10 Trading Lessons from JR Romero
JR Romero joined the T3 Alpha Show podcast to talk immigrant mentality, the wild ups and downs of trading, and why he DOES NOT consider himself a technical analyst. These are the 10 things we learned from him: 1. Work Is Freedom JR Romero came to America searching for one thing: a fair shot. “In my country, you could work as hard as you wanted and it meant nothing if you weren’t connected. Here, I could start a business, make money, and nobody stopped me.” He sees the U.S. as “the greatest experiment in liberty, creativity, and innovation.” The immigrant mentality still drives him: work hard, think big, and never take a new opportunity for granted. Takeaway: Whether you’re trading or building a small business, effort is the one thing you control. Freedom isn’t given. It’s earned through good old-fashioned hard work. 2. Love Winning, But Respect Losing JR is 100% addicted to the rush of achievement. But he also says nearly half of his ventures have failed. “Most businesses I’ve started failed. But it was always a thrill. That’s life.” He treats every setback as tuition. Losing is part of the game. You have to choose to learn and get better. Takeaway: Treat failure like feedback. Every loss teaches you something about your process, discipline, or emotion. But it’s up to you to learn. 3. Trade Like a Merchant, Not a Magician JR doesn’t consider himself a chart guy or classic technical analysis expert. He calls himself a merchant. “Trading is haggling over price all day long. You’re finding where supply and demand meet, like selling rugs in a bazaar.” Indicators are like measuring tape. True traders think in terms of people and price. Your job is to sense when the crowd is fearful or euphoric, and act like a business owner, not a gambler. Takeaway: You’re not fighting the market. You’re negotiating with it as you observe the competition. Approach every setup like a business transaction, not a magic trick. 4. Empathize with the Other Side JR’s trading success comes from emotional intelligence. It’s about empathy, not brainpower. He constantly imagines what other traders are feeling: Who’s trapped? Who’s panicking? Who’s greedy? “We know where the stops are. We know when people feel fear or ecstasy. You have to think like the person on the other side of the trade.” By understanding the crowd’s emotional state, he finds turning points before the charts show them. Takeaway: The market isn’t math. It’s a massive real-time study in human behavior that is measured in dollars. Learn the crowd’s psychology and you’ll spot moneymaking opportunities faster. 5. Marry the Narrative with the Numbers JR rejects the idea that traders must choose between technicals and fundamentals. “There are purists who only look at charts. That’s silly. You need to understand what institutions are thinking, and sometimes that comes from fundamentals.” He combines stories with setups. When Caterpillar (CAT) stock surged, he tied it to infrastructure spending trends — a narrative confirmed by price action. Takeaway: The best trades align story, sentiment, and structure. Use charts to time entries, but let real-world context guide conviction. 6. Cowboy Up Because Your Life Depends on It After losing millions in the 2000 dot.com bust, JR borrowed $75,000 to restart his trading career. TWICE. “You better cowboy up,” he told himself. He worked fourteen-hour days selling Internet services until he could fund his first company, and eventually, his trading career. Takeaway: Real success demands full immersion. Part-time effort leads to part-time results. Decide what you want, and burn the boats behind you. 7. Forget Your Trading Batting Average and Focus on Efficiency Many traders obsess over win rate. JR’s not worried about whether he’s making money on 40% of his trades or 90%. “You can be right 80 percent of the time and still lose money if you manage trades poorly.” He focuses on trading efficiency, which means cutting losers fast and pressing winners. He also emphasizes expected value, weighting every setup by probability and reward. Takeaway: Success isn’t about being right. It’s about staying right long enough to get paid. 8. Your Passion Should Be Your Work and Your Work Should Be Your Passion When JR reads Tesla’s (TSLA) price action, he says it’s like watching a movie: “You get comedy, tragedy, intrigue, and action all inside a few five-minute bars.” If studying markets doesn’t fascinate you, you’ll never last. The best traders feel addicted. And not just because of greed. They love the game and can’t stay away, even if they want to! Takeaway: The market rewards obsession. If you don’t find joy in analysis and execution, find another field before it breaks you. 9. Human Nature Never Changes Algorithms and HFTs may dominate headlines, but JR insists they’re still run by humans. And often badly. “Most HFTs lose money. They misread news all the time. They’re a never-ending opportunity machine.” He’s convinced that greed and fear remain the true market engines, and that traders who understand human bias will always have an edge. Takeaway: Technology changes, but emotion doesn’t. Study people more than programs. 10. Stay Curious About Everything JR reads constantly: history, art, psychology, economics and more. He believes a broad sense of curiosity will sharpen your trading instincts. “Trading is the ultimate social experiment. You’re watching human virtue, greed, and fear play out in real time.” He connects dots across disciplines—understanding how culture, politics, and innovation shape sentiment and price. Takeaway: Great traders think beyond tickers. Read widely, live fully, and keep expanding the mental map that helps you anticipate change. Final Thoughts JR Romero’s story is about more than trading. It’s about belief, resilience, and curiosity. The qualities that turn chaos into opportunity. He’s living proof that you can start with nothing, lose everything more than once, and still build a life defined by freedom and purpose.
Continue Reading -->Getting Extended: Is A Pullback Ahead?
Sami Abusaad says the market has become a bit extended after breaking out. He says if prices break below Thursday’s low, expect a pullback toward the breakout area and the rising 20-day moving average: Sami goes over: The 1-2-3 pattern in COMM The weekly buy setup in GOSS Two casino names on his swing watchlist The “very bullish” monthly chart on TSLA Why U looks headed for $100 Where he would short RBLX And more! Key Takeaways: Stick to short-term trading until there’s clarity. Watch Thursday’s low for direction — below it suggests near-term weakness. If support holds and a strong bounce occurs, bullish bias continues.
Continue Reading -->Amazon Saves the Bull Market + 9 Other Things You Need to Know
The Fed spooked the market this week about future rate cuts but big-tech earnings came in to save the day and keep the bulls running. Now it’s time to look ahead with the 10 things you need to know: 1. More Rate Cuts Aren’t Guaranteed Markets got the 25 basis point rate cut they were expecting from the Fed this week… but Chairman Jerome Powell quickly threw some cold water on future expectations. In his press conference, Powell said another cut in December is “not a foregone conclusion.” As of October 31, CME Group’s FedWatch Tool shows just under 65% of traders now expect a 25bp cut at the December meeting. 2. Amazon is the MAG7 Earnings Winner Amazon (AMZN) shares shot higher on Friday after beating Q3 expectations across the board Thursday. Here’s a look at how the company’s results compared to analysts’ estimates: Earnings per share: $1.95 vs. $1.57 estimated Revenue: $180.17 billion vs. $177.8 billion estimated Amazon Web Services Revenue: $33 billion vs. $32.42 billion expected Advertising Revenue: $17.7 billion vs. $17.34 billion expected In a statement, Amazon CEO Andy Jassy said that AWS is “growing at a pace we haven’t seen since 2022.” “We continue to see strong demand in AI and core infrastructure, and we’ve been focused on accelerating capacity — adding more than 3.8 gigawatts in the past 12 months” – Andy Jassy That seemed to temper market concerns about the company’s cloud business which have weighed on the stock this year. AMZN has been underperforming its MAG7 peers in 2025, up just 0.7% for the year as of Thursday’s close. 3. Is the AI Trade Unwinding? One reaction to this week’s big tech earnings seemed key to the future of the AI trade theme. Meta Platforms (META) tumbled as increased AI spending overshadowed strong Q3 results for the company. The social media giant hiked its capital expenditure guidance for 2025 to a range between $70 billion and $72 billion vs $66 billion to $72 billion previously. On the earnings call, CEO Mark Zuckerberg defended the massive spending. “It’s pretty early, but I think we’re seeing the returns in the core business. That’s giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we’re not underinvesting.” -Zuckerberg This appears to be the first negative market reaction to big spending on AI… with companies previously being rewarded for such investments. But maybe that’s just a META thing… 4. Nvidia CEO: AI Is In A Virtuous Cycle Speaking at the APEC CEO Summit in South Korea on Friday, Nvidia (NVDA) CEO Jensen Huang said AI has reached a “virtuous cycle”. “The AIs get better. More people use it. More people use it, it makes more profit, creates more factories, which allows us to create even better AIs, which allows more people to use it. The virtual cycle of AI has been designed, and this is … the reason why you’re seeing the world’s capex going so fast.” -Jensen Huang Basically, demand creates more products, which creates more demand, and more products, and more demand, and more products, and so on. Take a listen to Jensen’s speech below: 5. More Important Earnings Are Ahead This will be another packed week of earnings reports. Highlights include: Monday PM: Palantir (PLTR), Hims and Hers (HIMS) Tuesday AM: Shopify (SHOP), Uber Technologies (UBER), Pfizer (PFE), Spotify (SPOT) Tuesday PM: Advanced Micro Devices (AMD), Super Micro Computer (SMCI), Astera Labs (ALAB), Pinterest (PINS) Wednesday AM: McDonald’s (MCD) Wednesday PM: Applovin (APP), Qualcomm (QCOM), Arm Holdings (ARM), Robinhood (HOOD), Doordash (DASH) Thursday PM: Airbnb (ABNB), Block (XYZ), Trade Desk (TTD), Affirm (AFRM) 6. It’s Jobs Week… With No Jobs Report The government is still shutdown, which means next week’s October nonfarm payrolls report won’t be released. The September JOLTS report scheduled for Tuesday also isn’t likely to be published. That puts all eyes on ADP’s Private Employment Report at 8:30am ET on Wednesday. For now that appears to be the only number the market will be getting to determine the health of the labor market. Here’s the full calendar for the week: 7. Trade Truce Between the U.S. and China President Donald Trump and Chinese President Xi Jinping came to a trade truce this week. The two leaders met at the ASEAN Summit in South Korea on Thursday. The agreement includes: A one-year pause of Beijing’s rare earth export controls The U.S. cut fentanyl tariffs on China to 10% from 20% China’s original announcement of rare earth export controls on October 9th sparked the latest round of the trade war with Trump threatening 100% tariffs. But China quickly came to the table for negotiations after that threat. Trump told reporters aboard Air Force One after his meeting with Xi that the rare earths agreement will be “very routinely extended as time goes by.” “We have a deal. Now, every year we’ll renegotiate the deal, but I think the deal will go on for a long time, long beyond the year. But all of the rare earth has been settled, and that’s for the world.” -Trump The lower fentanyl tariffs reduces the overall tariff rate on Chinese goods to around 47%. Trump said he will visit China in April and Xi will come to the U.S. at a later date. 8. Sentiment Turns Bullish The latest AAII Sentiment Survey shows that 44.0% of investors are bullish. That was up 7.2 points from the week before and higher than the historical average of 37.5% for the fifth time in the past seven weeks. 9. Netflix Announces Stock Split Netflix (NFLX) stock is about to become more accessible for the retail community. The company announced a 10-for-1 stock split after hours on Thursday. Netflix will issue 9 additional shares for every one share held on November 10. The stock will then begin trading on a split-adjusted basis at the market open on November 17. Netflix said the move will make its stock more accessible to employees participating in its stock option program. 10. David Prince Teaches You How Small Accounts Should Use Options David Prince, the leader of T3 Live’s Inner Circle VTF®, often uses options to add Alpha to a stock
Continue Reading -->David Prince: Why Smaller Accounts Should Trade Options
David Prince often uses options to add Alpha to a stock trade. But he believes smaller traders can often win bigger with options instead of buying stock while taking on less risk: David covers: How smaller traders inside the Inner Circle VTF® take his stock ideas and apply them to options Why options can be a better risk/reward vs equities How to determine size on an options trade for a smaller account Apply to trade with David inside the Inner Circle VTF® here.
Continue Reading -->2 Biggest Days Ever + 9 Other Things You Need to Know Right Now
We closed out another big week in markets with the SPX and QQQ hitting record highs after the light CPI report. So it’s time to look ahead with the 10 things you need to know: 1. The Rate Cuts Are Coming Thanks to the government shutdown, we’ve been waiting forever for a CPI report. We finally got one Friday, and the numbers were lighter-than-expected. The headline number grew by 3.0%. That’s not low, but at least it was below the consensus estimate. Now, traders are pricing in a 97% chance of a 25 bp rate cut on Wednesday, October 29, according to the CME’s Fedwatch tool. And 94% of traders expect a total of 50 bp in cuts by year-end. Speaking of next Wednesday… 2. The Tech Megapowers Report Earnings Here’s a partial list of the companies reporting on Wednesday and Thursday: Wednesday: Microsoft (MSFT), Alphabet (GOOGL), Meta (META) Thursday: Apple (AAPL), Amazon (AMZN) That’s 5 of the Mag 7, and they represent 22.5% of the S&P 500 index. So far, Q3 earnings season has been stronger than expected (even with rising earnings estimates), and these names could seal the deal on how things turn out overall. So between the Fed and all these earnings reports (plus ones we haven’t mentioned like CAT/LLY/MA), this looks like 2 of the biggest trading days of all time! And oh yeah… we also get the PCE Price Index, plus Japan and Canada’s rate decisions, and Eurozone CPI. Here’s the full calendar: 3. It Could Be Make or Break Time for Nvidia All those big tech earnings reports will have a big impact on Nvidia (NVDA). AI powerhouses like OpenAI, Microsoft (MSFT), Meta (META), and CoreWeave (CRWV) have been sucking down AI chips like crazy. And Nvidia longs want confirmation that the spending spree will continue. Especially since it looks like AMD (AMD) and Broadcom (AVGO) may be taking bigger pieces of the pie. So Nvidia will move big based on the capex forecasts of these tech giants. It’s the biggest potential catalyst until earnings on November 19. 4. Tony Robbins Is Your New AI Guy I am an AI skeptic, because I question the real-world financial value of all the big AI investments we see. Now, I see that the nation’s #1 Life and Business Strategist (his words, not mine) Tony Robbins is hosting an “AI Advantage Summit:”Now, I have nothing against Tony Robbins. I agree with a lot of what he says. But isn’t this the type of thing you see closer to a top than a bottom? It makes me worry. 5. Sentiment Is… MEH The AAII Sentiment Survey shows that 36.9% of investors are bullish. This is more-or-less neutral, and up slightly from last week. And it makes sense because market participants are in a state of confusion because of: An earnings season that feels all over the place, at least in terms of reactions Minimal economic data because of the government shutdown The nonstop news flow out of the White House And speaking of sentiment… 6. CNN’s Fear & Greed Index Is Not Broken As of early Friday afternoon, CNN’s Fear & Greed Index was at 34, indicating Fear. Is it broken as many market participants think? With markets at record things, sentiment should at least be neutral, like AAII is. Right? Remember, it’s normal for sentiment to be neutral when market is going up amid a confusing news flow. Also, Fear & Greed is not determined by a survey, but 7 market indicators including things like Junk Bond Demand: Maybe you don’t find it useful, but it’s not broken. It’s just spitting out what the recipe says. And speaking of sentiment one more time, trader JC Parets posted a poignant Tweet on Wednesday: 7. Do Books About the 1929 Crash Come Out at the Top? Andrew Ross Sorkin’s new book “1929” hit the New York Times best-seller list. And JC had the most interesting reaction: Reading this new book about the 1929 crash has me wondering… do books like this usually come out right before a market crash, or when bull markets still have plenty of gas left? https://t.co/M1BqbSZlZi — J.C. Parets (@JC_ParetsX) October 22, 2025 So if most traditional indicators are reading neutral, and we have a best-selling book about 1929 out, and the market’s at record highs we can conclude that… Nobody knows where sentiment is right now. It’s a mess. 8. Extended Hours Options Trading May Be Coming Soon I recently suggested that option tradings hours should be extended, because it would be a huge convenience during earnings season: While I can’t confirm it for sure, I will assume the CBOE saw the video (it does have a whopping 125 views), because they filed a proposal with the SEC to extend hours for equity options trading. According to the filing, the CBOE would add a morning session from 7:30 to 9:25 am ET, plus an afternoon session from 4 to 4:15 pm ET. I guess it’s fair to give options traders a 5-minute potty break at 9:25, right? Now if only Apple (AAPL) and Nvidia (NVDA) would report earnings before 4:15 pm ET so their options could fit into that afternoon window… 9. Biotech Has Been on Fire One of the biggest beneficiaries of the Fed’s dovish leaning has been biotech. The SPDR S&P Biotech ETF (XBI) is the #1 major ETF in October, and it’s now up almost 21% year-to-date. But if you want to see the really hot stuff, look at heavily-shorted small and mid-cap biotechs. We used Koyfin to screen for biotechs with a market cap of $500 million to $5 billion, and short interest above 10%. Many are up 30%+ this month alone: 10. You Too Can Be a Sultan of Swing Trading! JR Romero recently unveiled his swing trading secrets in this exclusive webinar. Want all his ideas AND 3 months of Koyfin software? GO HERE.
Continue Reading -->Bear Get Beaten Back: Those Big Red Bars Mean Nothing Now
In this week’s breakdown, Sami Abusaad reviews the major indices — and how he’s positioning onto the end of October. After a quick breakdown, the market reclaimed its 20-day moving average and pushed back into the upper third of the range. Sami notes that “the trend usually wins out.” And the trend looks up. Sami also goes over: Why he’s leaning mildly bullish, expecting the market to drift higher into month-end unless new weakness proves otherwise Why the monthly chart will be important when the October bar is completed An early-stage base breakout that’s “different from most charts out there,” showing promise if it continues to build strengt A long opportunity in Walmart (WMT), which recently broke out to all-time highs The bullish action in Tesla (TSLA) after it negated its big red bar Where Target (TGT) turns into an attractive long swing idea Potential long entries in ELBM, LU, and XERS The reason he’s cautious about pressing shorts right now 4 Key Takeaways: Market trend remains up, but follow-through into month-end will confirm strength. Focus on long setups showing relative strength and clean technical bases. Keep an eye on weak names like Caesars (CZR) and Under Armour (UAA) for potential short plays if momentum flips. Patience matters — Sam expects more momentum after month-end, not before.
Continue Reading -->How David Prince Trades “Junk” Stocks
Quantum computing stocks are the latest big fad on Wall Street. And while many investors say you should stay away because they have no revenue, Inner Circle’s David Prince has been riding the wave. David discusses how he approaches trading “junk” names and what he’s learned over the years about these trades: David also covers: The latest on U.S. / China trade tensions Rare earth materials stocks like MP Materials (MP), USA Rare Earth (USAR), and Trilogy Metals (TMQ) The AI trade theme following Taiwan Semiconductor (TSM)’s earnings The future of Immunome (IMNM) How he trades around a “core position” on long-term investments And more! Apply to join the Inner Circle VTF® and work with David here.
Continue Reading -->My #1 Stock: New Caterpillar Price Target Released
One month ago, JR Romero came out bullish on Caterpillar (CAT) – naming it his #1 FOMC stock. And since then the stock has ripped from $450 to $533. Today, JR updated his target price: JR also goes over: A hot utility stock with a big cup & handle patterns Multiple names in the biotech sector, which has been on FIRE this quarter An IPO base breakout name that refuses to react to political news A “steamboat to China” slow mover that could power up by anotoher $20 Multiple aggressive speculative names that can rocket from here A red-hot aviation name that just triggered And MORE!
Continue Reading -->We Topped Out. And It’s Russell’s Fault.
Sami Abusaad argues the market got exhausted and is topped out. And it’s the Russell 2000’s fault. Sami also explains: Why Friday’s big red candle was so hard to predict The power of a daily chart that just keeps grinding up The Russell 2000’s role in creating the recent market top Why it’s so hard to find good shorts after Friday’s action A biotech name with big upside potential Why the China names might bounce after Monday A hot quantum computing name that is about to pull in And more!
Continue Reading -->President Trump Ruins the Party
The government is shut down so key economic data remain missing in action. Is that a problem? No way! The S&P 500, Nasdaq 100, and Russell 2000 all made record highs this week. So let’s look at the 10 things you need to know right now! 1) President Trump Ruined the Party I’m just sitting here cranking out this article in peace… and President Trump just dropped this bomb on Truth Social: So China’s getting tougher when it comes to exports of rare earth materials, and Trump is considering fighting back with a bunch of tariffs. This gave traders an excuse to do some profit taking after a powerful start to Q4. The question is – was Friday’s dip just another buying opportunity? Or a prelude to a slopfest like we had in April? Now whether you like Trump or not, we all have to admit markets are more interesting with him around. Real world effects notwithstanding… We’ll talk about The Ultimate Trump Trade soon, but isn’t it odd that… 2) Bullish Sentiment Hit a 10-Month High The latest AAII Sentiment Survey shows that 45.9% of investors are bullish. This is the fourth straight week of above-average bullishness. And it’s the highest bullish reading since December 5, 2024. So yes, higher stock prices pushed sentiment to a 10-month high right before President Trump kicked us in the shin. 3) Earnings Season Is About to Kick Off HARD Next week’s economic calendar is jammed with key data like CPI, PPI, Jobless Claims, NFP, and Retail Sales. But we may get none of these numbers if the shutdown continues. The good thing is we’re about to get assaulted with earnings reports from heavyweights in two key sectors: Banks: JP Morgan (JPM), Goldman Sachs (GS), Wells Fargo (WFC), Citigroup (C), Bank of America (BAC) and others. Semiconductors: ASML Holding (ASML) & Taiwan Semi (TSM) So we’ll get key insights on housing, consumer strength, and AI. The problem is that earnings estimates have been rising ahead of earnings season – not falling like in recent quarters. So the bar is high. But back on the economic numbers, don’t forget that… Related: 7 Things I HATE About Earnings Season: 4) Interactive Brokers Will Update Us on The Ultimate Trump Trade Leading brokerage Interactive Brokers (IBKR) is one of my biggest long-term stock investments, so take what I say with a grain of salt. They report earnings Thursday and could give us an update on “The Ultimate Trump Trade” – the basket of financial stocks that benefit from a combination of market volatility and rising stock/crypto prices, including Robinhood (HOOD), Coinbase (COIN), and Webull (BULL). Interactive Brokers should give us insights on what trading volumes could look like in October. That could mean dip buying opportunities in this basket of stocks, so keep an eye out. 5) Fed Chair Powell Speaks on Tuesday Even with the economic data mystery, the market is still banking on a rate cut later this month. The CME’s FedWatch Tool shows a 95% probability of an October rate cut. So the market assumes the missing data supports the Fed’s dovish course. On Tuesday, Fed Chair Powell will give a speech on Economic Outlook and Monetary Policy at the National Association for Business Economics (NABE) annual meeting in Philadelphia. On October 9, Powell was unable to make his appearance at the Fed Community Bank conferences, so the stakes may be higher for this Tuesday. 6) 2025 Is the Year of Heavy Metal Yep, SPY is up 15% and Bitcoin is up 28%. Pretty impressive. But have you seen the metals complex? We sampled some of the more popular metals ETFs and the numbers are shocking, with gold miners (GDX) up 125%: Silver, copper, palladium, and uranium are also putting up massive numbers. It’s been a perfect storm because of trends like the falling US dollar, lower rates, flight to safety, central bank buying, institutional demand, and plain old supply-demand constraints. 7. Jamie Dimon Made Me Question AI Earlier this week, JP Morgan (JPM) CEO Jamie Dimon said the company spends $2 billion a year on AI. And it’s now saving that much money a year as a result. Now, spending $2 billion to save $2 billion doesn’t sound like anything great. But those savings should snowball over time because $2 billion spent this year should save at least $2 billion this year, and also provide savings next year. And I’m a JP Morgan shareholder, so I’m glad to see this. My concern is why aren’t more companies making announcements like this? Are they keeping things quiet to avoid freaking out employees fearful of being replace by ChatGPT? An MIT report showed that most AI programs have “little to no measurable impact on P&L.” So it’s exciting to see all these mega deals like the AMD (AMD)/OpenAI link-up. But where’s the beef? More companies should be saying “we saved $XYZ or increased sales by XYZ% through the use of AI.” Right? 8. Ray Dalio Warns of Danger Ahead Super investor Ray Dalio, founder of Bridgewater Associates, is comparing the current climate to pre-World War 2. In a Bloomberg interview, Dalio warned about skyrocketing US government debt, saying “it’s like plaque in the arteries that then begins to squeeze out the spending.” But good luck explaining that to a politician. He also said “civil war of some sort” is developing in the US and other parts of the world. Let’s hope he’s wrong. 9. Utilities Might Heat Up We might be entering a perfect environment for the typically sleepy utilities. We have economic uncertainty, rising power demand, a friendlier regulatory environment, and falling interest rates. The market’s not blind to this, with the Utilities SPDR ETF (XLU) up 22% YTD, and up 4% in October: Plus, many XLU components like Constellation Energy (CEG) offer exposure to the booming nuclear power trend. FYI – I have a small XLU position. 10) This Market Cycle Expert Predicts SPX 7100 Jeff Hirsch, Editor-in-Chief of The Stock
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