Dear Trader
I rarely teach a very cool technique. I call this technique the Lemonade Concept because it can turn losing trades into winning trades. Yes, it is true.
First, it only works if you are using a method that gets you out on a stop loss.
Second, the Lemonade Concept is based on something Jack Schwager taught me. He said that a failed trade is a trade. There is a lot of power in that statement. It alerted me to the idea that I can make money from trades that go bad not just good! He opened my eyes to the fact that losing trades can become winning trades.
What does he mean by failed trades are trades? Let's say you are using Channel Breakout which is one of my core techniques. In this powerful technique, you buy the (stock, forex, future, CFD, or crypto) when it breaks a major high. Breaking the major high says that the market is embarking on a major bull run. We place a protective stop loss under the market when it looks like the bull market is false.
Ok, we buy on the break up but then get stopped out. Most people are bummed out. They just lost money and they might even think badly about themselves or the system.
The better attitude is to not get bummed out but to try to make money on the failed signal. In this case the signal that we were starting a major bull market failed. It was a failed signal and we got stopped out. But Schwager says that stop out is actually a signal!
So what we do it to not only get stopped out but to go short! Use that failed signal as a signal.
In other words, you would normally buy 100 shares of stock and put a stop loss for 100 shares. But the Lemonade Concept tells you to put in the stop loss for 200 shares and go short!
This is a revolutionary concept!
The failure of the original trade means that the market is actually weak. It should normally continue higher but something in the market is making it very weak. So that is powerful information and you can make money from it.
I don't hold the short position very long but I can usually make some money on the short trade and get back some or all of my losing long trade! Sweet!
It is these kind of revolutionary advanced techniques that I am teaching in my new Wealthbuilder Insider membership program.
I'm teaching all the sophisticated techniques I learned in my 50 years of profitable trading for myself, clients, and major institutions. Now you can learn them all.
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Good lemonade trading,
Courtney Smith
P.S. Program launches on October 4, 2021
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