Good morning, traders…
Go try to run a mile right now.
Your brain will say, “You can do this…”
But your body will beg you to go back to the couch, crack open the potato chips, and play some video games.
Mentally, you know running is good for you.
Physically, every cell in your body rejects the effort.
The same battle happens every time you trade.
But when there’s money on the line, the stakes are higher.
You are made up of three parts: your head, your heart, and your hands.
Or, your brain, your emotions, and your execution.
When you make a trading decision, it feels like it’s “all you” making the choice.
But really, three individual parts of your personality are working together (or against each other) in the background.
Right now, these three parts are probably fighting each other without you realizing it.
Your head sees a fantastic setup. Your heart feels fear. Your hands freeze at the ideal entry.
Understanding how your head, heart, and hands work together (or sabotage each other) is the difference between consistently executing your best trades and watching them run without you.
There’s a battle going on inside of you.
This Is How You Win It…
The Holy Trinity of Trading
- Your head deals with decisions rationally…
Your head analyzes the chart. It recognizes the pattern. It calculates risk/reward. It knows whether the setup meets your criteria.
- Your heart deals with decisions emotionally…
Your heart feels fear when you’re about to enter. It feels greedy when you’re about to exit too early. It feels regretful when you miss a trade. It feels angry when you lose.
- Your hands deal with decisions technically…
Your hands are the execution layer. They click the buy button. They set the stop. They close the position. They’re the bridge between knowing what to do … and actually doing it.
When these three parts work together, trading feels effortless.
And results improve immediately.*
You see the setup, you feel confident, you execute without hesitation.
That’s how I want you to approach my top 4 setups from my Dynamic Watchlist…
INTC December 19 $43 Calls
The U.S. government has a stake in Intel Corporation (NASDAQ: INTC).
President Trump wants this stock to go up.
That’s my thesis. Period.
It might sound overly simplistic, but that doesn’t mean it’s wrong.
The more straightforward the setup, the better.
This stock has had momentum for several months now, and the political tailwind adds weight to the technical setup.
NFLX January 16 $110 Calls
Netflix, Inc. (NASDAQ: NFLX) is overextended to the downside here after announcing a massive $83 billion purchase of Warner Bros Discovery Inc. (NASDAQ: WBD).
After a big M&A announcement, it’s not uncommon to see the acquirer’s stock decline and the acquiree’s stock rise.
But the divergence between the two? Too large.
Plus, if the deal goes through, saying “it’s a long-term bullish catalyst for NFLX” would be a huge understatement.
This creates good risk/reward for a bounce play.
When a stock stretches too far below its average, the snap back can be incredibly juicy on the call side.
UPST December 19 $50 Calls
I’m focusing on the technicals here…
Upstart Holdings, Inc. (NASDAQ: UPST) was in a brutal downtrend from August to December.
But it found support at $35.
Now it’s up 33% in three weeks.
The new uptrend just closed above the 50 SMA on the daily chart, regaining a bullish structure.
The moving average flip signals that buyers are back in control.
If UPST can hold the averages, a move to $55+ is in the cards.
DIS January 16 $115 Calls
The Walt Disney Company (NYSE: DIS) chart shows a burgeoning “cup and handle” pattern (with 2 closes above the 21 EMA).
The chart is in a great risk/reward zone for call options if it holds $106.50 support.
The volume tells me Smart Money whales are accumulating, while the moving average strength confirms they’re defending the chart.
If you take any of these setups, make sure your head, heart, and hands are working together (not against each other).
They should be in perfect harmony, like a magician juggling three balls at once, or a jazz trio trading bars of improvisation.
Happy trading,
Ben Sturgill
*Past performance does not indicate future results
