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Friday, August 22nd
“You never know what worse luck your bad luck has saved you from.”
– Cormac McCarthy
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Presenting August’s “Scorchin’ Hot Stocks!”
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Major Market Events
- All Eyes On The Fed’s Powell — Chairman due to speak at 10am Eastern
- Trump To Decide on Semiconductors — The President will decide which chipmakers must give up equity
- Ethereum as top choice for financial world? — Palantir’s Peter Thiel leads pack of investors betting on 2nd largest cryptocurrency
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🤔 My Thoughts
How I Took 27% in an Hour (Without Getting Greedy)
My plain-English “sell the news“play you can copy
Most days I’m not hunting for fireworks. I’m looking for clean, quick trades I can control.
Yesterday gave me one on a silver platter.
Cracker Barrel (CBRL) changed its logo. That sounds silly… until price tells you it matters.
We got the pop, then the fail. That’s my cue.
I took a small put position, and when the move followed through, I paid myself — about 27% in roughly an hour. No chest-thumping. Just green, then flat.
Here’s exactly how I approach these “headline fades” in plain English:
Step 1: Let the knee-jerk play out. I don’t hit the first candle. I wait. If price pops on the headline and can’t hold the level it just reclaimed, that’s a sign the air’s thin up there.
Step 2: Trade small and simple. For a quick downside move, I’ll buy a put. If I want defined risk, I’ll use a tiny bear call spread. One contract is fine. I can always re-enter if it sets up again.
Step 3: Have the exit before the entry. My target on news fades is a base hit — around 20–30%. If it hits quickly, I take it. If price snaps back through my line, I’m out. No ego, no ”what if.”
Step 4: Take the win and close. A fast gain can turn into a loss if you stay too long. When my target hits or the setup weakens, I close the trade and move on.
Why this works: headlines can shove price to places it doesn’t “belong,” but it usually doesn’t hold.
When the first bounce fails, sellers usually press their advantage. That’s the air pocket you’re trading. But it cuts both ways — which is why size stays small and exits are written in ink.
Could it have paid more if I held longer? Maybe. I don’t care. My edge is discipline, not guesswork and not drama. Stack base hits. Reset. Repeat.
If you’re ready for more actionable market insights, we’re about to go at it again this morning…
Click here to watch the on-demand replay!
And don’t forget to register your spot here to join us next time we go live!
To Better Trading,
Alex Reid
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