Scott PearcyParticipantOctober 15, 2020 at 11:28 AMPost count: 348
I have subscriptions to a few other newsletters that I purchased (I bought lifetime subscriptions before Logical Investor came online), and whenever these other newsletters make a recommendation, I use the teaching and training that Sean has provided us to evaluate the recommendation…….typically, these recommendations are for stocks that are way above the 50-day moving average and likely to experience a pull-back……so…..I have done this a couple times now…..I buy long term puts to take advantage of the most likely market moves (price dropping) these stocks will be taking…..so far it has worked out pretty well…..Sean HymanKeymasterOctober 15, 2020 at 11:37 AMPost count: 3948
Yeah, many people have never been taught a way of measuring risks by assessing the distance from major moving averages. One caution. Buying a put after a rally higher in a downtrend is more favorable than buying a put after a rally higher in an overall uptrend.
But yes, most newsletters are momentum-driven, story-driven, etc. Ours is the complete opposite of that. I can’t find anything like it in the entire industry. The industry will tell you that a newsletter like mine can’t happen (can’t be successful) because there has to be a story that pulls on people’s fears or greed and that investors won’t be patient enough for non-momentum type investing.
What we do isn’t sexy, admittedly. But what we do is pick stocks like pros/institutions pick stocks. That’s what separates us out from most all other financial newsletters. And most others won’t glorify God along the way either. I’m so glad we have what we have here. What we have here is what I’ve had in my heart to be working towards, my entire newsletter writing career. It’s very genuine. Very unbiased and it’s for the subscriber first, not for the subscription sale first.
They say in newsletter writing that you have to major on the “letter” part of it and less on the “news” part of it. They say it’s the stories that drive subscription sales and retention of those sales. So that’s why they spend their time telling you about “the next Apple”, etc. The focus is on stories and subscription sales rather than the risks taken on by their subscriber-base. We do it differently here.
Glad you’ve had success fading the other newsletter buy alerts. ha-ha.Scott PearcyParticipantOctober 20, 2020 at 11:10 AMPost count: 348
One of the “other” newsletters recently sent out a recommendation to buy Put Options on SLV and FXI……Based on their track record and the “success” of all their other trade recommendations to date, I should probably buy Calls instead!! LOL!!Sean HymanKeymasterOctober 20, 2020 at 11:19 AMPost count: 3948
Yeah, I wouldn’t want to be short SLV via a put, here. Here are the several scenarios I see for it. I see its trend staying intact.
And he’s doing a put on FXI with them having a cheap P/E and with China on the back side of the virus and recovering. I wouldn’t be doing that either.
Attachments:You must be logged in to view attached files.Scott PearcyParticipantOctober 20, 2020 at 11:22 AMPost count: 348
Yeah…me either…both are short duration…Oct 30….I am considering long calls on both though….Sean HymanKeymasterOctober 20, 2020 at 11:26 AMPost count: 3948
Better to do calls at bottom Bollinger Bands where the IVR (implied volatility) is low and is apt to expand and where statistically, you’ve got an edge. And if
you do them, do them at or in the money and long-dated calls.Scott PearcyParticipantOctober 20, 2020 at 11:28 AMPost count: 348
Will do….and thanks again for helping all of us learn more about how to become profitable in the markets!!
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