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The Opportunity in $970 Billion
The era when the stock market was driven by suits on Wall Street is long-forgotten, and playing the markets is increasingly becoming an everyman’s game.
Thanks to the rise of mobile trading apps, such as Robinhood and Schwab, as well as the popularity of so-called meme stocks, like GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC), younger and internet-savvy people are taking up investing with a passion.
Here at the Club, we’ve warned readers about the fallibility of such investments. But that’s not to say there aren’t serious opportunities that have come out of this phenomenon.
You just have to look for them.
Throw Away the Dartboard
According to The New York Times, the average age of Robinhood users is 31. And half of them are new to investing.
This influx of new investors – fueled in part by ongoing government stimulus checks – has brought a huge amount of additional trading volume into the markets, the likes of which we haven’t seen before.
These online investors often pick stocks randomly, essentially throwing darts at the market dartboard indiscriminately in the hopes of hitting a winner.
But as Senior Markets Expert Matt Benjamin wrote recently, the time has come to throw away the dartboard and start discriminating a bit more.
How?
Use a trading strategy.
And one expert who’s found a unique opportunity in this increased trading volume is America’s No. 1 pattern trader at Money Map Press, Tom Gentile.
“This demand creates movement,” Tom says. “Stocks move farther and faster than ever before – the same is true for options. And that means one thing: massive profit opportunity for the smart money.”
This huge influx of new investors is putting as much as $970 billion up for grabs every day the markets are open. And as a market expert who reads the patterns, Tom’s found a way to take advantage.
Looking Ahead
The media had a field day during the GameStop frenzy. All anyone wanted to talk about was this tiny video game retailer and its roller coaster of a stock chart.
But there were other stocks – many of them flying under the radar – that were also driven higher by increased volume from Robinhood traders.
In January, they sent Koss Corporation (Nasdaq: KOSS) surging more than 3,800% in just six days… and pushed Naked Brand Group (Nasdaq: NAKD) up 1,000% in just three days.
However, knowing about these stock surges after the fact doesn’t do anyone any good. But Tom isn’t looking at the past. He’s using a new strategy to look for future surges.
One of the patterns he’s found involves implied volatility, a measure of how strongly an option’s price swings up and down. Simply put, as the implied volatility goes up, so does the value of an option. (And this is a topic that Senior Research Analyst Anthony Summers has discussed in-depth.)
But that’s far from the only thing Tom is looking at with his new strategy.
Interested in finding out more? Just click here to watch his video presentation called “Operation Surge Strike.”
Enjoy your Sunday,
Aviva