How We’ve Banked Nine Winners in a Row

[Trading With Larry Benedict]( How We’ve Banked Nine Winners in a Row By Larry Benedict, editor, Trading With Larry Benedict One of the key tools of my trading strategy is mean reversion… Meaning, I look for stocks (or indices) that have overshot in either direction… like a rubber band that’s been stretched too far. Then, I aim to profit when they revert the other way… like a rubber band that snaps back. The good news is that we can use this mean reversion strategy during multiple time frames. Whether you’re looking at a daily, weekly, or even an hourly chart… the pattern remains the same. A stock overextends, and then reverts as buyers (or sellers) push it back from its extremes. Today I’m going to show how I recently used mean reversion in my trading service, [One Ticker Trader](. This week, we traded options on the SPDR Dow Jones Industrial Average ETF Trust (DIA). In less than 24 hours, we generated a 23.5% return – marking our ninth winner in a row. Let’s check out how the trade played out… Recommended Link [Uncertain about your retirement?]( [image]( When it comes to life and investing, most people follow the wrong advice... Go to school, Get a decent job, Work hard, Buy a home… And if you want to have something to retire on, Buy and hold stocks… But if this year has shown us anything, It's this... Most working class Americans have been left with the scraps! Living from paycheck to paycheck... Credit cards they never pay off... And retirement accounts that have cratered. Well, if you're fed up with all that stress and uncertainty... There's an approach I'd like to share with you... It can help you generate hundreds... even thousands of dollars in a matter of weeks. And I used this approach as a former money manager to generate millions of dollars for my wealthiest clients... I call it the "Money Multiplier." [Check it out here.]( -- Lots of Countermoves In the chart below, the 50-day moving average (MA – blue line) represents DIA’s long-term trend. As we can see, the short-term 10-day MA (red line) crosses it several times. Take a look… SPDR Dow Jones Industrial Average ETF Trust (DIA) [Image] Source: eSignal During each of these swings in the 10-day MA, there were lots of smaller countermoves too. And it’s these smaller countermoves that can offer opportunities to generate gains… Leading up to our trade, the 10-day MA had bullishly broken above the 50-day MA on October 21. However, the Relative Strength Index (RSI) showed us DIA was overbought (1) on October 28. ([I recently wrote about another successful trade]( we did through [The Opportunistic Trader]( using this reversal signal at 1.) [#1 Expert on Seeking Alpha reveals: The SWAN Retirement Blueprint]( With DIA overextended at 1, sellers then pushed it down. But an upswing in buying momentum caused it to rally again. This time, the RSI made an inverse ‘V’ at 2. Once again this showed DIA was overbought. The RSI was setting up DIA for another potential reversal. However, there was also another signal showing momentum had turned against DIA. Take another look at the chart… SPDR Dow Jones Industrial Average ETF Trust (DIA) [Image] Source: eSignal While DIA was making higher highs (upper orange line), the RSI was making lower highs (lower orange line). This is a common pattern prior to a change in direction. So on Tuesday November 8, we took out a short position on DIA. We bought a put option to capture any potential reversal. (Note that a put option should increase in value if a stock price falls.) The next day, DIA opened lower and dropped throughout the day. That allowed us to sell our put option on Wednesday for a tidy 23.5% profit. And while a nice little profit is always welcome, it wasn’t the only reason we sold… Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. We Don’t Leave Profits on the Table With inflation figures due for release on Thursday November 10, we didn’t want to run the risk of leaving profits on the table. And it’s a good thing we sold. DIA rallied strongly off lower-than-expected consumer price index (CPI) data. Our quick trade demonstrated exactly why I focus on just putting a “P” (profit) on the page rather than getting greedy or swinging for the fences. And by using options, we supercharged our return. But even if we had used shares, our DIA trade analysis proves that – by capturing smaller moves within large countermoves – there are plenty of opportunities for nimble traders. Our One Ticker Trader subscribers are learning that these small profits quickly snowball into something larger. With nine wins in a row, we now have an accumulated return of 115.8% since we launched in August. If you haven’t already joined us on these trades, I’d love to explain more. You can [go right here]( for more details about our strategy. Regards, Larry Benedict Editor, Trading With Larry Benedict Reader Mailbag In today’s mailbag, subscribers to [One Ticker Trader]( and to [The Opportunistic Trader]( thank Larry for his trade recommendations… Greetings Mr. Benedict, I watched your first recommended trade last week which was a 26% profit. For the second recommendation, I followed your recommendation to the letter. I had to place a limit order for $5.35 – so as not to chase the price. The order filled on November 9. As you recommended, I limited my trade to 10 contracts based on my portfolio. When I received your sell at market notice, I did just that and made a decent profit. Taking small bites of the apple seems to be a great strategy. Next time, I’ll increase the number of contracts. I’ll continue to do this until I reach my comfort threshold with your system. I’m convinced your trading strategy will enhance my portfolio better than any strategy I have tried in the past. Thank you for sharing this opportunity! – Frank B. Hello Larry and team, I just want to express my appreciation for your One Ticker Trader and Opportunistic Trader services. It's a huge help to me and my family right now when almost everything else in my portfolio is in the red. So far in November, I've been able to book an average gain of 19.98% on four trades – in an average holding time of 3.75 days. That's a solid return in this market environment! Thanks so much for the difference you’re making for me and my family. Keep up the great work. – Mike S. Hi Larry, Great timing on the DIA trade. I always buy a deep, in-the-money position with a delta value of about .80. While your out-of-the-money trade made 25%, mine made 112%. – Stuart O. Thank you, as always, for your thoughtful comments. We look forward to reading them every day at feedback@opportunistictrader.com. IN CASE YOU MISSED IT… [[DEMO] Penny or Dollar? (Not what you expect)]( Something odd is going on with our money. If you understand what’s going on, you could come out far ahead if you make the right moves. But if you don’t, you could be blindsided in the days ahead. According to Nomi Prins, PhD, this could be the most important story in the financial world in 2022… It has little to do with stocks, bonds, or cryptocurrencies… In fact, it all traces back to the humble copper penny. Knowing this secret could unlock the key to lining your pockets with cash in the months ahead. [Click here to see Nomi’s short demonstration.]( [image]( --------------------------------------------------------------- Get Instant Access Click to read these free reports and automatically sign up for daily research. [An Insider's Guide to Making a Fortune from Small Tech Stocks]( [THE 101 GUIDE TO PRE-IPO INVESTING]( [The Ultimate Guide to Taking Back Your Privacy]( [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2022 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](