Three Distinct Phases of Every Stock
And How to Profit From Them
Jeff Bishop: As traders, the most important thing to focus on is simplicity, because with simplicity comes a lot of money. You want to approach the market in a methodical and precise way.
I’m Jeff Bishop, I’m the founder and CEO of Raging Bull.
I’ve spent the last decade teaching thousands and thousands of paying members how to become more successful traders.
This is the one service you need for your entire trading career. This is it. I’ve got nothing to hide. I’ve got the goods, and I’m willing to share them with you right now.
One word to describe the stock market: chaos.
There are 3,671 companies listed on US exchanges.
The NYSE alone has $200 billion traded every day. That alone is enough to blurry the mind of any prospective trader.
And add in technology and it gets even more complicated. The world is becoming insanely connected, and there is more information out there than ever before.
Roughly 300 billion emails are sent and received every single day.
23 billion text messages are sent each day worldwide.
About one million texts were just sent to the time that it took me to say that.
There are 6,000 tweets sent each and every second.
Two million news articles are posted every single day.
For traders, technology can be a blessing, but it’s commonly the demise of very many people.
Ask yourself, has this explosion of technology and information at our fingertips helped you become a better, more profitable trader? Probably not.
Has trading really become easier because of this? Well, that’s going to be a big no for me.
Numbers are flying around, headlines are flooding your inbox, and the media is drowning out any possibility for you to even think on your own.
With all this noise, it’s clear why so many traders continue to struggle. Especially when you’re first starting out, you want to take in as much information as possible, but with that information comes a severe case of over-stimulation. There’s just too much going on out there. It’s easy to fall into that trap. Hey, I know I did.
I was the victim of this. I thought that I needed to process every single thing, every little bit of information, otherwise, I wouldn’t be successful.
I even went as far as to tackle a PhD level options trading education. Yeah, thinking that more college and more knowledge would equal more profits.
Well, you know what? That is far from the truth, and until I realized that I didn’t need to understand every inch of the market, I really struggled.
I mean, struggled might even be an understatement. My wife would even say that I crashed and burned and who could blame her? It wasn’t until I silenced all this noise and I focused on three distinct phases of a stock’s life. Then I began to see monumental and consistent profits.
The crossover, the launchpad and the ripple. Basically a crossover signals when a stock is going to change direction, and we can get in with impeccable timing with this.
The launch pad, this identifies when a stock is about to break out again off the launch pad, and then the ripple. This acts as your guide to making money when a stock is trading relatively flat.
Hey, don’t worry. I’m going to get into all that and just a little bit.
Anyways, there are three distinct phases that I’ve used to generate huge returns like these over and over again, and now you can too, because no matter what happens in the stock market, a stock is going to go through these three phases over and over again.
As traders, the most important thing to focus on is simplicity, because with simplicity comes a lot of money. I mean a lot of money once you master it.
You want to keep things simple and you want to make more money, right? I mean, that’s why we’re all here, right?
Comment, yes. Type in yes right now if you agree. You do not want to be overwhelmed. You want to approach the market in a methodical and precise way.
You want to block out all the unwanted and unneeded noise and be able to focus, able to narrow your focus on the important thing.
Keep those yeses coming in. Come on, keep typing them. I know that’s what you want. It’s what everyone wants.
Hey, there. I’m Jeff Bishop. I’m the founder and CEO of Raging Bull. I spent the last decade teaching thousands and thousands of paying members how to become more successful traders.
Raging Bull was founded on the belief that people interested in trading, no matter their experience level or account size, needed a completely transparent resource to come and learn from some of the most prestigious traders in the world.
It was something that I really wished I had available when I started trading over 20 years ago. I couldn’t find this anywhere, so I decided to start a company and do it instead.
Back then, I had to look through the newspaper for quotes and trades from the previous day. I didn’t have this barrage of information flying at me from every direction.
It was the newspaper of all things. I was forced to keep it simple, and that has continued to be the foundation of my trading success.
I had a few pages out of the newspaper to look through once a day, five days a week. That was it. That was all I had.
I know it sounds painful in this day and age to think about reading stock quotes from a newspaper. Hey, they were even quoting fractions back then. Can you believe that? Imagine seeing a stock quote saying 3/16ths on the end of it.
This was literally the dark ages of stock trading. It’s gotten a lot better now. It was really tough, and I struggled like anyone else.
I almost quit trading just as early as I started. It took me a lot of hard work, but I managed to save up $2,000 bucks, and before you know it, I lost it all.
I was cutting other people’s lawns for $20 a piece back then, so that was a ton of money to me. That meant I had to go cut another hundred lawns to make up for what I just lost. I couldn’t believe it.
I mean my first home my wife and I purchased in 1998 was only $20,000. Trust me, $20,000 back then did not get you much of a house either.
It was a dump. It was a literal dump, but coming from a family that lived in rented apartments their whole life, man, I was proud to have my name on that deed and own it. We took a lot of pride in that.
Anyway, I honestly thought I was a lot smarter than anyone else. I had educated myself with a lot of book smarts and trading education over the years, even went to college to get myself ahead.
I thought that I was too good for any hedge fund, and most importantly, I didn’t want to work for anyone else. The stock market, that was my answer. At least I thought it was at first.
I was a trained economist. I went to school for a lot of years to get that and I learned all the little intricacies about the markets and the global economy altogether.
I was confident that this knowledge would provide me the access to everything I needed to become a success. You know what I’ve learned? I learned that it gave me about a 0% edge on the markets.
Yeah. Sorry to break it to you, but while I’m a MENSA certified genius, I’m not a genie. I’m not a fortune teller. I don’t have a crystal ball that tells me when things are going to go up or down tomorrow.
I can’t pull amazing trades out of a magic hat whenever I want. If anyone says they can, it’s just a flat out lie. It’s a gimmick. It’s a fugazi. It doesn’t exist.
What I have learned over the years is that the stock market will humble, even crush anyone who thinks they can predict stock movements all the time. You can get lucky once in a while, but you can’t predict them.
But here is the trick I have learned: you do not have to. You don’t need a crystal ball.
Yes. The best trading methods are those that don’t require you to get lucky on a stock direction once in a while. So what I developed is a methodical system that takes the crystal ball out of the process and narrows it down to focus on three constantly repeating phases of a stock’s life.
Yeah, just like the sun rises in the morning, peaks at noon and sets at night, stocks also have three predictable phases as well.
I’ve met several people in my life, who know this, but very few of them actually know how to profit from it, but I made it my mission to profit from this, and now you can too.
Wins just like these! I mean, check these out. These are awesome!
See, when you’re in the market for 20 years, you learn a little something. You learn how events shape the market and how stocks react.
In the last 20 years, I actively and successfully traded through some of the most prolific moments in stock market history, some good and some really bad.
The dot com bubble, the War on Terror, the Iraq War, Hurricanes Katrina and Rita, the housing crisis, the global recession, Japan’s tsunami, the nuclear disaster, Hurricane Harvey, which cost $180 billion. The Brexit.
Hey, guess what? None of those events could have been predicted. Think about the biggest names in investing right now.
I’m talking Warren Buffett, Peter Lynch, Steve Cohen. Not a single person knew that those were coming, right?
It doesn’t matter how smart you are, and this reiterates my point that you cannot predict what’s going to happen in the market tomorrow. You can’t even predict a week from now or a month from now.
I’m telling you, you do not need to. You can’t predict them, and you don’t need to.
There is a common theme that did happen during all of these events.
There are three repeating patterns. Three phases of a stock’s life that happen time after time again, and I was able to make money on them because I narrowed my focus on them.
See, regardless of any financial crisis, regardless of any news headlines, regardless of any natural disaster, regardless of anything that happens that could affect the market, these three phases always take place.
Not only do they take place, but they reveal themselves. They show themselves in broad daylight and are easily identifiable if you know where to look.
And I’m not just here to tell you how to find them. I’m here to show you how you can make a killing by keeping it simple and dialing in on only three phases and never veering off course.
First though, there are two big myths that traders get wrapped up in all the time.
The first is that you cannot compete with Wall Street, that this is too big of a game for you to play in, that you don’t have any chance because of all these so called experts out there. Well, listen to me right now.
If you don’t take anything else away from this training, remember this. You do not have to outsmart Wall Street, okay?
People are always trying to outsmart Wall Street. I hear it all the time from my members, and you just can’t do it, but you don’t need to. They’re always saying, “Let’s beat these guys.” Well, who are you trying to beat?
This is a solo game of chess. There’s no scoreboard except your own balance sheet, so when I hear, “I’m going to beat wall street,” I just cringe.
I think of all my millionaire trading partners here at Raging Bull, and we all cringe when we hear stuff like that.
We’re not trying to beat or outsmart Wall Street. What we’re trying to do is win at our own game. We’re staying in our lane and winning.
These three phases, they teach you how to play within your own chess game and how to put points up on your scoreboard.
These phases are about personally attacking opportunities that have time and time again shown prosperity to me and my community of traders.
This brings me to my second and arguably the most critical myth that I want to debunk right now.
It does NOT take years to become a successful trader.
Throw that away. It does not take a long time.
When you narrow your focus on these three phases, you will begin to tune out all the media and all the noise out there and you’ll begin to forget about every little aspect of technical analysis out there and looking at charts.
You’ll be able to look at a stock and know what phase it’s in, how you’re going to profit from it, and when the opportunity is perfect for you.
Basically, what I’ve created is a picture book of trading. It gives you the exact visual that you need when a stock is in one of the three phases and what to do when that happens.
Remember, this was developed after 20 years of trading. It took me a long time to put this together. Everything that I’ve learned boils down to the three easiest phases to locate.
I’m going to show you how to look for them and what to do in just a minute. It’s a proven method, and it’s what I’ve been teaching people for years.
Many of my members are brand new to trading. They have limited funds and are just looking for a way to make some extra cash. I mean, who doesn’t want to make a little extra cash?
That’s why we’re all here. Isn’t that what you want to do? Of course it is.
So type in some money signs right now if you want to see this too. Type them in!
I want to show you how to streamline the process and how you can become a successful trader right now. Tell me how much money you want to make this year.
Type in those symbols. Keep them coming. Come on. I love it. Look at all this!
Those are awesome, so check out all these testimonials. Now, these are from actual paying members who have been in my services and learned to hone in on these three phases.
Three phases, and this is what you could be looking at.
This is what I’m talking about. They applied what I told them and are raking in money. Now it’s your turn. I’m going to show you how you can locate each phase and exactly what to do to profit from it.
Okay, there’s three key phases like I just said: the crossover, the launch pad and the ripple. Just three phases. This is all you need, and it’s made me an insane amount of money in a very short period of time.
Now, right away I want to show you the crossover. This pattern is the focus when a stock is going to change direction, and it’s identified by just one thing: the money pattern. Man, I love this pattern.
This is the pattern I use daily to locate stocks that are about to change their direction, and I’m ready for it. I know when it’s going to happen.
It’s a simple set of analysis that I’ve created based on a stock chart, and when it can help me profit from when a stock goes up or down.
In fact, I’ve made some of my biggest, my absolute biggest gains have come when stocks crash using this pattern.
But like I said, this is the picture book of trading. The best way I can show you what to look for is by what? Well, by showing you of course.
So first up, let’s take a look at Netflix. Now, what you see here is a confusing chart. I mean, you’ve got relative strength index, you’ve got some moving average lines, some highs and lows, the volume indicators.
Honestly, it’s really a bunch of garbage. They think it’s useful to you, but it’s not. People are just trying to sell you more data.
Now, what I want to do is show you what is important to focus on. So now take a look at this chart. What I’m going to do is highlight what’s really important here.
Now, what you can see here is that I took everything away but the red and the blue lines. What I’m looking for is some separation in them as you start to see them form right here.
You see the distance between the red and blue lines? Then they both trade with a gap in between them for almost two weeks. This is the time I’m looking for, so it develops a trend.
Now, I’m not looking to enter any trade until I see one thing happen. This is when the two lines cross, signaling a reversal. This tells me when the stock is going to change direction, and when you know that, you can make some fast money.
When these cross, I mean just look what happens. Look at that drop. Isn’t that amazing? Look at that drop.
That indicator predicted that. Right then and there, I knew after this stock trended higher and the two lines were separated, they would cross and that would tell me the stock was going to pull back.
This setup is absolute money. It’s my favorite. It’s my most recognizable setup.
If you get one thing, remember this setup. I use it daily, and time and time again, it just works.
Like I said, there are these phases that present themselves daily, and all stocks do this, every one of them. To prove my point, I’m going to show you some more.
Check out this one on Amazon. Here’s the cluttered chart with a bunch of stuff you don’t need to know, you can’t make sense of.
Now, here’s all you need to focus on. Just look at this chart and focus.
See these lines and how they separate right there, and they stay that way through a consistent downtrend.
Then if we follow these two lines, we get to the crossover, and boom!
A solid, nearly 100-point move from the bottom. Don’t you want to know when that’s coming?
This was all I needed to see. That crossover is the conviction that the stock is going to change direction, all right? You can do this. Go ahead. Look back at that moment right now. See where it crosses.
I’m telling you, this is how easy it is.
I’m telling you, this is how easy it is. As soon as they cross, it changes direction.
Weeks in a downtrend, and then suddenly when the red and blue lines cross, it flips back around. It is such a powerful phase and even more powerful when you use it with options. Because with options, a huge move like this can happen and make enormous returns.
I mean, one share of Amazon would have been about $1,750. We can’t play that game. I don’t have the capital and I’ve got a really big account.
What I do want to do is use options. Those can go up 100% or more with an investment as small as $1,000 in a very short period of time.
Options can yield the highest returns and it allows you to do more with less, and that’s what I love.
Let’s go through some more examples here. I want you to really, really get this. So we can get a little quicker at these since you know what we’re looking for now, just check this one out.
This is on Roku, one of my favorite stocks to trade. I’ve already taken away all of the junk you don’t need, so look at this, focus on these two lines right here, and how they separate right here, and stay that way for a couple of weeks.
Can you spot the money pattern? Do you know when the reversal’s about to happen? Of course you do. Look at this, you know what to look for right now.
There you go. Right there. You see that? That is the cross you’re looking for. That crossover triggers the reverse in the direction, and tells me that I can snag some puts and capitalize on a quick move lower.
Moving right along. Boeing is next. Look at this chart.
When we look at the full chart, and zoom in when they begin to separate, again, see those lines? As this trend happens, it comes on my radar and I remain patient.
I don’t get too anxious. I stay patient. I generally want them to be separated for about two weeks or more. I simply wait for the money patterns to show up, and then I jump on it.
Come on. You can spot it now too. See it? It’s right there. You can see it. Yeah, it’s right there. That is the crossover we’re looking for.
Now, this move was big. I mean this was a big move.
In just a week, the stock dropped all the way from around $430 to nearly $350. That is a massive move.
All alerted by this one simple pattern, nearly 20% drop in the stock price, and that could have been over 600% on the options. 600%.
Okay, two more really quick ones because I want to drive this home. I want you to get it. I want you to be able to spot what’s happening next.
Okay. This is a chart on the NASDAQ stock. Yeah, the NASDAQ actually trades the stock. Most people don’t know that, but here it is. Look at this chart.
First, we look for when the two lines begin to diverge. We want that separation, right? Look for that separation, wait for two weeks to happen, and then look for the money pattern.
When that reversal happens, you know what you’re looking for. You know when these two lines cross, the crossover phase is happening. That’s when you want to take a move. In just a few days, the stock changes directions.
And with options we can make boatloads of money on these quick moves. Maybe it’s just like a 4% move in the stock price, which really wouldn’t get me excited as a stock trader, but in this case, the options could have made you 75% or more in just a few days, and you would have made this on a stock dropping. Who doesn’t love that?
When you can make money on a stock that drops? That’s the power of the money pattern. It’s all about a simple change in direction, up or down, we can profit from both sides, but we have to use options on it.
All right, here’s a great one I want to end with. Everyone knows and loves Apple. Well check this out. It works on any stock.
This isn’t a consistent downtrend, you just don’t know when to get in, but if you look for the separation and you wait for that crossover, you get a great chance to know when the reversal’s going to happen.
And I love to see stuff like this lineup. This downtrend, and then we wait patiently for that crossover. And when it does happen, look at this.
When it does happen, the stock shoots up all thanks to the money pattern.
This is so easy, a child can do it. A massive change in the direction, and what could have been a huge profit for you if you were using this.
The money pattern is my bread and butter. All stocks go through this phase of direction and change, and now you know how you can find it.
It could be trending lower and then spike up. Wait for the money pattern and you know when it’s going to pop next.
It could be trending higher, and then the pullback. Wait for the money pattern and you know when it’s going to crash.
You have a high level of certainty then. Okay, we will take advantage of both of these together. I use this all the time and I’m going to show you how to do it.
But there are two other phases we need to discuss because you should be making money in all market conditions, no matter if the money pattern has presented itself or not, there’s always an opportunity to profit.
So the second one, this is the launch pad. This is a favorite of many, many traders out here. Now, picture this for just a minute.
You’re watching a stock rally. I mean, you weren’t the first to get in, or the second or third, heck, you were so late to the party you weren’t even anywhere close to this thing. You just sat by and watched it take off without you. How many of you have looked at a stock that’s been climbing for a bit and said, “Am I too late for the party?” Yeah, you probably are. Or, “Should I get in now or do I just wait for it to come back down?”
These are all the questions we have when we see a stock taking off without us, but believe me, I’ve been there, and I’ll speak for everyone here, I know we all have.
It’s so hard to chase a stock that’s shooting up. Again, no one is alone here. Even if you’re brand new to trading, this is a situation that you’ll be facing, which is exactly why I’m preparing you for it.
We all go through this, and the launch pad is my tried and true formula for knowing if the stock is going to rally for another breakout.
This is going to save you days, I mean weeks, months, years of headaches, and kicking yourself for not being a part of some epic ride.
Simply put, the launch pad is the phase in a stock’s life that you’re going to look for if a stock is going to break out again. Okay, we don’t know, but the launch pad will tell you.
We may not catch the first breakout, and that’s okay, you don’t have to. That’s basically like playing the lottery. Sometimes you’re going to get lucky on these. Once in a blue moon you might catch it, but that’s not how you want to be predictably making money in the market.
That’s gambling. It’s nearly impossible to time an initial breakout like that. We can’t rely on luck in our trading.
Normally, it’s some catalyst events or unless you’re the CEO of a company, or have some inside information, you probably can’t predict what the results are going to be and how to get in front of them.
Just like earnings. I mean, none of us average Joe’s know what earnings reports are going to show. We could buy ahead of it and hope it goes our way, but that’s like flipping a coin or even less.
Hoping is not a strategy. That is not how the most successful traders make money. Instead, they wait for high conviction opportunities, and then they act on them.
No more second guessing. Just stick to this formula and see what it can do. Again, no better way to show you what to look for than let’s run through some actual examples.
So check this one out. This is Budweiser. Yeah, by now everyone could use an ice-cold, refreshing beer right now, right? Check out this chart with a bunch of random stuff.
I don’t even want to get into it. You don’t need to focus on this. Let me take away everything that isn’t needed and instead just focus on these three lines.
You see this? Isn’t that better? Here is what I want you to look at right now. Notice the beginning of this chart. The stock runs up. You can see that.
The stock runs higher, and then it starts to come back down some.
I don’t know if it’s going to go lower or higher at this point. What I do know is that I’m keeping an eye on that green line. That green line is what I’m looking at.
When the stock falls below that green line, then it gets on my radar. That’s the beginning of when the launch pad’s setting up. Look at this. This is the beginning of that phase.
All right, right there. Do you see that? That is the important mark we’re looking for.
Now, the next thing I’m waiting for is a stock to come back and trade above the red, and blue, and green lines. I want them above those lines. This is the end of the launch pad.
Once that launch pad is formed, we wait for the stock to trade above those lines, and that is our ignition switch. This is what signals another breakout is coming.
This tells me that the stock is done sitting still and has decided its next direction, and it’s up. When all the trading is above these lines, that is the conviction I need to take advantage of the launch pad.
So zoom in on this, right, zoom in and see what happens right here. Do you see that?
Boom! There it is. There it is. That is what signals the move. It’s above these lines after it went through a previous breakout, it settles and then it breaks out again.
And then look what happens. The stock pops higher and even higher. This phase is crucial to your success.
The launch pad is what sends out a warning sign that a breakout is coming and almost every trader misses this.
I don’t care about missing an initial breakout. I’m going to wait for it and I know that I’m not going to miss it again. It doesn’t matter, catch it the second time.
Here’s another example. Look at this. This is Five Below. This is one of my favorite stocks to trade, and I have made a killing trading this stock multiple times using these phases.
In this case, all I care about is a launch pad and when it was about to break out.
Okay, I’ve already made the chart less overwhelming here. Just focus on this for a moment. Just look at this example. The stock breaks out at the beginning of the year, and again, I’m not worried about this. I’m just going to be patient. I know I missed the move.
It begins to pull back and dips under the green line.
You know, this is the beginning of the launch pad like I just said. So you know what? We wait until the stock trades above the green, red, and blue lines, like it does right here.
Now you may ask, how do you get access to the red, green, and blue lines??? Well, I’m going to share that with you when we start trading together. Don’t worry, it’s really easy, and you’ll want to know them because heck, you’re going to be begging me to know them. These are so powerful and you should be using these every day, but let’s go back to the chart.
Right at the end of March, when the stock trades above the green, the blue, and the red, what happens? It pops like crazy. You see that?
Another launch pad success. This happens time and time again.
A spike right above the 130 level, and a perfect chance to jump in and use options for an even bigger move.
Massive returns on a quick move all because you tracked just three lines and knew when to get in. Just another phase we can consistently come back to time and time again. I love this.
Here are two more that I’ll run through right now.
This is a Proctor and Gamble chart, ticker symbols PG. Notice here, see around this 29 area?
This is when the stock below the green line after a previous breakout earlier that month. This is the beginning of a launch pad.
Okay, you can see this now. Now it’s clear on our radar. Can you see when you want to buy? You know what to look for now. You see the launch pad building, you know when to get in.
There it is. The stock then moves above the red, blue, and green lines. It moves above and what happens? This is the ignition switch of the launch pad.
It signals the next breakout, and when we want to buy. And it has an awesome rally. Boring, old Procter and Gamble rallying.
Here’s one more. I’m going to show this one to you to really drive it home. This is Wells Fargo.
This stock, it runs up just like everyone does eventually, and then we wait for it to come back down and cross that green line. This is the start of the launch pad and it puts it on our radar. It does it right here.
Do you see that? Now all we do is wait. Just be patient. You don’t know when it’s going to turn, so just be patient and look for when the stock is above the red, the blue, and the green lines. That’s all you’ve got to do.
That’s the ignition switch, and that’s when the launch pad’s ready for take off again. Do you see it? Yeah. Right there.
You see that? This is the time to enter as it signals the launch pad ignition switch. It tells us that a breakout’s coming.
Yeah, you saw that. You can see it, and there it goes. Another move up and profits are just there for the taking.
I personally love launch pads and their ability to call out some upcoming breakouts so easily. When you get ahead of these moves, you can make some serious money.
This is the phase that you will see repeat over and over again. Man, it becomes so much more clear when you block out all the bad information and focus on what’s important.
In fact, I think the less you know, the better it can be. It’s true.
There are fewer bad habits and biases to break if you are new to the market and you are a clean slate, ready to learn only the most important things.
Once you filter out everything that isn’t important, and you dial in on what is truly important, all those key components, it becomes totally clear.
With those two phases I just showed you, you now know when you can profit from a stock trend and it’s going to change direction. This is with the crossover that helps you profit when a stock is about to bounce off a low or, it’s about to bounce off a high and reverse lower.
Right there – you have a way to make money no matter what. If a stock drops or if it rises, you can make money either way. If you’re not taking the opportunity to profit on both sides, you’re hindering your own success. You need to be trading both sides all the time.
You’re missing out on a world of profits that the biggest players on Wall Street are taking advantage of. And there’s no, you can’t do it too.
Just expand your mind a little bit, learn something new, and you’ll set yourself up for a lifetime of bigger profits.
Then I walked you through how to identify a stock that’s going to have another breakout, and this was done with the launch pad, right? We saw that launch pad build up and then take off.
No more feeling like you’ve missed an opportunity. Missed opportunities are now an opportunity for you.
The launch pad shows when it’s a high probability the stock will climb yet again. Don’t see the launch pad? Hit the brakes cowboy, it ain’t your time.
Wait for that launch pad to set up. You missed the run up, don’t get caught in the crosshairs. Remember, there are tons and tons of opportunities out there.
There are opportunities that you could take advantage of, so don’t worry about reminiscing about a trade you missed or could’ve got into.
I couldn’t care less about trades that I missed. The ones I missed that didn’t meet my pattern, and I didn’t chase, and I didn’t go after rainbows, I’m okay with that.
The stock market moves in a million directions. Every day it’s happening, but I only worry about three phases that I can tap into over and over again.
I find those three phases with patience. This is one of the biggest things I see traders lacking in today’s lightning fast markets.
You ever sold or bought too quickly or set your stops a little too tight? These three phases teach you patience, all right?
They teach you to focus, to give you conviction, to become an educated trader, to have a mindful decision making process with clarity. And that brings me to my third and the final phase you need to know, and it’s called the ripple.
Now, think about a body of water. For me and how this water ripples like a ripple effect, it’s not a giant wave or anything, it’s just a steady up and down movement. It’s calm, it’s contained, it’s in a specific range.
There isn’t a ton of big movements, it’s relatively stable. Now, picture a stock that’s trading relatively flat. Same thing. There’s no sign of any type of reversal yet. It’s nowhere near that phase yet. It’s just kind of dead money sitting there.
There’s no signs of any breakout. That phase isn’t ready yet.
Most people think this is dead money. The stock has collected itself in a given range, and it’s just kind of coasting along. It stalled at that price and is waiting on the next direction. And most people miss an opportunity right here.
Normally, this would sound like a position that you couldn’t make money on. It’s just kind of sitting there treading water.
I can picture your face right now probably. You’re thinking, “Jeff, you’re telling me that I can make money if a stock isn’t moving? It’s just kind of sitting there still? It’s not really going up or down or any direction?”
You know? That is exactly what I’m telling you!
Like I said, the stock market in general moves ultra fast at lightning pace, but we’ll see when a stock slows down, and there’s very little movement, there is an opportunity to make money.
And when that happens, this is when you can make some consistent profits over and over. I want to show you how this works because you need to take advantage of this.
This is a great strategy right here. And just like those other stock phases, the best way to show you is to look at some actual examples.
So let’s take a look at the four launch pad examples we just looked at. Because like I said, stocks go through these three phases and we can identify them all really easily.
So let’s go and take a look at Budweiser again. We’ve already taken away the parts you don’t need to focus on, so we’re focusing on the three colored lines once again.
Now remember, remember that green line. That’s when I said a stock was ready for a launch pad to come up. That’s when it’s on our radar.
Well, in this instance, it also does more. It does one other thing for us I want to show you.
It gives us a price that is unlikely for the stock to go above that price for quite a while. It sets a level of resistance, if you will.
Now, during this time, we have a very strong millionaire trader’s conviction that the stock is not going to trade higher than this line.
So this is what I do. I place bets expecting that the stock doesn’t go above that price, all right? Bud was around $85 when the stock broke below that green line.
All right, so I place bets with options that say, “This stock is going to stay below $85.”
It could go all the way to 84.99, but if it doesn’t go above, I win. That’s the beauty of this downtime in a stock’s life. We just sit there and we collect money while it waits.
Most people sit on the sidelines, they sit on their hands and they don’t do a thing. They just don’t know what to do.
Well, here’s what you do. They are missing out on one of the biggest opportunities, and I want you to start cashing in too.
These are consistent money-making opportunities where the odds are in your favor. A stock can go down, it can stay flat, or it can move all the way up to 84.99 in this case, but as long as it’s below 85, we win.
That’s how you turn the tables and put the power in your hands. While others don’t know what to do, you could be padding that wallet of yours, and this is how it’s done.
I want to walk you through the other three really quick, so I want you to sink in, I want you to see it again.
Here’s Five Below again, we just looked at the stock chart. The stock drops below the green line around the 125 level.
That’s when I want to be able to take bets that it does not go above that price, that’s the resistance, and look, it doesn’t for nearly a month.
So other traders would sit on the sidelines for a month, but we are here to collect money for that entire month.
This is the way to profit when stocks are just hovering up and down. They made a move, then it dropped below the green line, and that sets up the price I don’t believe it will go above for a little while.
As long as it doesn’t, I am able to make money. And so are you.
Now, here’s Proctor and Gamble, once again. We see the green line, the stock falls under it.
And again, this sets up the price that I don’t believe it will go under. It’s a strong resistance level, and at this point, I expect it to take a while to get back there.
What can I do? Well, I can make money during that time. And sure enough, as it simply hovers below that price, I bet that it wouldn’t go above, and I win.
Don’t you love that? Most people, like I said, won’t make any money during this time. They won’t, because they just don’t know what to do, but it’s a great moneymaking opportunity.
And if they are buying the stock, or shorting it, it’s just not that big of a move. In fact, they’re probably losing money in this time.
This way of trading this phase is just so consistent, and I like to call it “fun money”. This is fun money.
The ripple is going to happen often, and now you know how to take advantage of it. Just another added paycheck while the stock is figuring out the next direction it wants to take.
You can just keep making money. It’s almost like an annuity! We’re getting paid while we wait, and we just show patience.
And to wrap it up, let’s look one more time at Wells Fargo. Here’s the chart, one more time.
Here it is when it crosses under the green line, or around 45, 50. Now, what do I do? I set this up as the price I don’t think it’ll go above for a while. And for about a week, it just hovers below it. See that?
The bet was in my favor, and you could have collected some nice consistent profit on this one, just like you could have on the other three.
You just sit there and collect while you’re waiting. It’s really basic. The stock market does not have to be so challenging, all right? It just doesn’t.
And now you know how you can make money in any, any given time in the market. 20 years of trading, and I just broke it all into three phases right here.
The crossover, that signals when a stock will change direction.
The launchpad, that identifies when a stock is going to break out.
And the ripple. This is when a stock is determining its next direction, but it can trade flat for a bit.
Can you think back to the beginning of this? What was the one word I used to describe the market? Do you remember? Comment what my first word was. Let me see if you remember it.
All right, I see it. Yeah, come on. Keep them coming. Keep typing them. You know exactly what I said.
That’s what I said. I said the stock market is chaos. But now, we know it doesn’t have to be. We all have this noise coming at us all day long, from all directions, and it’s no wonder why people struggle.
If you’ve been at a bar having a conversation with someone, are you going to pay attention to them if 32 other people are trying to talk to you too?
No, of course not. You can’t! How can you possibly pay attention?
And that’s why trading can be so challenging. All you have to do is filter out the bad noise, and narrow in on the few simple things you really need to. Just three phases. That’s all it takes; three phases.
But even then, things can seem a bit overwhelming, right? That’s why I want to make it even easier for you.
This is Total Alpha!
This is the most elite service we have at Raging Bull. And I rarely, I mean rarely open this up to new members.
This system encompasses everything that I’ve learned over 20 years of trading. Now, right now, you’ll see a link. Click that link, and join right now, and I can’t say it enough.
This is a truly rare opportunity, and I encourage you to take advantage of it right now.
Now I’ve slashed the price, over 50% off what I regularly charge. It is a no-brainer.
Now, like I told you, Total Alpha is the one service that you need.
For starters, I’m going to give you every educational resource I have. I’ve put together a lot, and it’s all yours.
You’ll get all of my video lessons and every instruction manual I have absolutely free included with this.
Right there. That’s decades of information, boiled down into simplistic and easy to follow lesson plans, so you have something to reference at any time you want.
Study this information, and you can see your account grow tremendously.
Okay, that’s just the start. That gives you the resources to lean back and learn more, but it gets a heck of a lot better, trust me.
When I started, when I started, I wish there was a millionaire trader who would take me under his wing, and let me see what he was trading. I wanted to hit the ground running, but I didn’t know how to do it.
I didn’t want to go in blindly. I wanted to see someone else’s trades. I wanted to follow someone that had proven success, but I couldn’t find them.
Someone that had made a lot of money to ensure that I could make a lot of money. That’s what I was looking for.
Because that’s why you want to trade. You want to trade, because you want to make money, right?
Well, you’ve seen my trades, and you’ve seen what I’ve been able to accomplish with these three simple phases that I track every single day. And I want to give you those trades.
I don’t want you to have to do this alone. I want you to be able to do this with me. So, here’s what I’m going to give you.
I’m going to give you access to all of my trades. So if you want, you can get in on the action with me, the exact same trades. Just watch my trades, and learn how I’m making these profits.
I mean goodness, you can see every single trade that I make in this account. I’m all about transparency.
So here’s what I’m going to do. I’m going to give you access to my personal portfolio, and let you get live streaming access to my actual trading account.
I mean, this is my family’s own real money, and you better bet I take this account seriously. At any given time of the day, you can check into my portfolio, and see what trades I’m in.
Then you can stream my actual real money account, and see what trades I’m teeing up. It doesn’t matter where you are, either. You can view all of this on your phone, your tablet, your computer, any way you access the internet.
Even I do a lot of trading right from my phone here. I’m not glued to my computer all day, and you don’t need to be either.
Hey, the bottom line is that no one else is going to do this for you. The main reason is, they just aren’t that good at it. They talk a big game, but they can’t ever back it up. They’ll never show you their account like I will.
They’ll pump out their best trades, and sweep the losers under the rug.
Well, you can’t sweep anything under the rug when you give someone behind the scenes access to their actual account. Everything’s out there to see, and that’s what I’m doing.
I’m going the extra mile, because this is the one service you need for your entire trading career.
Now I make tons of money in the market, and it’s my mission to help others do the same. Total Alpha.
Remember that name. Total Alpha. Alpha means one.
You don’t need any other service once you have this. It is the one-stop-shop for trading.
When you’re with Total Alpha, you don’t need anything else.
But I’m going to sweeten the deal a little better even.
We all want a game plan before the market opens, right? If you’re like me, your day is pretty hectic. You never know what’s going to come up.
You may not have time to check in on my portfolio, and see my accounts all day, or pay close attention to when I send out trade updates. That’s okay. It’s okay.
We all live busy lives, but I want to show you how, in just 10 minutes per day, you can make some additional income.
Most of my members even have full-time jobs. Maybe you do too. Great.
This is perfect for you. You cannot get any better than this. If you give Total Alpha just one hour a week, that’s all you need so you can supplement your income.
I’m telling you, just 10 minutes a day can transform your account considerably.
You can do this at any level you want. It doesn’t matter where you’re starting.
So in the morning, I send you my battle plan for the day, and the action I’m looking to take in the market with my own real money. This is my watch list.
This is my daily primer, that shows exactly what I’m going after for the day. It’s my top idea that I’m interested in, sent to you directly before the market opens.
That’s a key, so you can set up your trade before the market opens, carry on your day, and you’re good to go.
I send this daily, Monday, Tuesday, Wednesday, Thursday, Friday, every day of the week, so you can start your day knowing what I’m most interested in, and take the trade if you want to.
Again, during the day, you’ll see the trades I make with an inside look into my personal portfolio. You’ll also get behind the scenes access to my live trading account at anytime you want during market hours.
Combine all of this together, and you are the Total Alpha.
Remember, I showed you the crossover. That tells us when a stock is going to change direction, and when we can profit from it. Whether it goes up or down, it doesn’t matter if a stock price falls, because we make money on both sides, right?
Then I showed you the launch pad. Remember that launch pad, this signals when a stock is likely to break out.
We have complete conviction and don’t get fooled by the fakeout breakout. We know when to get in.
And then I showed you the ripple.
This shows us when a stock is trading relatively flat, waiting on the next direction.
During this time, when others sit on their hands, we can be there, and collect consistent profits.
Three phases, the crossover, the launchpad, the ripple. This is how you grab the market by the horns.
This is the lowest price. The lowest price I’ve ever offered, it will not, it will not get any better than this, and it’s only for today.
Again, this whole time I talked about taking advantage of opportunities. Well, this is the opportunity of a lifetime. You get to join me, and thousands of others who are using these three phases to capture monumental returns, and it’s literally transforming lives.
That’s what trading can do for you. It can change everything, and give you the life that you want to live. It’s the life you deserve.
I know people have been asking some questions, and while I can’t get to all of them right here, there are a group of questions that I saw up here multiple times. I want to be sure to get to those right now.
The first one, I just touched on, but I want to go over it one more time.
Someone asked, I work full time, will this work for me?
Well, the answer is, absolutely. Yes. This is designed for people with busy schedules, this is designed so you don’t have to be at a computer all day. I’ve already taken that into consideration.
Everything is accessible from a smartphone.
All you need is an internet connection, a phone, a computer, a tablet, and you can access anywhere. And the amount of time it takes a trade is truly minimal.
I’m sending you my watch list before the market opens each day so you can position yourself with my favorite trade of the day coming up.
Then from that same smart phone of yours, you can check out my portfolio, and see other live trades I’m making as the day goes on, you can see everything that I’m in and even what I’m planning on.
Remember, this is my own real money portfolio, and who doesn’t want that? I mean, who doesn’t want an extra $500, $1,000, $2,500 each and every week coming in?
That is a substantial amount of money when you’re doing that consistently over and over during the course of a year with me. I mean, $500 a week, $500 would make you over $25,000 a year extra.
That is far more than the price of this service many, many times over.
Really, this isn’t just the opportunity of a lifetime. It’s the investment of a lifetime.
It’s the investment of a lifetime because you’re investing in your financial future right now.
You’re spending money on something that can make you more money. That’s the beauty of the Total Alpha system that I’ve developed over the last 20 years, and you can access right now.
Okay, here’s some more questions. Another good one here.
I’ve never traded before. Can I do this?
Of course you can. Of course you can. Total Alpha encompasses everything. I don’t care if you’re brand new to trading, or if you’ve got 10 years trading experience.
This system breaks it down into three key phases, and narrows your focus. We just saw this, the crossover, the launch pad, and the ripple.
These are the three things that you need to focus on. Actually, now that I think of it, it’s even better if you’re brand new, because there’s no bad habits to break. You’re starting from scratch, with the one service that simplifies the market.
And it has proven to make people boatloads of cash. We just saw many of those people. So yes, if you’re new to options, perfect. Use Total Alpha. Use me. Let’s see what we can do together.
Okay. Moving right along. I saw this one pop up too.
How much money do I need to start?
Honestly, I get this question all the time. And the answer is that it really depends on your financial situation.
I can’t tell you what to start with. Maybe you only have $1,000. That’s fine. I only had $2,000 when I first started, and then I continued to grow it.
As I became more consistent, I started taking money from other streams of income, and allocating them to my account, so I could get even bigger and bigger positions. And bigger positions allow you to make bigger profits, but it’s okay to start small. Everyone does.
It doesn’t matter where you start from. You know what? I actually prefer that you start small. This way you can learn the ropes, and develop a rhythm that works for you. That’s the most important thing.
You can start with any account size you wish. You know what? Even if you don’t actively trade, if you just take the education I’ve given you, and spend time learning it, mastering the things I’m teaching you, you are setting yourself up for a lifetime of success.
The important thing is you get your hands on the material, and you start putting it to work right now.
There are two other questions that I really want to address right now.
The first one is, what are these three lines that we talked about? I had a feeling this one would come up, and as I mentioned, you’ll be able to see these three lines I use once you join.
It’s a truly critical part of the Total Alpha service, and I don’t want to give everything away right now. I’ve already shared so much.
My members have paid for that access, and I want you to have the same, but you need to join me. You need to act right now.
I’m going to prove myself every day, and send you my favorite trades. Let me do that for you. Join the service, and let’s get to work right now.
Okay. The final question I see all the time is, you showed us the three phases. Which one should I focus on first? This is actually my favorite question.
I forgot who asked this, but you’re clearly focusing on the simplicity and I love that. If you can only focus on one thing in this whole presentation, I really want you to take this one phase with you. I broke it into three phases, but just start with this one simple one.
If I had to pick my favorite, it’s the crossover. It’s absolutely crossover without a doubt, and it’s my favorite because it’s so recognizable. It has been one of the key parts of my consistent success.
I know my current members will say the same, the crossover is only focusing on two of the lines, the red and the blue.
Now, in an uptrend, or downtrend, we’re looking for about two weeks or more when there’s a gap between them, there’s a separation for a period of time suggesting that it is in fact a real trend.
Then, what we do is wait for those two lines to cross again. Okay, we saw several examples.
When they cross, we can tell if the stock is going to reverse direction. It’s very likely to happen then.
Say the stock was trending up for two weeks, and then the lines were separated, and when they cross, we can tell that the stock is likely to turn over, and start heading south again.
There’s a trend reversal, and we make money on the way down. It’s awesome.
On the flip side, say a stock’s going down for two weeks, and the lines are separated ,and there’s space between them. Well it’s easy to see when they cross and when that happens we can tell the likely next direction is going to be up.
And of course, we’re going to make money on the way up. This is why I love the crossover!
This phase is called the money pattern, and I absolutely love it. I use it every day. We can make money whether a stock goes up or down, giving us unlimited profit opportunity.
Focus. Focus on this to start with, and you’ll love it, and I guarantee you can master it. Okay guys, that’s all the questions that I’m going to take right now, but once you join my service, know that I’m here for you.
Okay? You can always access me. I also do live training sessions for members so you can come and ask me any questions you have.
You join Total Alpha and you insert yourself into a winning team.
This is a group of traders that want to keep the market simple and make a lot of money.
That’s why we’re here, to make a lot of money. This is the best time to get in, it is a rare opportunity, and I can’t tell you the next time this will even be open at any price to members.
It may even be next year, and I don’t want you to miss out on this, so join me right now.
There you have it. This is Total Alpha. I’ll see you on the inside soon.
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