you know, sometimes we'll see a stock take a big hit and insiders start buying in and it's like, all right, well, they know what their companies were. They know if it's an overreactions, but they didn't do that. And then so it sits down here on the bottom of the chart for six months, suddenly, two, three, four, insiders start piling in, you know, we bought it and look, since September, the stock has doubled. I mean, it's October. You know, it's been a month. Now, we were about 50 something percent since where we saw it, but you know, this is a stock away from $20 to two and has been sitting there on the bottom of the chart for six months. Nobody's watching this thing. And you'd be a fool to buy this stock unless you had some kind of indication that things were improving. And I think the insider activity and their buying is the best indicator I've ever found to let you know it might be time and things are starting around. You're listening to Carrie Lutz's financial survival network, where you get valuable information you just can't find anywhere else. To thrive in today's trying times, you need the financial survival network now more than ever. Go to financialsurvivalnetwork.com and get your free newsletter and gift, financial survival network now more than ever. And welcome. You are listening to and watching the financial survival network. I'm your host, Carrie Lutz. We got Ross Givens back with us today. Ross, your service, I heard about it, had you on the show, I immediately signed up. And that was on my first trade was May 29th. Since that point, I am up 23 percent down a little bit today. We're on October 21st. It's Monday, doesn't look like it's a crash day, but the markets down a little bit, which to be expected to spin up or so strongly. But I told you pre-call, I've been at this a long time. I've interviewed a zillion market gurus. Yes, there are systems that'll work, you know, kind of modified buy and hold, right? Right. The dogs of the Dow, I was a big fan of the dogs of the Dow, the AAII index. That was great for a while. But this seems to work consistently. I'm looking at my portfolio now. Stock, I've mentioned it on the show before, Dominion Energy, utility in Northern Virginia. It basically is an indirect play on AI because all these data centers, they could take 500 megawatts, which is like enough to power a small city. You know, three months after you recommended that stock, there was an article that I caught that said that basically they're up to capacity. They can't, if you want to open a data center there and understand, Northern Virginia is the epicenter of all the data operations. And they've got pretty much a monopoly on the power utility there, more left. Yeah. Yes. And it's up 15%. It's actually one of the slower performers, but it's paying a dividend up over 16%. Since May 29th, I mean, looking at less than five months. Yeah. No, I love hearing you making some money. And by the way, to dress the elephant in the room, I apologize. I've got my analyst here with me today. Her mother had to run out of town. And she woke up with 102 degree fever. So we just moved him in the home office. And you see empty bookshelves behind me. So I'm playing dad and stock trader today. But yeah, I can't. Listen, I love hearing your up money. We've been doing this since 2017. And you're intelligent. You've been more. It's a long time. You know, nothing works every day, every week, every month, right? But, you know, we've never had a down year. That includes a 2022 bear market. I think we return 30%. We've had years like 2020, we made 300 something percent. That's just a stock portfolio, just, you know, 20% per. So it absolutely works. The limitations we talked about before the call, and I think the reason, because the question I get is, well, why aren't all the hedge funds? Well, I mean, the big guy's doing this is because there's capacity limitations. You know, a lot of these stocks are recommending are small cap stocks. You know, and if people who don't know, what we're doing is simply tracking insider trading activity to look for what I believe are opportunistic buying. So for example, we had a little biotech company in the middle of stage two drug trials, spreading like 40 cents a share, ticker symbols, CAT acts as prospective therapeutics. And suddenly, in December, we had like the CEO, the CFO, half the board of directors, VPs, the chief medical officer, all suddenly buying this stock up hand over fist for the first time in years. And so it's like, maybe they know something. And oftentimes they do, and that case, drug trials are going to break to stop up 300 something percent the next few months, you know, amulex, which we bought right at 30 days ago, so 56%. We have some that just don't go anywhere. Sometimes they were all buying when it was kind of coincidental. Sometimes, you know, that we'll have one to go down a little bit, but we tend to not have really big losses. And the reason is, well, too, I mean, one, we use stop losses. We don't risk more than 15% on these on average. But you know, one of the odds, if your company's doing that early, if earnings are bad, if sales are bad, if it, you know, the more or less I like what you say, why would the CEO and the CFO and the board of people be buying, you know, with their own money? It's just very rare. And so by kind of fishing out of a stock pond, you really, you're opening yourself up to own the stocks that the highest likelihood of delivering, as you said, some above earnings, above expectation earnings, or great drum trials, or, you know, the fact that all their spots are filled up for energy production the next two years. And so, you know, we've been doing this for a while. And I think our portfolios of something like 1900% compound is 2017. But yeah, listen, I love hearing your experience. And I hope we open more people's eyes up to this, you know, whacking is a big loophole for investors. Hey, so talking about amulex, that one I found fascinating, because the stock got, I think they're making a treatment for Lou Gehrig's disease. It got rushed through, the studies weren't complete, then a study comes out, the stock goes down 90%. And then, all of a sudden, the insiders start buying. Oh, even before we bought it. Yeah. Yeah. Before we got it. Yeah. That stock was a $20 stock in March. And I mean, overnight away from 20 bucks to like four, when that happened, that it just stayed there. March, April, May, June, July, August, it's trading two, three bucks a share. You know, sometimes we'll see a stock take a big hit and insiders start buying in and it's like, all right, well, they know what their companies were. If they know if it's an overreaction, but they didn't do that. And then so, it sits down here on the bottom of the chart for six months, suddenly, two, three, four, insiders start piling in. You know, we bought it. And looks, in September, the stock has doubled. I mean, it's October. Yeah, it's been a month. Now, we're about 50 something per sentence where we saw it. But, you know, this is a stock, the way from $20 to two, it has been sitting there on the bottom of the chart for six months. Nobody's watching this thing. And you'd be a fool to buy this stock, unless you've had some kind of indication that things were improving. And I think the insider activity and their buying is the best indicator I've ever found to let you know. It might be time and things are starting to run out. And you sent out an alert after 25% or so went up to sell half, which I did, locked in that profit. So I'm not going to lose any money. My worst, that's right. I can get out at what I paid if it starts sinking again. If I get out for what I paid, I still made 12 and a half percent. Yeah, very short period of time. You do that enough times. All of a sudden, before you know it, your portfolio is really increasing. And, you know, I'm not talking my book here. I don't recommend stocks. I'm not an financial planner. I'm not allowed to. I'm just recounting the experience from what are your recommendations where it really, it really proved true. And maybe later this week, it'll go even higher. There's something going on with that stock. We don't know what yet. But there's something. Yeah, that's the thing. All we do is share our research. You know, it's up to our people, to our up to our members and decide what they want to do. But you've seen, we sent pretty in-depth research on these picks. We don't just give them a ticker. It's like, here's the company, here's they do. Here's what Jinsiders are buying. And we look for the common things that led to the biggest mood. So if one insider is buying, that's good. Two, three, four, eight of them, that's substantial. You know, do they buy every month, every quarter, or is this rare? You know, if it's a guy who makes $10 million a year, putting 50 grand, you know, Lottie Dauff. It's a guy who makes 500 grand, putting $2 million. Well, now you have my attention. So we really just use a ton of common sense to try to find these opportunities. And, you know, as you said, these are small stocks. They can be volatile. That's, you know, both good and bad. These are the kind of stocks that can go up 50% in a month. They can cut the other way. But again, it's rare we see that in the midst of insider buying. And so generally what we see, I've been doing this as 2017. So I think I'd speak pretty well on it. On average, you know, it's, it's usually at every five stocks, maybe one or two, get a small, you know, route even or 10% down a couple, we make our 20, 25%. And then usually we'll have one, what I consider, you know, a home run trade every four or five. That's a 50 hundred. I mean, we've had some go up 19 hundred percent. And so you sprinkle a couple of those on even an average portfolio. And you've got a heck of a return. So the 25% is a rule we put in a while back. It's like, look, it's great being up 30, 40% in a month, but it really bites when it goes back down. So look, let's, let's take the basis. Let's take half of it. Let's de-risk the trade that we can leave our stop at break, even give it room to work. And I'd rather have half of it on a thousand percent ride than none of it. So it's like, look, put some dollars in your pocket, give it some room to, you know, let's, let's see if they're on something huge. Or it's going to be, you know, a single or a double, you know, I mean, we had stocks like Life MD, LF MD, we bought, I think in 2023. Well, it turns out they're like an online pharmacy for the weight loss drums for the ozimpic and the bulgovi and like, oh, no one had any idea how big those were when the insiders started buying. But, you know, they're on the inside, right? They're getting sales reports every week. And they're like, our sales are doubling and tripling each quarter like, wait, do they see this earnings report? So, you know, we get in early and we went up to 300% in the 12 months we owned it. So again, they're not all going to do that, but you know, when you can risk 15%, get some big moves like this. And even one at a 10, that doesn't double a triple, a quadruple. You really got to do a lot of things wrong, not to make money. Yeah, one thing you mentioned in the describing what you do is that these insiders got a hold for six months. So that means this isn't just going to be a minor jump. It's that they believe that it has some staying power. Well, that's right. Yeah. What you're referring to is those short swing rules. So, one of the things the SEC did that's back in the 10 B five, one rule is say, look, all right, guys, we're going to let you trade. We know you're basically said, we know you're going to bounce inside information. No, you're too clever. I'm going to get around it, but you're not going to pump them down. You're not going to buy on Tuesday, report a big number Wednesday, sell Thursday. If you buy, you're holding for six months. If you fill a day before that, we're taking the profits. So what that does is you properly pointed out is it gets you those stocks that like they have staying power. The ones that are like to go up and stay up. So that's why our average holding time was probably three to four months on these a couple we've held for a couple of years. But yeah, it's not day trading. So it's sure. Actually, you have a better chance of making money than the insiders because that thing could go up and then go down. Yeah. Yeah. And we get out closer to the top than the insiders can. Yes, happened many times. Sure. So that's, that's like a cool thing. So, you know, there's kind of two reasons they bomb. So I mean, to cut you off during, I'm just going to say there's, there's two main scenarios we see. One is a big drop, stock not too cheap, insiders are buying. So the one we talked about is a great example of that. Those can be difficult because you got to try to read between the lines guard, these guys, are they just adding shares on? They're going to hold for 20 years, like is it because our time frame is different than theirs? The other situation is, look, this stock is near 52 week highs. It's, it's, it's, it's, you know, already up 50% this month, but why are they buying now? And that's usually because the stock is doing, or the company's doing much better than the market relots. And so it's generally either a turnaround or trying to get a bottom for pre breakout where news is yet to come out. But, you know, both pay the same, both money spends the same carry. And then you got these perfect inside traders who always make money on every stock they're an insider in. And those are just like, they're just kidneys. Yeah, it's not guaranteed, but we do focus very heavily on their track record. You know, I like to see first time, I love to see somebody who's been at that company five years, never bought, never suddenly buying two or three times. That's good. If they bought before, I need to see a track or a success. You know, most of these people are NBA level top, you know, so Z left, C sweet, smart people, but it doesn't mean they're great stock triggers. If I go back and all this guy, but a big buy, well, last time I didn't stock with down 50%, and this, you know, we're not going to take it. But if you just like, if you're picking a portfolio manager, right, it's not a guarantee. But if you're going to pick, you know, somebody's a 20 year track record of market beating return, which got a 20 year losing return, you know, we're going to do better with. So we do focus on the insiders. You're right to have perfect track records that have, like, look, every time we bought it was near the low or like before a big move. And so if they have a history of beating the market, it's just going to improve your odds. It's just a bunch of little things. We're should stack it up. And at the end of the day, you know, you really put the odds in your favor. Well, one thing I haven't tried yet is doing the options on that because I figured, yeah, let me see the stocks first, how that's yours. The options, I mean, when I see your cell half, they've often gone up 100, 150%. Is there anything, any advice you can give newbie options traders to not get caught in like the whipsaw of the action, the volatility in these options? Well, the first thing I tell people when it comes to the options we recommend is like, don't use your stop loss. I mean, you really can't use stop loss, especially on these smaller stocks. They're a little bit spready, you know, maybe a dollar by dollar half. It's not like an Apple call. And so it's like, look, if you were going to put 10 grand in the stock and risk 10% or $1,000, well, buy $1,000 with a call option, you know, don't put 10 grand in the call option. Let me use a 25% stop. You're going to get tagged out just the spreads are widen. It's going to tag you. So I didn't bring it way down. But you know, our average option, we look three to six months out, usually that 30, 40 delta range. And if that stock goes up 20%, the first month or two, that option almost always is at least a double. So usually we double those cell half, you've got all your money back, whatever you sell, the rest of them on the freebie. And so, you know, if I'm targeting one option or four, five, six months out, and you've got all your money back in like two, well, now you've got all the upside, essentially for free. And then once it gets in the money, you don't have that time decay risk. So we try to sell them, you know, they're 30, 30 days out or less. But yeah, I mean, the biggest advice for options, I know it's not sexy to say is just, you know, you can use a stop loss on most of you just put the money in your will under risk. Just know it's it's going to go to zero or down 80%, where you're going to double triple your money. Yeah, I'm going to I'm going to dabble in it a little bit. I think, you know, just getting the the brokers as some of them are soon annoying about approving your account for options, ratings nowadays, because they've been sued so many times. They just don't want to take the risk anymore. All the Robin Hood kids are rooting for the rest of us. Yeah. So, so when you're like, it's tempting though, when you see an option, and it goes up 100% to not just fail on the position and take the 100% profit though, is yeah. Yeah. And look, there's nothing wrong with that. We got people that we get people that do that. I mean, we there's really there's no perfect answer to that. I mean, there's no way to say here's a by the law and and sell the high and everything between all we can do is does a doctor? Okay. I guess that's all right. We'll we'll wrap up because your daughter there is again. Sorry about that theory. Hey, that's okay. Just tell us again, where we find you. I have a link in the show notes. Yeah, the link below. We've got we do a training session usually once a month or so. So instead of the link to that, I think the last one is a problem and you can actually watch it. But yeah, I've got a Thursday and she got calm. I cooked that link below to take you right to our training and I walk you through it. I'm out of a lot of presentation. We show you what we look for and what you look out for, how the strategy works. And, you know, I think people's eyes generally get open. All right. Well, I love it. Keep doing it. And, you know, it seems like also just one final point. There's no shortage of these companies. They're constantly popping up on your screen. Yeah. Look, there's 7,000 publicly traded companies. I mean, we're not we're not recommending Google and Amazon and Microsoft. There's no edge there yet. 5 million people competing with that, you know, but what's analytics pharmaceuticals or cantaloupe or at-my-stiltration, you know, lamb, less than these are all the radar stocks. And these are these are ones where there's a much bigger opportunity out there for the average investor. All right. Hey, well, appreciate you coming back on. I'm glad I was good to share my success with you and thank you personally. And if you got a question for Ross, myself, Shubini MLKL at carryluts.com. The link to free webinar from Ross is is in the show. That's this interview on financial survival network.com Ross. Hopefully I'll talk to you in a few months and the games will be even bigger. Yeah. Right. Thanks, Gary. Good to see you. Thanks for listening to Carry Lots's Financial Survival Network, your solution to today's trying times. For the latest, go to financialsurvivalnetwork.com. Financial survival network. Now more than ever.
