Since I’m telling old war stories, I wanted to give you a little color as to how I got started in trading…
I was just a few years away from graduating with an Electrical Engineering degree, but in parallel with this I started learning to trade on my own.
I would go to the first floor of the library and find every book I could on trading, investing, and derivatives.
Broken Clocks and Insider Stocks
I got a “student subscription” to the Journal, so I was incredibly well informed about the economy compared with most of my peers.
This was in 2007, right when the veneer started to come off the housing bubble. And since I lived in Central Florida, I was at “ground zero” of it all.
Even as a 22 year old, I saw how things were starting to unravel…
Oil was above $100.
Blackstone had an IPO, dumping their bags onto the investing public.
Bank of America got a “deal” on Countrywide Financials assets, which were a lodestone around the bank’s neck for the next decade.
As all of this was kicking off, I got on Twitter and started sharing all of my investing ideas.
It was the wild west back then.
Financial social media was still a very small circle, and we all killed it during the crash in ‘08, both to the long and short side.
Yet after the crash, more people showed up with bad opinions…
Like the perpetual “top callers.”
After the Great Financial Crisis, everyone turned bearish. Suddenly everyone was looking for “retests” or the next panic to come along that would finally put the stake in the heart of the US economy.
But it never happened – and these permabears would continue running their mouths as the market continued to march higher.
And every time the market would sell off hard, they would hoot and holler about how they were absolutely right about the market tanking.
Broken Clocks and Insider Stocks
Here’s the thing: a broken clock is right twice a day.
And these permabears would be right about twice a year, because that’s how markets operate. It has nothing to do with their macro views.
Broken Clocks and Insider Stocks
If you want some free advice – if a “guru” has a strong opinion that never changes in the face of price action, then they are a pundit and not a market operator.
It’s good for entertainment… but not for your returns.
Instead of listening to the broken clocks, you want to identify the always-on-time, Swiss-engineered-to-the-millisecond kinds of clocks.
And they can be hard to come by. But I’ve got one for you.
Broken Clocks and Insider Stocks
I’ve found a corporate insider who purchased his stock right after a disastrous earnings event. He spent $146,000 on his own company’s stock.
Into the end of the year, the stock ran 56%.
When’s the last time a “hot stock tip” you got ran like that?
Well, this insider is back again, buying after a hard push lower on earnings.
When an insider buys, it’s a signal.
When he’s buying again near the same price he bought a year ago, then he knows the “value floor” in the stock.
We just put on this trade – and it helps that it broke to new month highs while the rest of the market is trading near the lows, signaling solid relative strength.
I don’t want you to be stuck with “broken clocks.” I’ve put together a training that breaks down this insider stock strategy step by step – you can watch it 100% free on this page here.
