I’m continuing the series on the top 6 ways I minimize my trading time . In the previous post, I discussed my watch list organization . Think of your watchlists as a tool to help you stay focused your watchlists should be created in conjunction with your trading plan. They should help you sort through the mountain of stocks to trade within minutes and minimize your trading time. So be sure to build watchlists for the strategies in your trading plan! Side note: If you don’t have a trading plan, you need to create one. If you want to be consistently profitable and successful you need your own trading plan. If you are just starting out use someone else’s plan! It’s not plagiarism it’s avoiding having to reinvent the wheel. Want access to the same watchlists I use every week? Join Mr. Money Maxwell's Inner Circle  and get exclusive insights into what’s on my radar. 📈 Don’t miss out—take your trading to the next level! 👉 mrmoneymaxwell.com You should create your watchlists based on your 'favorite' stocks ( discussed last week ) and your favorite strategies. When I talk to traders many of them don’t spend time building watchlists in a meaningful way and even fewer maintain them. This is a call to action for you to take advantage of this valuable tool. A well maintained watchlists builds the foundation for freeing up your time to take the best trades using strategies from your trading plan. I learn though examples, so I’m going to share my process. Keep in mind everyone is different. My risk tolerance, my account size, my methods are probably not the same as yours, so make your on process, but you can still apply these principals. Watchlists by strategy Daily Index: The first thing I do is review my daily watchlist that I check every day before the market opens, just to gauge the mood of the market, looking at the major indexes. I discussed this last week . Selling puts: is my favorite strategy for so many reasons (I’ll dedicate an entire article to this soon!) So as soon as the market opens, I sort my main watchlists by percent change, I’m looking at over 200 of my favorite companies having a big down day (put premium is higher on down days). Dividend Stocks: You already know I have my favorite dividend stocks on a list, so I will sort this by % down looking to buy shares or sell puts at support depending on the next ex dividend date and premium of the puts. I also check the calendar that I discuss at the bottom of this article under Built-In watchlists. Pillars: I keep a list of stocks I believe will appreciate over time, quality companies that are more investments than trades. (I'll def trade these as well, but this list is mainly longer term). This isn't something I look at multiple times a day, but I do review this watchlist just looking for opportunities. This watchlist is more so, to make sure I have all my alerts setup (which we'll discuss next week). Sideways stocks: Theta decay is my best friend, it might sound weird but I actually keep up with stocks that are consolidating for long periods of time. This list is subjective and as I review other stocks I will often add them to this list. These are just some examples, you should have a watchlist or a stock screener (either through your broker, or using a site such as finviz ) to sort through the mountain of stocks out there! Maintaining your watchlists Don't make the mistake of building a list and not maintaining it! Taking a couple of minutes to update your list will save you time in the future. Take a couple of minutes for the following maintenance tasks: Adding and removing stocks from watchlists: The more you trade, the more comfortable you get with your strategies you'll discover companies that become your favorites to trade as well. Conversely, you'll also identify those that seem to lose for you. After a few losses on the same underlying stock, I remove it from my list. After all, there are so many other stocks out there! Keep adding and removing companies that fit the watchlist on a continuous basis. Add Support and resistance: Start adding support and resistance to the charts in trading view . I like to color code my lines. Make your own system, but when I see a thin purple line I know there is weekly support or resistance (blue lines are normally on the daily chart), and if you add a line today, it will be there for months and years to come! As you can see on my apple chart, yes it takes a few minutes, but I promise this saves you so much time in the future! Remember buy at support sell at resistance is a money making strategy. Here's an example from Apple: Color coded watchlists Trading view has color watchlists: I strongly recommend you create your own system using the colors. I use these dynamic lists mainly for the short term or positions I’m currently in. This is obvious, but I want to remind you that you can not have the same underlying on two different colors! So that's why I try to use these for short term. Again this is my system and just to give you some ideas, you should make your own system! Red= Positions I’m in that are losing and I need to monitor (I also use alerts, more on this next week) Blue= I use this for stocks that have a MacD/Dmi Cross (from my alert list) Green= Stocks I’m looking to get into bullish Orange= Upcoming Ex-dividends Purple= Stocks I'm looking to get into bearish Pink List= Stocks that trade sideways. For example if I’m going through my dividend watchlist and I see a stock that might be a good buy, I’d tag that stock to the green list. (so its on my dividend list and it’s also on the green list). Then I can just sort through the green list when I’m ready to add more bullish delta to my account! So you can see I create my own watchlists based on criteria such as dividends, profitable companies, companies trading sideways, etc. Then as I run through them I color code the ones I’m super interested in the short term. This lets me keep a broad list of stocks that work through multiple stock rotations, but I can run through the color list through the week to save time! Built-in watchlists: Do not underestimate the value of default watchlists from your broker, tradingview , or stock screeners like finviz. You do not have to reinvent the wheel, if the broker or website has the information out there and it’s ‘free’, use it! Here are a few of my favorites: Tastytrade: Dividend Aristocrats: I search by IVR- as discussed in the dividend series the premium on these isn’t as much as a growth stock, but looking for higher than normal premium in a company that pays a dividend is a favorite. Liquid Symbols: If I’m low on trades, I don’t see anything great on my watchlists or alerts I’ll use this list (again sorted by IVR) to look for trades. Think or Swim: This process is definitely not as optimized as I should be. (we all need work, right?) I used to use dividend websites to find upcoming ex-dividend dates (this is the date you need to own shares to get paid the dividend) but the sites normally try to sell you a subscription or their data isn’t that great. Each Sunday I go to Marketwatch, only check the dividend box and see which stocks are going ex dividend the upcoming week. (pro tip go ahead and click on Monday of the following week in case there is a Monday ex dividend date). Trading View Hotlist: Trading View’s hotlist is a ‘fun’ list showing which stocks getting traded the most. Even if I don’t make a trade it’s good to know what is moving and see if there is a trade out there. The key for me is finding a system that I understand, maintaining the lists, adding support and resistance to the charts, and removing stocks that lose repeatedly. If I find a new stock I’ll add them as soon as I see it. It’s about remaining active and not taking the power of a well maintained watchlist seriously. Setting Alerts and getting notifications are also a key to minimizing my trading time. I’ll discuss my system next week to help give you some ideas on how you should incorporate them into your trading plan! If you found this useful let me know ! I love talking to people interested in trading (a quick thanks is always nice too). If you want more information you should join the GKT discord to discuss these tips in more detail and connect with like minded people who trade the stock market! Keep Calm and Let Theta Do the Work! Until next time

8/25/2024 This week’s spotlight was on Jay Powell’s much-anticipated speech at the FOMC Jackson Hole conference. Powell confirmed rate cuts are coming, but also cracked a joke that had the audience laughing. As he left the podium he received a standing ovation! Is Jay going to be Superman? What a shift from the past few years! The question on everyone’s mind: Can Powell actually pull off a soft landing and keep the U.S. out of a recession?  This is the narrative we need to consider as we manage our portfolios. For those in the M$M Inner Circle, you already know my game plan for both scenarios—If you haven’t joined yet you need to hurry, prices go up next month. Time to sign up! But here’s the thing—there was almost too much focus on Jackson Hole. The headlines are doing their job, keeping our attention locked on whatever’s trending. And while everyone was buzzing about Powell’s speech, the real market mover next week could be NVIDIA’s earnings. With all eyes on Jensen Huang, the big question is: Can NVIDIA meet the sky-high guidance expectations? We know the demand for their chips is there, but I see more downside risk than upside. If you’re holding 100 shares, it might be time to think about setting up some collars. Don’t have a strategy in place? Check out my blog on how to collar your positions and protect your gains . Now, let's dive deeper into why blocking out the noise is more important than ever: Trust Your Plan, Don’t Let Market Chatter Derail You   Blocking out the noise is crucial in today’s market. Every week, I emphasize this because I understand how challenging it can be. Lately, we’ve seen big investors selling positions and even Warren Buffett sitting on a mountain of cash. This isn’t new information, but let’s be real: we’re not Warren Buffett (I know captain obvious).  We don’t get the same deals as Berkshire Hathaway. Remember back in ‘08 when Warren snagged preferential shares and rates that the rest of us could only dream of? I sure do. I’m not here to complain, but to highlight why sticking to our own plan is essential. Warren raising cash doesn’t mean you should sell it all. People will always say the stock market is about to crash. It’s a constant drumbeat. But look at us:     Warren may have been offloading BAC, but that didn’t stop us from trading it. This trade was posted in discord. Our put sales closed for a nice win. Price to book for BAC is good! It’s still a bank even if Warren is selling. The good kids are all about staying informed without following the herd off a cliff. We all need to make our own trades no matter what billionaires are doing! So, keep your ears open, but don’t let the noise drive your decisions. Stick to your plan and keep trading smart. I also own shares of BAC, did you read my blog about using premium to buy shares ? SPY and RSP: A Tale of Two Indexes Remember when I mentioned how heavily weighted SPY is towards tech? It’s worth revisiting about 31% of SPY’s total weighting is tech . SPY doesn’t quite capture the broader market’s strength. But when we look at the equal-weighted S&P 500 (RSP), the picture changes a bit. Did you see how RSP hit a new all-time high on Friday? Meanwhile, SPY showed a bullish inside day, mainly because of some softness in the Magnificent 7 tech stocks. Do you see how tech is pulling down SPY, but the market’s strength is broadening. I’ve highlighted a retest gap on SPY’s chart, signaling where the market might retest before bouncing back. This isn’t just a random guess—remember, gaps on charts usually fill, and a healthy retest could be just what we need. I do like the red squiggly line I drew below. Take a look at RSP’s weekly chart, and you’ll see three bullish weeks in a row, with RSI running high Keep an eye on RSP if tech continues to be weak. Also remember retests are healthy. Understanding these dynamics helps us stay ahead and we can block out some of that noise I mentioned earlier. Make Your Charts Look Like Mr. Money Maxwell’s Ever wondered why my charts look different than yours? It’s all in the setup! I’ve heard from many of you who want your charts to look just like mine, so I’ve put together a free TradingView guide  that walks you through the exact steps to set up your moving averages just the way I do. It’s time to take yo ur chart game to the next level and see the market through Mr. Money Maxwell’s lens. 👉  Download the free guide here and get your charts looking like $Maxwell!     Weekly Recap: SPY:  What a V-bottom recovery! Over 10% in just three weeks—uncommon, but anything is possible in this market. QQQ:  Tech is showing weakness compared to the broader market. Notice the lower highs? This is why I love using moving averages as buying targets. NVDA’s earnings this week could steer the tech sector, so keep watching. TLT:  Still strong overall. Remember, it’s normal to see some bearish weeks—stocks don’t just shoot straight up!     GLD:  Gold’s rise alongside the stock market is intriguing. Could this be a flight to safety? It’s rare to see both moving up simultaneously. Gold looks bullish to me. VIX:  Back in the familiar range for 2024. Despite what many ‘experts’ predicted; volatility didn’t stay high for long.   The Power of Time in the Market Thinking about going all cash? Before you do, consider this: some of the biggest market moves happen in just a few days each year. If you’re out of the market, you could miss those critical gains that drive long-term growth. In this week’s blog, I dive deep into why time in the market is your greatest ally, especially when it comes to retirement. Interrupting compounding can have serious consequences for your financial future, so let’s talk strategy. 👉  Read the blog to understand why staying invested is key to a successful retirement. Upcoming Dividends Dividend Kings Dividend Aristocrats JNJ and NEE look good to me. I’m in both.   The Week Ahead: US Economic news is rather quiet this week. Yes jobless claims and PCE, but I think NVDA earnings will be the major focus for the week.       Earnings: Wednesday after the close is the biggest day. NVDA, CRM and CRWD. I’ll be watching SJM, CPB, OKTA, HPQ, DELL, MRVL LULU and MDB as well.   As we head into the last week of August, I’ll be soaking up some sun at the beach, letting my theta decay and SGOV positions work their magic. If you’re in the Atlanta area, I’ll also be at Tastytrade’s “Building a Complex Portfolio” event on Saturday — drop me a line  if you’re planning to attend; I’d love to connect. Rates for Mr Money Maxwell's Inner Circle are going up next month! It's less than $2 a week for my best information. Join today! Happy Trading Good Kids! $Maxwell

Last week I shared 6 tips on how I minimize my screen time , using watchlists are one of the top ways I minimize my trading time. Like most things in trading the specifics boil down to a personal preference. What I do might not work for you, but in the GKT spirit I’m always an open book. Maybe you can learn from me, maybe you even have suggestions for me. Most of my watchlists are self-created using trading view . (that's an affiliate link if you decide to subscribe I'd appreciate you using that.) There are a couple exceptions that I'll share below. This is not a sales pitch for trading view, but I really like the product, I use it daily, and I pay full price. Want access to the same watchlists I use every week? Join Mr. Money Maxwell's Inner Circle  and get exclusive insights into what’s on my radar. 📈 Don’t miss out—take your trading to the next level! 👉 mrmoneymaxwell.com Separate Watchlists You can choose to have a single watchlist with lots of companies, or you can make as many lists as you like. I divide my watchlists based on the follow factors: Time Horizon and Account Type (like IRA, short term account, longer term account) Company Fundamentals Specific Trading Strategy This means some of my watchlists have duplicate underlings on multiple watchlists (for instance Apple appears on more than one list). This strategy works best for me because my watchlists are shorter and I find I can stay focused on my strategy and make the best trades. Examples of my Watchlists In the article I discussed a 'Quick Morning Review' this is done via a watchlist. I scroll through the following list every single morning 30 mins before market opens. Do you notice every stock on this list is purple? Trading view has built in color coded lists (below) and I encourage you to use them. I use each of these for different purposes (Purple is my daily list, blue is my possible swing trades, red is positions i need to monitor for protection, etc). Build your own system but use these! ETF’s: This includes the following, I like to watch this to keep up with market rotations that I talked about back in the dividend blog post . XLC (Communication Services Select Sector SPDR Fund) XLY (Consumer Discretionary Select Sector SPDR Fund) XLP (Consumer Staples Select Sector SPDR Fund) XLE (Energy Select Sector SPDR Fund) XLF (Financial Select Sector SPDR Fund) XLV (Health Care Select Sector SPDR Fund) XLI (Industrial Select Sector SPDR Fund) XLB (Materials Select Sector SPDR Fund) XLRE (Real Estate Select Sector SPDR Fund) XLK (Technology Select Sector SPDR Fund) XLU (Utilities Select Sector SPDR Fund) Dividend Companies: Mainly Dividend aristocrats but also some of my other favorite dividend stocks as well. I wrote a complete series on how I use dividend stocks as a staple of my trading. Check out the series ! Long Term Quality Companies: There are companies I believe in long term and don’t mind holding for more than 5 years. Stocks I normally pyramid into. I have stocks like GOOGL, AAPL, COST, WMT, JNJ, SO, PEP, WM. (its highly subjective to you). Money making companies: - This list is strictly based on fundamentals then pared down to companies I like to trade. High Liquidity: This is my math based favorite of companies that have high liquidity. I think I got this list from Tasty Trade its hundreds of underlings. Sideways Companies: I like to trade companies that trade sideways or are range bound, so when I see a stock not moving too much it goes on this list. Futures: Currencies, Commodities, and Forex- again this list was from tasty trades cheat sheet, but you can find it other places as well! In addition to the watchlists I create, I do also use watchlists within TastyTrade and the hotlist within trading view! These are lists with underlyings I didn't create, but when I don't see trades I like, these lists help me look outside the box. Next time I’ll talk more about how I sort my watchlists, how I maintain the watchlists and how I trade based of my watchlists. Read the full article! If you found this useful let me know ! I love talking to people interested in trading (a quick thanks is always nice too). If you want more information you should join the GKT discord to discuss these tips in more detail and connect with like minded people who trade the stock market! Happy Trading Good Kids!

How would you like to have a stock position where you can’t lose? If the stock goes down, you are guaranteed to sell your stock higher and still make a profit. If the stock continues to move up slowly or sideways you continue to make money. The only downside is you are capping your profits. Hedging with options doesn’t have to be complicated. If this sounds good to you, keep reading! Let's talk about collaring your shares to lock in profits. A collar is two separate options. You must have 100 shares to collar your position! You sell a call (AKA a covered call) and you buy a protective put (AKA a long put). I often add both trades at the same time, but of course you can “leg” into each part separately. I'm a visual person, so lets look at an example. On the chart below look at the two red lines I drew. You would sell the 200 call, and buy the 195 long put. This is what it looks like on the options chain: the red box on the left is the covered call, the red box on the right is the long put. I will break this down more below. The covered call pays you a credit. This is the red box on the right. We’ve talked about covered calls previously . As you recall this is an agreement to sell your shares at 200 before Jan 19th. Keep in mind you are still capping your upside if the stock goes above the strike of your call (a collar doesn't change that). Many times you can roll this call out in time and keep reselling them for higher strikes as long as the stock doesn’t move up to quickly (same as with a covered call). In the example above we could collect $3.52 to sell the Jan 200 Covered call. So if the stock goes over 200, we're agreeing to sell our shares. The long put costs you money the red box on the right in the graphic above. You will have to pay for the insurance, but this put gives you the right to sell your shares at 195 before Jan 19th. As the stock drops you have the right to sell your shares. For my more advanced traders you can also sell this put for a credit if you want to keep your shares. This reduces your cost basis! In the example above we are buying a Jan 195 put for 2.30. If the stock goes below 195 we have the right to sell our shares of Apple at 195 if it drops. The power of the collar is the covered call is paying for the cost of the long put. At the bottom of the graphic above you can see we collected $1.22 to collar Apple. We collected $3.52 on the covered call, we had to pay $2.30 for the put. A covered call will always pay us more, but we have no protection to the downside with a covered call other than the premium we receiged! So yes, we collect less premium, but we have insurance! This example above shows putting on a collar for a credit.This is referred to as selling a collar because I am getting paid for the collar.  Receiving a credit is my favorite method for collaring a position. If the stock stays between the covered call and protective put I will collect the credit which continues to reduce my cost basis and I can put another collar on, hopefully getting another credit. Sometimes I will put on a collar and pay a debit which is referred to as buying a collar. I pay a debit to collar a position if it’s a small percentage of my win. If I’m up 5.00 a share, I don’t mind paying a debit of .25. Would you pay $25 to lock in a win of $475? I only put on collars when I’m profitable. If you are not profitable you risk getting called away on your shares for below your cost basis. I would rather hedge my position with long puts, put spreads, or just sell the position instead of adding a collar. I collar my stock when it’s reaching resistance or a moving average and I have a sizable profit on my position. I loe to sell collars after several up days and when the stock is reaching resistance, or right before earnings. Remember we are insuring our position from the downside with the long put and just like insurance on your car or home you have to pay for it. Imagine having your TradingView charts look exactly like mine! I've put together a FREE, step-by-step guide that shows you how. Don’t miss out—grab your copy now! 👉 Adding Moving Averages to TradingView the GKT way I use collars instead of just covered calls in several situations, I will give you some examples below. Collaring a winner before earnings is a great strategy! As you know earnings can be volatile. Lets look at this example with Google. As you see on the chart Google has earnings after a pretty nice run since last earnings. As you can see below, my stock is up $4,711 so I'm going to sell the 143 Covered call, and I'm going to buy the 135 long put for a credit of .30. Again I know this is a recap, but I'm agreeing to sell my shares at 143 with the short call and I'm locking in my profits by having insurance to sell my shares at 135 with the long put This is what Google did on earnings. It gapped down! If I only had a covered call I would have collected $330, but I would not have any down side protection. Look at my collar's profit and loss below! The long put is up $1,017 and the covered call is up 330. So now I can close both of these options and lock in the cost basis reduction. Or I can hold on to the long put and agree to sell your google shares if it stays below 135 at expiration. There are some other options I have, but you'll need to join GKT's discord to discuss those. Did I mention the discord is free? So as you can see collars a great over earnings, the biggest 'risk' you have is capping your upside. If google gapped up to $150 a share I agreed to sell my shares at $143.30. Also as I've preciously stated we don't collect as much premium as we do when we only sell the covered call. If the stock I have collared continues to trade sideways and I can sell collars repeatedly, meaning I get a credit, I continue to reduce my cost basis. Collars also help me avoid paying taxes on some of my shorter term winning positions. I generally like to try to hold a position more than a year for tax advantages. So, if the stock drops like the example above with Google I will often sell the put I bought when the stock hits support. The covered call would expire worthless which also reduces the cost basis. So I made some money without realizing the entire $4,000 short term capital gain. Yes I pay short term taxes on the options, but I can retain my shares. Using collars is a very effective strategy to not only hedge your stock, but also reduce your cost basis. It's important to know the difference between a collar and a covered call. There are some variations to collars that we can discuss in a later article as they are a little more advanced. If you want more information you should join the GKT discord  to discuss these tips in more detail and connect with like minded people who trade the stock market! I hope this article was valuable to you. We want to help educate and show you trading doesn't have to be complicated, and you can do this. Happy Trading Good Kids! Disclaimer: this is NOT financial advice. I’m basically just some dude on the internet who’s been trading a while, and I use the stock market as my primary source of income. None of this is financial advice it’s purely educational!

Welcome back to the series on reducing cost basis. If you missed the first two articles, I highly recommend checking them out to get the full picture of this concept. We've already covered why reducing your cost basis is essential and discussed a straightforward method for determining where to buy shares . Today, we're diving into the world of covered calls, with a quick overview of what a covered call is, why I sell covered calls and how I decide when to sell my covered calls. A covered call is an easy and 'safe' strategy you can use to reduce your cost basis once you own 100 shares of a stock. By selling this call you are agreeing to sell your 100 shares to someone else if the stock hits that price. It's called a "covered" call because you have the shares to back up your agreement. Please note: this strategy only works if you have 100 shares. If you're just starting out with a smaller account, your goal should be to work your way up to being able to own 100 shares (ideally of a few companies for diversification). Without 100 shares of stock selling a call would mean you are selling "naked" calls, and that's a high-risk trade you should avoid! So, what's the deal with covered calls? Essentially, when you sell a call option, you're making an agreement to sell your 100 shares of stock at a price you've chosen before a specified date. In return for this agreement, you receive an upfront payment known as the premium. Think about covered calls like renting out your shares with an agreement to sell at the price you choose. If the stock doesn't hit that price in time, you keep your shares and you keep the premium they paid you, just like a landlord keeps the rent. I also think of this premium like an extra dividend. In fact, I sell calls more frequently than most of the dividends payments I receive from my stocks. Many stocks pay dividends one a quarter, I usually sell calls on a monthly basis, although depending on my overall strategy and the stock I'm trading, I might go as frequently as weekly! The reason covered calls are described as a safe options trade is the primary "risk" you take is capping your upside potential. You will see this in the next article when we jump back into the CAH trade I took. In simple terms, if the stock skyrockets, you've agreed to sell it at your chosen strike price, potentially missing out on more significant gains. But remember, locking in a profit is never a bad thing – trying to catch the very peak of a stock's rise can lead to disappointment. To maximize your premium while minimizing your risk, I pay close attention to the stock's candlesticks. If it struggles to close above its moving averages, I get more aggressive with selling calls. There are times when I will sell calls below my actual cost basis. If the stock is in a strong downtrend. Imagine having your TradingView charts look exactly like mine! I've put together a FREE, step-by-step guide that shows you how. Don’t miss out—grab your copy now! 👉 Adding Moving Averages to TradingView the GKT way However, when the stock is in a bullish trend, I wait for at least three up days and/or for the stock to approach a resistance before I sell a call. This is not time intensive, Remember you can and should set alerts to notify you when your stock is near resistance, allowing you to maintain a balanced life. The reason I often wait to sell a call is bullish moves yields more premium compared to down day. I used to sell 25 delta covered calls randomly, and this worked pretty well. But over time, I've discovered that timing my calls more strategically enhances the premiums I collect, which, in turn, accelerates my cost basis reduction by bringing in more income. Remember, the goal is not to complicate things but to make this strategy work for you in the simplest, most efficient way. It's all about maximizing those profits while minimizing your risk and workload. We will jump back into the CAH example next! If you want more information you should join the GKT discord to discuss these tips in more detail and connect with like minded people who trade the stock market! Happy Trading Good Kids! Disclaimer: this is NOT financial advice. I’m basically just some dude on the internet who’s been trading a while, and I use the stock market as my primary source of income. None of this is financial advice it’s purely educational!

Do you want to learn how to generate passive income with options trading? What if you could get to the point where you spend a few minutes trading options that have a high probability of winning, that if you are wrong you have a second chance, and all the while you generate consistent passive income? I understand this sounds too good to be true, but I've been doing this for over 20 years and I want to let you in on "my secrets" that let me enjoy the freedom I have today. Today's article has a focus on beginners! I'm sharing my insights with you – no sales pitch, just valuable information for free. Understanding Put Selling: Simplified Before diving into put selling, let's discuss what a put does. In simple terms, a put option gives the buyer the right to sell a stock at a predetermined price. As a put seller, you receive a premium and agree to buy the stock at the specified price if the buyer exercises the option. Selling a put involves receiving payment known as premium in exchange for agreeing to buy 100 shares of a stock at an agreed-upon "strike" price. The key is selling puts on stocks you're willing to buy at a lower price, so even if you are wrong, and the put sale loses you own shares of the company, Then you generate additional income through covered calls. I discussed covered calls here ! A picture is worth a thousand words, so let's look at an example. Assume we sold a $140 strike put on AMD (the red horizontal line below.) Let's assume we get paid $150 to sell this put. If AMD stays above the red line- 140 a share until the contract expires we keep the $150 and the put contract we sold expires worthless. If AMD goes below 140 we're agreeing to buy shares at 140.... Even if it goes down to 100, we're agreeing to buy them at 140 in exchange for that $150. There are ways to hedge, and ways to reduce your risk and we discuss these often in our discord . The key to put selling and remaining as passive is possible is to sell put options on stocks that you are willing to buy at a lower price. You set a good until cancelled order on your put sale and you walk away! If the stock bounces your broker makes the trade for you, if the stock drops you get put 100 shares of stock and then you sell covered calls to create even more income. This is called a Wheel Strategy, GKT trades these all the time, check out our discord if you want more information. Why Put Selling Works: A High Probability Strategy Put selling, especially when done the right way, is a high probability strategy leveraging time decay, implied volatility, expected moves, technical analysis, and more. Time Decay (Theta):  Options lose value as they approach expiration. Time decay works in favor of the put seller, contributing to the option's decreasing value until it expires. Implied Volatility (IV):  Put selling benefits from selling options during periods of heightened fear or uncertainty when implied volatility is high. As markets settle, the likelihood of options expiring worthless increases. Expected Move:  Understanding the expected move and using it strategically enhances the probability of success in put selling. Smartly combining this with technical analysis, including moving averages and support/resistance levels, informs well-informed trading decisions. Technical Analysis: The Chart is another valuable input we consider when trading. If we see Moving Averages these can be used as places a stock might reverse. Recognizing key support and resistance levels also helps us make informed decisions. . Ready to level up your trading game? Imagine having your TradingView charts look exactly like mine! I've put together a FREE, step-by-step guide that shows you how. Don’t miss out—grab your copy now! 👉 Adding Moving Averages to TradingView the GKT way Real Example: A Walkthrough of a trade setup on AMD Listen, I realize all these words might be confusing. Let's look at the AMD example again and walk through this. If we sell that 140 put on AMD and the stock is currently trading at 177 that is a 20% discount! People love discounts until it comes to stock trading, but this is why you combine math to help push through the emotional fears of trading. See the chart below, we're agreeing to buy some AMD at 140, but how did I decide that's a good strike price to sell. I used math! You might be saying, "but Justin, I'm TERRIBLE at math." Hey I'm not great at math either, but here's the thing the broker will actually do most of the work for you right here on the screen. Especially if you use Tasty Trade . When you look at the options chain for AMD, you will see a graph of numbers that probably don't mean a lot to you.. But lets focus on a few key things and simplify this. The options chain can be intimidating at first, but GKT can help! The probability of profit are right on the screen (I put red boxes around them) POP is short for "probability of profit", and P50 is short for "probability of hitting a 50% profit". So as you see below this put sale has an 88% chance of expiring totally worthless (POP) and a 95% chance of hitting a profit target of 50% (P50)! Do you see that blue dotted line between 140 and 145 in the same image above, that is the standard deviation of the expected move. The orange line in the middle is the expected move of the stock during this time. This is all on the same screen. I know there's a lot in that picture but let's just focus on the basics here. So we have a good probability of profit, our put's strike is one standard deviation away and we are over $10 outside the expected move of the stock! What about implied volatility. Remember I said the more volitivity the better its to sell puts? You can see that too right in your broker! It's actually on the picture above listed as IV Rank, but Tasty Trade also graphs it for you. See the red and green lines below, I put a red square around them. The volatility is charted and you can see it's higher than it's have been in some time. Yet another check mark for taking this trade! Put selling offers traders an exciting opportunity to build passive income. By understanding the fundamentals of this strategy, including factors like time decay, implied volatility, and technical analysis, you can navigate the market with confidence. When done right, this strategy creates a nice stream of income. If you want more information you should join the GKT discord  to discuss more and connect with like minded people who trade the stock market! I hope this article was valuable to you. We want to help educate and show you trading doesn't have to be complicated, and you can do this. Happy Trading Good Kids! Disclaimer: this is NOT financial advice. I’m basically just some dude on the internet who’s been trading a while, and I use the stock market as my primary source of income. None of this is financial advice it’s purely educational!

Today I’m taking a slight detour from our usual options talk and I’m diving into a longer term strategy focused on trading shares of stock using pyramiding. Sounds like an Egyptian monument, right? But in the trading world, pyramiding is a technique of adding to your positions based on price or time. Basically as the price of your stock goes down, you're buying more shares. You're building, bigger layers as you go down, essentially making a pyramid as shown on the chart below. As a reminder, this is not trading advice, I am not a financial advisor nor am I recommending you setup or trade the following examples. This is priced based pyramiding: you buy more shares as the underlying goes down: This is time based pyramiding: you have more shares over time. I know you might be thinking, "That's it? Just keep buying more shares?" Well, yes, and no. Pyramiding isn’t just about adding more shares, it’s about adding them strategically. Just like everything else there is no one-size-fits-all approach, this strategy works will all account sizes (if you can own 100 shares there are more benefits), and you need an exit plan if the stock keeps going down so you don’t lose all your capital! I’ll also discuss how I pick my levels, go over a couple variations, and of course discuss how we can also use options to pyramid, protect, and possibly even add a little extra cash flow. How to Pyramid Effectively: Two Approaches 1. Price-Level Pyramiding: (First image above) Here, we increase our position as the stock price hits certain predetermined levels. For instance, let's say you are interested in a company trading at $100, buy 10% of your total allocation at $100. If the price hits $80, you would buy another 20% of your total allocation. If it hits $70, you would buy 30 then at $60 you would by 40%. This way, you're adding more weight to your position as the stock pulls back and reducing your cost basis. Of course depending on your account size and the price of the shares, your number of shares will vary, but the principal works the same. Hedging with options will be slightly different in terms of leverage, but we will discuss that below. 2. Time-Based Pyramiding: With this method, you buy a fixed number of shares at regular time intervals, regardless of the price. As time goes, you have more and more shares. For example (see second image above) if you want to buy $1,000 of an underlying, you break your buying into an average of 5 buy across the next 5 weeks (or months). This approach helps to smooth out price fluctuations and lets you accumulate shares over time. Lets say you wanted to buy $1,000 of Delta Airlines (stock ticker DAL) and the stock is currently trading around $40 a share. (1000/40= 25 shares) So a time pyramid would look something like buying 25 shares every Friday (you could chose 25 shares a month as well). It’s all dependent on your objective and timeframe, but personally once a week is my as short as I would ever go. There's a place for both these methods in your trading, I love the buy low, sell high philosophy, but sometimes stocks don’t dip enough to get all the levels conversely sometimes they keep dipping way lower than you want! If you buy over time you are getting the exposure (positive delta) you want which is great in a bull market. But, remember pyramiding requires planning ahead of time and a clear exit strategy (both for a win and a loss). It’s essential to have a ‘line in the sand’ where you'll cut losses if your thesis changes or if the market turns against you. No one wants their pyramid to turn into a pile of rubble! I normally try to pyramid into companies that I can own at least 100 shares, because there are more options such as covered calls, collars, and strangles we can use to bring in more income! I will be discussing these in upcoming articles. Just know with 100 shares (or lots of 100 shares) you are opening yourself up to more income as we discuss daily here at GKT! How do I determine my price based pyramid levels: When in doubt, I zoom out! So instead of looking at the daily chart I zoom out to the weekly chart and I always keep the 100 and 200 moving averages on my chart. As you see on the chart above: I have a few more moving averages and I also like to draw weekly support and resistance (the purple lines you see). I draw my buy lines where I see support and moving averages. When you zoom even further out to the monthly chart you can see 100 and 200 moving averages are REALLY far away right? That is why you need to have a protective line in the sand. If you don’t have 100 shares of the company you will be over insuring your position, which isn’t always a bad thing, if MSFT keeps going down and you only have say 50 shares you are actually going to make money on your position as the underlying pulls back. Want your TradingView to match with mine? Imagine having your TradingView charts look exactly like mine! I've put together a FREE, step-by-step guide that shows you how. Don’t miss out—grab your copy now! 👉 Adding Moving Averages to TradingView the GKT way You can also use Fibonacci retracement tools. Here's the thing: you can set your levels however you want! Just figure out what works for you, and ALWAYS have a line in the sand where you are cutting your losses. Everything works, just not all the time, but don't let emotions or fear hold you back! Make a plan and get to trading, you miss all the trades you don't take. Some variations: If you are buying shares they never expire so you do not have to worry about calls expiring worthless. That said I do some more speculative pyramids using put sales as well. Depending on your account size and your conviction of an underlying you can sell 1 put at your 10% level, 2 puts at your 20% level and so on if you want to keep going. If the stock pulls back you would get put the shares. If you don’t want all the shares you could sell the extra shares and just keep the number of shares you would normally have bought at these levels. You of course have to be sure you aren’t over leveraging your account, and understand that if the company goes to zero you are responsible for the full 100 shares per put you sold, but this is a strategy I use. If the stock never dips I keep my premium. Again this is probably for the more advanced traders with larger account sizes. But it’s a great way to dollar cost average, and in bull markets this can be a good way to collect premium without having to own the shares outright. Conclusion: I believe pyramiding is a strategy everyone should consider for part of their portfolio and trading plan. So many traders and investors wait for the ‘bottom’ to buy, only realize there can't be a bottom until we've already bounced so it’s too late. Don't be afraid to pyramid into companies you like! Have a stop, or protective puts. We'll cover hedging, covered calls, profit targets in upcoming articles. At GKT, we help you build that plan. We might be all about those 'math-based' options, but we know there's more than one way to be profitable and to grow a portfolio. And sometimes, the simplest strategies, like pyramiding make all the difference in your trading journey. If you have any questions about this strategy or want to learn more about trading in general, feel free to join our free GKT discord community. Let's continue to learn and grow together! Until next time, Happy Trading, Good Kids! As a reminder, this is not trading advice, I am not a financial advisor nor am I recommending you setup or trade the previous examples.

Have you felt overwhelmed by the complexities of the stock market? You aren’t sure where to buy or sell, maybe you can’t decide which strike you choose when you want to sell a put?  What if I told you there's a simple yet powerful tool that can help you make more informed decisions? Welcome to support and resistance levels! Support and resistance are like "invisible" zones in the future that often influence stock prices using past price action. Understanding these levels helps you buy low, sell high, and reduce the emotions and stress often associated with investing. Today I’ll break down this concept into simple terms and show you how I use support and resistance to create high probability trades. What Are Support and Resistance Levels? Imagine a tug-of-war between buyers and sellers. When the price of a stock falls to a certain level (support), buyers often step in to purchase, preventing the price from falling further. Conversely, when the price rises to a certain level (resistance), sellers may be more inclined to sell, preventing the price from rising further. These levels are known as support and resistance. Why Are They Important? Support and resistance levels act as potential turning points for stock prices. When a stock's price approaches a support level, it may bounce back up. Similarly, when it reaches a resistance level, it might pull back. By identifying these levels, you can anticipate potential price movements and make more informed investment decisions. Notice I used the word may bounce, or may pull back, nothing works ALL of the time. How to Identify Support and Resistance To identify support and resistance, I use TradingView (that's an affiliate link, no cost to you, but a benefit for me if you sign up). Here's a step-by-step guide: Choose a stock:  Select a company you're interested in investing in. Select a timeframe:  Start with the weekly timeframe to identify long-term trends. Identify levels:  Look for price areas where the stock has bounced off multiple times (support) or failed to break through (resistance). Draw lines:  Use the horizontal line tool to draw support and resistance lines on your chart. Confirm on lower timeframes:  Switch to weekly and daily timeframes to verify the identified levels. Remember, support and resistance are zones, not exact points. It's okay if the price briefly breaks through these levels before reversing. Using Support and Resistance in Your Strategies Once you've identified support and resistance levels, you use them to make informed investment decisions. Here's a basic strategy: Buy near support:  When the price approaches a support level, it might be a good opportunity to buy. Sell near resistance:  When the price reaches a resistance level, consider selling to lock in profits. Sell puts at Support: When a stock is dropping, use support lines to determine which strike to select for your put. You are agreeing to buy low! Sell Covered Calls at Resistance : If the stock stopped at resistance before, it should slow down at least when it hits that price again, sell calls at your horizontal line. Eventually it will break through, so if it's hit resistance multiple times, wait. NOTHING wrong with getting called away at highs! Building Pyramids at support: Use support levels to create your buy levels. Checkout the blog post on the power of not buying all at once! It's important to remember that no strategy is foolproof. Market conditions change, and sometimes prices can break through support or resistance levels like they aren't even there. Fear and panic makes many strategies and tools worthless. Always do your own research and consider where we are in the market in terms of sentiment, fear and greed. Combining Support and Resistance with Other Indicators While support and resistance are powerful tools, they can be even more effective when combined with Moving Averages , and High Probability trades. Imagine having your TradingView charts look exactly like mine! I've put together a FREE, step-by-step guide that shows you how. Don’t miss out—grab your copy now! 👉 Adding Moving Averages to TradingView the GKT way By understanding and using support and resistance levels, you can build even higher probability trades to improve your chances of making profitable decisions. Nothing works all the time, but support and resistance is key to my trading success! Happy Trading Good Kids! -Justin I understand the stock market can feel intimidating and complicated, if you want some extra support and guidance, I help people skip levels, schedule a free discovery call with me . Lets talk stocks and see if I can help you! Click on the image below and setup a time that works for you! This is not trading advice, it's for your education. I'm a dude on the internet who’s been trading for 2 decades, and I use the stock market as my primary source of income. None of this is financial advice. Any trades or decisions you choose to make are at your own risk, this is purely educational!

Today I’m discussing a technical indicator that I've used for decades. If I was forced to to only pick one technical indicator, hands down, it would be moving averages. I'll break down the types of moving averages, which ones I use, and I'll show you how I use them with a real life example. There are 4 kinds of moving averages. Simple Moving Average (SMA) : This is the simplest form of a moving average. It calculates the average of price data over a specific number of periods. Exponential Moving Average (EMA) : Places more weight on the most recent prices, and therefore reacts more quickly to price changes than the simple moving average. Weighted Moving Average (WMA) : Assigns more weight to the more recent price data, similar to the EMA, but calculated differently. Smoothed Moving Average (SMMA) : Is a blend between a Simple Moving Average and an Exponential Moving Average. I use the first two with the following setups: The 100 and 200 simple moving averages The 10, 20 and 50 exponential moving averages. And here is why: The 100 and 200 simple moving averages track a stock's average price over the last 100 or 200 days. The 10, 20, and 50 EMA give more weight to recent prices so I lean towards EMAs, for the shorter timeframes as they react quicker to recent price changes. The 100 and 200 give me a better longer term perspective. Ready to level up your trading game? Imagine having your TradingView charts look exactly like mine! I've put together a FREE, step-by-step guide that shows you how. Don’t miss out—grab your copy now! 👉 Adding Moving Averages to TradingView the GKT way Combining moving averages with candlesticks has been a powerful tool for me over the years. I often lean on moving averages to pinpoint where I might want to buy shares of a stock, sell puts, as well as where I want to exit position. Watching how a candle interacts with moving averages helps me determine where the future direction of a stock might go. When I spot a stock closing above its moving average, it indicates the stock is bullish, but if a stock rejects right off that moving average that’s normally bearish. Lets look at PG. I have circled 10 examples (this is all the same chart just separated.) In the examples above you can see how the candles interact with moving averages, and I gave you my analysis on how I use moving averages to determine future moves. It doesn't always work, but nothing does. Do not forget to zoom in and out. The examples above were from the daily chart. But, you can see moving averages lining up whether you're zooming in on a 5-minute chart or taking a bird's-eye view on monthly data. If you see similar trends on different charts? That’s like a green light for my confidence, think of it like a double or triple confirmation. I use moving averages to choose my strikes for selling puts at support, and decide where to sell covered calls or even some shares when we hit a moving average. Yep, they’re just lines, but hey, they've been good to me. If they give you an edge, that’s a win in my book! This chart below is zoomed way out, but I have a strategy called "buy Apple off of the blue line" do you see why? Every time apple hits the 100 moving average on the weekly chart I buy some. It has been a good strategy for me. You can make your strategy as simple as buying stocks you like off of a moving average. It works when the stock is in an uptrend! Or you can make it as complex as you want as well. Just make a plan and start following it! If you found this useful let me know ! If you want more information you should join the GKT discord to discuss these tips in more detail and connect with like minded people who trade the stock market! Keep Calm and Let Theta Do the Work! Until next time happy trading Good Kids!

As traders, we're often driven by the excitement of quick wins. But when it comes to longer-term investing, that same drive leads us down a dangerous path. It’s tempting to treat your long-term investments like short-term trades, especially when you hear about strategies that claim to deliver far better returns than boring ETFs. The Pitfalls of Treating Long-Term Investments Like Short-Term Trades Treating your retirement money like a short-term trading account often backfires. Instead of allowing your investments to grow, you might find yourself selling too soon, focused on short-term price fluctuations. During pullbacks, you may think, “As soon as this gets back to even, I’m selling!” The "Back to Even" Mentality Getting back to even is something every investor faces. Markets don’t go up in a straight line. Take 2022 as an example: From January, it took nearly 18 months for the market to get back to even. That's a year and a half where you might feel like you're not making any money—just trying to recover from losses. The emotions of seeing negative numbers day after day can be really tough. Have you ever tried averaging negative numbers? It’s ugly, and it doesn’t get any better when you let fear dictate your investment strategy. The Dangers of Rash Decisions When you impose a shorter timeframe on your long-term accounts, you’re more likely to make rash decisions—like selling out of fear—when patience would have served you better. Let’s take a step back and think about what investing is truly about. It’s not just about the trades you make but the time you spend in the market. Far too many people try to time the market. Why Timing the Market Doesn't Work Phrases like “I’ll wait for a dip before I invest,” “I need to change my strategies,” or “I’m going to sell everything and go to cash” are common, but most of the time are the worst thing an investor can do Too many investors miss the critical point that investing is not trading . They end up day trading or swing trading their long-term accounts, too focused on the daily ups and downs, losing sight of the bigger picture. This has a devastating impact on compounding and growing those accounts. The Impact of Missing Key Market Days In investing, the market’s ups and downs are normal. What’s not normal—or at least not productive—is constantly trying to time these movements, especially in long-term accounts. Imagine missing the best 10 days of the market’s recovery after a downturn (look at the graphic above). Those few days could drastically impact your returns over the years. The Numbers Don’t Lie Data from 1995 through September 2022 shows that if you stayed fully invested in the S&P 500, your annual return would be 7.7%. Miss just the 10 best days, and that return drops to 4.7%. Miss the 30 best days, and you’re down to 1.1%. That’s nearly a 90% reduction in returns simply by trying to avoid the market’s temporary lows . The Power of Patience and Staying Invested I’ve seen it happen time and again—traders who are too granular lose out on the bigger opportunities because they’re focused on avoiding short-term losses. They’re so busy trying to get back to even that they miss out on the market’s recovery. But time in the market is what truly builds wealth. The Solution: Separate Your Trading and Long-Term Accounts So, what’s the solution? The key is to remain patient and stay invested in your longer-term accounts. Have a separate account for trading. I believe you can use math and technical analysis to generate cash flow in a trading account. However, I also know that this is not a great long-term investing strategy for 99% of traders. Embrace Time in the Market Understand that getting back to even is a natural part of the investment process and that time in the market is generally more important than timing the market. The market will have its downturns, but history shows that it always recovers. And when it does, those who stayed invested reap the rewards. So next time you’re tempted to sell your long-term investments because the market is down, remember this: the market’s job is to recover, but it can only do that if you stay invested. Time in the market is your greatest ally. Embrace it, and let the market work for you. Join the Inner Circle If you want more insight from someone who’s been an investor for almost 30 years and a trader for over 20, sign up for Mr. Money Maxwell’s Inner Circle . For the next two weeks, the price is reduced during the soft launch. But hurry—prices go up in September! Join our Good Kids Trading  Discord  community for real-time market updates, and be sure to subscribe  to our email list if you haven't yet—I'll see you on the blog next week and much sooner in Discord! Happy trading, good kids! -$Maxwell

8/18/2024 From Zero to Hero: The difference between a couple of weeks! On August 5th, traders were sweating and panicking. Fast forward a couple of bullish weeks, and suddenly, we’re feeling like Superman?  The VIX has dropped back to the teens, fear is subsiding, and indexes are once again chasing all-time highs. The bears? Quiet, for now. What does this mean for your portfolio? How do we manage the portfolio when the market’s direction is uncertain? That’s our focus this week in Maxwell’s Market Mindset.     The challenges of the stock market:   The stock market’s biggest challenge is also its appeal: no one knows anything . Remember last week when I mentioned how "this time is different" is the most expensive phrase on Wall Street? ( link to read full article ) Two weeks ago, we saw the third-largest VIX spike in history. Now? That fear has evaporated. The VIX collapsed, despite predictions that it wouldn’t. Uncertainty is constant in the market, but I also know: some things are certain . -            If you’re overleveraged, the market will humble you. -            If you think you've found the "holy grail" strategy, it's only a matter of time before you're proven wrong. These aren’t threats—they’re truths. We’re not smarter than the hedge funds with deep pockets. But that’s not bad news! We just need to focus on our own strategies. Warren Buffett didn't predict the Japan unwind trade ahead of time, and he wasn’t calling for the end of the bull market. I want you to look at these headlines: Buffet sticks to his plan, and that’s what we need to do. Your plan should make sense for you, not for Warren or anyone else (including me). The fact is the market likely overreacted on Friday and Monday during volmageddon. Now the market might even be over correcting bullish. Who knows? The market's quick V-bottom recovery over the past two weeks caught almost everyone off guard. Reminded me of COVID Rumors swirled—was it the Japan carry trade? A firm on the brink of bankruptcy? Technical glitches? Who knows? Does it even matter   if you follow your plan? If your strategy makes sense, then it’s irrelevant what rumors fly around or how unpredictable the market is. Buy low and sell high friends! The truth is, no one can predict what tomorrow brings, and that’s both beautiful and exciting. Whether you're Warren Buffett, Tom Sosnoff, or Jim Cramer, you can’t know for sure. But what they do know—and what you should, too—is how to manage risk and stick to a solid plan. That’s why Good Kids Trading, focuses on simple strategies that make sense. I believe in our trading plan, I know there is more to learn, and we go further together as a team, even if we go a little slower. So, as surprised as I am at the market's recovery, I'm not surprised that almost all the predictions were wrong.   It’s reassuring to know   we can depend on math, mechanics and risk management and we can make money in the market . My account is back to new highs, and I’m also sitting on a sizable amount of cash (in SGOV) because as we reach new highs on the index and VIX is near lows again, I can’t Risk management as a premium seller: Think of the stock market like REI's biggest sale of the year. You wouldn't buy gear in April when the prices are high, right? You’d wait for the sale. The same logic applies to selling premium. When VIX is high, and stocks are low, that's our version of the REI sale. Right now, though, with VIX low and indexes high, it's like paying full price—risky with less reward. You may remember my blog about trading lessons from the Appalachian trail? Just know I spent lots of money at REI, so this example hit home. If you didn’t read that blog, check it out : The same logic applies to selling premium in the stock market. When the VIX is high and stocks are low, that’s our version of the REI sale.  The market is giving us an advantage, and that’s when we should be loading up on opportunities. But right now, with the VIX low and market indexes high, it’s like paying full price for gear in April—not exactly a smart move.   In this environment, risk management  becomes key. Selling a lot of premium when the VIX is low means you’re taking on more risk without enough reward. That’s why I’ve shifted my focus to earnings gaps and moments when volatility spikes. When a stock gaps down on seemingly good earnings but there's uncertainty in the report, that’s my chance to step in.   I’m using strategies like put ratio spreads  and 111 or 112 put spreads  alternatives to put sales. Did you read that blog? It made me money during this pullback: Checkout this blog if you like money:   These alternatives to put selling allow me to benefit as a stock pulls back, but I also get paid if the stock keeps going up.  It’s like getting ready for that REI sale— preparing to buy when the market gives us a discount . Emotions vs. Strategy: Emotions will run high during pullbacks. Even after 30 years of trading, buying dips is tough. The "experts" will flood the airwaves with why this time is different and why panic is justified. Ignore the noise. It’s up to us, the Good Kids, to recognize opportunities when they come. Right now, it’s time to ease off on selling premium. There's still easy money in SGOV for another month. Meanwhile, start preparing your watchlist and your thesis for upcoming rate cuts. If you're unsure where to start, join Mr. Money Maxwell's Inner Circle . I share my game plan, watchlists, and stock ideas with you. We’ve seen these patterns before, and this time probably isn’t that different. That’s what gives me confidence to follow my plan.   Fear and Greed / Market Cycles: Check out CNN’s  fear and greed indicator : I want to break this down because it’s important.   Do you see a month ago we were at greed (the chart above gives us history) Today we’re at fear at 35, but 2 weeks ago we were at extreme fear!   Look at the line chart: Now look at the psychology of a market cycle chart: by aligning our portfolio’s risk to these cycles, we can keep our emotions in check. You can’t predict the next black swan, but you can be smart about managing risk. We knew when the greed and fear index is in extreme greed or greed, there is risk of the market changing.  Remember all my blogs saying small swing trades and we have risk free money in SGOV? Thrill and Euphoria are going to eventually turn to panic. Align your portfolio’s risk to these simple indexes and chart to keep your emotions in check. Depressions turn into bull markets eventually. You can NEVER predict the next black swan. But you can be smart when you are risk on or risk off!    Weekly recap: SPY –  We’ve had 6 bullish days in a row. That’s very unusual. We also had a v bottom recovery on SPY, which I haven’t seen since the covid crash QQQ-   looks a lot like SPY! These three candles are a morning star reversal (same as SPY) IWM-  the Russell bounced right where it needed to. I’m still bullish small caps into the rate cut. VIX-  what a bearish week on the fear index! TLT-  I expect treasuries to keep going higher. I hope you are already in TLT, lets keep holding this one. GLD-  hit new all time highs. Is this a risk off recession play? Likely it is. Upcoming ex dividends: I’m watching HAS, VTRS, SMG, PSX this week. Dividend Kings: Dividend Aristocrats: The Week ahead: Fed is meeting in Jackson Hole this week. There will be headlines all around this. Watch the jobless claims, as that seems to be more of the focus than CPI for inflation concerns. NVDA al  Earnings: There are not as many earnings, as we’re getting late in the season, but still some names I’m excited to trade on gap downs:  LOW, MDT, TJX, TGT, SNOW, ZM, CAVA just to name a few.   If you made it this far I appreciate you and hope it provided you value. Until next time! If you want more specific trade ideas join Mr Money Maxwell's inner circle ! Happy Trading Good Kids! -$Maxwell For more insights and real-time market updates, join our GKT community on Discord . If you need personalized help, schedule a 1:1 intro call using my Calendly link .

Shares of stock in quality companies are just like investment properties. Yet, the stock market invokes strong emotions of fear at both ends of the spectrum: from losing all your hard-earned money to the fear of missing out on gains. This fear can lead to poor decisions, like buying too high or investing too much capital at once. But what if you could trade with confidence, like a real estate investor? By reframing your mindset, you can make trading easier. Dollar Cost Averaging (DCA) is a simple strategy where instead of buying all shares at once, you spread your investment over time. In real estate, you have to buy the whole house at once. There’s no option to buy just the kitchen or the living room first. But in the stock market, it’s different. You don’t have to buy all your shares of a stock at once. I understand why you feel pressured to do so, especially when you think a stock is about to take off. I'd argue that most of the time you should not go all in at once unless you are setting up a swing trade with a solid stop loss. Going all in at once leads to poor decisions. You might end up buying too high or putting too much capital at risk. Remember, the market isn’t going anywhere. And unlike real estate, you don't have to buy the whole house at once! Think about building up your position gradually: This method spreads your investment over time, reducing the risk of buying at the wrong moment. By buying shares gradually, you stay flexible as the market changes. Building a position slowly can work in your favor. 4 Strategies to Dollar Cost Average: (with links to blogs) 1. Price Pyramid: Buy more shares as a stock pulls back ( read full article ). 2. Time Pyramid: Buy more shares at regular intervals, regardless of price ( read full article ). 3. Selling Covered Strangles:   Own 100 shares, sell another put, and possibly get called away at a higher price ( read full article ). 4. Selling Puts: Sell puts on companies you want to own at a lower price ( read full article ). When you take your time and buy shares gradually, you’re following the Good Kids Trading way. It’s about being smart, not hasty. Even if you think a stock is ready to skyrocket, remember that a measured approach often wins in the long run. The Benefits of Dollar Cost Averaging (DCA) Dollar cost averaging a smart choice for the following 3 reasons: 1. Reduces the Impact of Market Volatility: By spreading out your investments, you’re less exposed to market swings. This approach helps protect you from sudden drops by not putting all your money in at once. 2. Lowers Emotional Stress: DCA removes the pressure of trying to time the market perfectly. Instead of worrying about the right entry point, you can focus on steadily building your position, keeping emotions like fear and greed in check. 3. Encourages Discipline: Sticking to a regular investment schedule builds discipline into your trading plan. Consistency is key to long-term success. Join the Inner Circle: Want more of my best content? Join the Mr. Money Maxwell Inner Circle . Join now for an introductory rate! You'll have access to my watchlists, my best trade ideas as well as upcoming eBooks and guides. Join our Good Kids Trading Discord community for real-time market updates, and be sure to subscribe to our email list if you haven't yet—I'll see you on the blog next week and much sooner in Discord! Happy trading, good kids! -$Maxwell For more insights and real-time market updates, join our GKT community on Discord . If you need personalized help, schedule a 1:1 intro call using my Calendly link . This is not trading advice, it's for your education. This is financial advice. Any trades or decisions you choose to make are at your own risk.