Now is time to learn trading
Dear Traders,
I am on my way to climb some of the highest peaks in Oceania, including in Australia, as part of my attempt to climb the Seven Summits.
I will miss a few trading days in this coming week, but as many saw on Monday, I traded LIVE on our YouTube channel. My recap is here and I plan to do more LIVE trading on YouTube.
If you are not yet a subscriber to my channel, make sure to do it now to help me get to 100,000 subscribers as soon as possible!
Monday, I also sold puts at $119 for a whopping $10,000 profit in two days. Although I am not a fan of Tesla, Monday’s 5% drop was obviously an overreaction. I sold naked puts at the Open and those puts are now worthless, making me a decent no-headache profit. Watch my recap here if you want to see how I traded them.
Earnings season has started in full force, with Tesla’s earnings surprising everyone. The worse-than-expected profit did not disappoint investors, and Tesla rallied over 13% pre-market, mostly due to the announcement that they will ramp up their production of lower models.
All investors are looking at this season’s corporate earnings and profits. Everyone has now realized how resilient the US economy has been and how corporate earnings are nicely heading up. The Federal Reserve’s main job is to control the job market and price stability by managing the business cycles, but it seems the resiliency in corporate America is more than what was expected.
When I was traveling from Vancouver, since I was flying in business class, I was invited to the SkyTeam lounge. When I was preparing to scan my boarding pass to enter the lounge, I noticed that a few people were declined entry. They were part of other lounge programs such as LoungeKey Pass and Priority Pass. The reason given was that the lounge was full and only business class travelers were being allowed in. When I entered the lounge, I found the lounge empty. I was surprised.
I noticed that the company that has a contract with other lounges decided to deny entry to other guests in order to save money. Most likely, people do not bother to follow up and ask questions, and the lounge operator can easily save some money, and increase their profits, by randomly denying eligible guests at random times.
This is just one example of how a corporation can fight back against rising prices so as to temporarily keep their profits high. These kinds of things will eventually backfire, but smart executives will keep finding new ways to sustain their profits longer.
The overreaction to the COVID-19 pandemic, and the resulting shocks to the worldwide economy, primarily impacted so-called normal people. It increased the cost of living and put pressure on people of more modest means. The rich got richer, and they now are getting even richer by collecting hefty interest income on their capital. Whoever has access to capital is now collecting 5-6%, risk-free, while those in debt are now paying even more in interest fees.
The Federal Reserve is keeping interest rates high for the USD, and keeping the pressure on other countries’ central banks to continue to increase their rates. If other central banks do not increase their rates, the value of their currency against the USD will go lower. Since the US is one of the largest global exporters of goods and services, that means the price of everything will go up, and go up all around the world. Quite simply, the US is now the world’s biggest exporter of inflation.
What’s the solution then for us normal people?
I think the best way is to financially educate yourself and learn how to properly invest and trade. This is the best time to be a trader due to the amazing volatility and liquidity that we are experiencing in the markets. There has never been a better time in history to invest and trade!
Who would have ever thought that I could make an easy trade one day and earn $10,000 in profit on an average put selling on TSLA?
You need to learn how to do this, and Bear Bull Traders is one of the best places to learn it at.
If you are not yet part of a great community that is teaching you how to take your trading to the next level, I encourage you to join us.
We would love to offer you a 60% discount for 1 full year of membership to our community. Your cost will be only $999 and this is a deal that we rarely offer. If you are really serious about your trading, please take advantage of this incredible offer and join us.
Join us, trade live next to me, and take your trading to the next level. Onwards and upwards!
Trade with me!
To your success,
Andrew
