Throughout my career, I’ve been known mainly as a “systems trader.”
I love building and testing trading systems. And I have several that are automated, constantly running.
But that doesn’t mean they’re all I rely on. I also uncover great trades through good ol' fashioned research.
For the past few years, investors have been obsessed with the “metaverse.”
Some are so enamored with it. Take CEO Mark Zuckerberg, for example. He completely altered the trajectory of his company and changed its name from Facebook to Meta Platforms (Nasdaq: META).
In my home office, I have financial news networks running in the background all day long. And it seems like during every commercial break, there’s an ad about how the metaverse is going to completely change our lives and make the world better.
And maybe it will.
Look, I too am a fan of Neal Stephenson’s Snow Crash (where the “metaverse” plucked its name) and Ernest Cline’s Ready Player One series, as well as Richard Morgan’s Altered Carbon series, Stephen King’s “The Lawnmower Man,” The Matrix by the Wachowskis and a whole host of other science fiction that delves into alternate digital realities.
I understand the picture of possibilities – both good and bad – that’s been painted.
But here’s the deal… No one I know has been to the metaverse. How about you?
No one I know is even a die-hard metaverse fan.
That’s scary to think considering all the ridiculous fluff written about it and the tens of billions of dollars being poured into its development. What metaverse revenue is paying for all that ad time?
That’s when I grew suspicious.
An Empty Fantasyland
I remember reading long ago that in the film industry, the more ads that run for a movie and the more product tie-ins it has, the worse the movie is. Producers do that because they know they can’t recover their investment through ticket sales.
That’s how I felt about the metaverse.
So I started digging.
At the beginning of October, I found an article about how Decentraland, a $1.2 billion company, may have as many as 8,000 daily users of its metaverse… and that 8,000 is highly suspect.
I then read that Meta’s own Horizon Worlds is so bad that even the company’s creators won’t use it.
A report from The Wall Street Journal then showed that the number of users for Meta’s Horizon Worlds dropped from 300,000 to 200,000 in eight months. And that most users don’t return after the first month.
Keep in mind, Meta plowed $36 billion into Reality Labs, the division that houses its metaverse and virtual reality units.
You don’t need to be a math whiz to know that ain’t right. A company spent $36 billion on a product that has only 200,000 users?
That was a disaster waiting to happen – and boy, did it! But at the time, I was looking to profit from this disaster.
A Year-Saving Win
On the morning of October 26, I posted a short note in the chat room of my Alpha Trading Network.
That night, Meta was set to report earnings. And I knew they were going to miss. I wrote…
Meta is pouring billions into the Metaverse, which is failing. The actual number of Metaverse users is shockingly low… and is basically just a bunch of dudes.
Buy the November 4 $125 puts.
That evening, Meta released its third quarter results, and it showed Reality Labs was burning through cash at an even faster pace than expected.
The next morning, Meta’s shares opened 26% lower. And while plenty of investors were freaking out, watching their portfolios get crushed, we were taking profits.
The posts in Alpha Trading Network said it all…
“I’m out with a 548% gain in 24 hours. Wow! This one trade erased all of my losses for the year – incredible.”
“Banked $10,843 in one day (399%) Great work and thank you.”
“400%+ overnight on a falling stock!”
Sometimes you can see a disaster in the making.
And in the markets, when you do, it’s an opportunity to make a truckload of money.
Even better, it doesn’t take weeks or months to make triple-digit gains. You can score year-saving wins like these in mere hours if you time it right and put in the hard work.
That one trade proves that you don’t need to be constantly trading throughout the day.
It shows that one good trade is all it takes. And at Alpha Trading Network, that’s our goal.
We focus on one trade or a handful of trades each day – between 9:30 and 10:30 a.m. ET. That’s it.
Here’s to high returns,