June’s unexpectedly cool inflation sent traders scrambling to cover their bearish market bets.
Hours later, they were forced to make an about-face when Powell and company told them not to expect rate cuts anytime soon.
There were traders who lost MILLIONS of dollars getting whipped around by the market.
Meanwhile, it was another winning day for Hugh Grossman and his SPY Pick of the Day.
He was in and out of his trade within the first 15 minutes of the session, pocketing a nice 6% gain.
Yet, this was far from unusual for Hugh.
His SPY Pick of the Day won every single day that week, netting about 6% each day.
In fact, he wins over 94% of his trades.
That might sound somewhat unbelievable, but it’s true.
Today, we’re going to take you behind the scenes for a sneak peek at how Hugh created this system.
A Narrow Focus
One of the most common reasons traders fail to find success is they try everything and master nothing.
Think about how many different methods you’ve read up on or even practiced in your own career. You tried one method that worked for a while until it failed. Then you moved on to the next thing and the next thing.
There are thousands of ways to make money in the market. However, you have to stick with it long enough to get really good.
Here’s the problem.
For every one way there is to make money there are 100 ways to lose money.
See the issue?
No one wants to spend time mastering a method that doesn’t work.
The Process
How did Hugh get around this?
As a former auditor, Hugh knew that the fewer decisions he needed to make the better. The more times you have to touch a trade, the more variables you need to consider.
So, Hugh chose a simple execution method for his SPY Pick of the Day .
He selects one option contract to buy, aiming for a 5%- 6% profit for each trade.
Each trade gets in just after the opening bell and out shortly thereafter.
The opening bell is where you get the most volume and price action during trading day other than the close. Naturally, that’s where you’re going to find the most opportunities.
But Why the SPY?
The SPY S&P 500 ETF is the most liquid asset traded on the U.S. stock exchanges.
Every day, tens of millions of shares change hands. It has option contracts that expire every single day.
And as a broad market ETF, it doesn’t have company-specific risk like shares of Apple or Tesla might.
In a nutshell, it removes as many variables as possible, making it a pure trading play.
However, that’s not the only reason Hugh chose this strategy.
Measure Twice. Trade Once.
The SPY has a rich amount of historical data stretching back decades. And so do its options.
Hugh didn’t arrive at his profit targets or strategy right out of the gate. It was a lot of trial and error.
However, with back-testing and analysis, he could speed through the learning curve to determine whether a strategy worked or not far faster than trying each one out individually.
Plus, he could fine-tune the trades to maximize their potential earnings.
And the Losses?
With a +94% win rate, there will still be losses.
However, that’s where the benefit of options comes into play.
If you win 94% of your trades, making 5% on each, you can lose 75% on the trades that don’t work and STILL make money overall.
That sounds kind of crazy, but the math checks out.
And with options contracts on the SPY, as long as you aren’t holding them all day, it’s pretty hard to take that kind of a hit.
You also need to keep in mind that 75% is the average. Taking one 50% loss and one 100% loss averages out to 75%.
So, yes, the losses in Hugh’s system are much larger than his wins. But he makes up for that by winning so often.
You can visualize the flip side by thinking about biotech funds. They invest in hundreds of companies, where 90% or more fail. But the ones that succeed pay out so much that it makes up for the losses.
Both strategies make money.
However, as you can imagine, investing in biotechs is much harder than one SPY trade daily.
But here’s something else you probably didn’t know…
Adding to Your Investments
Money managers know the key to long-term success is a portfolio that generates income regardless of market conditions.
That way, you have a stable base as a cushion during pullbacks and extra cash to pick up stocks at dirt-cheap prices.
This is what’s known as uncorrelated returns.
And it’s why Hugh doesn’t really care what’s going on with the rest of the market.
He’s not interested in Apple’s earnings or Nvidia’s latest AI chip.
SPY Pick of the Day marches to the beat of its own drum, turning out wins day after day.
Plus, it’s scaleable, allowing you to start small and build wealth and momentum over time, making it perfect for the individual investor.
This just scratches the surface of what’s possible.
Rather than take up hours of your time, we’ll let Hugh to tell you about SPY Pick of the Day in his own words when you CLICK HERE.
