Same afternoon, two price tags

Same afternoon. Same kind of trade. Two price tags.

NVDA's spread cost 44¢ for every $1 it could pay. XLB's cost 26¢.

The Homemade oven skipped NVDA. It was 1¢ over the line.

That's the 43¢ Rule. Divide what you pay by the spread's width. If it's 43¢ or less per $1, it's on sale. If not, it doesn't get served, no matter how good the chart looks.

Why it matters: buy at 43¢ and the spread only has to reach about 60¢ for +40%. Buy at 70¢ and +40% needs 98¢, almost the whole width.

The doors are open to everyone now. Ben's webinar shows the rule on real tickets.

See the 43¢ Rule on real tickets →

Homemade is always better.

The Trading Strategy Guides team