9/22/2024 The Fed finally pulled the trigger on rate cuts, with Jay Powell and the FOMC surprising many, including me, by opting for a 0.50 basis point cut instead of the expected 0.25. The market had priced this in, the actual announcement barely moved the needle on Wednesday. But by Thursday, the bulls took over, sending stocks higher. Friday saw a slight pullback with the massive options expiration during triple witching. It makes me wonder—are they playing catch up? We will need to block out the noise and focus on the data as we think about our trading for the remainder of 2024. Checkout the video update!! I've summarized this post as a video! Check it out , do you prefer video updates? Let me know I read EVERY email. 2025 rate projections have the fed funds rate significantly lower One of the key insights comes from the Fed’s dot plot —a chart that shows each Fed member’s projection for the federal funds rate over the next few years. While these projections often miss the mark, we still watch them closely as another data point. Comparing the dot plot from June 2024 to September 2024, there’s a notable difference: June 12th: source: https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20240612.pdf Sept 18th  source: https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20240918.pdf This shift suggests that the Fed might be anticipating a slowdown, which raises another question—did they wait too long to cut rates? If so, they could risk slowing the economy more than intended. Of course, we won’t know for sure until after the fact—our indicators are always lagging. But it’s something we all should keep in mind moving forward. Blocking out the noise and focusing on the data will be crucial in navigating these next few months. Central Banks and the Bigger Picture What we do know is that central banks are prioritizing financial stability over strict price control, which is usually bullish for stocks. The Fed is now pulling rate cuts forward to 2024-2025, and both U.S. and global liquidity are expected to rise into next year. This points to more upside for equities. Meanwhile, the Bank of Japan is likely to stay on the sidelines, avoiding any major disruptions. The Election Looms: More Volatility Ahead? Looking ahead, the next big event on the horizon is the U.S. election. Historically, markets don’t like uncertainty, so I expect volatility to creep in as we get closer. This chart below from TastyLive is a good data point to confirm a bearish Sept, and a volatile Oct on average. Mr Money Maxwell Inner Circle I've posted a video of trade ideas and strategies for inner circle members. If you aren't a member you should join the inner circle now while I have a reduced rate of $2 a week (for a limited time). 45 minute video this week, guides in depth analysis and strategies I've used to find freedom all waiting for you! Seasonal Headwinds: Stay Cautious From a seasonality standpoint, we're entering a historically weak period for stocks—the tail end of September and early October tend to be bearish. Will this year follow the same pattern? Hard to say, but I like to keep things simple. My Simple, Boring Style: Buy Low, Sell High I’m a straightforward trader. I like to buy low and sell high. With markets continually hitting new highs and a binary event like the election just around the corner, I’m staying cautious. My positive delta is shrinking week by week as I dial back exposure. But that doesn’t mean I’m out. When I see opportunities—like during market rotation or earnings season—I’m selling premium. The good kids caught several trades this week that closed profitably the next day. There are still chances out there, but this isn’t the time to go "all-in" on risk. Buying at all-time highs in the short term is tough for me. Instead, I’m focused on trades that benefit from theta decay or swing setups in certain sectors.   My Plan Moving Forward While I subscribe to a few research services, the outlooks are mixed—some predict SPX could hit 6,000 by year’s end. But let's be real, no one truly knows what the market will do. It’s always educated guesses with varying levels of support behind them. In terms of our longer term portfolio remember the market has a positive drift. I think keeping positive delta makes sense. I wrote about it here : I’m going to stay nimble and see what the market gives us. My strategy is simple: take trades that align with my style and avoid chasing tops. I share many of my trades in real-time on Discord, along with trade ideas and analysis for Mr. Money Maxwell Inner Circle Members . If you haven’t joined yet, now’s the time! Membership is currently available at a discounted price of $99.99 for the entire year. Weekly Update Spy: another new all time high. We are very extended from the moving averages, we can of course keep going higher, but I would like a little pull back before I add too much risk. QQQ- we broke through the down trend with a nice close. QQQ might continue higher, but it needs to hold this trend line. META is by far the strongest. RSP- equal weighted SP500 looks good too. This proves the overall market is strong. TLT- Still looking good, just taking a little rest here. Rate cuts were already priced in . GLD- I really hope you all took this trade with me from a few weeks ago. However, this strength in gold is a bit concerning from a risk off perspective. This is a warning sign. VIX/VX- Volatility is down. I think (hope) we see some increase as we get closer to the election. The market hates uncertainty, this should be reflected in VIX IWM- Small caps should benefit from rate cuts as smaller companies depend on debt for growth. As rates come down they should benefit! We have a break over the pennant. XLU hit new all time highs- I hope you caught the trade with me on Thursday. However, this is another sign of risk off rotation. Just another sign we should be careful on too much risk. Upcoming Dividends There are no dividend aristocrats or dividend kings with Ex-Dividends this week! Week Ahead MU and COST earnings! That’s all for this week. Mr Money Maxwell Inner Circle members make sure you checkout the youtube video  I made just for you! Click that hyperlink to join the inner circle for trade ideas as well as strategies for this market! Happy Trading, Good Kids! -$Maxwell

After high school, I worked for my dad's plumbing company as part of his plan to push me toward college (which worked well, but that's a different story). I was excited to operate the big machines, but instead, this was my tool: I was handed a shovel. That summer, I learned a lesson that applies directly to options trading. While I expected to play on the backhoe (yes that is an actual picture of my dad on a backhoe), installing water and sewer systems. I spent most of my time with a shovel, digging trenches and learning the job from the ground up. This experience would later shape my approach to options trading. If they let a teenager run a backhoe can you image how much damage I could have done? Forget about getting the water lines to the building, what about all the underground hazards I didn't know about? Just like in plumbing, options trading can feel overwhelming with its complex strategies and leverage. From defined-risk trades like spreads or iron condors to higher-risk plays like naked puts or strangles, jumping to complex strategies too soon can lead to bigger losses. The most successful traders, much like the best plumbers, master a few simple, well-executed strategies before taking on more leverage. Let’s explore why focusing on one basic strategy—your "shovel"—can lead to consistent profits and long-term success. The Power of the Shovel: Lessons from the Trenches Learn to Manage the Dirt : With a shovel, I learned to move small amounts of dirt, ensuring the trench was level and at the right depth. In trading : this means understanding how a basic strategy, like selling puts, get super comfortable with managing these before moving on to different strategies. Build Strength and Precision : Each shovelful of dirt seemed small, but over time, I gained valuable insights. In trading : each small trade builds your understanding of risk management, strike price selection, and theta decay. Don't focus on the size of the win, focus on the process. Minimize Damage : Jumping to use the backhoe without proper experience could cause chaos—digging too deep or damaging pipes. In trading: this leads to unexpected losses from complex strategies you don’t fully understand, you will lose while trading, learn how to manage with small trades first. Consistency Over Complexity : Even after learning to use bigger machines, there were still times when a shovel was the best tool for the job. In trading: if your simple trading strategy is generating steady profits, stick with it! We always want to make things better but sometimes staying small and staying mechanical is perfect! Focusing on one strategy allows you to: Improve Win Rate : Mastering a strategy increases your success rate. Optimize Position Sizing : Better understanding leads to more effective risk management. Compound Growth : Consistent small gains add up. A 1% monthly return compounded over 5 years results in a 79.6% total return. I eventually graduated to larger trades using larger equipment, you’ll know you're ready for more complex trading strategies when: You consistently generate profits with your simple strategy. You know how to adjust to different market conditions. You can effectively manage risk and position sizing. Action Plan: Start Digging into Options Mastery Choose Your Shovel : Pick a basic strategy (Selling Puts, Wheels). Practice Your Technique : Paper trade to refine your skills without risking real money. Start Small : Begin with small real-money trades to experience actual market dynamics. Keep a Trading Journal : Track your progress and identify areas for improvement. Stick to What Works : Don’t complicate things if your strategy is profitable. It’s not about having the biggest machine—it’s about mastering the tools you have. Start with your "shovel" strategy, perfect it, and watch as you efficiently dig your way to trading success, one precisely controlled scoop at a time. I talk strategy here in the blog, share trades in our Discord , and provide even more specific details to my Mr. Money Maxwell Inner Circle . While I believe there is an edge to be found, the truth remains: over time, buying and holding is historically profitable. Happy trading, good kids! -$Maxwell

What a Difference a Week Makes in the Market This time last week, things were looking bleak in the market. Bears were in control, and investors were wondering if the end of this bull run was near. It felt like the market could unravel at any moment. The pessimism was palpable. The much anticipated rate cut is finally here. Does this mean we aren’t just moments away from the most important CPI report of our lives? Will the market finally stop watching each job report like our financial future depends on it? Lets not get too far ahead of ourselves. I have lots to cover this week, lets jump in. Fast forward to this week, look at the heatmap from this Friday and last Friday. I posted this to our discord . But if there’s one thing you learn in trading, it’s that the market loves to surprise us. Wednesday things looked pretty rough in the morning, but by the afternoon, the major indexes—SPY, QQQ, and IWM—had formed a strong hammer pattern. That shift sparked a rally that took off like a rocket. With a potential Fed rate cut on the horizon, I want to be bullish, but I’m still cautious. The CME FedWatch tool  shows a 50-50 split between a 0.25% or 0.50% cut. No one knows for sure, my bet is on a conservative 0.25% cut, this strength in the market makes me feel like the market is expecting a cut of 0.50%. Powell has been cautious with his easing so far, and though the labor market looks weak, a smaller more conservative approach fits his style in my opinion. The market is pricing in perfection. That makes me cautious here. Of course we can rip higher, so small swings make sense to me. Yet, despite the bullish market setup, there's one thing that makes me pause: gold. It’s hitting all-time highs too. If you’ve been following my newsletters, you’ll know how much I value technical analysis. Remember the doji pattern I highlighted last week? It’s playing out perfectly. If you played this doji congratulations my friend! So where do we go from here? That’s what I’ll be diving into today as I review the major indexes, upcoming dividends, and economic news for the upcoming. But before I jump into the weekly breakdown, I need to let you in on something important. What You’re Missing Out On: Mr. Money Maxwell’s Inner Circle If you’re not a member of my Inner Circle yet, now’s the time to consider joining . It’s no secret I built my wealth in the stock market. I’m sharing personal insights and even trade ideas for balancing wealth-building with active trading are reserved for the Inner Circle. These are the techniques that have given me the freedom I enjoy today, and I want to help you achieve the same. I also give trade ideas for you to consider. Some of them are bangers! For just $99.99 a year, you’ll gain full access to everything I’ve learned in nearly three decades of trading. But don’t wait too long—this offer won’t last forever. You’re missing out on the insights my members are already using to transform their trading. Ready to level up? You also get access to my dividend watchlists. Don’t just take my word for it: Quote for Thought: "The way I see it, day traders considered themselves successful if they bought a stock at $10 and sold it at $11, bought it back the next week at $24 and sold it at $25, and bought it a week later at $39, and sold at $40. If you can’t see the flaw in this—that the trader made $3 in a stock that appreciated by $30—you probably shouldn’t read this book." — Howard Marks     SPY:  Bullish doesn’t quite describe this week’s powerful candle, we’re .5% off all time highs. I see people saying is this a triple top. My only concern here is if the market is getting to far ahead of itself rate cut wise. What’s the risk to reward here. We have an election, we have possible recession talk, the market is pricing in perfection. QQQ: Tech has experienced a bit of a sell off but had a nice rebound this week. We’re really close to breaking the trendline (especially if you don’t use the wicks). Just like I mentioned with SPY the market is pricing in perfection. IWM:  What I hope to see if the small caps benefit from this rate cut. It’s been a tough go, and the downward trend line is obvious. Lets look for another pop after the cut. I know it’s too obvious almost. GLD:  this is the biggest concern I think stock bulls should pay attention to. Gold is a flight to safety. It’s where people go when a recession is coming. I’m in bullish on gold based on the doji I showed you last week. I hope you are too, even if this is a warning sign. TLT: As interest rates get cut, bonds go up. Again this is so obvious that I don’t know how else to say it. Needless to say I’m in and bullish on TLT. VIX:  There is an inverse between VIX and Equites. VIX down, stocks up… Do you know VIX is the only mean reverting underlying? We talk about it for stocks and moving averages, but VIX is the real mean reverter. SPYD-  I’m known as a dividend guy… Do you want my dividend watchlists? Even if you want to invest in dividend ETFs. My inner circle  has access. I’ve been in this for months.  Upcoming Dividends I’m in KO and ALB. The charts are night and day 😊 Dividend Aristocrats Dividend Kings Week Ahead Wednesday is the focus as we get a rate cut. Also reminder this Friday is triple witching with a lot of options expiring! That’s all for this week. Earnings I’m watching GIS and FDX. I’m actually in both positions. I want to go slow until after Wednesday. We need to see what the market is going to do. I’ll see you next week. Much Sooner in our discord!

Most traders know this one simple truth: the stock market goes up over time . It's been happening for over a century. The market has a positive drift , largely because the U.S. government is constantly injecting money into the economy and driving value-added growth. This means that if you want to make money in the stock market, you can simply invest in quality companies  and wait. Over the long term, the market trends upward. In fact, the average annual return of the S&P 500 over the past 30 years is 10.52%  (assuming dividends are reinvested). Even adjusted for inflation, the return is still a healthy 7.78% . But if you’re reading this, I’m guessing you’re not here just to ride the wave of positive drift. You want more. You want to beat the market—not just coast along with it. Sure, we could all put our money into ultra-low-risk vehicles that passively benefit from the market’s upward trend. Over time, we’d accumulate wealth by simply taking advantage of positive drift. For many, that strategy works, with no need for fancy strategies or technical analysis. But if you're here, you likely aren’t interested in doing just that. You enjoy playing the game —testing your skills and finding ways to beat the average market returns. You understand that markets don’t go straight up in the short term, and those who know how to navigate volatility  can capitalize on opportunities that buy-and-hold investors miss. That’s why Good Kids  use math, probability, and technical analysis . We’re not chasing secrets or looking for get-rich-quick schemes. Instead, we want to build a simple system that stacks the odds in our favor . The market’s positive drift is only part of the story. Yes, the market has averaged around 10.52% returns over the last 30 years , but for those willing to go beyond holding and waiting, there are opportunities to outperform. We aim for more by: Selling puts  during periods of high volatility. Timing entries and exits  based on technical patterns. Adding uncorrelated products  to our portfolios to reduce risk and boost returns. Overweighting and Underweighting sectors according based on market cycles Managing Delta based on short term market direction In a world where the market’s beta (or baseline return) is enough for most, we’re looking for that extra edge —something that pushes our performance beyond positive drift. And here’s the thing: it’s possible . Research from firms like Tastytrade shows that adding strategies like options selling  can improve long-term performance compared to passive investing alone. If you’re ready to move past the simple concept that “markets go up over time” and start stacking probabilities in your favor, then it’s time to dig deeper. Whether it’s: Using volatility  to your advantage. Analyzing patterns for reversals . Leveraging uncorrelated assets  to diversify risk and optimize returns. There’s more to trading than simply following the positive drift. I talk strategy here in the blog, share trades in our Discord , and provide even more specific details to my Mr. Money Maxwell Inner Circle . While I believe there is an edge to be found, the truth remains: over time, buying and holding is historically profitable. Happy trading, good kids! -$Maxwell

9/8/2024 September is historically a tough month for the markets. Whether or not seasonality is real, the first week of September certainly feels like it is. After that V-shaped recovery in August, I’ve been raising cash and hedging with collars on all my positions. If I’m called away at all-time highs, so be it—there’s easy money in treasuries like SGOV right now. I’ve been writing about this here and posting my thoughts in discord for a while now, so I guess it’s no secret! Yes, rate cuts are on the horizon, but that doesn’t mean we should rush in. I’m being selective, and you should be too. When the market’s near its high, why chase risk for a 7% return when treasuries are offering a solid 5% pretty much risk free? The real opportunities come when we can target 15-30% returns—and we’re getting closer to that risk to reward as the market keeps pulling back. I’ve talked about my plans for a soft vs hard landing. While volatility will ramp up as we head into the election season, don’t expect the market to go straight down. Even in bear markets, aggressive bull moves happen. My hedges have been paying off during this pullback, and my dividends remain strong. Want the inside scoop? For months, I’ve been laying out the groundwork for those in the Mr. Money Maxwell Inner Circle . Specific dividend ideas, what I’m doing for a soft landing versus a recession. This week I’m sharing my exact hedging strategy from this week for members. I want you to build a system where you can make money as the market pulls back just like I did this week. My step-by-step analysis helps you build a strategy simple enough for anyone to follow. As we head into fall, this public blog, Maxwell’s Market Mindset, will get shorter and more concise. The best content—like my exact hedging strategies, ebooks, trade setups, and personal market insights—will only be available to Inner Circle members. At $99 a year (less than $2 a week), this is your chance to gain access to premium content before prices rise. I’m not pushing you to join, just giving you the opportunity to lock in this value while it’s available. With volatility high and new opportunities forming, now’s the time to get ahead of the market with a simple, effective plan. The Inner Circle will get my full breakdowns to help navigate these tricky waters and make money regardless of market direction. You in? Join Here     Weekly Charts: SPY - Is spy a double top of are we going to s curve higher? I think the market will remain volatile as we head into November’s election. The market is trying to figure out which candidate’s policies we’ll have for the next 4 years. What normally happens is once we find out, things will chill out.  Perhaps I’m too bullish all the time, but I think if we can keep dipping it will be a good buying opportunity heading into the end of the year.     QQQ - Tech looks really weak. This is not a surprise to the inner circle. I sold and collared all of my tech into the strength last month. So far that was a good call.   RSP  is the equal weighted SPY, meaning tech isn’t as strong. Although we have an evening star reversal up there (the red box). It looks stronger than SPY and QQQ. This means the market still has some strength, although this week was weak. This is a good sign of a healthy market rotation.   Do you know how to trade an evening star reversal? Did you see the blog about my favorite chart patterns ? I’m not shorting RSP, I would look to buy on a pull back. Maybe off the moving averages? Have you downloaded my free guide to make your chart look like my chart? Download it here . Moving averages are important to my trading.     VIX is spiking a bit, makes sense as we sell off, also the uncertainty heading into November maybe we can see VOL staying bid so we can sell some premium? Remember if you sell puts, you are agreeing to buy lower, if the stock doesn’t drop below the strike you just keep the premium. We want to see VIX stay elevated. Just not in the 60’s in a single day pretty please.   TLT-  I don’t know how to say it any other way. You should be in TLT, this is going to go up as rates come down. I’ve been for a year, I don’t think it’s too late, consider buying the dip or just buy it… (disclaimer: this is not trading advice).     GLD  had indecision this week. Gold has been a flight to safety and I don’t think that will change. I’m bullish, but maybe we have a little sideways movement for a bit? Iron condor, Strangle, or a bullish strategy makes sense to me.     Upcoming Dividends I like a lot of these companies with ex dividends next week. Checkout discord and see which ones I trade! Dividend Kings Dividend Aristocrats   Week Ahead September 11th this week. Take a few moments to reflect? I know I will.. CPI /PPI this week.   Earnings: ORCL and ADBE this week   Inner Circle update: This week I'm.... Remember to revisit the stock ideas I shared in the Soft vs. Hard Landing PDF.... The best move here? .... I’m sharing exactly what has worked for me over the past 20 years, and I know that if you follow along, you’ll see similar success. If you want the complete sentences and all my best content you should join the inner circle. Prices go up this month! Join Today Happy Trading Good Kids! -$Maxwell

When you're new to trading, the jargon can feel like a major roadblock. Terms like "ATM," "IV," and "LEAPS" might make you feel like you're missing out on an exclusive club where everyone else knows the secret language. But before you let trading lingo intimidate you into staying on the sidelines, here are four reasons why you shouldn’t let it hold you back. 1. Everyone Starts Confused—Even the Pros When I first dove into the world of trading, I was completely overwhelmed by the jargon. It felt like everyone else had a secret handbook, and I was just trying to keep up. But guess what? Even the most successful traders were once in the same boat. They didn’t understand the lingo at first either. Trading is a skill, and like any skill, it takes time to learn the language. The important thing is to start, even if you don’t feel fluent yet. 2. The Market Isn’t Rigged Against You It’s easy to feel like the market is stacked against you, especially when you don’t understand the terminology. But the truth is, the market doesn’t care if you’re a beginner or an expert. It’s a level playing field. The only difference between those who succeed and those who don’t is persistence. The jargon is just one small part of the learning curve. Don’t let it convince you that you’re not cut out for trading. 3. Resources Are Everywhere (GKT's Discord!) At Good Kids Trading, we recognized how daunting trading jargon can be, so we updated our Discord with resources to help decode the terms. Whether it's a glossary of key phrases or a breakdown of complex strategies, these tools are designed to make trading more accessible. The internet is also full of educational materials, from videos to forums, that can help you understand the language of the market. With the right resources, the lingo will start to make sense in no time. 4. It All Becomes Natural Over Time The best part about trading lingo is that, over time, it becomes second nature. Words and phrases that once seemed like a foreign language will eventually become part of your everyday vocabulary. The more you engage with the market, the more comfortable you'll become. Before long, you’ll find yourself using terms like "ITM" and "OTM" without even thinking about it. The key is to keep going, even when it feels overwhelming. Don’t let trading jargon hold you back. Everyone starts confused, but with persistence, resources, and time, it all starts to make sense. Remember, the market isn’t rigged against you—it just takes a little time to learn the rules. Dive in, use the resources available, and soon enough, you’ll be speaking the language of the market fluently. 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

9/1/2024 September is here, that means the much-anticipated rate cuts are likely on the horizon. The big question: will it be a modest 0.25% cut or a more significant 0.50%? As we head into this pivotal moment, I recommend bookmarking the CME FedWatch Tool . It’s going to be your go-to resource as we navigate these rate changes.   What Do Rate Cuts Mean for Us? Whether we’re heading for a soft landing or a recession, the initial steps often look similar—starting with rate cuts. But what’s the difference? Mr Money Maxwell Inner Circle  members have my exact game plan! In a soft landing , the Federal Reserve lowers interest rates just enough to cool down inflation without stalling economic growth. This scenario allows the economy to continue growing at a slower, more sustainable pace, avoiding a sharp downturn. The stock market tends to react positively because the lower rates reduce borrowing costs for businesses and consumers, supporting continued investment and spending. However, if those rate cuts turn out to be more aggressive or frequent, it could signal that the economy is in worse shape than expected. This could lead to a recession , where economic activity contracts, unemployment rises, and the stock market takes a hit. In this scenario, the Fed might be cutting rates to stimulate the economy, but the deeper underlying issues could cause a significant downturn. Many of the subscriptions I follow are hopeful for a soft landing, and this optimism is reflected in the monthly candles I’ve been reviewing, which show a positive outlook. If Fed Chair Jay Powell manages to strike the right balance, it could reinforce confidence in the market and support a smoother economic transition.   Monthly Market Recap: August's Wild Ride As we head into the holiday weekend and close out the month, it’s the perfect time to review the monthly candles. Before diving in, let’s run through the quick Mr. Money Maxwell Checklist :  Watchlist Ready:  Do you have a curated watchlist of key stocks? Zoom Out:  Have you looked at the bigger picture by reviewing monthly and weekly charts? Support and Resistance:  Have you identified and marked the key support and resistance levels on your watchlist? Moving Averages:  Have you checked the relevant moving averages for each stock? Favorite Chart Patterns:  Do you remember the 7 chart patterns I rely on? Keep them in mind as you analyze.   If you’re serious about taking your trading to the next level, now’s the time to join the inner circle . Get exclusive access to my watchlists, insights, and the specific names I’m tracking closely. Plus, you'll be locked in at the current price before it goes up next month.     SPY:  My friends, the S&P 500 gave us a huge hammer candle this month. The first three days were brutal, with the index gapping down more each day. At one point, we were down almost 8%, and the panic was palpable. But if you zoomed out, the pullback wasn’t as significant as it felt. The bigger story was the spike in the VIX, which we’ll get to in a second. What will September bring? Honestly, no one knows for sure. Just keep in mind that, from a seasonality standpoint, September is historically a bearish month.  It’s crucial we don’t see the index close below this monthly candle. Consider reading my hedge document if you haven’t already.     QQQ: Tech also saw a big hammer. Also again, tech is normally weak in September. Notice the higher lows (yes, I drew a purple trend line), which suggest that people are selling their tech stocks and rotating into other sectors. How can we tell? Just take a look at RSP.   RSP: A really powerful hammer on the equal-weighted S&P 500, which balances out the dominance of the “Magnificent 7.” This broadening market strength is encouraging. If we had seen lower lows here, I’d be much more concerned.   VIX: The spike in the VIX was August’s headline. I’ve read countless articles dissecting this spike, with some hypothesizing that there were calculation errors or technical issues. Whatever the reason, the surge in fear was real, leading to margin calls for those over-leveraged. If you were a “good” good kid, you sold some volatility with us on that dreadful Monday when the VIX hit the mid-60s after being stuck under 20 for what felt like forever.   GLD: What we’re seeing in gold seems to be a rush to safety. I’m continuing to look for bullish trades in gold and gold miners, as I believe this could be a strong play even if we don’t get a recession. That bearish doji we saw in June? It’s healthy! Remember, it’s not normal for stocks (or commodities) to go straight up every single month.     TLT:  Although the upper wick on TLT indicates some selling pressure, we still got a close above the 200-day moving average on the monthly chart. I’m still bullish on TLT, even though some of my swing trades have already hit their targets.     Final Thoughts: What a crazy month! August started out super bearish and ended on a bullish note. I’ve been super bullish on XLU and mentioned some specific names to the M$M inner circle members:     M$M Trade Ideas: Inner circle members have 5 trade ideas. If you haven't subscribed hurry as prices go up this month! Join here Trading vs. Investing: Remember the Timeframe   I want to emphasize the importance of distinguishing between trading and investing—and understanding the timeframe for each. While headlines might scream about Warren Buffett sitting on piles of cash or predict an impending crash (and let’s be honest, there’s always talk of a crash), it’s essential to remember that not investing is often more risky than having your money in the market. Checkout this graph I found on Reddit: This is a recurring theme because it’s vital: an uninvested dollar loses value over time, especially with inflation eroding its purchasing power. The stock market might be volatile in the short term, but over the long term, it’s proven to be the greatest wealth builder in history. I’ve heard the arguments about the U.S. potentially losing its global edge, the rise of other countries, and the potential of blockchain and crypto. While these are intriguing discussions, the U.S. stock market has a long history of resilience and recovery. Trying to time the market is nearly impossible, so staying invested is key. Upcoming Dividends I like a lot of these companies with ex dividends next week. Checkout discord and see which ones I trade! Dividend Kings Dividend Aristocrats   Week Ahead Shortened holiday week, but we still have a busy week as the labor market remains in focus. Jolts/ADP/then Friday Jobs report A few interesting earnings: Rates for Mr Money Maxwell's Inner Circle are going up this month! It's less than $2 a week for my best information. Join today! Happy Trading Good Kids! $Maxwell

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!