You’ve seen how volatile the market’s been for the past year or so, and that volatility isn’t going away any time soon. So it’s critical to have a “trader’s mindset,” and be active in managing positions.
Active trading is where investors try to beat the market by finding the right trades, usually holding them for just a short time — but I’m not talking about day trading.
What’s the best active trading strategy? I have my own opinions on that…
First, I want to explain the merits of being an active trader.
Yes, there’s a time and place for buying and holding stocks long term. But we’re not there just yet.
So every trader should have different ways of making money in the market, and not just good ol’ buy-and-hold, long-term investing.
If you’re the type of investor who doesn’t like to trade actively, maybe you should learn how to. It doesn’t have to be nearly as time-consuming or complicated as many might think.
In fact, a couple of minutes here and there each day is often all it takes when it comes to some of the best active trading strategies.
What’s the Best Active Trading Strategy?
We’ve been in an active trader’s market for well over a year now, and long-term investors are still getting smashed by the pain train despite some respite in January and a March that’s been better than expected so far.
Let’s look at my benchmark over the past year, the S&P 500, which is down about 11.5% in that time…
Taking a big-picture glance at the chart above, does it make you want to buy and hold stocks for the next six months or even longer?
I wouldn’t…
My favorite way to play a market like this is to be active… And, no, I don’t mean day trading. Not quite, but I do like getting in and out of positions fast…
Heck, less than 24 hours when possible. And I happen to have a trading strategy crushing 2023 that’s built for that sort of short time frame: Burn Notice Alerts.
Being in the market for such a short period of time reduces risk, and four trades a week — on average — add up to about 200 trades a year. This strategy is a marathon, not a sprint… But each trade can be executed quickly and simply.
All it takes is a couple of minutes in the afternoon to enter a simple call or put, and then a couple of minutes the following market open to exit the trade.
This trading style isn’t for everyone, of course. Is the best active trading strategy out there? That, I do not know. But I’ll put my decades of experience and active trading chops up against just about anyone out there.
We want you to have all of the information possible at your fingertips, since the strategy’s inception on Dec. 15, 2020, Burn Notice Alerts has a 55.63% win rate with an average weighted return of 1.77% overnight, including winners and losers.
On “2 Star” trades, which are my high-conviction alerts, Burn Notice has a 61% win rate and an average return of 4.3% on the options.
So far this year, from Jan. 3’s first trades through Wednesday’s trade exit, this strategy has returned $6,678.56, according to the tracker in the members’ area, where everything is documented for all to see. The trades often cost just a few hundred bucks to enter, so even small accounts
We do NOT win every trade, as is clear in the info above, but those gains add up over time!
If you think it could be for you, be sure to check out Burn Notice!
Jeff Zananiri
Jeff Zananiri Trading
*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk.
P.S. The Last Great Banking Trade of the Year
In the world of investing, knowing critical information ahead of time is essential.
People often make BIG investment decisions based on the potential of future events.
On Feb. 27, the CFO of Silicon Valley Bank sold off $575,000 worth of shares just days before the bank collapsed…
In fact, we’ve seen a lot of banking insiders unload shares as of late…
Why?
Likely because they — like many — are afraid of a serious banking meltdown…
And to be honest, I can’t blame them…
In the last week, we’ve seen numerous reports of people pulling money OUT of banks…
Which is really, really scary. But what’s interesting is that at the same time…
1 Group of Insiders Is Loading Up on 1 Bank
