Precision Profits Trading Manual. How to Profit From Invisible Stock Patterns With Factor M

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1 Precision Profits Trading Manual How to Profit From Invisible Stock Patterns With Factor M

2 Precision Profits Trading Manual How to Profit From Invisible Stock Patterns With Factor M By Jeff D. Opdyke SEASONAL trends are a part of our everyday life, whether we notice them or not: Blockbuster movies get released in the summer. Retail stores see a pick-up in traffic during the holiday season. Families go to amusement parks during spring and summer breaks. Ski resorts get packed during the winter. All because of seasonality. It s something that affects all of us in some way, every day. For many companies, it routinely means a great deal to the bottom line in ways that Wall Street rarely notices, but which still consistently influence a company s share price, year after year. And mainstream investors well, they completely miss it. But I didn t. As a writer for the Wall Street Journal for 17 years, and having worked as a trader and an analyst in the hedge-fund industry, I had developed a talent for seeing what others either overlooked or didn t see in the stock market and economy. And I knew seasonal trends were playing a significant role in a certain class of stocks. After all, the National Science Foundation estimates that the United States economy sees a seasonal-related impact of $485 billion each year, with the worldwide impact far greater. Since business is the lifeblood of every economy, those losses must impact a business somewhere. So I started working on a thesis several years ago about finding what I call Precision Profits. My thesis held that certain stocks hide invisible patterns in their annual price returns that are impacted by something I named Factor M. I just needed solid proof before I could help people profit from it. Then, about two years ago, I discovered undeniable evidence of these invisible stock patterns while I was on a business trip from my home in South Louisiana to Baltimore. Somewhere over the Appalachians, I started flipping through a manila folder that contained a few dozen stock charts that I was analyzing and I uncovered a remarkably consistent series of trends hiding within them. With a red pencil in hand, I began annotating each stock chart looking at years of up and down and sideways motions in their stock price. And in chart after chart, a pattern unfolded in front of me. I call these invisible seasonal patterns Factor M after all, they were influenced by meteorological trends. Meteorology is something nobody can control. Not the CEO s or the Board of Directors. Not Wall Street power brokers, the government or the media. But it can certainly be predicted although, like most things in life, it s not absolute. 1

3 At the hotel in Baltimore that night I fired off an to my publisher in Florida: Finally! I proved it. Factor M works. The charts don t lie. I included a few charts with my annotations and Precision Profits was on its way to being created. But something was missing. After uncovering Factor M, I realized I needed a way to accurately forecast upcoming seasonal trends in order to perfect my system. Then I could reliably use Factor M to predict the direction of certain stocks at specific times. I needed a true meteorological expert someone who s trained and paid to understand global seasonal patterns and how they impact the U.S. And that s what brought me to Chris Orr. With Chris, I found someone who shared my ideas about seasonality. Let me tell you a bit about Chris. Living in Rapid City, South Dakota, he s spent the last 30 years specializing in forecasting the weather for commodity traders, including some prestigious hedge funds, who rely on deep knowledge of pending weather patterns to dictate their trading and hedging strategies. These are patterns that Chris identifies weeks and months in advance, long before your local weather jockey on the evening news knows what s coming. He s a storm-chaser at heart, plus he s a certified consulting meteorologist one of fewer than 700 in the world. When it comes to the weather, Chris has done it all. He has worked as a weather forecaster for the construction of some of the nation s tallest buildings, for major motion pictures, for airlines, power utilities, television, radio, newspapers and much more. After talking to Chris for a few months, I knew he was the guy I wanted to help me. It became increasingly evident that there was a strategy we could implement for a seasonal-related trading service that capitalized on the invisible trends most people don t see in stock movements, but that are clearly evident when you apply a Factor M overlay. Together, Chris and I have taken Chris decades of successful meteorological experience and combined it with my decades of Wall Street research and trading expertise to create Precision Profits. We whittled down several thousand stocks to a well-defined list of roughly three dozen that all demonstrate very consistent patterns tied to Factor M. And we have the ability to see what Factor M will look like up to six months in advance... with 80% accuracy. Best of all, my strategy is something you can choose to pursue with just a few hundred dollars, a few thousand dollars or $50,000 as a starting stake, and it shouldn t take you more than 15 minutes a week to implement. So far, our average trade has lasted about two months and has averaged gains of 34%. That s triple the S&P 500 s average for the past 25 years (12%). And we have given subscribers gains of as much as 169% in as little as 64 days. So, let s get you started with this service. Here s what you need to know What You Can Expect From Precision Profits Each week, you will receive a dispatch from me. Some weeks will be a new trade to make; other weeks will be an update of the weather and seasonal events that impact our portfolio. I will explain the weather events 2

4 and seasonal trends that Chris sees in the offing, and detail for you how these events and trends are likely to flow through the share price of particular companies and the options on those companies that we will trade. Our trades at times will come in bunches over a short period as we look to exploit the changing seasons and the weather patterns that spring up. Other times we will go a few weeks without a trade as a season reaches its particular doldrum. In periods of reduced trading activity, or as we await a new seasonal or weather trend to arrive, I will be sending you updates and weather-related videos that I ask Chris to produce so that he and I can better show you the trends. You can expect the updates to discuss many of the recent events that have occurred, and how and why they impact the companies we trade. Chris will also regularly produce videos and forecasts that look ahead to the coming season so that you can be prepared in your own life for what spring, summer, winter or fall will bring in your own corner of America. Though these are months in advance, you will find yourself surprised at their accuracy. I know I am every time I read Chris forecast, and then see how the season unfolds just as he predicted. Every now and then, Chris will also send you a special report, detailing the events you can expect over the next few months and the sectors that will be affected. In every dispatch, you will receive an updated copy of our portfolio. And because I always enjoy hearing from you, I encourage you to send me any thoughts or questions you have about the service. Occasionally, I will highlight a few of your thoughts in a mailbag issue though I won t identify you by name. To ask me a question or share your thoughts, you can always reach me at JeffsPrecisionProfits@gmail.com. Our Trading Methodology Short-fused weather events such as hurricanes and tornadoes regularly present short-term opportunities that might be good only for a few days or a week, at most. And we will occasionally pursue those short-term trades, where I see an opportunity. More common, though, are the steady Factor M seasonal patterns in which we will establish longer-term positions in options that we will hold for a few weeks to a few months, depending on the duration of the trend. Whatever the case, I ll keep you well-informed throughout the process. Precision Profits is a unique service based on providing an advanced track of seasonal events alongside advanced trading expertise. Through the proprietary database we ve created over the last few years, we know how different companies have performed historically during periods of typical, atypical and exceptional weather events and seasons. We use that database every single week to inform and direct our trading, based on the weather trends we see in action, even though they are trends that you won t necessarily see or hear about at the moment from traditional weather sources. Can trading weather trends really work? Well, we ve closed a string of 100%-plus winners based exactly on this system. Yes, we ve had a few losers every trading service does because of non-weather-related events that impact an industry or a particular company. Still, when you are closing multiple triple-digit winners, you can absorb some losses and still come out well ahead of Wall Street. 3

5 What Will We Invest In? The only investments we trade in this service are options both puts and calls, depending on the trend we re playing. Options maximize our potential gains. A 10% move in a stock can be a 100% or 200% gain in the right option. We will use options with short-term expirations to profit from extreme weather events, such as hurricanes that can impact insurance stocks, or cold-snaps that promise to send natural-gas prices higher. For most seasonal trading, we will use options that typically expire months into the future to allow us to exploit the trend for as much profit as possible. Our options strategies are simple to follow and straight-forward, and your risk is always capped. We only buy put or call options. We never initiate a position with a sell the equivalent of shorting a stock because that would expose you to too much risk. With each trade alert, I will explicitly detail which contract to buy and what price so that you can easily make the trade online or so that you can tell your broker all the details necessary to execute the trades. The only decision you ll need to make is how much to invest in each trade. Trading options in Precision Profits give us distinct advantages. More Bang : With options we can control more shares with less money than if we were to simply buy stocks/etfs. Each options contract is equivalent to owning 100 shares of a company, yet the option costs just a fraction of the underlying share price. This is the power of leverage. Of course, leverage is a double-edged sword, as it can also magnify losses. But we keep a close eye on these positions and will recommend an exit, if necessary. Less Risk: With each recommendation, you will know the exact dollar amount you re risking. And since options require much less capital than buying shares, you can spread your money across a larger number of investments. This diversification not putting all your eggs in one basket reduces our overall risk. Ease-of-Use: Too many retail investors shy away from options because the language of options trading seems complicated. I understand that, and it s one of the reasons I m motivated to help you navigate the world of options easily. I ll give you easy-to-follow, step-by-step directions along the way. My trade recommendations will always give you full details on the investment I m recommending and the exact information you need to execute your orders. Every trade alert includes an Action to Take that looks like this: Action to take: Set a Good Til Canceled limit order to buy the MTN January 2015 $80 call (MTN150117C ) at $3.70. At last glance, it was trading at $3.55. If your order is not filled by my next dispatch, I will update you on the trade. In this particular example, you would be placing a Good Til Canceled limit order to buy call options on ski-resort company Vail Resorts, ticker symbol MTN, at a strike price of $80 for expiration in January The limit order should be set at $3.70. I also provided the at last glance number : $3.55. That s the equivalent of $355 per contract, since each options contract represents 100 underlying shares of the company. The long string of letters and numbers is the ticker symbol for this exact option. You can plug those instructions into your online options-trading account, or you can share the information 4

6 with your broker when you re ready to make the trade. Once you get the hang of it, it shouldn t take you more than about five minutes to log onto your account and place your trade. If our limit orders do not get filled and sometimes they don t I will update you on the next action to take in a following dispatch. To make the process as simple as it can be, I ve also provided an option trading tutorial video in the Getting Started section of the website, as well as a sheet that lists the different option terms. Make sure to check them out! Check In With Your Broker It s likely you already have a brokerage account, probably one that already allows you to trade options. But if you don t have an account with options capability, the list below provides the contact details for optionstrading firms that you can look into. If you do have a brokerage account in which you already trade stocks and ETFs, I recommend calling your brokerage firm to confirm that it s set up to trade options, since that requires you sign off on a different set of SEC-required disclosures. You may need to fill out a one- or two-page form indicating what options strategies you d like to trade. I will only recommend the most-basic options strategy: buying puts and calls. Broker Contact Information Interactive Brokers IB-BRKR Options House Fidelity E*Trade ETRADE-1 Options Xpress eoption TradeKing Once again, Chris and I welcome you to Precision Profits. And remember: By following my trade alerts, you will be given the opportunity make money off invisible patterns most never notice, and I will make everything as simple, easy, and accessible to you as possible... no matter your age, income or education. I look forward to bringing those opportunities to you. Until next time, good trading Jeff D. Opdyke Editor, Precision Profits 5

7 The Sovereign Society 55 NE 5th Avenue, Suite 200 Delray Beach, FL USA USA Toll Free Tel.: (866) Website: Legal Notice: This work is based on what we ve learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It s your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments such as futures, options, and currency trading carry large potential rewards but also large potential risk. Don t trade in these markets with money you can t afford to lose. Sovereign Offshore Services LLC expressly forbids its writers from having a financial interest in their own securities or commodities recommendations to readers. Such recommendations may be traded, however, by other editors, Sovereign Offshore Services LLC, its affiliated entities, employees, and agents, but only after waiting 24 hours after an internet broadcast or 72 hours after a publication only circulated through the mail. (c) 2015 Sovereign Offshore Services LLC. All Rights Reserved; protected by copyright laws of the United States and international treaties. This Report may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Sovereign Offshore Services, LLC. 55 NE 5th Avenue, Suite 200, Delray Beach, FL

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