Category Archives for Inner Circle
Why Amazon Can Hit $220
David Prince of T3 Live’s Inner Circle explains why he’s loved Amazon (AMZN) so much, and why it can hit $210 to $220 this year: Amazon (AMZN) has been a monster stock in 2024 — but only after years in the dumps. David Prince explains: Why so many things are going right at Amazon The power of AWS and Amazon’s advertising platform Whether AI has a role to play at Amazon Why Amazon can’t hit the profitability of a name like Nvidia (NVDA), and why it doesn’t matter What it will take for Amazon to hit $21o to $220
Continue Reading -->Tesla Pops – This Is What’s Next
Tesla (TSLA) is 64% off its April lows. David Prince explains what’s next for this tech name: David also goes over: His long-term and short-term takes on Amazon (AMZN) How he’s positioned into the NFP report Friday and CPI report next week Why Inner Circle positioned long in Eli Lilly (ELY) What people who missed this year’s big market gains should know
Continue Reading -->NVDA + DELL + SMCI: What’s Next for AI?
Join David Prince LIVE as he breaks down: -What’s next for Dell (DELL) after earnings -Why Super Micro (SMCI) is getting pounded so hard -Why there is only one Nvidia (NVDA) -What today’s Viking Therapeutics (VKTX) news means And MORE!
Continue Reading -->Trading Success: Making Money vs. Being Smart
You can focus on being smart. Or making money. These are NOT the same thing. David Prince of T3 Live’s Inner Circle explains.
Continue Reading -->David Prince: Trading Strategy Update
David Prince of T3 Live’s Inner Circle updates us on his trading strategy into June of 2024. David goes over: How to view the underperformance if IWM vs. SPY Why options buyers could be disappointed by Dell’s (DELL) earnings on May 30 Why Dell outperformed momentum favorite Super Micro (SMCI) How he played tricky solar name Enphase Energy (ENPH) And More!
Continue Reading -->The Bull Case for Viking Therapeutics
The weight-loss drug market is booming as you see with $LLY and $NVO.@epictrades1 explains why $VKTX is one to watch, and why it could be taken over. ⭕️ https://t.co/XT0fy7n48t to join David pic.twitter.com/vZ3Z4rhbcY — T3 Live (@t3live) May 1, 2024 David Prince has been a long-term bull on Viking Therapeutics (VKNG) for some time as a prime play in the weight loss drug space, which has been dominated by Eli Lilly (LLY) and Novo Nordisk (NVO). In this video from May 1, David explains why the company might be taken over in the future by a larger company like Pfizer (PFE), Merck (MRK), or Bristol-Myers (BMY)
Continue Reading -->Kira Turner Talks Trading, Skydiving, Scubadiving, and Rodeos
Inner Circle’s Kira Turner appeared on the Madam Trader podcast to talk her trading career, and her fascinating history in high-stakes sports like rodeos and skydiving: After you listen, check out Inner Circle.
Continue Reading -->The FTX Collapse: A Love Story
The FTX collapse and associated mess in the crypto market isn’t the first disaster of its kind. And it won’t be the last. Richard Feynman said “The first principle is that you must not fool yourself—and you are the easiest person to fool.” I tell my Inner Circle traders it’s better to be humble than smart. The number-one problem with smart people is they know they’re smart. They’re in love with their own brainpower and can’t question their instincts. Humility makes you question yourself. Take VCs. They are in love with the idea of finding the next Mark Zuckerberg or Steve Jobs or Warren Buffett or Elon Musk or Shopify (SHOP) or Salesforce (CRM) or whatever. And that is their greatest weakness. This mission to find extraordinary opportunities creates blind spots. Which is how they get fooled by fooled by hucksters like Sam Bankman-Fried, Elizabeth Holmes, and Bernie Madoff. When you’re a billionaire that’s financed 10 Silicon Valley unicorns, you never imagine that you could be the victim of a hoax. And there is a lesson for traders here too. Love people, not stocks. Stock traders fall in love with finding the next sexy asset class or the next Apple (AAPL) or Tesla (TSLA). And they never ask themselves “what if I’m wrong?” That turns research and analysis into confirmation bias. Everything you see — even if it’s bad — confirms what you believe. Let me give you an example. Say a semiconductor company reports a massive spike in inventories. The blind bull will say “that’s good because it’s more product to sell.” But if you have an ounce of skepticism, you’ll ask questions like “is demand drying up?” If you never ask tough questions, you will go broke in this bear market. I guarantee it. Confirmation bias wins because humans are determined to be right. That is why FTX will happen again and again for the next 10,000 years. There were TONS of red flags around Sam Bankman-Fried and FTX. Like lack of experienced management in a complex, difficult field… including no CFO! There were obvious conflicts of interest with Alameda. And a huge money funnel to Washington. Smart people armed with confirmation bias will make up excuses for anything and everything. “They don’t need a CFO because they’re MIT geniuses.” By the way, you’re about to see the biggest comedy in the world. Some of the biggest crypto players are out there aying “Crypto is still great! It just needs regulation so I’m marching to Washington to get it done!” Up until a week ago, no regulation was the whole point! The scary thing is crypto will get even messier. So remember this kids: be smart, but stay humble!
Continue Reading -->Rick March Talks Fibonaccis, Options, and Old School Trading Pits
Get to know Rick Turner one of our Inner Circle moderators, in this in-depth interview. Interview Transcript* *this transcript has been edited for length and clarity Michael Comeau: Rick, tell us about what it was like when you got started in the market, and how that’s different from today. Rick March: When I was 10 years old, my grandfather, who drew charts by hand, gave me his book of charts. It was 500 pages for the S&P 500 stocks. 90% of them don’t exist anymore. But I looked at the charts. And I said “when this crosses over this, it’s a buying indication.” I asked why, and he explained. When I was 13 years old, while my friends were going to camp and having a good time, I was a runner on the floor of the Chicago Mercantile Exchange. I was taking orders from the desks. That was my first experience on the floor. For my first, trade, I bought five December corn at $162.50. I would stand in a pit and trade one or two months of a commodity, or S&P, or the yen, or cattle, And now I sit at a desk and trade any 1 of 500 stocks and options. MC: So it was like Trading Places with people screaming at each other and making those crazy hand gestures? Is it actually more chaotic today than it was when you were on the floor? RM: Everything’s computerized now. And it’s not as fun as standing in a pit with 50 men and women, watching everybody scream and freak out. That was fun. Not because they were freaking out, but because you could read the emotions on their faces. Behind a computer screen, I can’t tell if somebody’s blown out longs. MC: So it seems like you started on charts from a very early age. How has technical analysis changed from then to today? RM: Back then, there were no algos. There were no computers. We drew trend lines and watch the breakouts. And if cattle broke out to a new high, we would tell our clients. We would do this all by hand and on the phone. There was no immediate drawing of a chart and posting it in Inner Circle. So that’s 100% different. And now, there’s easily 500 methods of of price and time analysis. Stuff like WD Gann Theory and Gartley existed, but you couldn’t calculate them quickly enough for the market. There were guys in the options pits, who had their sheets of what X options should be trading at Y desk and Y price. And they would stand there and look at their sheets. They wouldn’t make a trade until something came up on their sheets. MC: So we should be grateful with all the amazing technology we have today that’s basically free. RM: Absolutely, because it enables me as a trader and an analyst. It’s amazing. MC: Let’s talk a little bit about your trading style. How would you describe it? RM: I follow the market flow and the options. I’m very blessed to have two partners at Inner Circle. I don’t mind buying something at a high price thinking it’s going to trade higher. That’s how I do these SPX lotto call traders that you’ve seen there. Kira Turner is great at seeing a day trade coming, and David Prince plans trades better than anybody I’ve ever met in my life. So to answer your question, I swing trades, I do a lot of options trades, and I day trade. MC: Many technicians are pretty loosey-goosey and doing things by feel. So how mechanical is your buying and selling? RM: It depends on what I’m trading. I set alerts in stock where if they get hit, I can buy or sell the stock or option I want to be in. MC: You have no problem just pulling the trigger when that happens? RM: If I’m setting it up in options, then I don’t. Because I say, at $80, I’ll buy this. All right, at $100, I’ll sell this. And that’s what works for me with the stock. For example, I’ve been short Beyond Meat (BYND) for months from significantly higher prices. I want to cover in the single digits, but I haven’t put the order in because it could go lower. When you get to a level where you think you should buy or sell, you need to take action. If you don’t, you’ll regret it after the trade is done. That’s why we trim and trail. MC: Let’s talk about regret because I don’t think people talk about regret enough. When a trade is done, do you just fully put it behind you? RM: It would be nice to put it behind me. The way my brain works is, I pay attention to that stock or option for a couple of weeks after. I don’t necessarily go back into the same price and do the same trade, but I’m aware of it. Because if I made a mistake, I need to learn from it. So I can build my talent and build my equity going forward. MC: Do you worry about algos or HFTs when you are trading? RM: The only thing I worry about during my trading is when the market goes to a standstill. I don’t know what to do in a quiet market. My biggest frustration is a lack of action. MC: Is there ever a time where you just sit on your hands and do nothing? RM: I’m trying to do more and more of that. MC: It seems like people have an urge to take action, to just do something. RM: They absolutely do. For some people, it’s like being at the casino and seeing the craps table. They have to do something. But trading is not a casino. Trading is not gambling. We figure out the possible risk versus the probable or improbable reward. You have to think through risk before you
Continue Reading -->How Kira Turner Went from Extreme Athlete to Top Trader
Get to know Kira Turner, one of our Inner Circle moderators, in this in-depth interview. Interview Transcript* *this transcript has been edited for length and clarity Michael Comeau: Kira is a full-time professional trader out of Austin, Texas, where she lives with her three children and two dogs. She was a pro trader in the nineties, trading at cornerstone trading from 1994 to 2001. Then she moved into real estate investing, and she back to trading in 2018. One of the really interesting things about Kira is she has a lot of experience in what some would consider high risk activities. Namely rodeos. and skydiving. It turns out that rodeos are pretty dangerous about — about 20 times more dangerous than football in terms of the risk of a catastrophic injury. So this is going to be a really interesting conversation about developing nerves for trading, managing risk and keeping your head together. Kira Turner: Thank you. It’s good to be here and I never would have realized that radios were so dangerous. That’s a very interesting statistic. MC: Would you have done it if you know it was so dangerous in the first place? KT: When you’re young, you think you’re bulletproof. And so I never thought I would get hurt really doing anything. I got a couple of concussions and I had a couple of broken bones. So you can get hurt, but you never think ABOUT that when you’re a kid. MC: So that’s going to bring us to a different kind of starting point than usual. I want to talk a little bit about the type of person you are. How would you describe your own personality? KT: I would describe myself as a glass half full kind of person. So, I’m always looking for the bright side. And I’m pretty easy going, but I’m very driven, as far as making changes goes. If I see something I don’t like, you know, in myself, or in my house, or whatever, I think, what are the steps I need to take to change that? And I’ll just be on a path toward achieving my goal. And that’s been pretty consistent throughout my life. If I decide I want something, I figure out how I need to get there, and then I head in that direction. MC: How does that relate to your trading, and how you manage risk on a day to day basis? Are you saying you have little attachment to what’s in front of you? KT: I don’t know if I would say that, but sometimes it’s good not to have too much attachment. Today was a really hard day. In fact, you’re probably interviewing me on one of the hardest trading days of the year. What I will do this evening is probably take a long walk and really think about what I did today. What I could have done better, if there were trades that I took too much risk on, or should have taken more risk on, and that kind of thing. So I’ll just kind of replay today and focused on how to make it better. MC: Can you give me an example:? KT: At one point I got short the futures. There was a slow downtrend, and I didn’t take profit when I had it. I had about 100 points of profit. And I thought we would move up a little bit and then just continue our nice slow downtrend. That didn’t happen. So I ended up giving back a fair amount of my profit just to try to stay in the trade. Because on trend days, I like to get in and just keep moving my stop and just today it wasn’t the day for that. I’m should have been more careful. MC: I want to compare this to rodeos specifically. What is the mix of confidence, fear and excitement on a day like this vs. when you’re about to get on a 1,200 pound horse that could kick you in the head? How did those emotions mix for you? KT: In both cases, it’s a performance, right? So you’ve got a certain amount of time where you need to do something. It’s so psychological in both cases, and you’ve got to be mentally prepared. The key component is knowing what your risk is. On a horse, your risk might be falling off, or the horse stumbles and falls or something like that. In the market, I can control my risk even better because, depending on the size of my position, I can control how much money is at risk. Part of what I love about trading is the excitement, but it’s also because I know how much risk that I have. MC: That’s an interesting point. Because technically, anything could happen. We have all these economic issues, geopolitical issues. Everything is going crazy. So how do you assess how much is actually at risk? KT: Well, for instance, I’ve got a small biotech stock and it’s around $4. I know that, even if the whole market falls apart, it’s not probably going to go under $3.50. That’s just a low-risk position for me, so I don’t worry about that. If I’m in something that’s likely to move a lot, or that I’m afraid might move a lot, I would use options. My risk would be limited to the amount of premium that I’ve paid. If I’m actually in stock, and I’m worried about it, I lower my size. Something I’ve talked to Inner Circle members a bunch about is that if you have a lot of anxiety about a trade, and that’s keeping you up at night, for sure, you need to be in less size. If you’re worried that a loss can really damage your account and hurt your ability to trade because it eats up too much of your capital loss, then you’re in too much. You need to have a smaller position, and take
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