After I reached $10,000,000 in career trading gains recently*, I received an overwhelming amount of questions just asking how I achieved that milestone.
To be honest with you, I didn’t even realize that happened until after the fact because I was just focused on finding my next play.
If I can describe what got me to where I am today in just two words…
It would be:
You see, my trading style typically revolves around uncovering catalysts and getting into these plays ahead of time…
Then locking in my gains once the stock makes a move and everyone hears about it.
I want to show you the turning point I took in my career, and teach you how to identify stocks before they move.
If you don’t know already, catalysts are what moves stocks.
Sure, you might be able to identify chart patterns here and there… but you know what really causes prices to move?
For example, the Federal Reserve has been injecting money into the economy, and they mentioned they’ll still try to do everything in their power to continue to support the U.S.
In other words, they were essentially giving out “free money” and that’s what caused the massive runup off the March lows.
The massive drop and pop in volatility back in March was caused by COVID-19 and the worldwide shutdowns, which damaged economies and supply chains.
Makes sense so far, right?
Those are catalysts.
I believe the key is to identify these catalysts early and get a jump on the action before everyone and their brother start talking about it.
How do you find these catalysts?
For me, it’s simple. I just conduct due diligence and look for specific sector and stock plays.
For example, right now, coronavirus stocks are still hot, so I keep the key names on my radar.
“Coronavirus Names”: AIM, APT, CODX, CEMI, INO, IBIO, OPK, MRNA, GILD, NVAX, VXRT.
With these names, it’s a heck of a lot easier to spot catalysts for me.
A lot of the time, these catalysts are known ahead of time… it’s just that many traders don’t know where to look for them.
Remember when Moderna Inc. (MRNA) made a move in early July?
Well, there was a catalyst event upcoming, and traders could’ve actually taken part of the move.
The beauty of catalyst trading is you don’t necessarily need to catch the entire move to have outsized gains.
The best part about this trading style is that there are catalysts in nearly any sector.
Right now, there are more catalyst plays than ever in my opinion.
That’s why I believe now is the best time learn how to spot these catalysts and trade them.
And why this trading style is so darn effective.
*Results presented are not typical and may vary from person to person. Please see our full disclaimer here: https://ragingbull.com/disclaimer.
A new breed of traders have piled into the market, many of them have small accounts.
Robinhood has more than 13M users, and the typical Robinhood account ranges from $1,000 to $5,000, according to JMP Securities.
That figure may seem like a large sum of money to some, but to be honest…
It’s a drop in the bucket when it comes to trading.
However, that shouldn’t deter anyone from learning how to trade.
After all, I started with $15K and was able to turn my small account into more than $10,000,000 over the course of my career*.
I received an overwhelming response from readers, asking whether there is an easier way to grow small accounts.
Sure, and I want to show you some of the techniques I used to grow my small account…
But it’s probably not what you think, and what you learn today may shock you.
I don’t know what it is with new traders… but they think they have to hit home runs to grow their account.
I mean I thought that way once before too…
But to be honest with you, that only caused me a lot of pain.
You see if you’re constantly thinking about your returns and how much money… it can actually cause more harm than help.
If you’re focused on growing a small account, typically the first thing you think about is nailing one trade to help you double your money.
Sure, it may work, but it’s not a viable long-term strategy.
It only takes one trade where you get too big, and a press release comes out… and the stock moves against you, and you lose your shirt.
I’ve actually found some easier ways that helped me stack up when I first started trading:
I think that’s the bare minimum if you’re serious about growing a small account.
To this day, I’m not focused on hitting home runs. However, from time to time, I will nail large winners.
When I first started trading, I was working a 9-5 job as a real estate analyst. My goal was just to make some supplemental income every week, I knew I wasn’t going to be an overnight success.
I tailored my strategy to my wants and needs and only focused on my best setups.
I also knew where I wanted to get into a stock, where to take profits, and where to stop-out.
Let me show you an example…
Last week, my highest-conviction trade idea was in Workhorse (WKHS).
Well, the stock suffered a major pullback and the news was out. However, Tesla Inc (TSLA) was set to report earnings and I figured the electric vehicle space could run up into that event.
I had a plan in place and executed*.
Of course, I locked in my gains once it reached my target*… and the stock continued higher.
Could I have made more?
Sure. But if I held, I wouldn’t have been sticking to my plan, and that would go against my trading rules.
For me personally, when I first started trading…
It was important for me to only focus on my bread-and-butter setups, that prevented me from overtrading and actually saved my account.
Since there are so many new traders in the market who have small accounts, I wanted to try to teach as many of them as possible.
Inside, you’ll learn how I was able to grow my small accounts and get an inside look at my most popular service.
*Results presented are not typical and may vary from person to person. Please see our full disclaimer here: ragingbull.com/disclaimer
Sogou Inc. (SOGO) was one of the hottest stocks on Wall Street on Monday, finishing the day up 48%.
The reason for the explosive move?
SOGO received a buyout offer from Tencent — a Chinese multinational conglomerate.
The thing is…
There was some unusual options activity that hit the tape on Friday…
Did that options player know about the news… or was it just a lucky trade?
Who knows, and who really cares.
The only factor that I believe is important to follow right now is…
The Paper Trail
If traders know where to look, they may uncover large winners.
Let me show you the activity my scanner detected in SOGO.
On Friday, more than 37K calls traded in SOGO — when you compare that to the average number of calls traded per day (177), it signals people wanted in.
At the time, it was uncertain why the Chinese search engine company was up by more than 21%…
…and why the options action was so heavy in the symbol.
But now we know.
On specific options trade actually stuck out: the $7.50 strike price calls expiring in August.
More than 26,000 of those contracts traded on Friday…
And one trader bought 2,540 of them and paid $0.20 per contract.
In other words, they spent over $51K on that trade.
I don’t know about you, but that seems like an awfully well-timed trade.
They purchased deep out-of-the-money (OTM) calls when the stock was trading below $6…
Come Monday morning, the company has a catalyst that propelled the stock higher…
While the stock was hot…
Those returns pale in comparison to the returns on the options.
Those SOGO Aug $7.50 calls that were going for $0.20 on Friday…
Hit a high of $1.50 on Monday, and closed at $1.15.
That means a $200 bet could’ve generated as much as $1,300 in gains.
A $500 bet could’ve generated as much as $3,250 in gains.
The options player who bought 2,540 of those calls and spent $51K, could’ve made as much as $330K
That’s why it’s so important to pay attention to the “smart money”.
I know what you’re thinking, “How do you actually follow these players?”
For me, it’s simple.
Now, if you want to learn how I’m able to steal the “smart money’s” trade ideas…
You’ll learn how I use unusual options activity to my advantage, and how to uncover explosive opportunities.
Now, all I ask is you come with an open mind because what you’re going to learn may shock and amaze you.