{"id":22307,"date":"2024-11-29T07:15:32","date_gmt":"2024-11-29T12:15:32","guid":{"rendered":""},"modified":"2024-11-29T07:15:32","modified_gmt":"2024-11-29T12:15:32","slug":"special-interview-edition-jeffs-magic-pattern","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/special-interview-edition-jeffs-magic-pattern\/","title":{"rendered":"Special Interview Edition: Jeff\u2019s Magic Pattern"},"content":{"rendered":"<p>Today, I&rsquo;ve got something special for you&hellip;<\/p>\n<p>I recently sat down with colleague Luis Hernandez &ndash; Editor in Chief over at InvestorPlace &ndash; for an interview&hellip;<\/p>\n<p>I gave Luis a rundown of my options philosophy&hellip; why I never, ever trade stocks&hellip; <\/p>\n<p>And how I really use one specific pattern&hellip; a <a href=\"https:\/\/secure.jeffclarktrader.com\/?cid=MKT819836&amp;eid=MKT820936&amp;step=start&amp;plcid=PLC219535\"><strong>&ldquo;magic pattern,&rdquo;<\/strong><\/a> over and over again for consistent gains like 152%&hellip; 222%&hellip; and even 329% in just days. <\/p>\n<p>(You can learn to use this pattern yourself <a href=\"https:\/\/secure.jeffclarktrader.com\/?cid=MKT819836&amp;eid=MKT820936&amp;step=start&amp;plcid=PLC219535\"><strong>right here<\/strong><\/a>. I predict it will be the single best trading strategy going into 2025 and beyond.) <\/p>\n<p>Check out our interview below, or scroll down to read the transcript.<\/p>\n<div style=\"position: relative;max-width: 100%\">\n<div style=\"padding-top: 56.25%\">\n      <video data-account=\"5102072647001\" data-player=\"BJxYHdft0\" data-embed=\"default\" controls=\"\" style=\"position: absolute;top: 0px;right: 0px;bottom: 0px;left: 0px;width: 100%;height: 100%\" data-video-id=\"6364753816112\" data-playlist-id=\"\" data-application-id=\"\" class=\"video-js\"><br \/>\n      <\/video><br \/>\n      <script><\/script>\n    <\/div>\n<\/p><\/div>\n<p><\/p>\n<h2 style=\"margin-top: 5px;text-align: center\">Transcript<\/h2>\n<p><strong>Luis Hernandez:<\/strong> Hey everyone, I&#8217;m Luis Hernandez, editor in chief at InvestorPlace. Today, I&#8217;m here with master trader, Jeff Clark.<\/p>\n<p>He&#8217;s a 40-year industry veteran with an excellent track record of making prescient calls in the market.<\/p>\n<p>Just in the past month, he made 50% in 28 days on Toll Brothers puts, 70% on Halliburton calls in less than a week, and 20% on SPY puts in less than two hours for his subscribers.<\/p>\n<p> And in 2023, a year most people lost money, Jeff had a 75% win-rate in his entry-level trading service, <em>Jeff Clark Trader.<\/em> That&#8217;s a pretty big deal.<\/p>\n<p> Going back a little further, he&#8217;s well known for pounding the table about operating with extreme caution in 2007 for calling the crash in 2008, then having one of his best trading years ever.<\/p>\n<p> He was making money hand over fist when traditional investors were losing their shirts. Now, Jeff is a pretty humble guy, but he truly lives and breathes the options market.<\/p>\n<p>He&#8217;s up at 5 a.m. every day scanning the markets for opportunities for his subscribers, sorting through hundreds of charts, and he&#8217;s developed a way to make gains from one simple chart pattern.<\/p>\n<p> A magic pattern that helps him make gains over and over.<\/p>\n<p> I know there&#8217;s more to it, Jeff, but can you tell us a little bit about your background and a little bit more about this magic pattern?<\/p>\n<p><strong>Jeff Clark:<\/strong> Yes, sure. First of all, thank you, Luis, for having me here. Essentially, I&#8217;ve been trading the markets for 41 years.<\/p>\n<p> I&#8217;m an option trader, and I think it&#8217;s important to point out that there&#8217;s a big difference in the way you approach the market as a trader versus an investor.<\/p>\n<p> You know, folks think they&#8217;re investors, which means that you&#8217;re looking at the long term, you want to buy a stock today, hold it for years, and in the long term, stock prices are based on fundamentals, right?<\/p>\n<p> So it&#8217;s the earnings, it&#8217;s the book value, it&#8217;s the dividend policies, the nature of the business. That&#8217;s what produces profits over the long term as an investor.<\/p>\n<p> In the short term, as a trader, I like the idea of buying in the morning, selling in the afternoon.<\/p>\n<p> If I can do that, most of my trades take maybe two weeks, a month would be a long-term position for me.<\/p>\n<p> And in the short term, as a trader, what moves stock prices, is not fundamentals, it&#8217;s emotions, right?<\/p>\n<p> Intel didn&#8217;t go up a dollar a share today because the business at Intel changed to make it worth a dollar more a share.<\/p>\n<p> Intel went up a dollar a share today because the greed around Intel pushed it up a dollar a share.<\/p>\n<p> And so as a trader, what I look to do is figure out where the emotion is on a stock and then profit off of betting that emotion has gotten either a little bit too extreme on the upside or too extreme on the downside and betting for a reversal.<\/p>\n<p> So, a lot of folks who call it a &ldquo;reversion-to-the-mean&rdquo; type of strategy.<\/p>\n<p> So when we talk about a <a href=\"https:\/\/secure.jeffclarktrader.com\/?cid=MKT819836&amp;eid=MKT820936&amp;step=start&amp;plcid=PLC219535\"><strong>magic pattern<\/strong><\/a>, that&#8217;s kind of the crux of the magic pattern is you&#8217;re looking for a stock that&#8217;s gotten a little bit too overheated, look for it to come back down to its average price level, or you look for a stock that&#8217;s gotten panic swiped out and look for it to come on back to its normal level.<\/p>\n<p><strong>Luis:<\/strong> Now, one of the big objections that you hear from people about options trading is they just think it&#8217;s too risky.<\/p>\n<p> I mean, you know, investors know a lot of people who, you know, they got into the options market and essentially lost their shirts.<\/p>\n<p><strong>Jeff:<\/strong> Yeah, you lose your shirt in the options market when you do stupid things, and I&#8217;ve done that myself.<\/p>\n<p> I started trading options 41 years ago, and I had a really good run at the beginning of it. I think I went 17 for 17. I didn&#8217;t have a losing trade.<\/p>\n<p> And, I was a young kid at the time, and of course, a young kid at the time going 17 for 17, the ego kind of gets in the way.<\/p>\n<p> I thought, &ldquo;well, why am I playing around with small trades? I&#8217;ll just make one big bet.&rdquo; And of course, it was that one big bet that I blew everything up.<\/p>\n<p> And I learned from that because options were originally designed as a way to reduce risk. You can take a stock position.<\/p>\n<p> Show me any stock you want, you want to take a position in it, and I&#8217;ll show you a way using options where you can reduce the risk in that position and increase the potential reward in that position.<\/p>\n<p> When used right, options are a tool to reduce risk and increase the potential profit.<\/p>\n<p> Where people make the mistake and where it becomes risky and people panic about it is, let&#8217;s say, for example, you wanted to buy 1000 shares of Intel.<\/p>\n<p> It&#8217;s 25 bucks a share.<\/p>\n<p> You&#8217;d put $25,000 in and you&#8217;d be willing to risk, say 10%.<\/p>\n<p> So if the stock falls 10% you cut your losses and you move on, go somewhere else.<\/p>\n<p> So you&#8217;d be risking $2500.<\/p>\n<p> What I would do is I would take a portion of that $2500 you&#8217;re willing to risk, take the other $2250, stick it in the bank.<\/p>\n<p> That&#8217;s going to be lock solid safe.<\/p>\n<p> I take a portion of that $2500 and I&#8217;d find some way to use an option strategy that is designed to profit dollar for dollar with the stock or lose dollar for dollar with the stock.<\/p>\n<p> But in no situation would I ever risk more than that $2500.<\/p>\n<p> Most of the time, I can get away with maybe half of that.<\/p>\n<p> So, still have the same upside limit. My downside a little bit, people make the mistake is instead of buying 1000 shares of Intel and putting $25,000 into the stock, they take the entire $25,000 and they put it in the option. That&#8217;s what blows up an account&hellip; That&#8217;s where you become risky.<\/p>\n<p>So, rather than doing that, look to use options as a way to reduce the risk, you don&#8217;t stay in the option game for 41 years if you&#8217;re taking on that kind of risk, you&#8217;re blowing up the account.<\/p>\n<p> And most people I think would do much better trading options if they understand the right way to do it.<\/p>\n<p><strong>Luis:<\/strong> Well, being in this business for 40 years and having the track record you do clearly indicates that you have the right way to do it.<\/p>\n<p><strong>Jeff:<\/strong> Well, yeah, but it, it didn&#8217;t happen overnight. I mean, I had to learn, I had to make my own mistakes and figure it all out.<\/p>\n<p> So, one of the things, that I like to do now in teaching people, is to tell them of my mistakes, show them where I made those errors and hopefully that stops them from making the same errors.<\/p>\n<p><strong>Luis:<\/strong> That&#8217;s terrific. Thanks so much, Jeff.<\/p>\n<p>To sum up, Jeff with his decades of trading experience, has really dedicated his life to helping everyday investors make money using options the right way. He&#8217;s not gambling, making risky bets, and most certainly isn&#8217;t stampeding into the viral trend of the moment.<\/p>\n<p> Jeff at his core is a father, a mentor, and very, very logical.<\/p>\n<p> He doesn&#8217;t let emotions rule his trading and that&#8217;s what following him will get you &ndash; a calm, collected guide to options trading, and there&#8217;s a really good bet you&#8217;ll make money along the way.<\/p>\n<p> Thanks again, Jeff, for joining me today and thanks again, everybody. We&#8217;ll talk again soon.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Jeff Clark explains his Magic Pattern, and how it lets him use options for consistent gains. <\/p>\n","protected":false},"author":61,"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-22307","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\/22307","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\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=22307"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/22307\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=22307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=22307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=22307"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=22307"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=22307"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=22307"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=22307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}