On Fire But Going Higher

This stock is on fire but going higher. [Image]( On Fire But Going Higher Dear Reader, If you've been a stock investor since before the Covid crash, you probably know how this feels: First… That pain in your gut, knowing stocks are cheap again but you just can't bring yourself to buy them. Chris Rowe Founder True Market Insiders You feel like they'll drop as soon as you buy them because they've already recovered a lot of their previous decline. But you also feel like they'll triple if you don't buy them. You'd been watching the stock market's biggest winners gun higher and higher, wishing you had bought them cheaper… And now's your opportunity! But you can't. You don't. And off the market goes - without you. Stocks like Tecnoglass (Symbol: TGLS), a leading stock in the building industry, are far beyond trying to recover their highs at the 2021 stock market top. The stock broke its high and moved another 50% higher this year! Where was this darling when you were looking for tomorrow's winner? Well first of all it's not an AI stock, or a Semiconductor stock. It's not a "cool" company that everyone's going to be discussing. There's no tech to it. It's a building company and the building sector has been among the strongest sectors for quite a long time. We have been talking about this sector in my Sector Prophets Pro webinars and in CheckPoint Trader - two premium membership services we offer. It's not a flash in the pan either. Here's a chart showing the history of the sector RS matrix rankings. As you can see, it lived near the top of the matrix for most of the year and before that it had climbed to the top rankings even before the stock market bottom in October. If you're not using a FACTUAL platform, that clearly shows you what is definitely happening right now, you're flying blind. I hope, even if you're not using Sector Prophets Pro or our other services, that you're using something to see what's really happening. 80% of the reason any stock does what it does is because of the sector it's in so if you can get the sector right, you're mostly home free. I picked this stock from the Sector Prophets Pro platform a long time ago. Eventually, it became a member of the CheckPoint Trader model portfolio. The stock has been ripping higher and recently pulled back to its old support level, which tends to be an ideal buying opportunity. The masses are beginning to wake up to the fact that the stock market is strong, but the herd won't feel confident buying in until the major market averages break highs and push much higher. They'll leave boatloads of money on the table. Let's get you in, before it's that late in the game. How Can I Feel Confident Buying a High Flying Stock? It's earnings season and Tecnoglass (Symbol: TGLS) will announce August 3rd. Chances are, they'll have a strong earnings announcement but I don't really care about that. I'm a long-term investor in this stock via CheckPoint Trader so I've used the CheckPoint Trader risk-management system to position myself so that, even if the stock sells off, it will be a positive for us. That's one major reason why, if you use the method that we use in CheckPoint Trader, you'll feel confident buying into this position. Since TGLS has pulled back in price, we know there are sellers that may still be in there, waiting to keep selling and pushing the price down. But at the same time, I want to be in the position if it breaks new highs. Here's the way I'd position myself in TGLS if I were to buy into the position right now. STEP 1: Decide how much I'd invest in the stock to begin with. Since I'd consider this stock "broken" if it hits $41.50, that's where I'd assume I'd sell the stock, if I were to own the stock. I'll use a position size calculator to see how much I'd buy. I will enter that I have a portfolio value of $100,000 and I will say that I'm willing to risk 1% of my entire portfolio value on this trade. I've made my entries in the fields on the left side, including the current stock price and the number of points I'm willing to risk, which is 6.23 (I'm saying if I were a stock trader that I'd enter my "stop loss order" at $41.50, which is $6.23 lower than $47.73). The calculator knows I can risk $1,000 and that I'd sell it $6.23 lower so it says I can buy 160 shares in that case. Keep in mind, with my special risk-management strategy, I'm not actually going to set a stop loss order. I won't even own the stock itself. This will bring me many benefits. STEP 2: I'll look for a call option that expires at least 6 months from now and has a "delta" closest to 75. Deltas are like shares of stock, long story short. On the left, you can see ".76", which is the delta. If I buy one of these specific call options, it would be like buying 76 shares of TGLS and if I buy 2 of them it would be like buying 152 shares. My calculator said to buy 160 shares and so 152 is close enough. By purchasing this call, instead of 160 shares it's like buying 152 shares (but instead it's "deltas"). With the call at "$12.00" (costing $1,200 per call option) the trade will cost $2,400.00 in total. STEP 3: Take the rest of the money and put it in a safe place with a high yield, like a money market fund, paying 5% or 3-month Treasuries, paying 5.28%. Let's just call it 5%.   CRITICAL: Man who predicted every major market move over the last 25 years reveals the company behind… A $3.5 Trillion MegaTrend Driven by Elon Musk’s Secret Technology Provider… [FREE] Name, Ticker Symbol, & Critical Details [Here](   Now if I were to buy 152 shares of the stock at $47.73, it would cost me $9,546. I must still look at this like a $9,746 position. I will put $2,400 into the call option and the remaining $7,146 will collect 5% in a safe place. That's 75% of the position residing safely in the money market while 25% of the position is in the call option. BENEFIT #1: The great thing about that is if the stock drops 50% tomorrow, the most I can lose is that 25% in the call option. And if the stock suddenly recovers, I will still have the bullish position on, instead of having been "stopped out" (actually selling my stock at $41.50) like the stock trader would. BENEFIT #2: Even if the stock declines to that stop loss area, I would lose less than the stock owner would lose. Using this options calculator, I have changed the price from the most recent price of $47.73 (first image) to $41.50 where I would enter the stop-loss as a stock trader. Notice when the stock declines by $6.23, the call option only declines to $7.26. Look at what happens when the stock either goes up or down by 10 points. So when the stock goes up by 10 we gain $8.37 and if it declines by 10 we lose $6.62. That's because as the stock declines, the call option becomes less sensitive to the price of the stock. When the stock price advances, it becomes more sensitive. With that built-in edge, alone, you can completely change the game for your investing lifestyle and investing future. Imagine if you could shave a few points off every loss you ever took and you can get back most of the gigantic losses you've taken over the years. I know what you're thinking. When the stock goes up ten points, you want to make at least ten points. I hear you! Well, if you join me on my live event, next Tuesday at 1:00 PM Eastern, I'll show you how to make more than the stock owner when you're right, and lose less than the stock owner when you're wrong, and I'll invite you to view my CheckPoint 5-Star model portfolio, with five of the strongest stocks in the market. August-1 will be the day we rebalance it. I have not yet set up the webinar so you'll have to keep an eye on your inbox for my invitation that I'll send Thursday and beyond. BENEFIT #3: I can lock in my gains when I'm right without locking myself out of future losses. That is exactly what I did for my members with TGLS. When the stock went up, our call option did too. We entered the call when the stock was at $32.50. It's a member of one of the strongest sectors on the market, the "Buildings" sector. Not something you hear about on CNBC. The stock was at $53.40 on July 17th when we did this checkpoint, and that put our position up 153%. The stock had gained 20.9 points and our calls had gained 15.5 points. If you position yourself the way I'll teach you to position yourself next Tuesday, you would have gained approximately the same amount as the stock owner, without taking on any leverage. But your downside is much much less. BENEFIT #4 Remove your risk and keep making money. We initiated the position with $980.00 per call (the call was at $9.80). So far, we have removed $11.50 from the position, which means we removed more than the amount that we committed to the position to begin with. Imagine how comfortable you'd be with this position if you already removed all the original risk you put into it. You'd be much less likely to be shaken out of the stock at the first sign of trouble. BENEFIT #5: When the stock declines, you can roll out to a new, more sensitive call - Great for when the stock reverses back up. When the stock advances sharply, we can roll to a new, less sensitive call. - Great for when the stock reverses back down. I roll these options out to new options after reviewing them once-a-month. I look at key criteria to decide if I'll roll them or not. By reviewing them once-a-month, you don't have to even think about the stock market. Forget the stress. You're positioned in a way that allows you to incur minimal risk. But when stocks do decline, you'll feel it less than a typical stock owner and when it's time to roll to a different option on the same stock, you'll be rolling out of a less sensitive option and into a fresh new call option that is more sensitive. That's a GOOD thing, since the stock is now down. On the flip side, when the stock is up, if you roll it, you'll be rolling to a new option that is less sensitive…. That's great since the stock is up and at some point it will have to pull back. That's why when my stocks decline, I actually feel pretty good about it. TGLS declined sharply after we rolled it last week. GREAT! Because we rolled it to a new option that's less sensitive. We lost less than we would have lost off the highs if I had stayed in that option. I hope you've learned from this, because the stock market is on fire right now. I don't think you need to wait for a pullback to buy into your favorites. Don't wait, like the herd. Don't trade like the herd. Keep an eye out for a special invitation for a more in-depth look at how this works so that you can trade stress-free in the current bull market.   [This “Spook” Stock Just Doubled (& Could Do It Again)]( [A Sneaky Way to Play Earnings from Both Sides]( [Here’s A Strategy That Beats Powerball](   [YouTube]( [Facebook]( [Twitter]( [Instagram]( [LinkedIn]( DISCLAIMER ©2023 by True Market Insiders, LLC, Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of: True Market Insiders, 7901 4th St. N STE 6113 St. Petersburg, FL 33702. The information contained herein has been prepared without regard to any particular investor's investment objectives, financial situation, and needs. 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