{"id":21978,"date":"2024-07-15T07:30:07","date_gmt":"2024-07-15T11:30:07","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21978"},"modified":"2024-07-15T07:30:07","modified_gmt":"2024-07-15T11:30:07","slug":"the-one-ticker-secret-to-successful-trading","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/the-one-ticker-secret-to-successful-trading\/","title":{"rendered":"The One-Ticker Secret to Successful Trading"},"content":{"rendered":"

Managing Editor’s Note:<\/strong> Today, we’re handing it over to colleague Larry Benedict – a market wizard and legendary hedge fund manager.<\/p>\n

Larry has been on a streak at his entry-level advisory, One Ticker Trader<\/em>. It’s where he keeps things simple and trades just one ticker every month.<\/p>\n

And simple works… His last five trades have been winners. Folks who followed Larry’s recommendations have had the chance to rack up gains of 24.8%, 22.4%, 88.8%, 66.7%, and 100%. And four of those trades took place in about a week.<\/p>\n

How does Larry do it?<\/p>\n

Our editorial director, Chris Lowe, sat down with Larry to find out. It’s all in the Q&A below.<\/p>\n

Larry reveals how he began using the one-ticker strategy in his own career… why it’s so powerful… and how he’s used it to deliver a string of double-digit gains for his subscribers.<\/p>\n

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Chris:<\/strong> So, Larry, can you tell us what it was like when you first entered the trading world?<\/p>\n

Larry:<\/strong> Sure. At the start of my career, I was trying to trade every stock.<\/p>\n

This was the mid-1980s. And I was a floor trader at the Chicago Board Options Exchange (CBOE).<\/p>\n

This was before electronic trading. Back then, if you wanted to be a trader, you had to have a “seat” on the exchange floor.<\/p>\n

No one was sitting, but having a seat meant owning the right to trade on the floor of the exchange.<\/p>\n

And I had a Midwest seat, which was a cheap way of getting on the exchange. It cost me just $10,000 a year.<\/p>\n

We didn’t even have computers. We were handing in tickets into a kind of conveyor belt when we were trading. That’s how the exchange tracked the trades we were making.<\/p>\n

I was trading options on a bunch of different stocks. One day, I was trading Chrysler Motors. The next day I was trading Revlon, and then Litton Industries, which was a large defense contractor at the time. Just a bunch of different names.<\/p>\n

That was hard because I wasn’t a specialist in these stocks. I was more of a global macro guy. I just wanted to know if the market was going to go up or down.<\/p>\n

The hot stock back then was IBM. It was like Nvidia is today. Everyone traded it because it was the market mover. I also traded IBM a lot. And it was a terrible strategy.<\/p>\n

I would be bullish on the market, so I would buy IBM to profit as it went higher. But often, IBM would go down as the market went up. It caused me a lot of aggravation because I would be right about the market and still lose money.<\/p>\n

Eventually, I got sick of this happening. So I changed my focus from trading IBM and other stocks to trading the Dow, the S&P 500, and other stock market indexes. That way, I only had to get one thing right. If the market was up, it was up. And I made money.<\/p>\n

That was an important breakthrough. I was good at reading the fundamental clues about where the market was headed. Trading the indexes directly allowed me to be right a lot more. I didn’t have to figure out which way the market was headed and then figure out how individual stocks would trade relative to the market.<\/p>\n

Chris:<\/strong> Is that why you launched One Ticker Trader<\/em>? To have this simplified entry-level way of trading?<\/p>\n

Larry:<\/strong> Exactly. A big problem for new traders is they’re all over the board. They’re long this, they’re long that. They’re short this, they’re short that. Their trading plan is far too complex.<\/p>\n

That not only makes it hard to consistently pick winners – it’s hard to control your risk. And as my subscribers know, controlling risk is my No. 1 priority.<\/p>\n

Doing what I did back in my early days as a trader and focusing on trading a few indexes instead is a better way to go.<\/p>\n

At One Ticker Trader<\/em>, we pick one ticker to trade each month. That could be an exchange-traded fund (ETF) that tracks the S&P 500, the Dow, or the Nasdaq. We’ve also traded an oil ETF. We’ve even traded Tesla (TSLA).<\/p>\n

I usually like to pick an outlier. Something that interests me that month.<\/p>\n

Chris:<\/strong> When you say “an outlier,” do you mean it hasn’t caught up with a rally, or it’s rallying when everything is going down?<\/p>\n

Larry: <\/strong>Yeah. Take the trade on the SPDR Dow Jones Industrial Average ETF Trust (DIA) that I recommended to One Ticker Trader<\/em> subscribers on May 30. It’s a way to trade moves in the Dow.<\/p>\n

Some folks think the major indexes all behave the same way. But that’s a misconception.<\/p>\n

If the Nasdaq is rallying strongly, for example, it doesn’t necessarily mean that the Dow and S&P 500 are doing the same. Often, one index gets left behind… just like this year.<\/p>\n

When I placed that trade, the Nasdaq was up 11.5% for 2024, and the S&P 500 was 9.8% higher. But the Dow was up just 1.1% for the year.<\/p>\n

These situations grab my attention because they offer great trading opportunities. The Dow’s lag versus the Nasdaq and S&P 500 left it primed to revert to the mean and catch up.<\/p>\n

<\/p>\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<\/p><\/div>\n<\/div>\n

<\/p>\n

That’s just a fancy way of saying what’s out of whack goes back to something more normal. It’s just a matter of time.<\/p>\n

And that’s what happened. The day after I recommended an options trade on DIA, the Nasdaq lost -0.2% and the S&P 500 gained just 0.8%.<\/p>\n

But the Dow rallied 1.6%. And it opened higher the following trading session, too.<\/p>\n

Thanks to the leverage that options give us, we closed out half our position for a 55% profit. And I closed the second half of the trade a day later for a 74% gain. So that’s a 66.7% blended gain in just four trading days.<\/p>\n

And it wasn’t the only big win I’ve scored for my subscribers on the DIA trade. On June 20, I closed out another trade on the same ticker for a 100% gain.<\/p>\n

And that’s not a 100% gain in a year. That trade lasted just four trading days as well.<\/p>\n

This is where my trading strategy is different from many others.<\/p>\n

I sometimes trade individual stocks. But trading indexes – and the relationships between different indexes – has been a cornerstone of my career.<\/p>\n

I know it’s not a fancy strategy. But I love its simplicity. And it works. My performance with these kinds of trades is one of the reasons Barron’s<\/em> ranked my hedge fund in the top 1% in 2008, 2009, and 2010.<\/p>\n

Regards,<\/p>\n

Larry Benedict
Editor, Trading With Larry Benedict<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

If you can follow this simple strategy correctly, you could have a string of double-digit gains\u2026<\/p>\n","protected":false},"author":55,"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":[58],"newsletter-type":[],"ticker":[],"class_list":["post-21978","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-larry-benedict"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21978","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\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21978"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21978\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21978"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21978"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21978"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21978"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}