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Carnivore Trading

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Small cap, mid cap, large cap stocks.

Liquid.

Institutional quality trades for institutional quality clients.

No penny stocks.

No micro caps.

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Real Traders. Real Trades. Real Time.

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WHAT IS A “HALL OF FAME” TRADER?

Definition: “Over the course of a time period, a year for example, the number of trades that are profitable are over 50% of all trades, AND, over the same period, you make more – on average – on winning trades than is lost on losing trades.”

It is possible for a trader to make money and have only 30% or 40% of his trades be profitable trades… and the rest losing trades, and many traders do just that. In those cases, that trader must make much bigger profits on each winning trade than he loses on losing trades. It is also possible to make money if you don’t make more on your winning trades than you lose on your losing trades IF your winning percentage is up over 70% or even higher. We saw a trader that almost always lost more on his losers than he won on his winners, but his winning trade percentage was around 80%. The guy had a huge winning percentage. Now imagine if that same trader cut his losers faster and he switched that ratio as well? Then his returns would be truly spectacular.

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THE THREE THINGS YOU MUST LEARN TO DO

First, when we do an initial buy, its small 99% of the time. So start small. When it starts to work, we start adding to it, we call that scaling in. We add, we add, we add and then if it keeps on working, look! Now its in the top 10, then the top 5 stocks. Scale into the winners.

Second thing: Ride the winners up…and cut your losers quickly. Most people do EXACTLY the opposite. I’ve seen it on paper, OK? You get excited about a gain, you take it. A $400 gain on GLBE should have been a $5,000 gain on a $7,000 investment. But you put in $7,000 into the trade and you took it off when it was up $400! What are you doing? Your account should, at the end of the month, your statement should have a series of small losses. A fair number of trades where you took small losses. And a few bangers where you had been riding something up for a month or so and then you sold it. So – loss of 2.5%, loss of 5%, loss of 3.8%, loss of 4%, GAIN of 41%, GAIN of 67%, GAIN of 21%.

And that leads us to number 3 thing: It is NOT IMPORTANT that you win on all your trades. In fact, it is the least important part of all of this. You can lose on 70% of your trades – if you’re taking a series of small losses – and make money because on the 30% of winners, you make serious bank, real money, you scaled into the stock as it was going up, and you rode it like we just did today with GLBE from $28.80/share purchase to $52/share sale. That’s a banger, that’s a boomer, that’s what makes up for the FLL’s and the BGFV’s that we take our small losses on, OK? That’s called Money Management! You’re scaling into winners, you’re taking a series of small losses, you’re cutting losers – remember they don’t care that you own them, only you do and that’s just foolish. Never, ever get married to a stock. It will cheat on you in a heartbeat! So if it isn’t working, throw her or him to the curb like the dirty trash that he/she is! It’s just a stock! Opportunities abound! It’s like blondes in California…there’s one walking by every 4 minutes.

Review:

Start Small

Scale into winners

Cut losers quickly

The number of winners versus losers is not that important. Your money management is!

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YOU WANT TO TRADE BETTER?

Remember Gann’s Rules.

Divide your capital into 10 equal parts and never risk more.

Use Trailing Stop Loss orders – always protect your trades and your capital.

Don’t overtrade (have too big or concentrated a position)

Don’t let a profit run into a loss.

Trade into a trend, not against it.

Don’t average down into a loser.

Trade only in active stocks and active markets.

Don’t close your trades without a reason.

Don’t trade just to get a scalping profit.

If you’re in doubt, get out. Clear your mind.

Never buy something just because it is low priced. It can go lower.

Pyramid into winning trades and let your winners ride.

Cut your losers quickly.

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WHAT MAKES CARNIVORE DIFFERENT?

99.99% of stock services adopt one method to use in picking a stock. There are guys that only use fundamental research and they don’t care about the entry point on a trade, they don’t care that the chart looks horrible, if the fundamentals are strong, they’re going to show that stock to you. Same with the technician. He’s looking at the charts and he doesn’t care what the fundamentals are. If the pattern in the chart tells him to buy it, he buys it. Both the fundamentalist and the technician care little about macroeconomics or sector analysis. They don’t ask “Is this stock gong to benefit in this economic environment? Is this sector a good one to be in right now? Finally, the technician may use only one indicator, like Relative Strength, to make up 80% of his call on that stock. None of them combine all the things that we do into our trading style. It is this approach that no one thing works consistently all the time that we understand, and that we use to our advantage, because we can identify an opportunity that is driven by a pure technical indicator, or macroeconomics, or a sector call – equally and without being constrained by a single style of methodology.

 

At Carnivore, we start with macroeconomic research…the big picture. How is the economy? What parts of the economy are going to do well? That tells us what sectors are going to do well. Then we go to the stocks themselves in those sectors that we have already determined should do well. We do a lot of fundamental research at this point. Who is the Rolls Royce top of the line company in this space? For example, if we think microchips will do well as a sector, we find ourselves looking at the NVDA and AMD and AMAT’s of the world. Because if we’re right about the sector, then those will attract the institutional money that can really drive a stock. A lower quality stock might get some of the move in the sector, but it might not either, because it can’t attract the big money the way a higher quality stock does.

After that, we start the technical analysis. Charts, technical indicators. We determined the small number of quality stocks in the sector that we like and now, who has the best set up? This is where the technical indicators come into play and the patterns on the chart start to reveal which stock is closest to a resolution date, which one is poised for a breakout, whatever.

 

What makes us different? We incorporate macro-economic analysis with sector analysis with technical analysis and fundamental analysis…and then we add the chicken bones, the esoteric ancient wisdom stuff that some people scoff at, such as the Law of Vibration and Universal Laws that govern the movements of all things.

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OUR APPROACH

I guess you could call our approach the Quantimental Approach. Quantitative data combined with fundamental screens that helps us find stocks that are going to go up in price. Z sees himself as a navigator on a ship. You have no control over the ocean and weather, all you can do is react to it. But with years of experience, they can see patterns of weather and clouds and water and wildlife, and they can see things that others don’t see. They know when to turn, when to speed up, when to slow down, when to turn around. Ultimately, the growth and fundamentals have to underly the business because this is what saves us. If the stocks were playing in are great fundamentally, if the market tone changes quickly and we get trapped, we have to be in stocks that can recover when the market does…and that means the growth stocks with high margins and lots of money, which is what leads us to the names you see us in. These are winners, these companies. These are, mostly, all big, liquid, high margin, monsters that are winning, have strong RSI, and are in some cases just juggernauts in their fields.

Once we have the fundamentals right, then it’s all about the technical set ups, the patterns, the indicators, and patterns we like to see that have played out for us over time many times.

And finally, after that, we have the rules. The Gann rules (below) about dividing your money up by at least a factor of 10 and that’s how you invest – 5% initial trade is a good start and then adding 2-3% every time you add and add like crazy and often to the winners. Keep it tight, invest small, scale in, scale in, cut losers fast and drive hard into the winners and let them run.

In a nutshell, that’s our approach.

 

THE LAW OF VIBRATION

One of the things we believe fundamentally – and apply to the stock market – is the Law of Vibration.

We believe that the evidence is overwhelming in physics, Universal law, Natural Law, and from all that we know from our study of ancient wisdom, is that everything vibrates at the atomic level and above. Some things, like a piece of wood, may not appear to the naked eye to be vibrating, but it is, at the microscopic or atomic level. This is generally accepted. With stocks, we can actually SEE them move – and vibrate. Their movement is obvious and visible and easily charted. We understand that they do this as a result of Natural Law wherein forces – buying and selling – cause them to move. We believe further that if one can visualize a stock moving in a 3-dimensional world one could see that it is moving through what Gann referred to as the “Tunnel in the Air”. We can see stocks moving towards us and away from us in this 3-dimensional plane. How to see this is a more complex discussion but suffice to say that through the decades we have been doing this, and with the help of Gann and others, we come to a conclusion that this path that a stock takes can be viewed in multiple time frames, and it is up to us to choose which time frame we want to analyze. Carnivore is more short term oriented, like that of a smooth swing trader, with a time frame of more like 0-6 months with the usual trade happening within 30-90 days and further, more often inside the 30-day window. When we trigger a buy on a stock it can be assumed that we are doing it for a trade inside 30 days and that we see the opportunity for an explosive move, or at the least, a profitable trade. We know that we are going to be wrong about 50% of the time, and this is a given. As a result, profits must be maximized by scaling into a trade that is winning, and losers must be cut quickly in order to have a net positive result at the end of any time period. We try to hold ourselves to a goal of producing positive results each month, and we have a record of achieving that usually. This means that we must analyze the market carefully and decide which sectors to leave and which to focus in so that we are first and foremost in the areas of he economy that stand to benefit over the nest 1-3 months. It is not possible to say how immensely difficult this aspect of analysis is to get right consistently, but we have so far had a pretty good record of being where we should be and avoiding horrible sectors, but we have sometimes been too early in our moves into a sector and been hurt. We are not perfect, and we make mistakes, and the market, which is a brilliant mechanism designed to take our money and make us make mistakes that cost us money, is a humbling place to earn a living.

Having said that, stocks vibrate.

You will see in our charting work that we say the stock is “vibrating in the box” – some call this trading in a high-level consolidation pattern, and that is essentially the same thing. We like to draw a box around the stock so that we aren’t fooled by the movement and get shaken out of a good potential trade just because its vibrating – the box or triangle patterns we draw allow us to stay with positions that others leave as long as they are still within the pattern. It also enables us to leave a position that falls out of the pattern when it does so clearly.

Stocks vibrate and travel through the box or through the tunnel in the air, and then when they decide to move, we call that a torus jump – and that is when the stock has leapt out of the existing energy structure that it has been in, to a higher level of energy – a new level of energy. Others can call this “gapping up” and that means essentially the same thing, but that obfuscates what we believe is happening scientifically – the vibration.

Some call this “alternative science” or “esoteric”. And that’s fine.

We like to use a multi-disciplinary approach, and this is just part of that.

We just call it “The Chicken Bones”.

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CARNIVORE CHART UNIVERSITY

WHAT DOES “IN THE BOX” MEAN?

Often we look at a chart there isn’t a clear wedge or triangle pattern that is obvious but the stock appears to be in what some people call a “high level consolidation”. That’s “The Box” we talk about. We believe that all things have a vibrational element to them and stocks are no different. When a stock is vibrating around in the box and moves with tremendous energy to a new level of price, we call that a torus jump and we say that it has jumped to a new higher level of energy where it may repeat the pattern once again.

While a stock is “in the box” it is vibrating up and down, shaking people out and bringing other people into the stock. This movement, which we call vibration, has a function – and that function is to shake people out of the trade, either out of frustration or fear of loss. A frustrated trader has, in his mind usually, the idea that the stock should move for him – in the direction he wants it to move – at some time frame that he chooses in his head. The stock doesn’t care what the trader wants, however, and may trade sideways for some time, vibrating up and down. The size of the box is determined by up and down action of the stock. It might have 3 or 4 high prints and 3 or 4 low prints that allow you to “see” the box. We draw it in a lot of our stock charts so that we can see it clearly. This is extremely helpful to a trader because when the stock makes a down move on us, we don’t want to be selling out of the position if all that it is doing is vibrating inside that box. We sell when the stock either drops outside the pattern (below the box) or when it “jumps the torus” and leaps to a new higher level of energy. Maybe we have stock that has moved down 4 days in a row and our human instinct is to get fearful and frustrated and sell it. But the stock is still in the box! So we can easily see that in our charts and simply move on without doing anything…and wait for it to jump the torus (gap up). If it falls below the pattern – below the box – we look at selling it.

These are not hard and fast rules, we sometimes violate them when we think we know something, but usually we don’t…and usually, it’s better to sell when the stock drops out of its pattern.

Every week we give you insights into the patterns we’re using to identify trades and track the progress of a trade.

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RESOLUTION DATES

Something that we pioneered here at Carnivore was finding the point in time in the future in which a stock will “resolve” within its pattern. Not all stocks give us this clear point in time in the future, but many do. Say for example, we have a stock that is in an ascending triangle or wedge pattern. By extending the trend lines above and below the stock, we see a triangular pattern appear. At the point, where the two lines meet – that is the resolution date and price. What it tells us is that if the stock is at that price – on that date – then the stock should resolve itself towards our target price at some point in the near future. After tracking and charting hundreds of stocks over the years we began to observe something interesting…the stock almost seems to know that there is some resolution date coming up, and that it will need to make a move – either up or down – on or before that resolution date. We observed that these stocks often leap to a new level on the resolution date or within 5-10 days on either side of it. At first we started to think that this was some kind of coincidence, but after you see it happen 50 times a year just in the stock we’re trading, then you start to take it a bit more seriously. We started taking it seriously and we continue to be amazed at how uncanny this is.

Full Disclosure: We have not done any long-term study on this and stocks sometimes resolve themselves down, not up. It doesn’t work 100% of the time. What we do to increase our odds – increase the probability that it will resolve in the direction we want it to – is to only trade in stocks that have this pattern of jumping the torus in the past, that have made the move we’re looking for, and/or only trade in stocks that have the underlying fundamentals that are likely to drive the stock up due to a strong earnings report, or a jump in revenue, or some other catalyst event. We want to be playing on the field where these stocks live and stay away from the boring stocks that will rarely give us that torus jump. This is why you see us in newly issued stocks that have a lot of energy and action, or other such stocks that have the same.

Here are stocks that were clearly in the pattern and heading to the resolution date.

MDB resolved almost exactly on the resolution date.

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THE MARKET

OUR MAJOR CALLS ON THE MARKET FOR 2022

Call Made: March 14, 2021

DOW

NASDAQ

S&P 500

Bitcoin

Ethereum

Terra Luna

Treasury Rates

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WHAT IS A PROFIT FACTOR?

This is something we want you to get familiar with. You can do your own calculation on it on your trades.

What it does, in summary, is provide you with a very clear analysis of your trading on a risk reward basis.

You want your Profit Factor to be over 1.

If you’re profit factor is over 2.0 then that implies that for every dollar you’ve lost, you’ve made over 2 dollars.

A 1.5 to 2.0 Profit Factor is outstanding.

Why is this important?

Because you all remember what it takes to be a Hall of Fame Trader, right?

The definition of a Hall of Fame Trader is one that makes more on his winners than he loses on his losers, AND who has more than 50% winning trades.

Sure, you can make money with only 45% winners if you make so much more on your winners than you do your losers. That has actually happened to us in some months.

But if you consistently make more on your winners than you lose on your losers, AND you have more than 50% winning trades, that is insane and you’re in the Hall of Fame.

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WHAT IS A RESOLUTION DATE?

BITE is one of the two major systems we use here. BITE is a system and a methodology, and it produces a price target and a time frame on a stock. It also sometimes gives us what we call a resolution date. The pattern is such that the resolution date occurs when – for example – a triangle will come to a peak as in the chart below. As long as the stock is in the pattern we call it “constructive”. If it falls out of the pattern, it “broke”. Often, when a stock is “moving through the tunnel in the air” through the pattern, it is winding tighter and tighter and then it explodes – or resolves. Ideally we like it to explode to the upside if we’re long the stock (own it) – and we have found that often the stock, as it is moving through that tunnel in the air and vibrating around it will suddenly almost “know” that the resolution date is near and it will “gap up” which we call “jumping the torus”. Look up the Torus on google and twist your brain around that for a bit. That’s a Trader Z thing.

Anyway, here’s an example of what a stock looks like that is coming to a resolution date.

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IS CARNIVORE FOR REAL?

It occurred to me, from your perspective, you might be wondering is Carnivore is for real. Is this a real group of traders with real skill and pedigree? Or is all of this some kind of manufactured prank of some kind? One Carnivore said that he thought for a while that this might have been a site dreamed up by Cramer himself! Or that CNBC started it.

Carnivore is very real. I promise you. Dutch is a real guy, Trader Z is a real guy, and Swamp Donkey is a real guy. Our newest guy, TBONE, is a real guy. We joke around, we have fun, we prank on Cramer, we talk about using incense and Himalayan salt crystals, rubbing the Infinite Power Glove and the Sacred Geometry Medallion for luck to ward off the evil spirits, and cranking up the volume on great music here on the X-Mansion trading desk. That’s us having fun and, for real, we actually have all those things here at the trading desk and we do use them. When we say we are lighting the Palo Santo, we are. When we say we are cranking up the tunes and we hit you with the video, we are. So that is all real, but it’s also part of keeping things fun and light and not getting too intense about things in a business that can get intense very quickly.

When it comes to making money and the stock picks, we are dead bang serious. That is not a joke. We do not joke around about making money. Extracting money from the market is our life, that’s what we have done for years, and it’s our lives. Like a painter that must paint, we must trade. It’s in our blood.

And when we talk about things like Natural Law and the Law of Vibration, when we talk about a stock being “in the box” and “jumping the torus”, these are all very real to us, and over time, hopefully to you as well. These things – these cornerstones of Carnivores trading methodologies, along with our proprietary Vector Nostradamus and BITE system, these are all very real. Some of what we do is drawn from and has been handed down to us from great traders we learned from and from traders that paved the way long before we were even born. We have extracted from them what we found to be valid and useful and profitable, and we have applied them to Carnivore’s trading. There is nothing fake or phony about it.

As Dutch always says, there is one way to tell if Carnivore is the real deal or not, and that is to look at the trades. He says, “The text messages don’t lie”. When we send out the trade its real time. We can’t lie about it! It goes out and you see it. The stock either goes up or not. We’re either right or not, and we all know it, you know it. We can’t take the trade back and hide it, or fake it, or pretend it didn’t happen. Its time stamped and that doesn’t lie. Which is why, when people early on thought we were crazy (hey – we’re different that’s for sure), they were skeptical and then, after about 1-2 weeks of watching the trades, they were believers. They started trading what we were triggering. And they were making money, real money, in their accounts, and THAT is when things got interesting. We started getting the texts and emails telling us that they thought we were some whacky site that was fund and interesting, but when they saw the results in their accounts, they would suddenly get very serious about Carnivore. Many of them are now Carnivores For Life. Carnivore has changed their lives. They know more about trading than they did when they started, many of them have made more money trading with us than they ever did with a broker or on their own, and they’ve discovered radically great growth companies that we’ve introduced them to that they had never heard of before. They’re trading with clear heads now, they know more than any of their friends about how the market REALLY works, and they’re having more fun than ever with it.

Is Carnivore for real? You bet it is. 

Just thought we should get some of that stuff straight in case some of you were wondering.

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YOU CAN DO THIS!

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WE DO NOT GIVE FINANCIAL ADVICE.

WE ARE NOT FINANCIAL ADVISORS.

NOTHING HEREIN IS TO BE CONSIDERED A RECOMMENDATION.

ALWAYS CONSULT WITH YOUR OWN FINANCIAL INSTITUTION FOR YOUR SPECIFIC SITUATION.

THIS SITE IS FOR ENTERTAINMENT AND INFORMATIONAL PURPOSES ONLY.

OUR COMMENTS AND THE INFORMATION IN THE COMMENTARY SECTION IN PARTICULAR ARE PURELY OUR OPINIONS AND ARE NOT INTENDED TO BE RELIED UPON TO MAKE FINANCIAL DECISIONS.

OUR POLICY ALWAYS HAS BEEN THAT IF YOU ARE NOT HAPPY WITH OUR SERVICE YOU CAN REQUEST A REFUND. WE MAKE NO GUARANTEES ON PERFORMANCE AND CAN’T DELIVER INDIVIDUALIZED ADVICE. WE DO NOT MANAGE YOUR MONEY OR KNOW YOUR PERSONAL SITUATION – BUT IF YOU ARE UNHAPPY WITH OUR SERVICE, LET US KNOW. WE ALWAYS GO THE EXTRA MILE TO TAKE CARE OF THE CARNIVORE FAMILY. 

*** Notes on How We Calculate Past Performance

***The Carnivore Portfolio is a hypothetical and weighted portfolio. When we say “buy” it is a hypothetical purchase, an addition to the hypothetical portfolio. The Carnivore Portfolio uses leverage from time to time in large amounts and weightings can change rapidly and the positions may change rapidly as well. We rarely day trade. We do not trade options. Our picks are the same as those we use with all Carnivores in the text alerts. We don’t buy or sell anything differently than what you see in the Instant Text Alerts. Our weightings in each recommendation may change rapidly and they can be very, very concentrated. At times we may also hold a large cash position and little or no stocks or other securities at all. When we say we are buying a stock, we are adding it to the portfolio. When we say we are selling a stock, we are taking it out of the portfolio. We never take any compensation from anyone for mentioning a stock. The only money we make is from the monthly fees from our subscribers. Therefore, our loyalty is clearly to our subscribers at all times. You will never see an advertisement for a fund or a company shilling its stock on our site. As the portfolio is hypothetical there can be no “front-running” of our subscribers. We analyze almost exclusively only high-quality stocks with a lot of liquidity and that are traded on major stock exchanges, maintain current filings with the SEC, and are mostly all followed by research on Wall Street, so there is ample available information out in the marketplace for our subscribers to research anything that we are discussing. We do NOT analyze options trades, analyze micro-cap stocks, penny stocks, or other “low quality” or esoteric securities or stocks. Carnivore Trading LLC is not an advisor or manager of other people’s money and we DO NOT MAKE RECOMMENDATIONS OR OFFER ADVICE.

Your results may differ materially from those expressed or utilized by Carnivore Trading LLC due to any number of factors. As a provider of education and entertainment we do not have access to the personal trading accounts or brokerage statements of our subscribers and in no way have any control over what any of our subscribers buy or sell.

If you do not agree with any term or provision of our Terms and Conditions you should not use our site. Please be advised that your continued use of the site, services, content, or information shall indicate your consent and agreement to our Terms and Conditions.

IMPORTANT – PLEASE READ

WE ANALYZE QUALITY, LIQUID, WELL FOLLOWED AND CURRENTLY REPORTING STOCKS ON MAJOR STOCK EXCHANGES.

WE PRIDE OURSELVES ON BEING A SERVICE THAT ANY QUALITY INSTITUTION CAN UTILIZE IN ITS OWN WAY.

WE MAKE NO RECOMMENDATIONS, WE ONLY SHARE WITH YOU OUR OPINIONS, OUR THOUGHTS, AND WHAT WE ARE SEEING IN THE MARKETS.

Content, news, research, tools, and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. Companies that are not affiliated with us may supply some of the content. The source of all, third-party Content, in which Carnivore Trading LLC receives some sort of compensation, is clearly and prominently identified herein as “Sponsored by” or “Sponsored”. We have not been involved in the preparation, adoption or editing of third party content and we do not endorse or approve such content. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Before investing in a fund or ETF or stock, consider the fund’s investment objectives, risks, charges, and expenses and your own investment tolerances and objectives and consult with a licensed financial professional although they may be dumber than a stump, so beware of that, too.