Paradigms explain how we view the world.
Buy-and-holders operate under a “next big thing” paradigm. They think they can spot future market leaders.
In the 1980s, they bet on Commodore, a personal computer maker. But it was PCs that changed the world, not Commodore.
In the 1990s, they bet on cell phone maker Motorola. By the early 2000s, they saw the future was actually in BlackBerry’s smartphones — or no, make that Apple.
My point is, it’s nearly impossible to pick winners in emerging technologies. Doing so requires technical expertise, insights into a company’s management and finances, and knowledge about consumer demand.
Individuals can’t possibly know all that.
That’s why traders don’t try to predict which PC maker will dominate the market, or which phone will be most popular.
They follow a much simpler paradigm, where one thing matters above all else…
Price Action Is the Only Thing That Matters
For traders, price action is the only thing that matters.
A stock that goes up is a good one to own. Stocks that go down are bad.
Sounds like common sense, and yet it’s hard for many long-term investors to grasp.
They get so hung up on finding “value” in good companies, that they fall into logic traps. They reason that, because they spend so many hours on Zoom calls, it must be a good stock to own…
And then watch in despair as the “valuable” stocks they invested in fall 80% or more.
Traders also spend time on Zoom, and Microsoft and RingCentral. But we just click the link and get on with the meeting. We don’t think of it as a stock tip.
We know that competition in emerging markets is fierce. Trying to pick one winner is doomed to fail — and, honestly, an act of hubris.
But by following price action, we can profit on any stock in the mix.
There’s no pressure to find the “next big thing.” We simply trade our indicators, and buy calls on the upside and puts on the downside.
When Mike Carr explained all of this to me back in 2008, it just made sense.
See, Mike and I met while I was still in the military. He introduced me to the world of trading, and got me started with a position at his money management firm.
We’ve worked closely in the years since. And after all this time, I thought I knew him.
But I NEVER would’ve guessed what he’s been working on lately…
Mike’s Trading WHAT?
Look, Mike is about as traditional as they come. He has strong opinions, and he’s not afraid to share them.
And for years, I’ve heard him rant about an asset class that many believed would change the world.
I was confident Mike wouldn’t touch this ticker with a 10-foot pole.
But I was wrong…
See, thanks to a recent ruling from the SEC, Mike no longer has to buy this asset…
He can trade it — and make 5X the returns, with 80% less risk.
Mike backtested his brand-new strategy extensively. And in the last 7 years, trading this ticker would’ve handed you gains of 43,000%…
Turning a starting stake of $10K into a life-changing $4.3 million. And Mike says that’s just the beginning.
This discovery is nothing short of a new paradigm for traders.
To see the controversial ticker that Mike’s been trading, click right here and put your name down. I think you’ll be as surprised as I was…
Senior Analyst, True Options Masters