Dear Friend, Investing is a game of patience, discipline, and foresight. It requires a delicate balance between conviction, flexibility, and timing. Even the greatest minds in the game—traders with decades of experience, billions in assets, and a track record of stellar returns—often get it wrong. Take Stan Druckenmiller, for instance. Recently, Druckenmiller, one of the most respected traders of all time, reflected on one of the more surprising decisions of his career. Nvidia, a company synonymous with the AI revolution, had once been one of his core holdings. In fact, he was a long-term believer in the company’s potential. Yet, earlier this year, he sold off his entire Nvidia stake—a decision he now openly regrets. In an interview with Bloomberg, Druckenmiller admitted his mistake. "I sold all of my Nvidia somewhere between $800 and $950," he said. "It was a big mistake. We’re big believers in AI, and Nvidia is an amazing company. But right now, I’m licking my wounds from that bad sale." That’s a stark reminder that even the best can get it wrong when it comes to timing. But here’s the difference between Druckenmiller’s position and ours: we can stay exposed to Nvidia’s upside without the risk of selling too early. By using a strategic, rule-based approach, we define our risk and manage our profits—unlike traditional equity holders. Railroads and AI: The Infrastructure of the Future
In many ways, the rise of AI today mirrors the transformative power of the railroads in the 19th century. Back then, those who controlled the railroads didn’t just control transportation—they controlled the future. It wasn’t just about moving goods faster; it was about fundamentally reshaping economies, industries, and entire nations. Today, Nvidia is building the infrastructure of the next great economic shift. Its GPUs power the AI systems that are transforming industries—much like the railroads connected cities, industries, and people. From data centers to autonomous vehicles, Nvidia is creating the backbone for the next wave of technological revolution. But like the railroads of old, Nvidia has faced significant volatility. And just like investors in the 1800s who were nervous during downturns, today’s shareholders might feel jittery. They’ve witnessed Nvidia’s stock surge to all-time highs, only to pull back after every earnings call or macroeconomic event. It’s natural to question whether now is the time to get out. But as Druckenmiller’s experience shows, selling too soon can be a costly mistake. What if there was a better way? A way to stay in the game, protect your capital, and avoid getting whipsawed by earnings volatility? The Mistake of Selling Too Early: What We Can Learn from DruckenmillerDruckenmiller’s mistake wasn’t that he lost faith in Nvidia—it was that he sold too early. Nvidia is a company with long-term, unstoppable growth potential, driven by one of the biggest technological shifts of our time. AI isn’t a passing trend—it’s a seismic change, and Nvidia is positioned to be the leader in this revolution. But while Druckenmiller had to liquidate his position entirely, we have the advantage of using a strategic, rule-based approach with options. Options allow us to stay in the game without exposing ourselves to the same level of risk as equity holders. By defining our risk upfront and managing profits based on rules, we can take advantage of Nvidia’s bullish momentum while sidestepping the volatility that comes with quarterly earnings. That’s where our next trade comes in. This trade isn’t about trying to guess where Nvidia will be in the next year—it’s about leveraging its short-term bullishness and capturing the opportunity before earnings. Why This Moment Is DifferentLet’s take a step back and look at where we are. Nvidia just hit new all-time highs at $140.89, powered by relentless demand for its cutting-edge AI hardware.
Nvidia CEO Jensen Huang called demand for its next-generation Blackwell chip nothing short of “insane.” This isn't just hype—this is the heart of a technology boom that will reshape entire industries.
Even as the broader market faces volatility, Nvidia’s underlying strength remains unshaken. But here’s the key: earnings are looming. On November 20, 2024, Nvidia will report its next set of financials, and while we believe in the company’s long-term potential, earnings events bring a significant challenge—binary risk. A single headline or comment from an analyst can send the stock soaring or plunging, introducing a level of uncertainty that even seasoned investors prefer to avoid. In fact, these moments of high volatility often leave even the most committed investors asking themselves: "Do I hold through earnings or take profits now?" But what if you didn’t have to make that choice? What if there was a way to benefit from Nvidia’s bullish momentum without the binary risk of earnings? This is where a strategic approach comes into play—one that’s proven to deliver consistent returns and outperform simply holding shares. We’ve done it before. Just last month, on September 3, 2024, we issued a trade alert on Nvidia. The result? A 75% gain in just 9 days. And that’s not an isolated win. Over the past year, our strategic approach has delivered a 694% return with a 74% win rate—outpacing even Nvidia’s impressive 211% stock performance during the same period... Subscribe to Belanger Trading to unlock the rest.Become a paying subscriber of Belanger Trading to get access to this post and other subscriber-only content. A subscription gets you:
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