How to Become an Overnight Trader
For each of the last three earnings seasons, Andy Crowder has made more money in a single six-week period than most traders make in a year.
For the first time ever, he’s inviting a small number of “Main Street” traders to learn how easy it is to hack earnings season for astonishing returns! Click here now.
It’s that time of year again.
As investors, we are offered four opportunities (lasting four to six weeks) a year to take advantage of one of the few certainties in the market.
The certainty I’m referring to is known as volatility crush. It offers investors one of the most consistent and profitable ways to trade during earnings season. Now is the time for you to start profiting.
After the closing bell Wednesday, Alcoa officially kicked off earnings season. Most investors were focused on the EPS and other company fundamentals, hoping for positive results. Well, Pittsburgh’s industrial behemoth obliged those bullish investors with a wonderful earnings report. The shares ticked 5.9% higher on Thursday. Certainly, it was a respectable return for all of Alcoa’s shareholders.
But what about the last earnings report, when Alcoa shares lost 4.6% immediately after earnings? Or the previous five out of six earnings that left shareholders with less-than-stellar results?
As buy-and-hold investors, you are always exposed to price fluctuations around earnings . . . and you should be fine with taking on that risk knowing that you have a long-term belief the stock will move higher.
That’s why you use a buy-and-hold strategy, right?
But buy and hold, when it comes down to it, is just a strategy . . . and an incredibly simple one. It’s a strategy that is easily understandable to the general public. And conveniently, it’s a simple strategy that can line the pockets of the asset-gathering firms. These firms will gladly take 2% of your invested capital a year, only to put you in a few index funds.
Now, I’m not here to discourage buy-and-hold investing. It’s a wonderful strategy when the market cooperates. I say cooperates because Ed Easterling of Crestmont Research proved that the success of buy and hold investing relies on “when you start and when you finish.”
For example, “$10,000 invested at the end of 1961 would have shrunk to $6,600 by 1981. From the end of 1979 to 1999, $10,000 would have grown to $48,000,” Easterling reported.
And remember, a buy-and-hold strategy is just one strategy . . . and for those who follow the investing mantra “don’t put all your eggs in one basket,” I find it interesting that most investors put all their eggs in one strategy: buy and hold. That ignores the mantra they associate with sound and responsible investing.
Yes, most investors diversify their buy-and-hold portfolios with numerous stocks. But as we all know, the broad market typically dictates the performance of a buy-and-hold strategy.
In my mind, true diversification means using a variety of investment strategies . . . strategies that take advantage of different market environments.
Which brings me back to the market certainty known as volatility crush.
Over the past year we’ve been using a one-day strategy that takes advantage of volatility crush. The track record speaks for itself.
Since its introduction on Nov. 1, 2017, the strategy has witnessed 33 out of 39 winning trades for a win rate of 85% . . . and the average hold time per trade was one day.
If you are interested in learning a new strategy, a strategy not tied to the overall performance of the market, then you will want to attend our webinar on Thursday, Nov. 25.
Just click here to access everything (it’s FREE).