Rachel’s note: We’re seeing some of the wildest market swings since 2008. And it’s wreaking havoc on the everyday American’s wallet.
On top of raging inflation, Russian troops are shelling civilians in the cities of Kharkiv, Mariupol, and Kyiv… the Russian foreign minister has warned of a nuclear “third world war”… and more than 500,000 Ukrainians have sought refuge by crossing into Poland. And as the rest of the world sanctioned Russia, crude oil shot past $120 a barrel.
All of these things could mean millions of investors seeing their portfolios wiped out this year… if they don’t know how to play it.
But in this type of market environment, Casey Research friend Larry Benedict thrives. He’s lived through it all – and says there’s a guaranteed event a couple of weeks away that could give nimble investors the chance to protect their portfolio… and land some big profits.
It has to do with a unique strategy Larry used at his hedge fund for two decades to make millions for his clients. Since sharing it with his readers, he’s scored a perfect win record – seven for seven.
Larry will share all the details you need to start using his strategy on Wednesday, March 9 at 8 p.m. ET. Reserve your spot here. Then, read on for his trading philosophy…
By Larry Benedict, editor, The Opportunistic Trader
Trading is a business. And like any business, you have to have a goal of what you want to make and a plan to hit that goal.
When I was running my hedge fund, that was the only way I did business. I had clients write down a number on a piece of paper, and that’s what I made for them.
Like those clients, anyone who’s serious about trading should have a goal of what they want to make. A number on a piece of paper that they’re going to make in one month… two months… or whatever timeframe it may be.
And there’s one specific way to achieve that…
You should always look to put a “P” – profit – on the page.
It doesn’t matter if the profit is small. If you have it, you take it.
This is the only reliable way to hit your trading goals.
The Number One Pitfall for New Traders
Most traders want to make a specific amount of money… but also get there in the fastest way possible. They overleverage their positions, load up on risky bets, and get blown up.
That’s a fast way to become poor, not rich.
The smart trader… the one who’s in the vast minority… is taking small profits every single day.
And if you keep doing that, over and over again, you accumulate a larger base of capital and can afford higher levels of risk… which inevitably leads to bigger rewards.
Trading this way means your winners will outweigh your losers. You won’t be all-in on one high-risk idea – the harbinger of death in the trading world.
It seems obvious and easy to follow, but most new traders don’t think this way…
First, it’s because they get attached to their losers. They sit on a losing position, hoping it will eventually become profitable… and it usually doesn’t.
And second, they never take a profit unless it’s a grand slam. They’ll keep pressing on a winner, even when they’re losing money overall. They think that’s the only way to be successful.
But that’s the wrong line of thinking… and it’s the number one pitfall new traders tend to fall into. They don’t understand how to size their positions according to how they’re trading. They don’t earn their risk.
And understanding how to do that is the most important thing in trading.
Proper Money Management Is Key
For example, in 1984, I started out on the floor of the Chicago Board Options Exchange, with $10,000 of my own money.
Larry (right) on the floor of the Chicago Board Options Exchange in the mid-1980s
I would allow myself a sum of money to trade and grow. And I kept losing all of it.
At the same time, I had a buddy named Andy who was making money every day. But I couldn’t figure out what he was doing differently.
I called my mom and told her that Andy was making so much money and I was losing all of mine. She said, “Just do what he’s doing.”
Here’s what he was doing: Letting profits slowly trickle in.
He wasn’t going all-in on a risky trade idea. He was slowly, but surely, building a strong base of capital.
In other words, putting a “P” on the page, no matter what.
It took me a long time to grasp this concept. I chewed through all of my money, probably two or three times, by making silly mistakes. Things like being too impulsive, going for the home run, or holding onto losers too long… All the basic “no-no’s” of trading.
Each time I chewed through all of my own capital, I learned something.
I got closer to learning how to let go of losers and avoid impulsive trades. Then, I got picked up by another firm, and they gave me some money to trade and a shot at success.
And over time, I began to figure out proper money management.
It takes both practicing on your own and learning from others. I was lucky because I made all my mistakes early on in my career and was willing and able to bounce back.
The reason I’m telling you all this is to inspire you. Anyone can start small and become a big-time trader – especially if I could…
It all starts with learning how to slowly put profits on the page. Before long, you’ll notice those profits grow larger and larger. And that’s when you’ll know you’ve made it as a successful trader.
Editor, The Opportunistic Trader
P.S. Remember, it’s rare for someone to start trading and see success immediately. It can take years of persistent study and practice.
But soon, there’ll be a rare moneymaking frenzy hitting the market that I call Wall Street’s “Black Friday.” It’s guaranteed to hit in a couple of weeks and has the potential to help put your trading account “in the black” for the entire year.
Since this event is right around the corner – this Wednesday, March 9 at 8 p.m. ET – I’m putting on a special presentation that dives into this unusual week, showing you how it works and revealing my favorite ticker to trade for massive potential profits. Just sign up right here so you don’t miss out.