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Upgrading the “Invest Like Buffett” Plan

Upgrading the “Invest Like Buffett” Plan

Many individual investors model their trading strategy off Warren Buffett.The “Invest like Buffett” plan goes like this…

  1. (Somehow) find stocks like Buffett
  2. Buy and hold those stocks for 50 years
  3. Become a billionaire

This plan is not for me.For one, I’m not patient enough to hold something for 50 years.But more importantly, I don’t need to.I can profit off Buffett’s moves in much shorter time, by simply paying attention.Buffett is the biggest money on Wall Street. As far back as the 1800s, following the Big Money has been key to a successful trading strategy.With the right technical indicator, you can profit off moves like Buffett’s in a matter of hours…

Look for These Clues

Whenever I hear Buffett has made a new acquisition, the first thing I do is study the company’s chart.I want to see if I could’ve spotted his latest buying activity. And in nearly every case, there is a clue.Maybe there was increased volume in the stock. Or perhaps most of the trading activity occurred close to the day’s high, showing buying pressure.Almost all technical indicators work by identifying clues like these.Take the popular RSI. It rises when buying pressure increases — i.e., when the Big Money is buying the stock.This is true for my strategies, as well. Market Leaders follows long-term Big Money moves by only investing in ETFs with the best performance of the past six months. In Precision Profits, my Greed Gauge tracks short-term changes in momentum and trades options accordingly.My colleague Andrew Keene — who’s about to go live with his first research service under True Options Masters — trades on the very-short-term.He’s in and out of most of his trades within hours of the opening bell… And still lands gains as high as 250%.How? You guessed it. He follows the Big Money with his own preferred methods.

Make the Big Money Work for You

The logic behind Andrew’s strategy is bulletproof.He reasons that, if a trader is willing to throw down five or six figures on an option, there must be good reason.Maybe they know something we don’t. And more often than not, he’s right.Members of his Trade Room have managed about a 70% win rate in this bear market, by only following the trades Andrew’s scanners pick up.Andrew created a custom scanning tool based on his decades of experience as a floor trader at the Chicago Board of Exchange. By applying this to real-time options data, Andrew can see where wealthy individuals like Buffet are putting their money in real time.Even better, Andrew only focuses on “smart” Big Money. He weeds out any unusual trades that aren’t confirmed by several other factors that would increase his chance of success.This is a time-tested strategy. As early as 1890, Charles Dow wrote that the Big Money buys before small investors.But most individual investors don’t have the time or resources to follow these moves on their own.That’s why Andrew will soon open the doors to Trade Kings — a live trading room where participants can follow Andrew’s scanners and trade highly effective Big Money signals.  Space is limited. He’s only accepting 1,000 members to start.If you want to let the Big Money work for you, add your name to the waitlist right here.

Regards,Michael Carr signatureMichael Carr, CMT, CFTeEditor, True Options Masters

Chart of the Day:The Oil Trend Is Still Up

By Mike Merson, Managing Editor, True Options Masters

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Crude oil got dangerously close to slipping out of its long-term uptrend last week.But just as it’s managed to do all year long, it bounced off the blue support line and crossed above the long-term white trendline yet again.The reasons why may be far less technical — Russia’s invasion of Ukraine got uglier this week after a missile strike on a crowded shopping center. G7 leaders condemned the attack, calling it a “war crime.”That tells us the war is far from over. Which means the supply of oil will continue to be strained.I’m as sick and tired of expensive oil as the rest of us. But we can make up for the pain at the pump by trading oil stocks.Should this bounce carry through this week, I don’t see why oil can’t run to new local highs. Make a plan for $120 and even $130 oil in the weeks to come.

Regards,

Mike MersonManaging Editor, True Options Masters

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