Properly… he was strolling down the road. In Paris.
Sure, critically. The man is on the market strolling close to Saint-Germain-des-Prés like he’s in a film, whereas casually dropping 45 minutes of buying and selling reality that the majority buyers ignore till it prices them actual cash.
And that’s the humorous half about markets… it’s superb what you’ll be able to study strolling down the road… or when another person is strolling down the road and also you’re attempting to maintain up. Simply concentrate!
Right here’s How It Went Down
Jon and I are each “previous canines” on this enterprise. We’ve seen the pits. We’ve seen the screens. We’ve seen the identical errors repeated by good individuals who swear they’re “disciplined” proper up till the second they aren’t.
So, when Jon began hammering three easy guidelines, guidelines that sound apparent, I knew the place issues had been going, quick.
Most merchants will bend these guidelines. Then they’ll marvel why their outcomes don’t tighten up.
Write These Down NOW.
Put them on a sticky notice in your monitor.
Maintain them on a pad subsequent to your buying and selling station.
Inform your buddy.
Inform your canine.
Get a tattoo… scratch that, no tattoos.
My level is: guidelines are guidelines for a cause. And the principles Jon dropped on you whereas wandering the streets of Paris will completely make you a greater dealer… with outcomes to show it.
Right here Are the Guidelines
Rule #1: Self-discipline Dictates Motion (DDA)
Earlier than you enter a commerce, you should know precisely what you’ll do should you’re proper and should you’re unsuitable. No winging it. No “I’ll resolve later.” No “let’s see what occurs.”
That final one is the most costly sentence in buying and selling.
As a result of the market doesn’t reward vibes. It rewards plans. And whenever you don’t have a plan, your feelings write one for you, in actual time, proper when volatility spikes and your mind begins doing math it by no means realized.
Rule #2: Minimize Losses Quick, Scale Income
Jon’s framework is clear and brutal-in a great way:
- Minimize at -50%
- Take earnings at +100% (a double)
- Scale out (promote half, let the remaining run)
The purpose is easy: by no means let one commerce flip right into a portfolio drawback. You may be “proper” on an incredible thought and nonetheless lose cash should you let a small loss develop into an enormous one. And you’ll be “unsuitable” on loads of trades and nonetheless win over time in case your course of is constant.
This rule additionally fixes the commonest psychological glitch merchants have: they take earnings too early as a result of they’re scared… and so they maintain losers too lengthy as a result of they’re hopeful.
Hope just isn’t a method. Scaling is.
Rule #3: Execute With Intent – Take the Provide / Hit the Bid
This one made me smile as a result of it’s so easy it hurts.
When you want in, pay up. Take the provide. When you want out, don’t get cute. Hit the bid.
Pleasure over a penny is how merchants miss fills and switch winners into losers.
You sit there attempting to “break up the unfold” such as you’re negotiating a used automobile, whereas the market strikes with out you.
Then you definately chase. Then you definately overpay. Then you definately’re instantly down on the commerce and questioning why your “edge” isn’t working. Give it some thought… what number of trades have you ever chased larger since you wished the “deal”?
STOP!
Your job is to not win the negotiation. Your job is to win the commerce.
Put these three guidelines collectively, and also you get one thing highly effective: an in depth plan for when and the way you open and shut trades with focused precision. That tightens your outcomes, and it builds confidence, as a result of confidence doesn’t come from profitable one commerce.
Confidence comes from realizing precisely what you’re going to do subsequent.
Did Jon Say He Discovered One thing?
He did. And I wasn’t anticipating it.
At one level, I instructed Jon one thing I wrote to myself a long time in the past…
“Luck prefers a ready dealer.”
Jon stopped and mentioned he was going to jot down it down. Then he repeated it again. That’s how it landed.
And it ties instantly into why you want Jon’s guidelines together with your individual. Any dealer can get fortunate. The profitable merchants make their very own luck by staying ready, which means they know their draw back (the place they’ll minimize) and their upside (the place they’ll take earnings) earlier than they ever enter.
No guessing. No delight. Only a plan.
Bonus Rule?
Each dealer can study one thing new to make them extra profitable. Even Warren Buffett can study one thing (and he would admit it). Be open to new practices and concepts that may enhance your buying and selling edge.
Let’s Put together for Luck with One Inventory Jon and I Each Like
I used to be actually happy to listen to Jon convey up Oklo after we talked about market traits he has been watching as alternatives.
Oklo (OKLO) has pulled again from its October highs amid investor wariness towards riskier industries.
Nuclear, eVTOL, and quantum computing have been three of probably the most affected corners of the market, particularly because the Magnificent Seven has been much less dependable because the “market crutch.”
That rotation is regular.
When buyers begin to fear about geopolitics and basic market situations, they tighten up and so they conceal in “safer” names. However these occasions move. And once they do, high-conviction themes come again quick.
OKLO has been bouncing across the psychologically important $100 stage for the final three months, and the technical tone has began to shift because the current bearish tilt eases. Each Jon and I like OKLO wanting ahead.
Within the waning moments of our dialog, Jon talked about LEAPs (long-term expiration choices) which, not surprisingly, is my favourite solution to place for a long-term theme like this. It helps you to outline threat, keep within the commerce longer, and keep away from getting shaken out by short-term noise.
So, right here’s what I need you to do…
Take the principles you simply wrote down on that pad of paper subsequent to your keyboard… and sketch out two or 3 ways you may commerce OKLO – inventory, choices, or LEAPs – utilizing these guidelines.
I’m engaged on a YouTube video that may stroll by way of my OKLO outlook and a particular long-term commerce thought. Let’s examine notes subsequent week after I share my commerce thought on the inventory.
YOUR ACTION PLAN
Talking of subsequent week…
Jon Najarian returns to Monument Merchants LIVE to speak with Nate Bear and Ryan Fitzwater on Wednesday, January 28, at 2 p.m. ET.
Mark your calendar now so that you don’t miss it.
As a result of if final Thursday proved something, it’s this…
Typically the very best buying and selling classes present up whenever you least anticipate them… it’s a bonus when somebody’s educating them wandering the streets of Paris.
Till subsequent time, I want you nothing however buying and selling success.
Be looking out for my subsequent YouTube video.
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FUN FACT FRIDAY
The U.S. fairness choices market now delivers huge embedded leverage by way of its notional publicity. In mid-2025, the each day notional worth traded in U.S. choices reached round $4 trillion (per CBOE knowledge), whereas typical each day U.S. inventory fairness buying and selling quantity is within the vary of tons of of billions (usually $500 billion to $800 billion).
This implies the choices market’s turnover often exceeds the underlying fairness market’s by 5x to 8x or extra on many days – successfully offering merchants with far larger leveraged publicity to shares/indexes per greenback of premium paid.