Saturday, March 15, 2025

A 140% Gain... as the Market Plummeted!

Shield

AN OXFORD CLUB PUBLICATION

Loyal reader since December 2024

Wealthy Retirement

View in browser

Editor's Note: Chief Income Strategist Marc Lichtenfeld has been on a tear with his VIP recommendations... but it isn't just some fluky hot streak.

In one of his services, Marc delivered 16 triple-digit winners last year (and he's already delivered three so far this year)!

Below, he shares his thought process behind both his biggest bullish win AND his biggest bearish win of 2024.

To learn more about how Marc finds these kinds of winners, click here!

- James Ogletree, Managing Editor

How I Helped Readers Make 140% During a Market Decline

Marc Lichtenfeld, Chief Income Strategist, The Oxford Club

Marc Lichtenfeld

For a fleeting moment in college, I thought I might be a psych major.

That didn't end up happening, but it turned out that in my career, I've "majored" in market psychology.

As Liam Neeson might say, I have "a very particular set of skills." For several decades, I have studied and used technical analysis.

Technical analysts use charts to measure investor psychology - and, most importantly, identify the times when that psychology changes. Those are the best points to enter and exit positions.

(If you're interested in hearing more about how to use technical analysis to improve your own trading, click here.)

SPONSORED

For example, in April of last year, I recommended Samsara (NYSE: IOT) to my readers.

The stock had taken a nasty fall from $40 to nearly $30. However, it was still in a longer-term uptrend and inside of what is known as an upward channel, which is my favorite chart pattern to trade.

The reason it's my favorite is we're buying the stock low, after it has come down. If we're wrong and the stock falls below the bottom line of the channel, we know that the psychology of the market has changed, and we get out quickly with a small loss.

In this chart, since December of 2022, whenever the stock fell back to the trendline, the bulls took over and pushed the stock back to the top of the channel.

Chart: Samsara (NYSE: IOT)
View larger image
 

In April, I bet on that occurring again.

Look what happened.

Chart: Samsara (NYSE: IOT)
View larger image
 

We made a quick 31% in the stock in just over three weeks and a whopping 301% on the call options that we added at the same time.

Also, when stocks are falling like they are now, you can trade the downside. When you follow chart patterns and investor psychology, you always have the opportunity to make money.

You'll recall that stocks rose immediately after the election in November, but then they began to decline about a week later.

SPONSORED

Shortly after that, I added a bearish position in Schlumberger (NYSE: SLB).

The stock had been falling, making lower highs and lower lows and trading in a downward channel. With the stock near the top of the channel, I shorted the stock and bought put options, expecting Schlumberger to continue to drop toward the bottom of the channel.

Chart: Schlumberger (NYSE: SLB)
View larger image
 

Just over a month later, with the stock near the bottom of the channel (just as I'd expected), I closed out the position for a 15% winner on the short of the stock and 246% on the puts.

Chart: Schlumberger (NYSE: SLB)
View larger image
 

More recently, I helped my readers more than double their money on a long position despite a tanking market.

Just last week, on March 6, I recommended readers buy CNH Industrial (NYSE: CNH) because it was at the bottom of its channel. It was a low-risk, high-reward trade.

Chart: CNH Industrial (NYSE: CNH)
View larger image
 

Four days later, we cashed out with a quick 12% winner on the stock and a 140% gain on our options - despite a miserable market.

Chart: CNH Industrial (NYSE: CNH)
View larger image
 

I trade quite a few different chart patterns, but the channel is my favorite. It's easy to understand, we get to buy low, and the risk-reward ratio is excellent.

I don't have to know the theories of Freud, Maslow, and Skinner to know what investors and traders are thinking. All I have to do is look at a chart, and I get a visual representation of their behavior and a better understanding of what is likely to happen next.

Good investing,

Marc

How to Endure the Trump Transition

How Smart Traders Target Gains Before the Opening Bell

SPONSORED

No comments:

Post a Comment