You Have to Know When to 'Hold' Them

In today's Masters Series, adapted from the June 20 Weekly Market Outlook issue, Greg explains why trading can sometimes resemble gambling... shares two valuable investing tips from a world-renowned poker player... and explains why investors must understand when to resist making a move... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [Stansberry Master Series] Editor's note: Don't waste your winning hand... As an investor, there's no better feeling than the one that comes with mapping out a trading strategy, executing it when the opportunity presents itself, and earning consistent returns by sticking to your formula. But disregarding the state of the markets in an effort to chase more gains can lead to catastrophic losses for your portfolio... That's why Ten Stock Trader editor Greg Diamond stresses that it's crucial for investors to recognize when it's time to stand firm in order to avoid being reckless with their hard-earned money. In today's Masters Series, adapted from the June 20 Weekly Market Outlook issue, Greg explains why trading can sometimes resemble gambling... shares two valuable investing tips from a world-renowned poker player... and explains why investors must understand when to resist making a move... --------------------------------------------------------------- You Have to Know When to 'Hold' Them By Greg Diamond, editor, Ten Stock Trader My college roommate, Steve O'Dwyer, is one of the best poker players on Earth. His career earnings in the card game surpass $35 million. When poker became popular enough to be broadcast on ESPN more than 20 years ago, he and I got hooked... We'd play $5 "hands" on Thursday nights on the East Carolina University campus. Now, while I enjoyed the game, Steve took things to an entirely different level. He bought and read every book he could get his hands on and became obsessed with each facet of poker. In fact, after we graduated, and most of our friends got jobs in traditional industries, Steve booked a one-way flight to Las Vegas. We thought he was crazy. After some initial ups and downs, Steve proved to be quite talented in the poker world. Going from a broke college kid playing $5 hands to a multimillionaire is a big accomplishment. I'm happy for my friend. He put in the work, cast aside the doubt and the haters, and lived his dream. Not many people can say that in life. I tell this story because poker and gambling are often closely associated with trading. But I always provide the same insight to those who make the comparison... If you're reckless and trade with no strategy and no discipline, and you don't manage risk then, yes, trading is very similar to gambling. But professional traders always employ smart strategies and risk-management tactics. They also exercise patience when needed to make sure they don't cross over into the gambling mentality. Longtime Ten Stock Trader subscribers are familiar with my trading strategies... I always provide position-size recommendations and stop-loss levels. I also constantly update readers on my game plan in relation to our technical strategy. I don't trade just to trade... That would be gambling. But interestingly, poker does provide some relevant lessons for traders... Today, I'll share two important insights from my friend Steve to help us better understand both the current market environment and our trading strategy. Let's get started... --------------------------------------------------------------- Recommended Link: # [Our Biggest New Prediction for 2024]( 2024 will be an extraordinary opportunity to make money. The last time we saw market conditions like this, you could have doubled your money 10 different times with our recommendations. But you'll need to try something new... a strategy we rarely advertise, and which you likely have no experience with. [Click here for the full details](. --------------------------------------------------------------- Years after Steve and I graduated from college, I traveled to Las Vegas to visit him. By this time, he had won a few poker tournaments and was climbing the earnings list. Naturally, we hit the poker tables after I arrived. But I also picked his brain about a few key mistakes that many poker players make... And interestingly, everything he described aligned quite well with professional trading. On that trip, Steve provided two valuable tips that I want to share with you today... First, too many players play way too many hands. Steve admitted that poker is a grind and many lose patience with the effort... They only want to experience the excitement of winning. But the odds suggest that "good hands" don't come around often, so you should only play when the odds are in your favor. The same thing is true in trading. I can't tell you how many e-mails I've received lamenting the trades that could have been made. But overtrading can be detrimental to overall trading success. These mentalities, and the type of investment behavior they cultivate, explain why a lot of traders fail. Yes, there's always another trade coming your way, just like there's always another poker hand to be played. But if the odds (or as I say in trading, the "probabilities") are not aligned with your strategy, you won't benefit. In that case, you shouldn't execute the trade. My "favorite" e-mails come from folks who believe they don't have enough trades on at a given time. The name of my trading service says it all... The "Ten" in Ten Stock Trader means I don't like having more than 10 options trades at once. If you bet on too many hands in poker, you're likely to lose. The same thing applies to trading options... If you buy too many options, your capital can quickly evaporate. The bottom line is, you shouldn't overplay. Follow your trading strategy and manage your risk... Patience will lead to success. The second tip Steve shared with me during the Las Vegas trip is one of the more popular insights among poker players... Know when to "hold" them. That means if you have a winning hand, hold the cards and bet accordingly. You should do the same thing in trading... Back in March, I forecast a bottom in many stocks and sectors. After that point, we accumulated shares of triple-leveraged exchange-traded funds and stock shares with long-term upside... like electric-vehicle giant Tesla (TSLA). We held them for as long as we could. However, due to recent market conditions, we've exited most of our core positions in order to lock in gains. Now let's recap how Steve's poker tips apply to our trading strategy... Currently, we're not trading too many options, as many stocks and indexes – particularly in the technology sector – are overbought. We're also not trading too many hands at once. We don't want to be overexposed to options – which have a limited shelf life. (Of course, I'm ready to pull the trigger if we see a pullback.) However, as I've recently written, we may see stocks continue to grind higher throughout the rest of this year. That would be frustrating for bears, but good for bulls. That's where Steve's second tip – knowing when to hold them – will pay off. Now, we can apply important insights from one of the best poker players in the world to our game plan... to better understand the current market environment, our positions, and the Ten Stock Trader strategy over the next few months. Best, Greg Diamond, CMT --------------------------------------------------------------- Editor's note: Greg called the 2020 and 2022 crashes... and the rally we experienced earlier this year. Now, he's stepping forward to share an urgent new warning for 2024 – one that could help you potentially double your money 10 different times... He's hosting an online presentation on Tuesday to reveal how you can double your money over and over again without touching a single stock... no matter what happens in the market. [Click here to get the full details](... --------------------------------------------------------------- Recommended Link: # [The Most Obvious Setup of My Career (Even Better Now)]( The last time an opportunity like this appeared, you could've made as much as 1,000 times your money. Most investors will miss out on this predictable shift until it's too late. But if you know where to look, huge gains are still ahead. [Full details here](. --------------------------------------------------------------- You have received this e-mail as part of your subscription to Stansberry Digest. If you no longer want to receive e-mails from Stansberry Digest [click here](. Published by Stansberry Research. You’re receiving this e-mail at {EMAIL}. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. For questions about your account or to speak with customer service, call 888-261-2693 (U.S.) or 443-839-0986 (international) Monday-Friday, 9 a.m.-5 p.m. Eastern time. Or e-mail info@stansberryresearch.com. Please note: The law prohibits us from giving personalized financial advice. © 2023 Stansberry Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Stansberry Research, 1125 N Charles St, Baltimore, MD 21201 or [stansberryresearch.com](. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Stansberry Research does not recommend or endorse any brokers, dealers, or investment advisors. Stansberry Research forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Stansberry Research (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.