{"id":18851,"date":"2021-08-23T07:30:41","date_gmt":"2021-08-23T11:30:41","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=18851"},"modified":"2021-08-23T07:30:41","modified_gmt":"2021-08-23T11:30:41","slug":"why-a-winning-trade-isnt-always-popular","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/why-a-winning-trade-isnt-always-popular\/","title":{"rendered":"Why a Winning Trade Isn\u2019t Always Popular"},"content":{"rendered":"

Here’s one thing I’ve learned after 35 years of trading stocks and options… and recommending trades to clients and subscribers…<\/p>\n

The most unpopular trades are the most likely to be profitable.<\/p>\n

Don’t ask me to explain it. I can’t.<\/p>\n

If you’ve followed me for any length of time, then you know I’m a contrarian at heart. I look for lower-risk trades, which by nature tend to be out of favor. And we profit as the trend reverses…<\/p>\n

But human emotions never change. Everyone wants to be in the hot stocks and the hot sectors. Risk isn’t a concern for most folks. Their focus is on the reward.<\/p>\n

So back when I originally started recommending trades in the retail sector – even though we had tremendous success trading retail stocks up to that point – my subscribers were ticked off.<\/p>\n

For example, a few years ago I recommended selling uncovered<\/a> put options on Macy’s (M). We weren’t betting on a big rally in Macy’s shares. We were just betting the stock wouldn’t fall much further.<\/p>\n

To me, it seemed like an easy bet. At the time, Macy’s was trading for seven times earnings, and it paid a 7% dividend. Besides, we had sold uncovered put options<\/a> on Macy’s three times previously. Those trades generated returns of 15.3% in 12 days, 12.9% in 45 days, and 28.3% in 27 days.<\/p>\n

Those are enormous gains in such a short span of time\u2026 especially when it was unfavored by the market. So, I figured my subscribers would willingly jump at the chance to sell another series of uncovered put options on Macy’s when I recommended the trade a few months later.<\/p>\n

You wouldn’t believe the vitriolic email I received after that recommendation.<\/p>\n

That’s when I knew for sure we had a winning trade.<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

You see… when even the folks who know I’m a contrarian trader HATE a trade I’m recommending, then I know it’s going to be a winner. So after recommending the Macy’s trade – which generated better than a 13% gain in 36 days – I got more aggressive in the retail sector.<\/p>\n

I told subscribers to buy speculative call options<\/a> on Bed Bath & Beyond (BBBY).<\/p>\n

That trade produced a 117% gain in just two weeks. But you wouldn’t believe the heat I took on that recommendation.<\/p>\n

Folks thought I was nuts. Some people canceled their subscriptions because of it. And the feedback I got… well… let’s just say it was less than flattering.<\/p>\n

Fast forward to today…<\/p>\n

The only sector that I think offers a low-risk\/high-reward setup is gold stocks. I’m a big fan of gold stocks right here and I’ve made a few recommendations to my subscribers on how to profit off of the situation.<\/p>\n

And they’re groaning. Seriously… even my subscribers – who know I’m a contrarian trader – are repulsed by the idea of buying gold stocks. Nobody wants to buy this sector.<\/p>\n

That’s why I know it’s a winning trade.<\/p>\n

Best regards and good trading,<\/p>\n

\"signature\"<\/p>\n

Jeff Clark<\/p>\n

<\/p>\n

Reader Mailbag<\/h2>\n

What are some gains you\u2019ve made from Jeff\u2019s previous contrarian trades?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Folks thought I was nuts…<\/p>\n","protected":false},"author":49,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-18851","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/18851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=18851"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/18851\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=18851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=18851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=18851"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=18851"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=18851"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=18851"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=18851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}