Following this one rule will make your investing simpler, not to mention more lucrative: Only buy assets that are already going up.
Said another way, you should limit the buying opportunities you’ll consider to stocks and exchange-traded funds (ETFs) that are in an uptrend.
I call this a “trend rule.” The momentum factor within Green Zone Ratings helps us target stocks following this trend rule.
It’s a simple first-pass filter that quickly tells me whether to consider a stock or ETF.
It’s the first thing I look at.
If the trend is down … I move on.
If the trend is up, I continue down my checklist of requirements before I make a buy recommendation.
This trend rule is a key part of the Home Run Profits algorithm, which I’ve used religiously since we launched the strategy in 2012.
2 Key Advantages
We have two key advantages with this trend rule:
- Buying stocks only if they’re in an uptrend increases your odds of success with a long trade. Simply put, your win rate is higher when you buy uptrending stocks.
- Stocks in uptrends are less risky than stocks in downtrends. Meaning, the drawdown you may suffer if the stock starts to stumble is, on average, much milder when you buy stocks that are already trending higher at your point of entry.
Think of the first of these features as helping you find more winners.
Since 2012, nearly 70% of our Home Run Profits options trades have been winners. And our trend rule has helped.
The second feature helps us limit our losses on trades that turn out to be a dud. Hey, you can’t win ‘em all.
But if you can keep your losses relatively small, your larger-sized profits will more than make up for them. And that’s been the case for us!
In Home Run Profits, I use the Green Zone Ratings model for stocks, alongside my momentum algorithm, to find the market’s best money-making opportunities.
But that’s essentially the only “tweak” I’ve made to the Home Run Profits strategy since I launched it in 2012.
That’s the strategy: We only buy things that are already trending higher … and we only buy them if they’re showing market-beating momentum, according to my proprietary algorithm.
Other than that, we remain flexible and willing to go wherever the best opportunities arise — whether that’s a hot tech stock or a boring utilities-sector ETF.
And by trading options, you can turn a “boring” sector ETF into a not-so-boring options profit!
I’m talking about potential profits in the 200% … 300% … even 400% range. A small group of subscribers saw 83 wins in the single, double and triple digits since 2012.
And it didn’t take a long time for these gains to come in. It took only 71 days, on average, to get in and out of these trades.
Sneak Peek: The Power of 3
Here’s the best part. I recently upgraded my Home Run Profits strategy to make even more gains. It revolves around the “power of 3,” or making three wins out of one trade.
My publisher agreed to let me share this video with you:
I shared it with my premium Green Zone Fortunes subscribers on April 7.
It walks you through how we used this new approach on four options trades within Home Run Profits recently.
And best of all, we didn’t conceal the ticker symbols of these trades. I show you exactly what we traded, how we traded it and why we traded these ticker symbols.
Be sure to watch it here.
To good profits,
P.S. I really hope you’ll watch the video above if you still have questions about the Home Run Profits system. But if this article convinced you that this easy-to-follow options trading strategy is right for you, click here to join.
I’ve taught plenty of novices how to trade options and helped experts “up” their game. I hope you’ll join us!