Too many retail traders look at a chart like Top Glove crashing and think, "It’s cheap, I’ll buy now."
But after analyzing thousands of charts over the last decade, I can tell you this: "Cheap" is usually just the calm before the next crash.
If you want to master Momentum Trading, you need to understand Stan Weinstein’s 4 Stages:
1️⃣ Stage 1: Accumulation (Boring / Flat) 😴 → We wait. 2️⃣ Stage 2: Advancing (Uptrend) 🚀 → The Money Zone. This is where we strike. 3️⃣ S...

In the previous post, we discussed using long puts for deep hedging. But as mentioned, the scenarios that truly call for long-put hedges are typically panic-driven sell-offs—they don’t happen that often. Statistically, over the past ten years, they’ve occurred about once per year on average, and in some years they don’t occur at all.
By contrast, milder, more contained pullbacks happen many times every year. These ty...

In the previous episode, we covered the first—and most important—way to deal with drawdowns: cutting exposure. As a quick recap, what are the advantages of proactively trimming positions when markets start to fall?
In this episode, we move on to the second line of defense: hedging with options.
1. When to Hedge?
Before we dive deep into hedging strategies, it helps to identify differences between two types of drawdowns:
A tech...