Let the Campaign Begin!

 

Date: 12/14/2021
Author: Chris Hood

 


Be sure to check out new episodes of my video podcast each week, where my ace pupil Brian Jones and I talk the ins and outs of options trading- and give you insights and strategy that you can immediately put to work for you in the markets.


All traders should build a watchlist of their favorite stocks to trade.

I certainly have mine, and I call them “The Majors.” These are large, highly liquid stocks and ETFs that I’ve come to understand well over the years.

Included in this are big tech companies like GOOGL, MSFT, and AAPL and leveraged sector indexes like SOXL, SPXL, and TQQQ.

Whenever one of these has a sell-off, I wait for the technical signals to get in on the next major uptrend.

Companies like GOOGL aren’t going away.

These aren’t trendy, speculative small-cap stocks that might fall to zero. Instead, they’re profitable, growing businesses with deep institutional support.

It isn’t that you can’t be highly profitable trading small-cap stocks. The problem for me is that very few are optionable, and I prefer trading options over shares. But every trader is different, and my colleague Corey specializes in low-cost stocks with explosive breakouts.

When one of my majors starts to rally after finding a bottom, I begin my campaign.

What does it mean to conduct a campaign on a ticker?


 

Wall Street’s Best Kept Secret
Finally Revealed


 

A campaign is a series of trades of various durations and strategies running the entire length of the uptrend. I can’t afford to waste these huge moves – I want to milk them for every dollar I can.

The market is a war zone…a zero-sum game.

Trading campaigns are akin to major military operations.

Every campaign begins with a pilot position, a low-cost recon trade to let you know if your entry signal is valid and appropriately timed.

As your campaign’s general, these are scouts, point men, or skirmishers.

Their goal is not a decisive victory but to find out what you’re up against. It’s one thing to have a bullish hypothesis, but it must be tested.

Consider that well-designed technical set-ups have a win rate of about 60% most of the time. That’s excellent, but not something to bet the house on with your first position.

If things go well, you can build out the trade campaign using your preferred trade types.

Buy shares of stock, long calls, bull call debit spreads, call butterflies, and bull put credit spreads.

Any trade that you feel comfortable with and can afford is a possibility. Use everything in your arsenal to get those profits.

As the stock continues to move up step by step, peel off profits and reset trades if the conditions dictate.

Remember that it isn’t possible to catch every single movement.

Trying to profit from every tiny move has a tendency to lead you to overtrade. As a result, you’ll have an unwieldy number of forces on the field, and management becomes next to impossible.

Also, don’t get discouraged if some of the trades are losers.

Even the most outstanding generals can’t win every engagement – know when to cut your losses and retreat. Never let a minor defeat turn into a massacre.

The point isn’t to have a 100% success rate. Not even the world’s best traders can pull that off.

The goal is to finish up with a tidy net profit for that ticker.

It’s inevitable and irrelevant that you’ll have some losers. All that really matters is that you win the war.

The latest installment of my new free Monday video series, Under the Hood, covers some examples of how I’ve put this principle into practice on AAPL, MSFT, and COST. A full hour of in-depth market analysis and trading tips each week. Click here to watch the video.

Strap on your armor, draw your sword and take no prisoners.

To the victors go the spoils.

Cheers,
Chris Hood

 

P.S. The team at Rogue Investing Daily just picked up another win – 26% on DWAC in just four days. RID includes critical market analysis and stock picks you can’t afford to miss delivered to your inbox each day. Click here to find out more.


 

The Case For Crypto…
Boom or Bust?

 

 

 

Share this:

Facebook
Twitter
LinkedIn
Pinterest
Reddit
Email
Print

test

By registering you are agreeing to our privacy policy

Are you ready for The Great American Reset?