chad: That was a scary time for traders. Buy-and-hold stock investors can just ride it out.
But traders, especially options traders, have to make money in any kind of market.
And that’s exactly what we did. When I expect a stock to go up, we use a call option to profit. When my Profit Trigger tells me to expect a stock to keep falling, we use put options to keep the profits rolling in.
Last December, we had put options on Apple (Nasdaq: AAPL), NetApp (Nasdaq: NTAP), CME Group (Nasdaq: CME) and Iqvia (NYSE: IQV).
These four trades handed us profits of 50%, 50%, 99% — and 200% on Apple! This came as the market was tanking, and most investors were flat-out losing money.
By sticking to our system, we grabbed four significant profits during a turbulent time in the market.
There will be more dips to come, and when they do, I’m confident we will continue securing double- and triple-digit gains.
Kristen: Thanks for taking the time to meet with me, Chad. I’m sold. And I can’t wait to hear more on Tuesday.
Chad: My pleasure! Thank you. My next Winning Investor Daily — on Tuesday — will have all the details you need, so stay tuned!
I hope you enjoyed my interview with Chad! As he mentioned, he’ll fill you in on Tuesday!
Watch Our 2 YouTube Videos!
We have more great content to share this week!
- Anthony Planas’ five-minute Marijuana Markets update: “Vaping Crisis Boosts Edible Sales & Mexico Extends Pot Deadline.”
- Charles Mizrahi’s eight-minute video: “Beware of Stock Market Predictions: Wall Street Expert Gives 2 Rules to Follow.”
Remember to keep an eye out for our big reveal next week!
Senior Managing Editor, Winning Investor Daily
Check out the articles below if you missed any of our experts’ advice this week.
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Last Wednesday, the Federal Reserve cut interest rates. The move allows this forgotten sector to soar. John Ross sees this short-term price movement as a buying opportunity. He shares a trade that’s set to rally in the next four months. (3-minute read)
Making an accurate prediction about the stock market is extremely difficult. Even the most successful investors and hedge fund managers get it wrong. Charles Mizrahi talks about why he avoids making predictions and even listening to them, and he gives you two simple rules you can follow to make money in the stock market. (7-minute video)
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