You know the old poker saying: “If you can’t spot the sucker at the table, then it’s probably you.”
That saying applies well to poker. It also applies to investing, speculating, and pretty much any activity in the financial markets.
Too many people put their money at risk without understanding how the game is played. They don’t do their homework. They don’t do any research. They only care that their friends are getting rich by buying the latest hot stock, or flipping real estate, or trading derivatives on triple-leveraged-inverse-volatility-trusts, and they want in on the action.
We all know how that story ends. The person with all of the money and none of the experience ends up with none of the money and one heck of an experience.
So, with that in mind… Let’s talk about cryptocurrencies…
Cryptocurrencies generated stunning returns last year. Bitcoin, for example, was up over 1,200% in 2017 – and it was one of the laggards of the group. Ether, a lesser-known digital currency, gained over 3,000%. And Neo – a Chinese cryptocurrency – rallied almost 20,000%.
Cryptos became the main topic of conversation on last year’s holiday party circuit. Biff and Muffy bragged about how they planned to fund little Skylar’s private school tuition with Paris Hilton’s sponsored initial coin offering (ICO). But when pressed with questions like “How does it work?” Biff and Muffy went silent. They couldn’t explain it because they didn’t know. They hadn’t done the research.
So, when the cryptocurrency bubble popped in December, Biff and Muffy were left holding the bag. They were the suckers at the bitcoin table.
But the crypto game isn’t over yet. According to some experts, cryptocurrencies are gearing up for another run. And this time, the move could be even more impressive than last year’s rally.
But if you don’t understand terms like blockchain, initial coin offering (ICO), and crypto wallet, then you don’t have any business swimming in the digital currency pool. It’s far better to stay on dry land and miss out on the potential gains than to drown because you don’t know how to swim.
On the other hand, if you’re willing to do a little work, if you’re willing to study the market and gain some knowledge about cryptocurrencies before you throw money into the sector, then you may have a shot at some truly phenomenal returns.
One of the top experts in the space is Teeka Tiwari. He’s the editor of Palm Beach Confidential, and he’s one of the smartest guys I know.
Teeka has been involved in the digital currency market since its beginning. He has generated staggering returns. And he’s the only person I trust to guide folks through this sector.
Teeka‘s hosting a special educational webinar on digital currencies tonight at 8 p.m. ET. If you’re interested in trading bitcoin, or any of the dozens of alternate digital currencies, then you absolutely must attend this webinar.
To sign up, click here…
Best regards and good trading,
Jeff Clark
Reader Mailbag
Today, readers respond to yesterday’s Market Minute essay “This Comment Hit Me Hard”…
Hi Jeff,
I know you get a ton of emails inbound everyday with someone complaining about one thing or another. I just wanted to send you a note that does the opposite.
I haven’t had a great year in the markets, but that is despite your trade calls/your service, not because of them. I have had a great winning ratio this year (thanks to you), but I have gone in overleveraged on a few trades that keep wiping out my profits because I have decided that I wanted to take on more risk for more reward and for one reason or another I thought a certain trade was a good one to go big on. I’m not complaining about it because I’m an adult and that was the risk I was taking on, and that has nothing to do with you. Sometimes I follow your position sizing recommendations and sometimes I don’t… If I win on the trades where I “go in big” then that’s great, but if I don’t that isn’t your fault because you make it very clear what your recommendation is in every single trade recommendation that you make (and probably because after years of experience and probably just knowing that those couple of huge losses can do to a portfolio what they have done to mine this year). Much better to be consistently winning than to swing for the fences and strike out here and there.
In any case, I just wanted to let you know that I think you have a tremendous service and it is an unbelievable value where honestly anyone who would play an average position size of even a fifth of your subscription price would be in the green within a couple months. It’s clear you have a great passion for what you do and you do a great job at it. I honestly cannot believe that you put up with as much of the BS hate mail that you get… Maybe it just comes with the territory that some people are never happy and blame you for all of their dumb mistakes. If I was you, I would let all of these complainers walk since they clearly don’t realize how lucky they are to have found a service this great for such a reasonable price. I guess you have to do what you have to do to keep your publisher happy, but just know that from my perspective I believe your subscription is worth a whole lot more and my only real fear with your subscription is that all that negativity from people may force you to say “F it” one day and hang it up and just trade for yourself… If you ever do get to that point, please try and keep some kind of a list of people who truly appreciate you and what you do for all of us out there that don’t have the background and experience in the markets, or even just the time to watch everything to pick out the trades that you do.
Again, thanks for the great year (regardless of what others may say) and keep up the awesome work – it’s really appreciated!
– Kevin
Jeff,
I am a novice trader with only 2 years of options trading experience. I subscribed to your lifetime service to keep me “in the game” with a dedicated coach. I only trade options that you recommend. I do not trade in large amounts (yet) but feel every trade is a winner, in either a profit or a “small loss, lesson learned”.
I read the subscriber comments that you publish with great interest. I greatly appreciate that you are willing to publish the good, bad, and the ugly. It helps me learn and also helps me understand my own emotions when I lose on a trade. You are similar in philosophy and ethics with your previous publisher, and I never feel I have been misled in your services.
I read everything you write, not just the trades. I wonder if some of your negative commenters even read the full trade – or do they just “do the trade” without thought? Your explanations have sometimes made me decide NOT to do a trade. For example, I usually heed “this is not for my mother” advice!
I think that many of your readers understand that, in the end, the trade is up to us as individuals. I learned early on not to “chase a trade” and to follow the advice I have paid for. It is hard to see a trade go out of range and never be able to make it, but that happens. I am not willing to risk losing money because I did not follow your advice. On the other hand, sometimes I make MORE money since an option price goes down a day later (after the rush) and I get in at a better price.
Again, I trade in small amounts – mostly since I feel I am still learning about options. It took a lot to get away from straight buying and selling of stocks. It will take a lot for me to go bigger on some trades, but when I do, I will only do so on your advice. Thank you and please continue to run your service ethically and professionally.
– Ann
Jeff, you are a great if not phenomenal trader. The moron that hurt your feelings does not realize that you are doing your job. Think about Belichick’s quarterback, when he throws an interception he has a short memory. As a professional you need to have a short memory – forget about the small-minded subscribers and go on to the next trade. I am thankful that you don’t chase bad trades. I admire you.
– James
Hi Jeff. Ironically, prior to seeing your complainer subscriber, I was going to send an email saying “Thanks” because you seem like the hardest-working investment advisor out there. In the short time I’ve been a subscriber, I’ve have the opposite impression from Mark – so many updates throughout the days and trades when appropriate. I wondered if you ever take a vacation. I appreciate the good work. (And yes, some people you can never make happy.)
– Tina
Dear Jeff,
My father and I very much appreciate reading your Market Minute every day. We congratulate you on your work and also on the gentlemanly way you answer disobliging customers. Best wishes to you and your family!
– John
AWESOME response Jeff! In my humble opinion, you do an outstanding job and I have learned much from your writings! Old Mark just doesn’t get it! Keep up the great work! Happy Trails!
– Harvey
Jeff, well put. Actually, I’m new myself. I’ve made money and pretty substantial money too, on all trades I’ve done with you. Granted it’s only been three. But 3/3 to me is already wayyy better than another service I subscribe to which has NO refund. Yet I expect to not exercise my refund with you and to trade less and less with their recommendations and more and more on yours. That’s how confident I am with you and your approach. Honestly. Many thanks so far! With you, I expect and see I will make around an average of $2,000 to $3,000 per week until I’m 65 and that’s only in another 17 years. Thanks for the new career move!
– Jeff
Thanks to everyone for the encouraging letters. Whether you have more positive things to say, a question about option trading, a suggestion for how to improve our services, or a trading story, please don’t hesitate to send it right here.