Guys, opportunity is knocking right now... Hell, it’s pounding on the door.

And that opportunity is volatility, which will rule the day in 2022. So in order to trade our Money Links most effectively in this new environment, rather than just getting whipped around one side of the trade, it’s time for a change... 

So moving forward, we’ll have a few new guidelines to help us capitalize on this exciting, profitable development, giving us more of a directional bias. This also allows us to have much tighter control over each link we trade. 

Another bonus: This new tactic should be even easier to understand, will require less capital to follow, and will be more tactical and flexible in a fast-moving market… 

What does all of that add up to? More profits! At least that’s the plan, so let’s go over a few new changes…

  1. We’ll focus on fewer and only the very best Money Links. This will allow for more tactical capital allocation on each leg, and will be much easier for members to track. In fast-moving markets, it’s always best to be laser-focused on fewer stocks… This allows you more opportunities to make money in just a few of the strongest and weakest names. 
  2.  We will have more directional exposure in each Money Link. In the past, we’ve always split the links $1 to the long, and $1 to the short, or $1 in a call and $1 in a put. But in this new, more volatile trading environment, there will be times where we go more long than short, and vice versa depending on the situation and how the markets are acting.
  3. We will now use “units” to indicate how much you should put into each side of the trade… 1 unit will equal $500 for option trades, and 1 unit in the underlying stock will be $2,000. So for example, I will say long 2 units of IWM (so $1,000 in the option and $4,000 in the underlying) and short 1 unit of ARKK (so $500 in the option and $2,000 in the underlying). 

This will be the best way for us to move forward considering what’s to come this year. If you have any questions, feel free to send an email to jeff@joyofthetrade.com. 

LFG!