Everyone’s chasing the next big growth story, but here’s the truth: real money is made by buying what’s been overlooked.

That’s where Merck (MRK) comes in. During our latest Catalyst Cashouts Live session, a question came up: What’s the best value stock to start the year?

My answer was simple-Merck.

And here’s why.

Using the Dogs of the Dow strategy, which has delivered an average annual return of 10% over the last 25 years, Merck stands out as the most undervalued blue-chip stock in the Dow Jones Industrial Average.

It’s a rare combination of high yield, low price, and strong fundamentals-a perfect setup for a rebound.

What Are the Dogs of the Dow Strategy?

If you’re not familiar with the Dogs of the Dow, let me break it down.

At the end of each year, you identify the highest-dividend-paying stocks in the Dow Jones Industrial Average that underperformed during the year. These stocks are often undervalued, beaten down, and ripe for a recovery.

Historically, this strategy has produced impressive returns.

It works because it targets blue-chip companies with strong fundamentals that are temporarily out of favor.

For 2025, Merck (MRK) takes the crown as the top “Dog.” It’s the highest-yielding Dow stock that underperformed last year, making it a textbook value play.

Why Merck Stands Out

Let’s get into the details. Merck isn’t just a beaten-down healthcare stock – it’s a blue-chip powerhouse with serious upside potential.

Here’s why Merck caught my attention:

1. Dividend Yield: Merck’s dividend yield is one of the highest in the Dow, making it a great pick for income investors.
2. Undervalued Sector: The healthcare sector has struggled for the last two years, but that’s exactly why it’s one of the few true value opportunities in today’s market.
3. Strong Fundamentals: Merck isn’t some speculative play-it’s a fundamentally sound company with a rock-solid balance sheet and a history of consistent growth.

Merck’s underperformance has created a rare buying opportunity. While most of the market has been chasing overpriced tech stocks, Merck has quietly positioned itself as an undervalued gem.

Maximizing Gains with LEAPS Options

When targeting undervalued opportunities like Merck (MRK), LEAPS options (Long-term Equity Anticipation Securities) are a powerful tool. These long-dated options allow you to profit from price movements over an extended period-while requiring far less upfront capital than buying shares outright.

Why LEAPS Are Smarter Than Buying Stock

1. Lower Cost, Higher Leverage: LEAPS let you control more upside for a fraction of the cost of owning shares, maximizing your profit potential.
2. Time to Let the Trade Play Out: With expirations a year or more away, LEAPS allow you to take advantage of a long-term recovery without worrying about short-term volatility.
3. Amplified Returns: A moderate move in the stock price can result in significantly higher percentage gains in LEAPS, thanks to leverage.

The Strategic Edge

For recovery plays like Merck, LEAPS are ideal. They reduce the capital required, amplify potential gains, and give you plenty of time for the rebound to materialize.

Instead of tying up cash in shares, LEAPS allow you to target Merck’s potential upside efficiently and with built-in risk management.

This is how you maximize value in the market-smart, disciplined, and strategic.

YOUR ACTION PLAN

Earlier this week, we entered a long position in Merck (MRK) using the powerful LEAPS options strategy we discussed above.

This approach gives us plenty of time to capture potential upside while putting less capital at risk and amplifying our returns.

To get the exact MRK trade, join Catalyst Cashouts Live now!

But that’s just one trade.

In Catalyst Cashouts Live, we go deeper—breaking down the markets, identifying undervalued opportunities, and positioning for profits with real-time trade alerts and actionable strategies.

If you’re not already a member, now’s the time to take action.

Click here to get started today!

The post Dogs of the Dow Strategy Reveals Merck’s Hidden Potential appeared first on Trade of the Day.

Yesterday was a bloodbath for most stocks. The SPY and QQQ were crushed, with sellers fully in control.

But in the midst of this carnage, one stock did something remarkable—it was trading higher.

That stock was Disney (DIS).

When my S.A.M. AI Scanner alerted me to a fresh daily squeeze forming near its 52-week highs, I knew this setup had serious potential.

This is the kind of technical confluence that has preceded some of my most profitable trades. When a stock shows strength in a weak market while building compression near key levels, it’s a signal worth paying attention to.

Let me break down why this setup has my full attention:

The Technical Setup

1. Fresh Daily Squeeze

The S.A.M. AI Scanner identified a daily squeeze formation in DIS, signaling decreasing volatility and energy building for a potential breakout.

Compression near highs like this often precedes powerful upside moves, especially when combined with strong relative strength.

2. Relative Strength

DIS traded higher even as the broader market sold off. This kind of strength against weakness often signals institutional accumulation and sets the stage for bigger moves.

3. Price Action

The stock is consolidating just below its 52-week highs—a classic sign of accumulation. When paired with our squeeze signal, this behavior often leads to strong continuation moves.

Fundamental Backdrop

Disney’s business fundamentals add fuel to the fire:

• Streaming profitability: Achieving key milestones in its streaming business.
• Subscriber growth: Strong growth metrics driving optimism.
• Pricing initiatives: Strategic adjustments bolstering margins.
• Improved operating performance: Continued strength across parks, content, and entertainment.

Your Action Plan

This setup in DIS is hard to ignore. Here’s why:

• Fresh daily squeeze at a key technical level.
• Relative strength against a weak market.
• Decreasing volatility during consolidation.
• Bullish price structure near 52-week highs.
• Strong fundamentals supporting the technical picture.

While I haven’t entered a position yet, I’m watching closely for a potential options play. If I take action, Profit Surge Trader members will get immediate alerts, including specific entry and exit levels.

This kind of setup often presents excellent opportunities for options strategies, especially when compression occurs near key resistance levels.

Want to learn how I identify high-probability setups like this?

Click here to joinProfit Surge Trader and get exclusive access to my live trading room.

The post “A stock showing strength in a weak market with a squeeze near its highs is the kind of setup I watch closely.” appeared first on Trade of the Day.

Some of my biggest wins last year include…

A 206% gain on TRIP…

A 154% gain on DBX…

And a 153% gain on ADM – all in less than 24 hours.

This strategy is powerful, and today I’m going to show you something I created to fast track your ability to find these potential triple-digit gains.

But first, let’s define what a pre-earnings volume actually is.

The Power of Pre-earnings Trade Volume

Pre-earnings volume trade refers to the trading activity that occurs BEFORE a company releases earnings.

A company reports earnings four times a year (one for each quarter). The trading activity leading up to earnings provides clues about potential price movement.

Here are 4 key factors to look for before you make a trade ahead of an earnings report.

1. Unusual volume patterns: Traders look for spikes in trading volume without any apparent news, which may indicate that investors are positioning themselves ahead of earnings
2. Market sentiment: Higher volume often reflects increased interest, speculation, or insider knowledge about the company’s expected performance
3. Volatility expectations: Pre-earnings periods are often volatile as traders speculate about whether the company will beat, meet or miss earnings expectations
4. Options activity: Many traders also analyze options volume and open interest, as these markets often provide insight into how investors expect a stock to move.

Bullish vs. Bearish Signals

When it comes to identifying a potential move up or down, higher volume with rising prices may suggest optimism about positive earnings.

On the flip side, higher volume with falling prices may imply pessimism about poor earnings performance.

The beauty of a pre-earnings volume trade is you don’t need to guess if a stock is going to go up or down. You can make money either way – as long as there’s a big move.

How My “Pre-Earnings Volume Scanner” Identifies the Best Possible Trading Candidates

Let’s look at how my new “Pre-Earnings Volume” scanner works to identify the candidates for you (with visuals).

First, each day you’ll see a table that shows you the candidates for a Pre-Earnings Volume Trade.

I’ve attached a screenshot below.

On the far left, you’ll see the stock symbols (ADBE and CIEN in this case).

These are the companies the scanner is picking up.

Also, notice the red circle above. This is the daily volume vs. the 30-day volume column.

For a company to be a strong candidate, I’m looking for the volume on the day before earnings to come out at least 100% or more of the 30-day average.

The higher the percentage – especially above 100% – the better shot it has at being a pre-earnings volume trade winner.

And in CIEN’s case, it has a trading volume well above 100%. That’s enticing.

Another convenient feature of the scanner is the company stock chart, which shows up when you click on the symbol.

I attached a zoomed out picture so you can see what it all looks like below. So everything is in one place.

Ok, so now we’ve identified more than 100% trading volume on CIEN.

But that’s not all…

The Importance of the 9-Day EMA

One other crucial factor is the 9-day EMA. This 9-day EMA is an important part of the checklist that gives us the very best, highest quality candidate.

As you’ll see above, the stocks touching the 9-day EMA will have a checkmark, and CIEN has the 9-day EMA box ticked.

This signifies indecision between the bears and the bulls. With heightened stock volume and bull/bear indecision before earnings, you have the potential for outsized moves when earnings news hits (good or bad).

And that’s it – once you see those two factors (100%+ volume and a checked 9-day EMA), then you have a strong pre-earnings volume trade candidate.

How to Execute a Pre-Earnings Volume Trade

Once you identify your pre-earnings volume trade candidate, you’ll want to know how to execute the actual trade.

This scanner gives you multiple trade ideas for each pre-earnings candidate. It also shows you what you need to break even on the trade based on the strategy.

Keep in mind – these are NOT trade recommendations from me. I only give specific trade recommendations in The War Room. However, this scanner gives you a couple of different ideas for the contracts you could use if you wanted to make a trade on these candidates.

Overall, the Pre-Earnings Volume scanner is one of my most powerful ways to land potential triple-digit gains in less than 24 hours.

YOUR ACTION PLAN

This is just a small taste of the scanner’s capabilities. In the video below, I go over hundreds of examples of pre-earnings trading winners – many of them for triple-digit gains.

In fact – these plays target gains as high as 360% or more on earnings day.

You’ll also get to see how the scanner works with my full demo video.

Click HERE for a Full FREE Demo of the Scanner in Action.

The post Behold: The Most Powerful Creation for Dead-Simple Overnight Gains appeared first on Trade of the Day.

2025 is off to a wild start.

Seven days into the new year, and we’ve already seen more volatility than most traders bargained for. The market can’t seem to decide if it wants to push higher or roll over.

But you know what? That’s exactly when my best trading opportunities emerge.

Sound familiar? If you’re tired of getting whipsawed by market volatility, keep reading…

While most investors are paralyzed trying to guess the market's next move, my S.A.M. AI scanner has been working overtime.

And it just flagged something that made me do a double-take.

In fact, it’s giving me multiple A+ signals on a stock that most traders are completely overlooking right now.

Before I reveal this opportunity, let me explain what I’m seeing in the current market…

Current Market

AI stocks stole the show in 2024. 2025 is set to double down on that excitement. But not necessarily the way you might think…

Everyone is focused on the usual suspects – semiconductor stocks like Nvidia (NVDA) continue to press all-time highs along with Broadcom (AVGO).

Yet, volatility refuses to compress, with the VIX sitting firmly at the upper end of its recent trading range.

This makes me a bit uncomfortable playing big names for swing trades that last more than a week or two.

Instead, I want to look for stocks with positive news that aren’t tied to the broader market.

In 2024, that meant playing tickers like Cava (CAVA) and Upstart (UPST).

Lately, there has been a surge of interest in quantum computing companies like Quantum Computing (QUBT) and Rigetti Computing (RGTI).

But while everyone else chases these high-profile names, my S.A.M. AI scanner just flagged something even more exciting…

However, there is one stock that I’ve tracked for a long time that gained a whopping 766% in 2024…

…a stock with a lovely A+ setup on the daily chart…

Applovin (APP)

Let me walk you through what my scanner found.

APP took off in Q4 of 2024, surging after a massive earnings beat. But what has me excited isn’t just the move higher – it’s what happened next.

The stock entered a perfect consolidation pattern, forming what I call a “pressure cooker” setup. Notice how the trend lines are converging, creating a triangle pattern that typically resolves in explosive moves.

Can you see why this pattern gets me excited?

But here’s what makes this setup particularly special…

My scanner is showing a squeeze formation at the bottom of the chart. When the Bollinger Bands move inside the Keltner Channel (shown by those red dots), it tells me we’re building up for a potential breakout.

While other traders rely on outdated indicators and gut feelings, my S.A.M. AI scanner processes millions of data points per second to identify these high-probability setups. It’s like having a team of analysts working around the clock, alerting you to only the best opportunities.

That's not all. My S.A.M. AI scanner is giving me multiple trading options based on risk tolerance.

While I typically prefer to be aggressive with these setups, I always adjust my position size based on market conditions.

Look at the A+ signal lighting up my scanner.

When S.A.M. starts flashing high-probability signals, I pay attention.

These are the exact kinds of setups that helped me turn $37K into $2.7 million.

The best part? This stock isn’t tied to the broader market swings we’re seeing. It’s moving on its own merits, which is exactly what we want in this environment.

Trading Strategy

With volatility elevated, we need to be smart about how we play this.

Options are not cheap for this stock. So, don’t feel like you HAVE to take this trade. With my S.A.M. AI scanner, we can always find more setups.

If you like this idea but don’t want to lay out hundreds or thousands of dollars for the trade, consider using put credit spread or a call debit spread to keep your costs down.

Or, you can always just buy a small amount of shares outright.

Imagine spotting these setups day after day, knowing exactly what to look for and when to make your move. That’s the power of combining AI technology with decades of trading experience.

Ready to Trade Like a Pro?

Finding these perfect setups isn’t just about scanning charts. It’s about combining technical analysis, market psychology, and precise timing – exactly what my S.A.M. AI scanner is designed to do.

Look – this “pressure cooker” setup won’t last forever. And with earnings season ramping up, you need to be prepared.

This Monday at noon EST, I’m hosting a special LIVE session where I’ll:

• Break down this APP setup in complete detail
• Share my exact option strike prices and entry points
• Show you how S.A.M. identified this opportunity
• Walk through my risk management strategy
• Answer your questions in real-time

Don’t let market volatility keep you on the sidelines. Join me and learn how to spot these high-probability setups yourself.

Click here to secure your spot for Monday's Profit Surge Trader LIVE session.

Time is critical with this setup. I’ll see you Monday.

— Nate Bear

The post “How to Spot Profitable Setups While Others Get Whipsawed by Volatility” appeared first on Trade of the Day.

One of those winners came on a company we could be rinse and repeating this year.

Here was the setup…

Back in December, I got in early on a “perception-based” trade based on Elon Musk’s shadow presidency.

It was a spread trade on Tesla, the electric vehicle company Musk heads.

Unless you’ve been living under a rock, you know that Elon Musk is arguably the most powerful non-elected person in the world today when it comes to “advising” the incoming President Donald Trump.

Musk already added tens of billions to his net worth on an investment of under $150 million dollars. Which he used to back the correct horse in the 2024 presidential election.

Because of Musk’s winning bet, I believed his companies stood to benefit even more in the weeks and months ahead.

And that’s exactly what happened…

As of Dec. 31, 2024, the soaring valuations of Tesla, SpaceX and xAI boosted Musk’s fortune to an estimate $421.2 billion. He’s now the only billioanire in the world worth more than $400 billion.

But you might think Tesla is “too expensive” to buy shares outright, and I would agree with you.

That’s why I used a spread trade, which allowed me to bet a relatively small amount of money compared to actually buying TSLA shares.

In fact, I got in TSLA for a FRACTION of the current price… less than 10%!

And as you’ll see in the chart below, the volatility of TSLA has been off the charts.

This volatility worked in our favor and I closed the difference of the spread trade on Monday for a 21% winner in 34 trading days.

That’s the power of spreads.

And War Room members also agree.

Here’s what a few members had to say…

The post “Telsa shares are expensive, but with spread trades I can get in at a fraction of the cost.” appeared first on Trade of the Day.

Happy New Year Trade of the Day readers!

As we look back at our 2024 War Room trading performance, all I can say is… “What a Freakin’ Year!”

If you’re not yet an active War Room member, then here’s a quick summary…

All told, we delivered +296 winning War Room trades over the course of the 2024 year. That’s over a winning trade per-trading day – which was one of our primary trading promises that we’ve made to you since we created the War Room in 2019.

In fact, Karim and I have achieved this goal now for 5 straight years – delivering on this promise since the day we went live.

Our overall 2024 win-rate was +73.6% – while the average gain per-trade was +5.29% every 31.2 days. When you average around 5.3% per-month, that comes to an annualized return over +60%.

In other words, we 3x’d the return of the S&P 500, which is a feat every hedge fund on Wall Street dreams of delivering.

As we begin 2025, I truly hope that your portfolio looks healthier than ever – because I have no doubt that whatever happens to the markets in 2025, Karim and I will continue to deliver winning results to you – consistently – day after day, week after week, month after month, and year after year.

With that… let’s look ahead to what we have cooking for 2025!

2025 Forecast and Predictions LIVE: Tuesday, January 14th at 2:00 PM EST

As you know, Karim and I typically host a MTA Live session early in the calendar year – where we forecast our top predictions for the new trading year – and offer picks and recommendations on which specific companies we feel will benefit the most from our prognostications.

This is a very popular event, which is free to all MTA members (like you), and this year will be no different. In fact, we may get Nate to join us with predictions of his own as well!

But in the meantime, I wanted to start posting my early research on which companies and sectors that I believe will be stand-outs in 2025 – so you can start getting these names on your radar now.

Let’s start with the overall framework of the 2025 trading year…

“The Rule of 5”: An Important Market Distinction

Years ending with “5”: Looking back over the past 100 years, years ending in 5 have been consistently positive. The exception was 2015, when the equity market returned negative 1% – not too bad. Here are the historical results:

• S&P Return 1935: +43%
• S&P Return 1945: +30%
• S&P Return 1955: +26%
• S&P Return 1965: +9%
• S&P Return 1975: +31%
• S&P Return 1985: +26%
• S&P Return 1995: +34%
• S&P Return 2005: +3%
• S&P Return 2015: -0.73%
• S&P Return 2025: ???

*Source: https://www.macrotrends.net/2526/sp-500-historical-annual-returns

YOUR ACTION PLAN

As we begin the 2025 trading year, let’s prepare for another upside bias – but at the same time – also be ready for a major market correction – which I believe is long overdue.

More on that in next week’s 2025 Forecast and Predictions LIVE. So, mark your calendars now: Tuesday, January 14th at 2:00 PM EST at MTA-LIVE.com. See you there!

The post Why 2025 Could Be Another Banner Year appeared first on Trade of the Day.

So, while it’s a new year, I’m going to continue focusing on the same setups that helped me become a seven-figure trader. And that’s trading momentum stocks when they are paused and ready for the next move.

Which is exactly what I’m seeing on Amazon (AMZN) right now.

Despite trading near its 52-week highs, AMZN is showing signs of coiling up for its next move higher. And while some traders might shy away from stocks near their highs, I’ve learned that strong stocks tend to get stronger – especially when the technical setup is this clean.

The S.A.M. AI Scanner is showing me exactly what I want to see: a fresh daily squeeze forming with perfectly stacked EMAs across multiple timeframes. This is the kind of setup that regularly delivers the explosive moves I look for in my trading.

Squeeze Dynamics

The S.A.M. AI Scanner caught my attention with a fresh daily squeeze forming in AMZN. This compression of Bollinger Bands inside the Keltner Channel suggests significant energy building for the next move.

When we see this kind of setup near highs, rather than signaling exhaustion, it often indicates a continuation pattern is forming.

The institutional accumulation typically shows up in these compression periods before the next leg higher.

Stacked EMAs

The technical structure here is particularly compelling with the EMA setup:

• Daily chart showing perfect EMA stack (8, 21, 34, 55)
• Weekly chart confirming broader uptrend with aligned EMAs
• Price action respecting these moving averages as support
• Higher lows forming on multiple timeframes

This kind of clean technical structure often precedes significant moves higher, especially when combined with our squeeze setup.

Momentum Analysis

What makes this setup particularly powerful is the combination of:

• Fresh daily squeeze developing
• Multiple timeframe EMA alignment
• Strong relative strength compared to broader market
• Institutional buying patterns visible in volume profile

When these factors align near historical highs, it often signals that larger players are positioning for the next leg higher.

Business Overview

While the technical setup is our primary focus, it’s worth noting that Amazon continues to demonstrate strength across multiple revenue streams. The company’s diversification across e-commerce, cloud computing (AWS), and advertising provides multiple growth catalysts heading into 2025.

Key Catalysts

• Expanding advertising revenue projected to surpass $100B by 2026
• AWS maintaining cloud market leadership
• Potential dividend initiation in 2025
• Expected interest rate cuts supporting growth initiatives

Your Action Plan

Trade Thesis:

• Fresh daily squeeze suggesting imminent momentum move
• Stacked EMAs providing multiple support levels
• Strong relative strength indicating institutional accumulation
• Clear technical structure to trade against

Next Steps:

• Watching for entry signals this week
• Planning to use call options to define risk
• Looking for continuation pattern to develop post-squeeze

Risk Management:

• Primary stop below the 21 EMA on daily
• Secondary support at the 34 EMA
• Position sizing aligned with these technical levels

If you’re in Profit Surge Trader, you’ll receive real-time alerts as soon as I enter this trade, along with every management decision that follows.

Overall, this setup combines everything we look for in a momentum trade: clear technical structure, multiple timeframe confirmation, and a fresh squeeze developing near highs.

Want to see exactly how I trade?

Click here to join me in Profit Surge Trader where I break down every entry, exit, and management decision in real-time.

The post Tech Giant Shows Fresh Momentum into 2025 appeared first on Trade of the Day.

You see all the hype surrounding the current “hot button” sectors.

Artificial intelligence…

Quantum computing…

Blockchain…

The list goes on and on.

Then you hear about your friends making profits…

And now you want a piece of the action.

But at the same time, you’re also intimidated by the terminology, unsure of the risks involved and skeptical of your own ability.

As a result, you haven’t traded yet.

Well… starting today, we’re going to change that.

In this simple, approachable, and powerful guidebook, my partner Karim and I will review the Top 5 Mistakes New Traders Make – and how to avoid them.

We’ll give you a complete breakdown of the first things you should check off your list before jumping into the market.

With this guide, you’ll learn how to prepare yourself – mentally, emotionally and financially – to trade successfully.

You’ll also quickly come to understand how the right trading methods can tilt the odds in your favor.

And most importantly, by the time you finish, you’ll realize that you can – confidently – begin to harness the incredible profit potential of the stock market.

Let’s get right into it and not waste any more time. Here is the first big mistake most new traders make…

Trading Mistake No. 1 – Negative Trading Environment

Trading on a tablet at the kitchen counter or on your phone in the car is a recipe for disaster. Set yourself up for success – literally. It’s cool to close a trade for a big win while poolside with a drink in your hand, but that should not be your usual trading environment.

Give yourself a quiet area where you can concentrate. Get as far from distractions as you can. An office would be perfect, of course, but a den, basement, or guest bedroom will do as well. You’ll want a comfortable chair and a table or desk to work from. Reading and researching are critical elements of successful trading.

Also, you should be as comfortable and familiar with your brokerage as you are with your trading command center. Create a comfortable virtual trading space as well. Start by familiarizing yourself with your brokerage’s platform.

Most brokerages offer a ton of great materials to teach you how to trade through their systems. Some, like TD Ameritrade, even have official YouTube channels where an expert will walk you through placing a trade step by step in a concise, easy-to-follow video.

In addition, make sure you have a real-time live feed for stock quotes – or as close as you can get. Many sites have delayed data, refreshing only every 15 minutes or so.

This is critical to realize. Actual current prices are not reflected on many sites. Keep an eye out for keywords and phrases like “delayed” and “as of X time.” Most of the big-name brokerages have options for getting real-time stock quotes, and sites like Nasdaq.com also give you free access to quotes, with updates every 30 seconds.

Set up a functional financial environment too. Know your account balance! This isn’t poker – feel free to count your chips all the time. Make sure that you have the margin necessary for trading in an accessible account and that you are familiar with how to withdraw and deposit funds quickly. Missing a winning trade because you didn’t have the money to play it is a frustrating lesson!

So before you even think about trading, set yourself up for success by establishing a spatial, technical and financial environment that you can trade in comfortably.

On to big mistake No. 2…

Trading Mistake No. 2 – Jumping in Without Checking the Water First

It’s not a good idea to hop in a car and pull out onto the freeway without first learning how to drive.

In turn, before you start risking your hard-earned money, it’s critically important that you get familiar with trading.

That’s why I recommend that you set up a paper trading account.

This offers you a number of advantages…

First, you’ll get familiar with how to enter and exit trades.

Second, you’ll get comfortable with how to place your orders – and what the language for options recommendations looks like.

And third, you’ll get all of your mistakes out of the way NOW – before you’re using real money.

For instance…

Did you buy a put – instead of a call? Oops.

Did you sell – instead of buy? Oops.

Did you trade the March 1 expiration – instead of the April 1 expiration? Oops.

These are all rookie mistakes that we’d rather you make now – in the preparation stage – when they don’t cost you real money.

Taking the time to do this exercise right now – at the start of your trading journey – will eliminate more mistakes and make you more money than anything else you could possibly do.

At Monument Traders Alliance, we recommend ThinkorSwim platform, but many of the big-name brokerages offer paper trading accounts as well.

If in doubt, reach out to your brokerage’s customer service department, and they’ll show you the way. (Getting the customer service number is part of avoiding that first big mistake!)

Trading Mistake No. 3 – Letting a Small Loss Turn Into a BIG Loss

Consider this quote from Max Gunther’s classic investing text, The Zurich Axioms…

“Accept small losses cheerfully as a fact of life. Expect to experience several while awaiting a large gain.”

You see, part of the art form of trading is structuring your plays in a way that allows you to get out for small, manageable losses if you’re wrong… and hit grand slams if you’re right.

By structuring your plays well and utilizing stop losses, you can give yourself an edge.

Even if a speculative position doesn’t hit (which will happen), don’t worry, because you likely won’t suffer a catastrophic loss.

And don’t get frustrated! Follow this formula over time, hitting a larger percentage of winners than of losers, and you’ll always come out ahead.

When it comes to your own position sizing, set yourself a profit goal – be it a month, a year or 10 years from now – then get positioned to “make it count.” In other words, be sure you put yourself in a position to maximize your returns if your trades go your way.

If you go into each speculative position with the proper allocations given your preset goals, then you’ll be perfectly ready to make it count when things go your way.

Trading Mistake No. 4 – Not Having an Exit Strategy

I can’t reinforce enough the importance of setting your endgame.

In today’s market, never fail to cash in your profits when you can.

Virtually every game you can think of comes with a defined start and a defined end.

For instance…

• Monopoly is over when your opponents go bankrupt.
• Running a marathon ends once you cross the finish line.
• A professional baseball game typically lasts nine innings.

When it comes to Wall Street, though, the game never ends. In fact, you’re always required to call your own endgame, which is unquestionably one of the most difficult aspects of investing. Many speculators fail to call their endgame, which leads to them holding on too long… and eventually losing.

Never expect to “bottom tick” your entry or “top tick” your exit! Nobody in the modern history of the financial world has ever been able to consistently buy at the exact bottom or sell at the exact top!

Expecting to do so is nothing more than an exercise in futility and frustration. Every chance that it gets, Wall Street will mess with your mind and make you second-guess yourself – oftentimes making you feel stupid.

Prevent this from happening by using this simple trick: Call your endgame and sell half.

If you ever find yourself asking whether to cash out or continue holding, always, always, always compromise by selling half of your position. That way, you lock in some profits but are still positioned to capitalize on future gains.

Sure, you’re potentially making less than you might have by not selling, but you also have the security of knowing that you cashed in a portion of your position when that little voice of reason inside your head told you to exit.

This is the best way to have your cake and eat it too – which, on Wall Street, doesn’t happen too often. After all, if you end up taking profits too soon, who cares? As a wise investor once said, “Nobody has ever gone broke taking profits.”

Trading Mistake No. 5 – Not Having Access to Good Research

The last big mistake new investors make might be the most critical of them all…

Investing without having good information or research.

You certainly don’t want to go into any new venture totally blind.

There is a ton of information for new traders out there, but it’s not all of the same quality.

Anyone with a webcam and a brokerage account can provide trading advice.

But if you want the best chance for success, find the very best advice.

I’ve been actively trading the markets for decades.

Back in 1999, I started trading in the Apple computer trading pit on the Chicago Board Options Exchange.

And today, it’s my job to keep track of every stock, anticipate every event that influences market conditions… and distill it all down into the most potentially lucrative investment recommendations possible.

Finding the precise moment to make your trade could be the one and only difference between a sizable profit and a frustrating loss.

Avoid Those Top 5 Mistakes!

Now you know the biggest mistakes that newer traders make – and how you can work to avoid them.

Whether it’s a poor trading environment or simply unreliable information, these five mistakes will put a damper on anyone’s foray into the world of retail investing.

Take your time, prepare a comfortable and effective trading command zone, keep your losses small, always have an exit strategy, and make sure you are getting the very best information!

Above all… we look forward to sharing our ideas and strategies with you as you begin this journey into the markets!

Your best chance of success relies on keeping it simple.

There is no need to overcomplicate the market. Focus on consistency rather than trying to get into every “promising” opportunity you see come across the screen.

YOUR ACTION PLAN

Putting yourself in a positive trading environment is one of the biggest steps you can take to leveling up your trading – and your profit potential.

And if you want a good place to start your journey, I recommend joining us in Catalyst Cashouts for ONE LIVE TRADE every week.

Here we’ll walk you through exactly how to make a trade that gives you the chance to unlock overnight gains.

It’s incredibly simple, and based on my research, it wins at an 83% rate.

Our next trade is on Tuesday, Jan. 7 at 2 p.m. EST.

Click here to unlock our next trade in Catalyst Cashouts.

FUN FACT FRIDAY

A record-breaking 2024: The U.S. stock market turned investors’ heads last year. The S&P 500 experienced a 23.3% increase, and the Nasdaq saw a remarkable 28.6% rise in 2024, driven largely by tech stocks.

The last time the markets saw a boost like this was in 2019, where the S&P 500 gained 28.9%, marking its best performance since 2013.

And while markets have been down over the last few weeks of 2024, driven largely by the Fed’s recent decision, 2025 will bring new buying opportunities. We’re already preparing in The War Room for what could be a strong year for undervalued stocks. To get all our trade alerts live in realtime, click here to join us today.

Click here to join The War Room.

The post Why Most Traders Won’t Make Consistent Profits appeared first on Trade of the Day.

And in today’s video, I have a special strategy on how to do just that.

You won’t hear about this type of trade from your broker.

Click the image below to learn more.

Action Plan: LEAPs are one of my favorite long-term trading strategies at Monument Traders Alliance.

They offer similar big gain-potential as stocks, but at a fraction of the cost.

I recently compiled my watchlist of buying opportunities for 2025, and I’m inviting you to trade those companies alongside me in The War Room today.

Click here to learn more.

The post A Potent Strategy for Long-Term Gains appeared first on Trade of the Day.

Your watch list is ready, your strategy is set, and you’re determined to make 2025 your best trading year yet.

The last thing you want to do is get in your own way. Too many traders start January with ambition but quickly fall into old traps and self-defeating beliefs.

That’s why I want to share with you one of my most popular videos debunking five of the biggest myths pertaining to day trading.

These misconceptions have killed more trading accounts than any market crash – and they might be affecting you without you even knowing it.

Click play below to watch the No-BS Guide to Day Trading Success.

YOUR ACTION PLAN

Last year, The War Room delivered a stellar +73% win rate, consistently turning opportunities into profits.

But with a new year ahead, we’re raising the bar – targeting even more wins and aiming for bigger, bolder returns.

If you’re ready to take charge of your trading and join a community dedicated to success, The War Room is your next step.

Don’t let 2025 pass you by – unlock the strategies and insights that are driving real results for traders like you.

Click here to join now and make 2025 your breakthrough year!

The post The Truth About Day Trading Success appeared first on Trade of the Day.