Today, Executive Editor Chris Reilly sits down with RiskHedgeâs Chief Trader Justin Spittler to discuss the results of his RiskHedge Live beta test. [The Jolt with Stephen McBride] Justin’s “beta test” results are in Stephen here. Today, Iâm handing the reins to Executive Editor Chris Reilly, who sits down with Chief Trader Justin Spittler for a special interview regarding his RiskHedge Live beta test. Justin hosts a unique trade room specifically designed to capture the marketâs fast moves. I think youâll benefit from hearing what Chris and Justin have to say⦠*** Chris Reilly: Justin, the results are in for your RiskHedge Live beta test. As you know, a small group of RiskHedge readers paid to gain first-look access to your private trading room last June. During this beta test phase (JuneâDecember), we closely tracked every trade. Letâs look at how you did. Iâll give you an official gradeâbetween A+ and Fâtaking everything into account. Weâll also discuss whatâs in store for 2024, and how youâre playing the current market. Justin Spittler: Letâs do it. We should start by explaining how my advisory is different from most others. Chris: I wouldnât even call it an advisory. Your trading room is anything but a traditional service. Look, weâve been friends for eight years, and Iâve been editing your work since back when we were colleagues before RiskHedge. You did the whole âtraditional newsletter thingâ very well. For example, we launched IPO Insider in 2019 and made subscribers very happy with trades like Cloudflare (NET) +366%, VTIQ +395%, and Fastly (FSLY) +330%, among others. You wrote up the monthly issues, updated readers on the IPO market, and sent alerts when a faster-moving opportunity presented itself. But toward the end, you felt the format was restricting your ability to help members as much as possible. Justin: Yes. Iâll be blunt: Writing a monthly 15-page newsletter felt âoffâ to me after a while. Those traditional, longer-form updates are better-suited for investing letters. As a full-time trader, I monitor hundreds of charts a day. I look at price action and act on that price actionâfast. Simply put, I wanted my subscribers to receive my trade recommendations the moment it was time to pull the trigger... not an hour later, which often happened by the time it got edited, proofread, and loaded up in our email-sending software. Speed matters. And RiskHedge Live has proven, I think, to be the perfect solution. Chris: So we built RiskHedge Live to have three qualities: - Easy to use - Fun - Community-oriented âEasy to useâ because people are busy. âFunâ because many investors find trading intimidating, but this is a service anyone can benefit from. And âcommunity-orientedâ so members could grow and share their wins along the way. And trade more profitablyâregardless of experience, portfolio size, or sophistication. After six months, Iâm proud to say weâve really built a great community in the room. Justin: I agree. Itâs been fun interacting with our members. Chris: But at the end of the day, it all hinges on you producing great results. So, letâs talk about that. First, your win rate. 56% of your trades were profitable. Comments? Justin: Thatâs about what I shoot for. That probably sounds odd to readers who arenât familiar with trading, because it means almost half of our trades are unprofitable. But as most any veteran trader will tell youâand as my own personal experience confirmsâa high win rate isnât all that important. Itâs far more important what you do with your profitable and unprofitable trades. Chris: Youâre talking about cutting losing trades early, and letting winning trades run? Justin: Yes. Not to get philosophical, but the Pareto Principle rules in trading. It states that 20% of your trades will produce 80% of your results. Our real task as traders is to let the big winners flourish while keeping a tight leash on all other trades. Chris: That being the case, while your winners wonât necessarily outnumber your losers by a wide margin, your winning trades should produce far bigger profits than your losing trades. Letâs look at the results through that lens. You recommended 55 trades during the beta test. That includes 49 stocks and six crypto/crypto-related investments. Your three biggest winners were Solana (SOL) +219%, Valkyrie Bitcoin Miners ETF (WGMI) +97%, and CrowdStrike (CRWD) +77%. Your three biggest losers were Transocean LTD (RIG) -32%, Marathon Digital (MARA) -30%, and Super Micro Computer (SMCI) -23%. Congratulations. Justin: Thank you. As you know, you canât be a successful trader without managing risk, even in a year like 2023 with stocks rising 24%. Iâll reiterate: While all the glory comes from the big wins, cutting laggards is just as important. There are thousands of stocks in the market, so thereâs no reason to hang on to one that isnât rising fast enough. We cut NU Holdings (NU), for example, for a 3% gain for this exact reason: There are always more opportunities coming, and I refuse to waste time or capital in a stagnant trade when we can be in a winner. âTo be continuedâ On Monday: Chris will share RiskHedge Liveâs total return and hand Justin a final grade. Editorâs note: If youâre reading this, youâre eligible to join RiskHedge Live at the lowest possible price when you act during this Report Card series. [Click this link to review your special deal.]( Suggested Reading... [Start investing
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