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- Don’t fall for the “trampoline trap”
My favorite part of Small Account Journey isn’t just showing you what trades I make.
Don’t get me wrong: I love watching these small $2,000 trading accounts move their way up as I trade.
It’s fun.
The best part, though, is being able to show you the HOW and the WHY behind every trade.
Then getting to back up that education with real-world trades as they happen.
Here’s a lesson I’ve been focusing on recently: The Trampoline Trap.
When a stock price falls down to the 10-day EMA line, a lot of out-of-the-money put buyers think it’s going to keep going down.
They don’t realize that the 10-day EMA can sometimes act like a trampoline for stock prices.
Not always, of course. Sometimes those stocks keep going past the 10-day EMA. If that’s the case, it’s likely to keep trending down.
A lot of times, however, it’s an opportunity for put SELLERS to jump in and take advantage of the potential bounce.
If I see a stock hitting that line, but they have strong earnings and good guidance… I’m looking at selling puts on it.
That’s what happened with NVDA to close out last week.
At the top of the day, I recorded my daily market call, showing how NVDA had bounced off of that 10-day EMA line and kept going up.
Held it overnight…
…and she paid out a 50% winner!
*Trading is hard, results not guaranteed and should not be expected to be replicated typically.
Why did that happen?
Well, it’s not crazy or fringe to be bullish on NVDA, for one. The fundamentals are there.
And while it hit that 10-day EMA line, it stayed above it - telling me there was potential for an upside.
(If it had broken through below that EMA line, I might not have made the trade!)
In the end, I played this one into another $750 added to my trading account.
*Trading is hard, results not guaranteed and should not be expected to be replicated typically.
This is an account I started at $2,000…
…it’s now at $30,610 as of this writing!
And I’m not planning to stop until I get it to $100,000.
Can I do it? We’ll see.
But every step of the way, I’m sharing the analysis I’m running, my outlook on the market every day, what I’m looking for…
…and every trade I make with my money.
I’m in Full Transparency Mode - because that’s the best way for you to learn.
Also in the interest of transparency: you have an opportunity right now to join us in my Small Account Journey.
And that opportunity has never been better.
We’re offering a whopping 60% discount off the price of joining this Journey and seeing it all for yourself.
But that discount goes away at the end of this month.
At midnight on August 31st, we’re closing the doors on that deal and raising membership back to full price.
Eat, sleep, and trade.
Jason Bond
P.S. I want to point out that I cannot speak for my members’ performance, as results may not be typical and trading is HARD. And I cannot guarantee you will make money. But what I can guarantee is that I will work my BUTT OFF to teach you WHY I trade WHAT I trade.
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