Mindset

Good afternoon, it’s Ken! I hope you guys are doing well.

Today, I want to talk to you guys about one easily identifiable trade pattern.

This is one of 3 simple trade patterns that consistently makes me profits time after time!

It is called the fish hook pattern!

Take a look at this photo:

I am pretty sure you guys know what a fish hook looks like, but this picture will illustrate what I am talking about.

It begins with the sharp selling of a stock. This tends to happen when bad news hits, or the company misses their earnings report estimates.

This causes people to panic and sell, and it cause the domino effect to pop multiple people’s stop losses as the stock continues to drop.

Eventually, the selling starts to slow down as people start buying the dip, and the bad news begins to fade away.

Next, the buying and selling of the stock reaches an equilibrium point where the amount of selling is equal to the amount of buying.

Then, people take advantage of the lower stock price and begin to buy the stock. This causes the stock price to rally.

This is where I look for the exit at the end of the fish hook and I take my quick and easy profits!

I used this technique to quickly identify a trade idea that I entered at the end of Friday 5/8/20.

Take a look at this photo of the entry:

I purchased three $39 Calls for TAP with the expiration date of 5/15/20 for $64 each ($192 total).

I zoomed in on this photo when I took the screenshot. It might be a little harder to see, but you can still identify the fish hook!

I used the gravitational theory to predict the movement of the stock and I made my plan.

I entered at $38.54, and I plan on exiting near $41. As the stock price nears my exit point, my $192 option calls will become $800. That is a 400% Winner!

I really only used one element to identify this trade after I saw the pattern.

I simply used the gravitational theory.

I can’t wait to update you guys with the exit on Monday morning!

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Disclaimer:

I want to point out, I am not a registered investment adviser or broker/dealer. I am a highly profitable options trader who has been successful time after time, and I have changed the lives of many people through the art of trading on the stock market.

– Ken