Use These Trader Tips to Survive the Shutdown

Post-shutdown Chicago is no fun.

Chicago has been called the best city in the world during the summer. Since I grew up near the Great White North, I have no complaints about the long winter, either. But staying in the city has become mundane and monotonous during this shutdown. The energy and excitement are gone…

Semi-closed restaurants and bars combined with all of the cancelled outdoor events have taken away the rewards of making it through the winter woes. A legendary local watering hole near the trading exchanges has seen the clientele dry up with only a few stragglers sticking it out. The CBOE has built barriers to keep traders six feet apart — and the CME Group isn’t starting again until Aug. 10. At least we can now watch baseball on TV… just not in the stands!

It’s going to take discipline to get through 2020 with our heads on straight. Luckily, our trading mindset should help keep our minds in the game. After all, the process of trading is glorified more than it should be. IDENTIFY, EXECUTE, MANAGE, our plays to MAXIMIZE profits is methodical and tedious if you are disciplined and remove emotion from the equation.

The trading isn’t always fun. But making money is a rush!

Yet here we are, adapting to the “new normal” every single day. Adapt and innovate is the mantra of great traders! Technology has changed the game almost completely from when I first started. The skills to trade in a pit just don’t translate to the present world of opportunity. The tens of thousands of ex-floor traders found a new way — or were out of the business because they had no edge over everyday investors.

Technology has empowered Main Street investors just like you! Even a pandemic shutdown can’t stop you from booking profits…

Keep it In the Money,

Alan Knuckman

Alan Knuckman
Editor, In-The-Money

Chart of the Day: Is Tesla in trouble?

Greg Guenthner

Tesla Inc. (NASDAQ:TSLA) is easily one of the most polarizing stocks on the market. Any mention of Tesla or Elon Musk by the financial media will attract hordes of Tesla fans and detractors to the comments section to fight over the latest revelations.

To be fair, the bulls have been the clear winners so far. Tesla has captured investors’ imaginations and become one of Wall Street’s darling tech stocks, rising more than 350% off its March lows.

As I noted the last time Tesla posted new all-time highs — the electric car pioneer’s move hasn’t been that surprising as the company begins to top everyone’s expectations. Tesla’s revelation last week that the company had posted a surprise second-quarter profit created even more hysteria.

Tesla’s blowout earnings prompt bulls and bears to boost price targets, reads one of the more over-the-top headlines.

But as analysts and Tesla bulls threw an impromptu parade for the high-flying stock, price was telling us a different story.

Tesla was unable to hold onto its post-earnings gains last week, dropping more than 5% Thursday after opening near all-time highs. That’s one ugly reversal…

TSLA

It would be fitting for Tesla to finally correct here as even the bearish pundits throw in the towel. No, the Tesla story isn’t over just yet. But in the short-term, prepare for some turbulence in this popular stock.

Trading Tip of the Day

Tech’s hard reset caught many traders off guard last week.

That’s why it’s paramount to always go into your trades with a plan. What is your timeframe? Are you buying a stock for a trade or an investment? What are you profit targets? At what price will you be cutting your losses? Answering these questions before you buy — then having the discipline to stick to your plan — separates the profitable traders from those who end up churning their accounts.

It doesn’t take a trading master to buy a stock. Anyone can click a mouse. But selling at the appropriate time is an entirely different story. Master selling and you’ll see a huge improvement in your profits.

— Greg Guenthner

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Alan Knuckman

Alan hails from the home of options trading in Chicago, where he began working as a clerk on the floor of the Chicago Board of Trade (CBOT). Beginning with his days on the floor, Alan’s worked with all aspects of the options markets for the past 25+ years.

Transitioning from a clerk to a floor...

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