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Making Money Too Fast is a Problem |
By Prof. Jeffrey Bierman, CMT |
One of the members…well…he had made too much money too fast.
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I know that doesn't sound like a problem. But, he overleveraged on momentum names that could gap down 5% overnight. |
I have watched traders like him blow up for 39 years. They swing for the fences every time. |
One bad pitch and they strike out of the business entirely. |
You hit home runs. We hit singles. Together, we make a great baseball team. |
This weekend, I want to talk about the lesson that took me almost four decades to understand. |
The one that lets me hit the pillow at night and fall asleep like that. |
The Math That Changes Everything |
I could lose $4 to make $20. |
Run that through your head. Yes, you lose sometimes. You will not make money on every trade. |
Nobody does. I never did. |
But when you set it up right, your losses stay small. Your wins far outstrip the damage. |
One member had a single trade pay for his entire yearly membership. I put out hundreds all year long. One trade was all he needed. |
That is how the math works when you contain risk. |
How We Actually Trade |
We do not chunk. We stagger. |
Get in 100 shares. Sell 25 at the first resistance. Sell 25 at the next level. |
Pyramid up your profits while locking in gains along the way. |
Take Cheesecake Factory this week. I bought at $48 when money managers panicked. The Genesis COG footprint showed a weekly curl forming. |
It ran to $63.50. I told members to sell half out of pure discipline. |
That is an 18% gain with half the position still running. Here is what matters about that trade: |
If I was wrong, I stopped out at $44. A $4 loss. If I was right, the upside was $15 or more. Risk $4 to make $15. That is how you survive.
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The other half is still in. If it goes higher, I make more. If it reverses, I already locked in gains. |
I cannot lose on this trade now. |
What Home Run Traders Get Wrong |
I bought Tesla once. Up $10,000. Down $30,000. Up again. Down again. |
That volatility will break you. You will quit the business. |
If your losses run 30% and 40%, you will not survive long. And if your position sizing is off, you will crash and burn faster than you think. |
The Genesis COG System tells you when to buy, what to buy, and how much to weight it. |
The 75% Reality |
I have 20 positions on right now. Three or four are not doing well. |
But I will take 15 out of 20. I will take that 75% success rate anytime. |
Nobody gets 100%. There are losers on my list. |
But when I lose, it is 5% or 8%. Contained. Manageable. |
I am not looking to be a hero. I am just going 10%, 10%, 5%. |
Add it up by year's end, and you are up 30% or 40% on singles alone. |
Why This Matters Now |
The market is a coiled spring. Something big is coming in the next five days. |
When it blows, most traders will fall apart. They will gap down with nothing they can do. |
Genesis COG members will be the last ones standing. |
The market down 20%? We will be making money. We do not care which direction. |
We make money either way because we do not take outsized risks. We cannot get badly hurt. |
I am getting closer to retirement at 65. Building wealth the way it actually works. |
Not through home runs that strike out. Through singles that compound. |
Risk first. Reward second. The rest takes care of itself. |
Professor Jeffrey Bierman
Creator of the Genesis COG System |
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P.S. Waiting for the exhale is smart. Knowing exactly when it happens is smarter. |
The Genesis Cog posted a 126% return this year with a 19-2 streak since May by identifying these coiled setups before the crowd. |
Now I'm working with 20 traders to build personalized retirement portfolios around the Cog's signals. |
12 weeks. A copy-and-paste model portfolio. Tailored to your goals. |
January only. Half price at $2,000. Once the 20 seats fill, this closes. |
π CLAIM YOUR SEAT NOW |
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