Our Top 10 Trades of the Decade

With the start of 2020, we are looking back at our best trades of the past decade.

10. Going long Spanish government bonds as the European debt crisis got resolved

9. Buying way out-of-the-money front-end put options on the British pound an hour before the Brexit vote results were released.

8. Going short stocks on the first sign of Trump likely to win the presidency until futures limit down, then going massively long stocks and short bonds

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TOP 10 IOTAF TRADES OF THE DECADE: Number 8: Going short stocks on first sign of Trump likely to win the presidency until futures limit down. Then as markets settled in and a republican sweep was announced, reversing and going massively long stocks and short bonds. This trade was definitely the most exciting presidential elections trade I have ever had in my 20+ years of trading experience, especially because of all the drama heading into the elections and the very well publicized differences between Hilary Clinton and Trump. It was obvious that a Hilary win would be short term positive for stocks but medium term negative, and viceversa, a trump win was seen as very bad for stocks short term but positive long term if republicans controlled the house and the senate. After hours of research and preparation we held a two hour long strategy session on our trading floor and decided to short stocks if “RED” was in the lead and hold the shorts if Trump was likely to become president. That trade in itself was good but nothing in comparison to our MEGA trade which was to reverse at limit down and turn massively long stocks on a republican sweep. It happened at around 2 am in the morning and to this day stocks haven’t turned back, causing one of the biggest rallies in history thanks to Trump’s pro-capitalist policies, deregulation and his influence on the fed to keep the expansion going by cutting rates and expanding the Fed’s balance sheet. For every $500 invested in e-mini Dow futures you would have made $65,000. Thanks Trump! #trump #maga #kag #noimpeachment #politics #stocks #bonds #forex #markets #traders #realmoneyteam

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7. Shorting stocks as the Fed shrinks its balance sheet

6. Shorting WTI oil as US production soars

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IOTAF TOP 10 TRADES OF THE DECADE: # 6: Shorting WTI oil as US production soars, then trading OPEC and OPEC+ interventions and lack there of, resulted in some of the most profitable trading opportunities of the decade. It all started with crude oil prices recovering from the 2008 financial crisis and OPEC supply cuts causing prices to climb above $100/barrel, resulting in US shale producers ramping up production massively, essentially making the United States the largest crude oil producer in the world. As US crude production more than doubled, the market was still complacent and trading above $100/barrel. This discrepancy eventually ended, and when a technical breakout took place on the bottom of the wedge formation, oil crashed more than 70pct, making our trade one of the most profitable ever. For every $1000 investment in WTI crude oil futures you would have made $80,000 in profits. The following years were as good if not better, as OPEC first was unable to agree on a supply cut, sending prices tumbling 5pct in one day; followed by the eventual “production cut” deal made not only within OPEC but with countries outside of the cartel such as Russia and Brazil. The famous OPEC+ deal caused a huge rally in oil futures and our long trades once again made a lot of money. Then OPEC+ decided to ramp up production as WTI had risen above $75/barrel, making us go short on that announcement and making a killing on the short. Then OPEC+ once again decided to cut production and eventually extend and deepen the cuts as the Aramco IPO needed a strong oil price. Combine that with the Saudi oil attacks, reintroduction of Iran sanctions and plenty of verbal intervention by oil ministers etc, oil was definitely amongst the most profitable markets to trade last decade. All in all, our performance in oil was superb, with at least 250X our initial capital invested! #oil #opec #markets #trading #oilsupply #oilinventories #derivatives #gasoline #crackspread #iotaf #trading

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5. Going long Western Canada Select Crude Oil the day Alberta announced mandatory production cuts

4. Going long the FAANG+MT stocks

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TOP 10 IOTAF TRADES OF THE DECADE: #4: Going Long the FAANG+MT stocks: for someone who traded during the .com bubble of the 90s and the eventual burst in 2000/2001, it was an easy trade to go long and stay long the dominant players in the technology industry. In particular the ones that dominated their respective industries as well as newcomers who revolutionized the way we interact with others, watch TV and move from point a to point b. To us the key players were: Facebook: dominating social media, which is the new way we communicate and interact with others, and the best advertising tool ever created. Everyone has a Facebook, Instagram or wassapp account. Apple: dominating the communication and productivity devices we use on a daily basis. Put a phone, a laptop, a watch and an iPad on everyone on earth. Amazon; dominating the online market place which still only accounts for less than 20pct of retail sales. Netflix: dominating the way we watch TV shows and movies. Google: dominating the internet and everything around the internet. Tesla: dominating electric vehicles and following the biggest global trend towards a more efficient and healthier planet. And Microsoft, a pioneer in technology which reinvented itself into a giant in cloud services and software profitability. Being invested in all those companies, and the people who run them like Elon Musk and Jeff Bezos, proved to be one of the best trades of not only the decade but the century! A $1000 investment in each of this companies at the beginning of the decade would be worth $8000 in Microsoft, $10,000 in Apple and Facebook, $14,000 in google, $15,000 in Amazon, $21,500 in Tesla and a whopping $329,000 in Netflix!!! A combined portfolio of $7000 invested on January 1st 2010 with $1000 in each stock would now be worth $407,500!!!! I hope your portfolio manager managed that level of return because that’s how much we made for every $7000 invested in these stocks! A financial education beats traditional education !!! #iotaf #stocks #faang #microsoft #facebook #apple #amazon #netflix #google #tesla #tradesofthedecade #realmoneyteam #investments #beststocks

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3. Going long bonds as the Federal Reserve does a policy U-turn and decides to cut rates and re-expand their balance sheet

2. The rise and fall of weed stocks

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IOTAF TOP 10 TRADES OF THE DECADE: Number 2: The rise and fall of weed stocks. This was an opportunity of a lifetime, for those like us who cashed out when the time was right. The day the federal government of Canada led by Trudeau passed legislation that would make cannabis consumption and growth legal in canada it was a no brainer to go Long every weed producer in the country. And that’s exactly what we did. The key to that trade was to ride the wave until the day when the first weed store opened to the public. And that’s also exactly what we did. The timing and execution of that trade was marvellous. The outcome? Well, $1000 invested in some of these stocks yielded an average of $50,000 at the top! Not bad for such an easy trade. The hard part of this trade was getting out as greed always prevents you from making the rational decision. Thankfully, all our teachings and training at Iotaf made us get out at the perfect time: one hour before the first store officially opened to the public. And that was the top for most of these stocks! We got in when nobody believed in this trade and we got out as the average retail trader was getting in! I guess that’s why we are the best while everyone struggles. We are the 1pct of traders that make what 99pct of traders lose! Thank you all for all those profits! It made it into a sensational decade full of money, travel and great times! #weed #cannabis #weedstocks #aurora #hexo #aphria #tilray #cronos #canopygrowth #stocks #traders #realmoney

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1. Without any dispute, the decade’s best trade was to be long bitcoin

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IOTAF TOP 10 TRADES OF THE DECADE: Number 1: without any dispute the decade’s best trade was to be Long bitcoin ! We are fortunate enough to have been introduced to crypto currencies from the early stages and this trade has definitely paid off! In 2008 the financial world was on its knees due to the fallout of the subprime lending market. With banks on the brink of collapse there was no better way to rescue the whole financial system, and the economy, but to print Trillions of dollars of new money to stimulate the global economies and to bail out the banks by passing the TARP (toxic asset relief program) and buying all toxic debt off their balance sheet, essentially taxing people and using the money to bail out the banks. In the process the federal reserve cut rates to essentially zero and introduced quantitative easing, a program which involves printing TRILLIONS of dollars to buy securities such as bonds and mortgage backed paper to estimulare the economy. During that time one thing became clear: the monetary system would never be the same and the need for a new “storage of value” currency was born. A digital currency which would have no central bank, would be completely decentralized using breakthrough blockchain technology that would ensure every transaction was true and unhackable while providing limited supply of these coins so that they would be inflation proof and preserve people’s wealth and value. Plus something so technologically advanced that would also serve as “means of exchange” and allow for easy transfer of funds to anywhere in the world without any intermediary like a bank. This amazing invention by a person nobody has met named “satoshi” is without a doubt the future of not only currencies but also a new monetary system. If you invested $100 into bitcoin when the first official exchange launched in 2010, that $100 would be worth $100,000,000 today and $200,000,000 at the height. Making bitcoin without a doubt the best investment of the decade!!!!!! Thank you all for reading this and have an amazing 2020!!!!! #bitcoin #crypto #iotaf #markets #trading

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Our Top 5 Trades of 2020

Joins us on Tuesday, January 14, 2020 at 6 pm, at our first public strategy session of the year, where we will discuss in detail our top 5 trades of the year.

Strategy Session – Our Top 5 Trades of 2020

Tuesday, Jan 14, 2020, 6:00 PM

48 Rue le Royer Ouest Montreal, QC

15 Members Went

Join us for our first public strategy session of the year where we will do a general overview of markets and discuss our top 5 trades of 2020. OPEN HOUSE Following the strategy session, hang around to meet the teachers, traders and students at IOTAF, one of the biggest trading communities in the world! Be part of our community by signing up for the…

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