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[TradeSmith Daily logo] July 13, 2024 Research Review: Timed Trader Pro By Michael Salvatore, Editor, TradeSmith Daily Trading without a plan is a lot like driving a souped-up muscle car without a steering wheel. You can press on the gas all you like to try to get where you want to go, and even pump the brakes to try to slow things down. But without a wheel, youâre at the mercy of the carâs drift toward inevitable disaster. Itâs so easy to get wrapped up in the excitement of trading. Thereâs an overpowering urge to just try something⦠before you worry about getting good at it⦠so, a lot of first-timers have a rough go of things. You need a real plan in place before you trade. At minimum: - An entry strategy
- An exit strategy
- And data to back up each idea. Without those, youâre likely to blow your account to smithereens and swear off the practice before you have anything to show for it. Thatâs the experience Iâd bet a majority of traders face. But they donât have to. And having a mentor to guide them can really boost the odds of success. SPONSORED AD [Legendary Trader: âAI Investors About to Get Crushedâ]( According to legendary trader Tom Gentile, who predicted the rise of Nvidia five years ago... Weâre about to enter a critical 30-day period for certain AI stocks. [Click here to see the details because...]( If youâre buying the wrong AI stocks, you could lose your shirt. This AI boom doesnât have to end in tears for you. [Click here now and heâll even give you the names of his top 10 AI stocks, completely free of charge](. How a Self-Made Trader Helps Steer Your Car Recently, [Iâve been getting to know a self-made trading master]( who knows this all too well. Heâs made and lost a lot of money on his path to where he is today. And things didnât really take off for him until he found the niche that worked for him and took a deep dive into it. If youâve been following along in TradeSmith Daily lately, you know Iâm talking about Tom Gentile â founder of our corporate partner Gulfport Analytics. Tom has found that short-term trading with the help of seasonal patterns is the technique that works best for him. It works so well, he made a ton of money doing it and has since been able to spend his time showing people how to trade the way he does. Recently, Tom opened up access to his Timed Trader Pro advisory, which does just this. In it, Tom uses his proprietary Money Calendar to find quick-hit trades on stocks with strong seasonal evidence backing up his moves. Itâs like the missing steering wheel in the eager traderâs muscle car. Earlier this week, [Tom put out a promotional presentation]( all about how heâs using his Money Calendar to spot trades in AI stocks, which could prove to be dangerous for investors to blindly buy and hold. His Money Calendar is the lynchpin of the whole deal, and it can sound almost unbelievable if youâre not familiar with seasonality and its effectiveness. So today, in our newest Research Review, weâll dive in and help you understand if Timed Trader Pro is the kind of trading strategy youâve been looking for before Tomâs offer comes down early next week. SPONSORED AD [AI Bubble Set to Pop on August 1st?]( If you have any money in AI stocks like Nvidia, Microsoft and Google... [Please take a moment to click here and see this urgent warning]( from a legendary trader who predicted the rise of AI. Hurry... If you wait until after August 1st, it could be too late. [Click here](
Research Review: Timed Trader Pro To get down to brass tacks, Timed Trader Pro gives you a weekly writeup every Monday. Tom writes a succinct analysis of the markets and, almost always, gives a new recommendation for a short-term trade lasting about 20 to 30 days. For example, hereâs some material from an alert on Amazon (AMZN) he sent his subscribers back in May so you can see the particular way he likes to trade: âSell in May and Go Away?â More like âStay in May and Make Money Today.â According to the Money Calendar, the markets are 90%+ bullish this week. Take a look... Every single day this week, Money Calendar is predicting at least 90% bullish patterns, and Iâm anticipating market momentum to move higher. Thatâs a terrific setup for this weekâs trade... For nine of the last 10 years, from May 20 to June 28, Amazon.com, Inc. (AMZN) has made an average move of $6.28 per share to the upside. This pattern alone is powerful. But given the bullish nature of the current month, and the marketâs continued push into artificial intelligence, we could be looking at a double in just over a month. Hereâs a look at the data on this trade: With the above, you can see how the Money Calendar works in closer detail. - On May 20, there were 137 separate stocks trading in bullish seasonal patterns. Those made up more than 92% of the tradable signals for that day. Once Tom determined the broader trend, he could dive into the signals themselves.
- Amazon, as you can see in the chart directly above, had a 90% win rate for the past 10 years for $6.28 upside per share (or about a 3.4% gain) over a 30-day period. That seasonal data is what drives the trade. Tom goes on to recommend a debit call spread on AMZN. If youâre unfamiliar with this strategy, itâs where you buy one call option, then sell to open another with a higher strike price. This second option position partially offsets the cost of the first. It also limits your risk â and your potential upside â on the trade altogether. (Simple long call option trades have unlimited upside but have the potential to lose 100%.) If youâve done a trade like this, you know it sounds a lot more complex to pull off than it actually is. Most brokerages allow you to put the trade together into one action in your brokerage account. Plus, trades like this donât require a big margin balance or anything like that. Here's how Tom gives those instructions. (As youâll see, the options have expired, meaning you can no longer make this trade, but itâs still a great illustration of Timed Trader Pro.) Action to Take: Buy-to-open the AMZN June 28, 2024, $185 Call, and on the same order ticket, sell-to-open the AMZN June 28, 2024, $190 Call for a limit of $2.20 or better. Enter as a good-till-canceled (GTC) order to be canceled if not filled by the end of the week (Friday, May 24). Once filled, place an order to close the position at 100% (twice the amount you paid). The $2.20 is a net debit, so youâre asking your broker to get you a position that costs you no more than that to take both legs of the trade together. Tom always targets a 100% gain on these trades. But at the same time, heâs not stubbornly holding out for triple digits every single time. Heâll settle for a bit less in many cases â including this one, where he held this Amazon trade for four weeks then booked a 50% profit a few days before those options were due to expire. These recommendations and concise analysis every Monday are the core of the service and what you can expect from Timed Trader Pro. Of course, not every trade is a winner like the Amazon one was. But Tom preaches smart position sizing â with a general recommendation that individual trades make up 2% or less of your trading account balance. And the debit-spread strategy ensures you limit your downside to what youâd normally have to suffer through with a simple long-option strategy. In addition to this, youâre getting a three-part training series that focuses on the Money Calendar, a couple reports with special situations and educational content, and a model portfolio that shows the recommended entry prices and current prices for all positions. One of the newest reports is a deep dive into how the Money Calendar works on AI stocks, and it includes a few new recommendations all [targeting 100% gains on one of the worldâs biggest AI stocks in the next 30 days](. In other words, itâs a very focused package, designed to be used for exactly what you want to use it for: trading. Thatâs how Timed Trader Pro works. Itâs a lean trading experience that strips out all the frills and focuses solely on helping you make money. As weâve been sharing often in TradeSmith Daily, we believe a short-term trading technique like this one is worth pursuing, with the economy and markets the way they are right now. Like I said, Tom and his team are [running a promotional price on Timed Trader Pro]( through early next week. You can get more info on a subscription â along with the top 10 AI companies Tom is tracking right now with the Money Calendar â as part of his recent research presentation, [which you can watch for free at this link](. To your health and wealth, [Michael Salvatore] Michael Salvatore
Editor, TradeSmith Get Instant Access
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