I’m sure you’ve heard by now that President Trump made the executive order to ground all Boeing 737 MAX planes on Thursday.
The new fuel-efficient models are a huge cash flow driver for Boeing Co. (NYSE: BA), making up about 25% of total sales. So after Trump’s order hit, Boeing’s stock responded. Shares have now fallen a drastic 11%, wiping over $25 billion off the aircraft manufacturer’s market value.
Boeing makes up more than 10% of the Dow, so this drastic loss dragged down the entire market as a result. And investors across the board immediately began adjusting their portfolios in an attempt to offset the falling market. But here’s the thing – that’s exactly what Wall Street wants you to do.
Here’s why it’s actually the number one trading mistake that you could make…
Anytime a major event happens, like clockwork, the financial news networks’ talking heads start running their mouths, telling you all about the market and how you’re going to lose money. They overload you with a whole onslaught of conflicting information.
And it’s because they want you to come back. They want to up their ratings, and they’re using these major news events to do it. We heard them preaching contradictory information all week, from telling us that now is the time to buy Boeing all the way to now being the time to sell Boeing.
But here’s the bottom line… trading the news is never a trading strategy. It’s actually one of the fastest ways to lose your hard-earned cash.
To be successful traders, we don’t need to trade on breaking news alerts. We leave that to the other guys, because we’ve always got an ace up our sleeves…
[Winner alert]: Tom Gentile’s Alpha-9 members just had the chance to close out winner number 30 this year. And to be transparent, he’s only had 6 losers. With success like this, it’s no wonder he made this mind-blowing guarantee…
In fact, just last September we made money on Southwest Airlines (NYSE: LUV). But there’s a key difference here between us and the other guys – we didn’t wait for LUV to be in the news before making our trade.
Instead, we used back-tested patterns and rules-based strategies – and we were able to take home 10.8% profits at a time when the stock only increased 0.7%.
If we had relied simply on the news, we wouldn’t have been able to guarantee profits like these. We’ve got powerful tools to show us which way the market’s future is going – but when it comes to the news, there’s no telling what could happen.
Remember earlier this month when we talked about Elon Musk? He tweeted incorrect information about Tesla, and it rocked the market. Investors reacted, putting money in and pulling money out. But the correct thing to do?
Nothing. Nobody can predict what’s going to come out of Musk’s mouth – or his Twitter feed. If you put your money on that, you could end up losing big – and fast.
There is a way, however, to guarantee that this won’t happen. And it’s a lot simpler than you think.
If you just follow these rules, then you can become a successful trader in no time:
- Never put more than $500 into an initial investment – this way, you’re keeping your risk low.
- Only focus on the top 2% of stocks, so that you know you’re only dealing with market movers.
- Never force a trade. If you have to force it, it probably isn’t going to move in the direction you want it to.
And remember…
Never trade on headlines. Because there’s no way to guarantee where they will go next.
If you follow these rules, then you’ll be that much closer to true success. You can feel confident that your family is secure, retire a whole lot earlier, and really, just start enjoying your life.
Because when it comes to choosing what type of trade to execute when the opportunity arises, I’ve got you covered. I’m on a mission to teach you all of my wealth-building secrets so you can have the same incredible success I’ve had. In fact, I’m revealing my next secret – how to use the “butterfly trade” so you can see triple digit gains – on Tuesday.
I’ll walk you through the exact set up you’ll need to execute the trade, when you should use this strategy, and more. Folks, you don’t want to miss it.
Learn how to sign up for this Million Dollar Masterclass right here.
Good trading,
Tom Gentile
America’s #1 Pattern Trader
