What’s the best winning streak you’ve ever been on?
Five trades in a row? Maybe 10 or even 20?
COULD YOU IMAGINE HITTING 66 WINNERS IN A ROW???
Sure sounds like there’s a catch, because that doesn’t seem realistic.
They probably hit 66 winners, and then the 67th wiped out all their gains and then some, right?
Normally, we’d agree with you… until we saw the results from DayTradeSPY, run by veteran traders Hugh Grossman and Ahren Stephens.
While they’ve only been a part of the Eagle Publishing family for a short while, here’s a short but impressive list of their results:
- Won 614 of 658 trades (technically 94.9074%…for you nitpickers).
- Took their $2,000 Challenge account to $10,000 from April 17, 2023, to July 11, 2023.
- Typically trade the first 30-60 minutes of the day.
You can find plenty of traders on social media highlighting their wins.
Few of them will bother talking about their losses.
But as you’ll soon learn, the focus on losses is EXACTLY why their strategies work so well.
It sounds counterintuitive… but once we explain why, you’ll never look at trading or investing the same way again… EVER.
The Key to Unlock Profits
Trading and investing balance two forces: risk & reward (we consider this one force) and probabilities.
We dug into this relationship in a previous newsletter that discussed expected value, a pivotal yet often overlooked concept.
Essentially, the more often you win, the smaller you need your wins to be.
For example, if I won $2.00 90% of the time and lost $17.00 10% of the time, I’d still win money overall.
Easy math: I win $2.00 nine times in a row, I make $18.00. I lose $17.00 on the 10th time, I’m still up $1.00.
So, what does this have to do with day trading?
Many day traders struggle to make this relationship work for them for two reasons:
- They can’t take full advantage of their winners.
- Their losers get too big.
DayTradeSPY solves these issues using options.
You see, anytime you buy a call or put option on a stock, the worst you can do is lose all your money. While that can happen when you buy a stock, no one realistically expects that. But with an option, that’s a real possibility.
The good news is that you immediately know your maximum risk on any given trade.
From there, it’s a matter of crafting a strategy that wins more money, minimizes losses, and maximizes winning percentages.
Because of the way options leverage works, the more money part takes care of itself. Hit the right trade, and you could make DOUBLE OR EVEN TRIPLE YOUR MONEY.
So, then it becomes a matter of minimizing losses and winning more often.
And here’s where the rubber meets the road.
So, now we only need to focus on minimizing losses and winning more often — 50% less to worry about than a typical trader or investor.
The Profit Progression
A typical trader or investor goes through the following lifecycle:
- Losing a lot
- Losing less
- Breaking even
- Winning a little bit
- Winning a lot
Most folks get stuck somewhere between losing a lot and losing less because they want to get to the big wins stage.
That’s not how it usually works.
Successful traders move forward in increments, losing less until they break even.
How does this step happen?
By cutting out those big losses…something the DayTradeSPY folks don’t need to worry about.
But wait, aren’t there folks who trade daily options that still get burned?
Of course. They either haven’t done the homework, crafted a strategy that they’ve begun to refine, or they simply overtrade.
The distance between losing a lot and breaking even is a matter of treating investing and trading like a business rather than a hobby.
So, what gets the trader from break-even to profitability?
That’s where the magic happens.
Hugh and Ahren walk traders through their strategies and methods that they’ve refined over the years that focus on…you guessed it…minimizing losses and maximizing winning percentages.
By no means is this the only way to profitably trade.
However, it’s far more effective and easier to stick with a strategy that wins more often than one that is like waiting to hit the lotto.
You have more control over your performance and outcomes.
Spend the time logging your trades and studying the market, and you vastly increase the odds of designing your own personal strategy.
But if you want to save yourself years of effort and money spent trying to draw your own blueprint, then we suggest you step into the world of DayTradeSPY, where every day is an opportunity.
