How Losing Everything in 2008 Taught Me to Stop Buying Weakness and Start Following Strength
The first time I opened a brokerage account, I didn’t know what the hell relative strength was.
I just bought dips.
In 2008…
And like clockwork, the market kept falling... and I lost everything in that little account.
Every damn dollar.
I remember thinking, “How do people actually learn to trade? Is this even possible?” It felt impossible at the time. But deep down, I knew I’d figure it out, I had to.
Fast forward a few years—I'd devoured every book, article, chart, and white paper I could find on relative strength (not to be confused with RSI—different beast).
Relative strength compares an asset’s performance to a broader index. If it drops less or climbs more, it’s showing strength. And strength attracts capital. Leaders lead. That’s the game.
But this flew in the face of everything I was ever taught…
Buy low, sell high... Where does that logic even...
I have just returned to Kansas after spending a week in New Orleans with some of the brightest minds in finance at our Portfolio Accelerator event.
I had oysters for the first time, and they exceeded my expectations.
And I had my first hurricane, a drink that New Orleans is known for. They put way too much sugar and vodka in it... I don't think I'll try it again.
I also spent some time at the jazz bars where the music was incredible. My favorite was Pat O'Brien's Dueling Piano Bar, which I highly recommend you visit if you ever get the chance.
It was great to spend time with my Stock Market Media family.
Jason and Spencer were unable to attend, but everyone else was there. Mary, Alfonso, Steve, Sean, Grant, Rick, Louis, Patrick, Riley, and, of course, my loud and obnoxious Cuban friend, JC.
We also welcomed friends from around the world, and I’m incredibly grateful for the deep bench of talent and insight this community brings. It’s truly the best network in the business.
One highlight was hearing Brien Lundin speak Wednesday afternoon...
We're amidst an epic bull market for precious metals. And while gold and silver get all the headlines, we think Palladium could end up being the sneaky outperformer in this cycle.
Great trades never ring a bell. They don’t come with fanfare. They come wrapped in uncertainty, quiet conviction, and a little discomfort. That’s how you know they matter.
Take Cocoa futures. One of the cleanest breakouts we’ve seen recently, but it didn’t feel clean until after it moved.
Before that, it was all noise and indecision.
Here’s the setup we outlined in October 👇
We were betting that the breakdown to new lows wasn’t going to stick.
Why? The 14-day RSI was firmly in a bullish momentum regime.
That’s a characteristic of an uptrend… Not a downtrend!
Moreover, this was a textbook consolidation after a historic 190% bull run which unfolded over 4 months.
Here’s how the setup unfolded 👇
The price ripped back above support and hit our target at the upper bound of the range in just a few weeks.
It was an epic bear trap…
Admittedly, this worked much better than we expected.