Articles About Trading & Investing

How We Turned Breaking News into 455% Overnight Gains

0 | By Shah Gilani

Hedge funds and institutional trading desks make huge bets on mergers and acquisitions, much like the pending $69 billion proposed buyout of Aetna Inc. (NYSE:AET) by CVS Health Corp. (NYSE:CVS).

It’s not rocket science.

In fact, merger arbitrage, as the strategy is sometimes called, is easy and can be very profitable.

We just notched a gain of 455% in two days, taking off half of one of the positions we put on to play the proposed CVS-Aetna merger in my Zenith Trading Circle.

The other half of that trade could still yield us 2600%.

Here’s how we did it, and how you can, too

Bitcoin Traders Can’t See the Perfect Gold Play They’re Creating

6 | By Shah Gilani

Fasten your seatbelts, bitcoin futures are about to take off.

Eventually, that’s going to impact gold… But not in the way you think.

While there’s currently no meaningful correlation between the price of bitcoin and gold prices, the advent of futures trading in bitcoin could change that, dramatically.

That’s not because traders or investors will start looking at bitcoin as an alternative to gold. It’s because eventually gold will be a hedge against bitcoin collapsing, precisely because it isn’t an alternative to gold.

And that sets us up for an opportunity that bitcoin traders can’t even see coming.

Here’s how bitcoin futures trading will impact gold, and how to trade both

Forget Trickle-Down Tax Cuts – Here’s Where the Real Money Is

3 | By Shah Gilani

Here’s a real shocker… The House and Senate proposed their versions of tax reform as a “middle-class miracle.” This is what the same proposal that’s nothing more than tax cuts for corporations whose massive savings are supposed to trickle down to benefit the middle class and all Americans.

That would be a real miracle. But it’s not going to happen.

Corporations aren’t going to spend their tax cut windfalls hiring more workers, or raising wages, or on massive capital improvements.

They’re going to spend their billions on buying back their own shares, on special dividends, on technology to reduce human labor and liabilities, on mergers and acquisitions, and on more technology to cut more costs as they expand.

There’s only one way to turn unfair tax cuts into a personal miracle.

Here’s the truth about this tax reform miracle, and how to play the continuing market melt-up

Here’s How the Average Consumer Can Profit from the End of Net Neutrality

10 | By Shah Gilani

The Federal Communications Commission’s June 2015 net neutrality rules that ban Internet providers from selectively blocking or slowing websites or charging more for faster relaying are about to change.

On December 14, the five-member FCC board, consisting of three Republicans and two Democrats and chaired by Trump appointee Ajit Pai, is expected to vote along party lines to roll back the Obama-era rules.

Repealing net neutrality under the banner of deregulation clears a fresh path for Internet access providers to make money in new ways.

Ultimately, that means making money from consumers. But luckily, there’s a way for us consumers to make some money too.

Here’s where net neutrality is going, and how you can profit alongside the companies who will be major beneficiaries

The Numbers Are In: It’s Game Over for Most Bricks & Mortar Retailers

1 | By Shah Gilani

The incoming online shopping tide – scratch that, tsunami – that just swamped traditional bricks-and-mortar retailing has changed America’s shopping landscape forever.

Not only were online sales records broken on Black Friday and Cyber Monday, but they were also broken on Thanksgiving Day. Meanwhile, bricks-and-mortar stores debated even opening on a “family-gathering” day.

While online sales numbers themselves are staggering, the story they tell about changing consumer habits might as well be the last nail in the coffin of left-behind retailers across the country.

Here’s what that means for the future of America’s already shaky traditional retailers

Black Friday’s Plague on Retailers Could Make This Holiday Season Their Last

1 | By Shah Gilani

Everyone knows what Black Friday is. It’s the day after Thanksgiving when retailers kickoff big sales events to get consumers into their stores.

And, these days, most people know about Cyber Monday too; the Monday after Black Friday when online retailers and merchants entice shoppers with more sales.

What most people don’t know is that when this season sets records for online sales, it will be the beginning of the end for at least a dozen bricks-and-mortar retailers.

In other words, this Friday is going to be Black Death Friday for some of your favorite stores, the companies that own them, and their stocks.

The Rubicon’s been crossed. This is the end of retailing as we used to know it.

Here’s how I know which retailers have one foot in the grave, and how you can profit from their demise

The Most Powerful Force in the Market Is Gearing up for a Year-End Rally

1 | By Shah Gilani

If you aren’t betting on a big year-end market rally, you should be. The force is with you.

More to the point, the force is with the market. It’s an extraordinarily powerful force that investors don’t see, and the financial press isn’t writing about. 

But it’s here, and it’s gathering speed like a hurricane crossing the warm waters of the Atlantic.

You don’t want to get out of the way of this force of nature; you want to ride it all the way to the bank.

Here’s where it’s coming from, how it will pick up speed, and where it can land you (if you’re smart)

SEC Whistleblowers Are Talking – Here’s What They Have to Say

9 | By Shah Gilani

It’s not easy being a whistleblower.

Just ask the few at the Securities and Exchange Commission’s Office of Inspector General, the SEC’s independent watchdog group who police everyone at the SEC, when they filed a complaint against two of their own.

Last year, after whistleblowers in the IG’s office claimed one of their supervisors and a junior subordinate were guilty of “time and attendance fraud” because the “two employees regularly disappeared together for several hours during workdays and engaged in inappropriate conduct in the office,” the unappreciated whistleblowers had to then blow the whistle on the superiors they complained to for retaliating against them for blowing the whistle on their buddies.

If you think superiors retaliating or even threatening to retaliate against would-be whistleblowers could impede investigations the SEC’s supposed to conduct… You’re right.

Here’s what the SEC whistleblowers are up against, and what we know happens behind the curtain

The Truth Behind the Tax Cuts We’re Promised Will Determine Our Market’s Future

5 | By Shah Gilani

Don’t bother Googling “what tax reforms are Democrats proposing?” There aren’t any.

Republicans, on the other hand, according to House Speaker Paul Ryan, “have to deliver tax cuts to the hardworking, middle class.”

But they’re not doing that, either.

Instead, Republicans want voters to believe big tax cuts for corporations are going to trickle down and create jobs that elevate wages for hard-working Americans.

That’s not going to happen.

The truth about Republican tax-cutting plans and why the Democrats aren’t offering up counter tax-cutting proposals is, unfortunately, not at all what America needs.

Here’s why the politicians have it all wrong, and how the markets will react to potential tax cuts…

The Three Worst Cases of “Celebrity” Money Manager Egos

2 | By Shah Gilani

Making money can be hard. 

That’s why so many everyday investors and wannabe rich people follow the people who seem to have it easier. These supposedly smart guys make a ton of money running mega-conglomerates, private equity shops, and hedge funds like kings.

But, beware. When ego gets in the way of what they do and how they want to look doing it, the fallout can be devastating. It damages not only them but the investors riding their coattails as well.

Here are three excellent examples of stupid ego mistakes that three financial world “celebrities” made, hurting their reputations and everyone who believed their hype