“Investor emotion-sentiment always swings from extreme to extreme. On the edges…this is where the successful investor waits patiently.”
— Ian Cassel, @iancassel
“It is easier to induce national governments to discriminate against foreign producers than to defend the interests of domestic consumers.”
— George W. Stocking
As the market opens, it’s another trade tension Trump tariff Tuesday.
In the end, tariffs are a tax on US consumers.
Taco Tuesday tastes better.
h/t iStock Photos
“There is nothing riskier than the widespread perception that there is no risk.”
— Howard Marks
Always measure your risk versus return.
Know that risk is always commensurate with return.
Speculate based on what you can lose, not what you can gain.
Go get ’em!
“Doubt is the beginning of wisdom.
He who will not seek knowledge, knowledge will certainly not seek him.”
— Midrash Proverbs 2
All of us at Options Hotline wish you and yours very Happy Passover and Easter celebrations!
Never be certain of coming market moves and continually seek knowledge. Now, more than ever, it’s at your fingertips.
Put in the work and sustain humility.
h/t Warner Bros. Pictures
“Your brain works against you when you’re cold and when you’re hot, everyone knows this. But the difference between knowing and executing is why Market Wizard books sit on millions of bookshelves and why there are so few Market Wizards.”
— Michael Batnick
Understanding your personal psychological and financial tolerances for risk, and your ability keeping your emotions in check, is a good starting point for traders. Successful speculation is built on the cornerstones of mind, method, and money management.
A combination of knowledge, courage, discipline, and hard work is the recipe for the potion.
The magic is in the mundane.
Good fortune in your trading and have a magical day!
World Chess Champion Magnus Carlsen, Photo by Tolga Akmen / AFP / Getty h/t newyorker.com
“Many have become chess masters, no one has become the master of chess.”
— Siegbert Tarrasch
So it is with markets and trading. As we begin Options Hotline’s 30th year of publication, that concept is a key to our longevity.
To survive and thrive in trading takes having the humility to understand you can’t tell the market what to do. There is no certainty, only probability. But if you understand how the game is played, have a well-considered strategy, and are continually learning, you have increased your likelihood of success.
Each Sunday, Options Hotline readers receive an email with my analysis, outlook, and option trading recommendation.
Subscribe today to receive our first bulletin of 2019.
Make your moves wisely, because when you trade with real money, there are no takebacks.
Have a great weekend!
Grabbing Great Gains Before Financials Fall
by Steven Sarnoff
Japanese Candlestick charts are a superior way to depict market price movement, because they vividly depict and reveal the human behavior (buying and selling) that drives price direction. They often send up early warning signs of coming turns in price. The chart is never wrong, only the analysis.
On a day when the Financial sector took it on the chin and fell hard, our readers are glad they were able to grab their gains (+82% in a little over a month) before many market participants felt the pain. With markets closed tomorrow, here’s a walk through how we exited a step ahead of the crowd.
James Courdier h/t YouTube
Risk/Reward Basics Bypassed In Hedge Fund Blowup
by Steven Sarnoff
Last week, news of a hedge fund blowup spread over financial media. On the wrong side of sharp moves in energy markets, James Courdier, OptionSellers.com money manager, notified his clients that all is lost. His Tampa-based options firm sent millions of dollars down the drain. He put out a pathetic, insufferable, ten-minute apology video, placing blame on a “rogue wave,” which capsized their boat.
His blaming a rogue wave is a tidal wave of baloney.
Checking the markets with a glass of wine isn’t piloting the ship properly. Successful speculation takes knowledge, discipline, courage, and hard work.
Here are a couple key lessons you can glean from the OptionSellers disaster, so you can avoid getting tossed overboard.
Welcome to the new Options Hotline Blog.
Please pardon our dust, as this new site is scheduled to be up and running early in the new year.
In the meantime, use the Pages menu above to have a look at this site (to see what we have so far) and click here to visit us at sarnoffsamuraistrategies.com.
Your patience is greatly appreciated. Feel free to contact me with any questions, comments, and suggestions.
I always enjoy hearing from you, my great subscribers, even when you tell me my picks are crazy!
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Thanks and best regards,
President, Sarnoff’s Samurai Strategies, Inc.
Editor and Publisher, Options Hotline