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My Favorite Trading Strategy Can Cut Your Risk to $500 or Less

Over the last two sessions of the Patterns & Profits Cash Course, we’ve been reviewing a case study on a seasonal pattern on one of the most popular AI stocks in the market: NVIDIA Corporation (NVDA).

When I say seasonal, I’m not talking about spring, summer, fall, and winter, either. I’m referring to the consistent, repeatable, and predictable behavior of a stock or exchange traded fund (ETF) over a specific time frame. What I’m basically looking for is the best day to buy and sell a stocks or ETF.

To do that, there are three questions that I set out to answer and have used for many years in my trading:

  1. Are there specific stocks or exchange-traded funds (ETFs) that have repeatable price patterns?

  2. Is there a security that trades in certain manner every year – regardless of the time of year?

  3. Does the security trade higher or lower over specific date ranges or numbered trading days?

To get the best results, I look at the past ten years’ worth of data on those securities to see the type of success rates (as a percentage) they’ve had. I also look at the average price move for each security in which I’ve spotted a repeatable pattern.

In the case of NVDA, my Money Calendar gave me a seasonal bullish pattern that started on May 6th and ended on June 3rd:

And, based on 10 years’ worth of data, this pattern has happened 90% of the time since 2014. That means NVDA has traded higher every year, excluding 2019, over the past decade.

Now, we’ve compared the cost of buying 100 shares of the stock ($92,000) versus call options ($6,740) during this time frame. And as you’ll recall, the return on the stock was 24%. On the options, however, that $6,740 initial cost (or risk) turned into a 223% gain.

The problem is both methods are more expensive than I like. Most people don’t have $6,740 (let alone $92,000) to throw into one trade (and most wouldn’t want to).

There’s a much better – and cheaper – way to maximize your profit potential on this stock…

And today, in Part 4 of the Cash Course, I’m going to show you how to put this strategy to work.

You can click below to start this video now.

And I urge you to do so immediately. Because the strategy I’m teaching you today could mean the difference between surviving what’s coming… or getting wiped out completely.

You see, we’ve been focusing on NVDA because it’s the hottest AI stock out there…

But that’s all about to change.

Because I believe we’re entering what I consider to be the Final Phase of this AI boom we’ve been in for the past few years.

And if you’re just buying and holding AI stocks, like most people are, you could get absolutely crushed in the coming weeks – unless you know exactly what to do.

That’s why on Tuesday, July 9th, at 8 pm ET, I’m going to give you all the details – and show you exactly how I’m trading the Final Phase of the AI boom.

Click here to register now.

To your continued trading success,

Tom Gentile
America’s Pattern Trader