Investors and traders love to talk about trends.
The current hot economic and demographic trends are bantered and battered.
If you find yourself in a room with a bunch of technical traders, the subject of trend lines is almost sure to come up at some point.
Keeping up with the biggest trends can certainly boost your portfolio with the right pick.
But many trend “experts” can convince themselves of rather wild predictions that could just as easily ride the loss to the bottom.
After all, trend talks are much more interesting when they actually capitalize into huge profits beyond just the speculation.
I can be just as guilty as I spend a lot of time talking about things like 5G, cannabis, the great housing rebuild, and other trends that can help drive profits and stock prices to the sky over time.
The most dominant trend of all is the one that can make us the most money and help turn our nest egg into a mountain of retirement cash…
Last week I told you how I trade options.
I don’t trade big, and I don’t even trade all the time.
I look for low probability situations that have high potential payouts.
If I can buy these “black swan” situations at the right price for both the underlying stock and the option, then I make a bet.
A bet is what is in my mind, since it’s neither a system nor an investment.
It’s simply a bet.
Just like the ones I make at the racetrack or casino.
I have given myself as much of an edge as possible and expect that over time.
Even though most bets will lose, at the end of the day the strategy will be profitable.
I expect to make money, but I don’t expect this approach to make me rich overnight.
There is one other way I trade options, and it is as close to a win-win situation as you will find on Wall Street.