"Successful trading isn't about guessing—it's about combining psychology, risk management, and perfect timing."

“Successful trading isn’t about guessing—it’s about combining psychology, risk management, and perfect timing.”

By Karim Rahemtulla

January 14, 2025

Today at 2 PM ET, I’m joining forces with Bryan Bottarelli and Nate Bear for our most anticipated event of the year – The 3rd Annual Market Forecast & Predictions Roundtable.

To give you a taste of the kind of opportunities we’ll be discussing, let’s revisit a trade I highlighted last month in Trump Media & Technology (DJT).

On December 12th, I wrote about the Ultimate Trump Trade – a speculative but high-potential play on DJT shares heading into Inauguration Day, January 20th, 2025.

At the time, shares were trading in the mid-$30s, and I outlined multiple ways to capitalize on the setup.

Yesterday DJT spiked to a high of $43.31, proving the trade thesis was spot on. Let’s break it down and see why it worked – there’s a lot to learn from this move.

Why the Ultimate Trump Trade Worked

When I first highlighted this setup, the idea was based on a combination of market psychology, political sentiment, and technical factors.

Here’s why it played out:

1. Speculative Momentum

Heading into Inauguration Day, there was a clear narrative: markets tend to react positively to major political events. With DJT, this was amplified by the “Trump effect” – his ego-driven focus on optics and market performance. Traders were betting on a rally into January 20th to reflect this sentiment.

2. Multiple Ways to Play the Trade

To cater to different risk tolerances, I outlined four strategies:

Buying shares outright in the mid-$30s, looking for a pop into the $40s.
Using a $35/$45 spread to reduce risk while capturing upside.
Selling puts to potentially own shares at a lower price.
Buying $40 calls for a leveraged play, though I cautioned about premiums.

Each approach had its merits, but the spread trade stood out as the best risk-reward option.

3. Volatility and Market Dynamics

I emphasized the need to manage risk, as DJT shares were trading at extremely high valuations relative to their fundamentals. This was a purely speculative play, and traders who implemented stop-losses protected themselves from any downside risk.

Additionally, I warned about the possibility of a post-Inauguration sell-off as traders “sell the news.” This is a classic Wall Street move where enthusiasm fades after the event.

Key Takeaways

This trade worked because it balanced market psychology with technical setups, while managing risk through multiple strategies.

The key lesson?

Speculative trades require discipline – understanding the catalysts, timing the entry, and knowing when to take profits.

Your Action Plan

Join Us LIVE @ 2 PM ET

If you liked the DJT trade, imagine being part of a community that uncovers these opportunities in real time. That’s exactly what we do in The War Room, and today’s LIVE event is your chance to see it in action.

Here’s what you’ll discover: