Hey, it’s Matt Monaco. Glad you made it.
Let’s do a quick rundown of who I am, how I trade, the rules I trade by, and how we’ll work together in your To The Moon Report.
I started out just like you, eager to figure it all out. I began trading in 2017 with a $2,000 trading account and high hopes…
It hasn’t been easy. I made tons of newbie mistakes. But now, four years later, I’m up over $1.8 million* — and I’m a trading mentor.
Alongside my partner-in-crime Bryce Tuohey, I run a teaching service called Small Cap Rockets (powered by StocksToTrade).
In this insane market, where 90% of traders FAIL, the two of us have strung together a combined $2.25 million in trading profits.* It still blows our minds.
Bryce and I are best friends — we’ve known each other for more than 15 years — and we trade side-by-side every single day.
We think our collaboration is at the heart of our success. We share every idea we have with one another, and often trade the same setups.
Plus — a little healthy, non-toxic competition never hurt anyone. (Important reminder: I’m a millionaire — Bryce isn’t quite there yet.)
That being said, there are some key differences to our trading strategies…
My Trading Outlook
I’ll trade pretty much anything. Stocks, crypto, options — if the setup’s there, I’m willing to trade it.
Each tradeable setup is just another opportunity to make money. To me, it’s all just numbers moving on a screen.
Cut the emotion out. Trade with discipline. Make money.
The key is that I only focus on setups that meet a very specific risk/reward requirement. (More on that later.)
Bryce is a bit less selective. He goes for a high win percentage as opposed to maximum possible gains on each trade. (But I’ll let him explain his strategy to you in the next issue.)
I’m also actively trying to move away from day trading, and more towards swing trading. My dream is to be able to confidently put a swing trade on for a few weeks (and not have to sit at my computer all day).
Anyway, enough small talk. I’m not gonna let you in on my whole life story and trading strategies … yet.
Instead, I’d like to go over my three trading pillars. These are the rules that I follow religiously:
Pillar #1: Cut Your Losses Quickly
Sykes will roast me if I list anything else as my #1 pillar, so I’ll stick to the basics…
There’s no excuse for big losses. If your plan doesn’t work out and you’re in the red, get out.
Cut it — it’s that simple. NEVER hold and hope.
The name of the game is protecting profits. Your profits are the hard-earned results of your meticulous work — don’t squander them.
It doesn’t matter how much you win if your losses are just as big. Learn when to let it go.
Remember this … trading opportunities are like buses — there’s always another one coming.
Pillar #2: 3-to-1 Reward/Risk Ratio
If I enter a trade risking $100, I want to be able to make at least $300. It’s that simple.
This is a 3-to-1 reward/risk ratio, which I look for at a minimum in every trade I execute.
Sure, 4-to-1 or 5-to-1 is even better (and those plays happen as well) — but 3-to-1 should be as low as you’re willing to go.
Trading isn’t easy, and your capital is PRECIOUS. When you risk money, the reward on the other side needs to be worth your time, opportunity cost, and mental energy.
And of course, it needs to be worth your money…
Stick to this rule. Only put on trades with a 3-to-1 reward/risk ratio (or greater) — and you’ll be amazed at the possibilities it allows.
Pillar #3: Don’t Be Stubborn
I’ll keep this one short.
Stubbornness is the enemy of traders. If you want to be a successful trader — you need to be nimble, open-minded, and ready to pivot your strategy whenever the market calls for it.
- If a trade isn’t working for you, cut your losses and MOVE ON.
- If a strategy isn’t making you money, scrap it (and focus on finding another).
- If you’re losing money consistently, be willing to switch EVERYTHING UP.
Do the right thing and don’t be stubborn!
Prepare for Liftoff
I’m laying it all on the table in your To The Moon Report…
You’ll get all my favorite strategies for stocks, options and crypto…
Every Tuesday and Thursday, you’ll get our lessons, news, trading plans, and more. Be sure to take it all in to get you primed for your FREE watchlist every Sunday.
So welcome aboard … strap yourself in … the countdown’s on.
We’re off To The Moon!