The Man Behind The Trades – Eric Ferguson
Eric Ferguson is a stock market researcher and options swing trader who recently reported a market-thumping portfolio performance despite the overall adverse market conditions.
On his options-picking service website, Mindful Trader, Ferguson reports that his options portfolio has grown by 60% over the past six months.
The performance is difficult to ignore, considering the average yearly stock market performance falls short of 12%. But the results are even more impressive when weighing them against the overall market performance over the last six months.
In 2022, the Dow Jones suffered its most disappointing year since 2008, drawing down by close to 9%, while other indices like the Nasdaq were down as much as 33%.
Are Ferguson’s Results Even Real?
In a world where 97% of day traders lose money, it’s easy to be suspicious every time someone claims a “magic formula” for the markets.
The first question that arises upon being presented with such a performance is “Is this even real?”
But Ferguson demonstrates confidence in his trading strategy by offering clear transparency.
On his website, Mindful Trader, Ferguson maintains a ledger where he posts every winning and losing trade as they happen in real-time.
His 6-month performance demonstrates a return of 61.8% for the trailing six months as of the time of this writing. That might explain why his service is listed as one of the best options for trade alert services in a variety of online financial publications, including CashBlog.
Ferguson also alerts subscribers to his service about every trade he makes.
Through this service, members can verify in real-time that the trades are legitimate and can get a piece of the action if they decide to follow Ferguson’s lead.
How Does Ferguson Do It? The Secret Sauce
Ferguson, a numbers guy, claims to use a back-tested and data-driven approach. His options pick strategy is based on historical probabilities and price movement tendencies.
He first learned to apply mathematical concepts to financial markets at Stanford University, where he graduated with a major in Economics.
Frustrated with other trading alert services at the time, Ferguson decided to take matters into his own hands and leverage his expertise to crack the markets.
He then learned how to code using a quantitative programming language. After many years of research and backtesting, he was able to develop his current strategy.
In Ferguson’s own words, “I analyzed and dissected historical stock market price data for several years. Through that effort, I identified trading strategies that, according to back tests, could have generated profits repeatedly over the last couple of decades.”
He also attributes his success to taking a mindful approach to the markets. This is an excellent attitude to have since emotions, biases, and behavior can often work against investors.
At first, Ferguson explored mindfulness as a way to deal with ongoing panic attacks that he developed in adulthood. But he quickly realized the impact mindfulness had on his trading, which allowed him to stay cool during drawdowns.
After concluding his research in the summer of 2020, Ferguson started trading the strategies in his personal account.
He realized he had found a powerful finding and wanted to share it with the world. Motivated, he built a community where he could connect with other traders in the same pursuit.
In November 2020, he founded Mindful Trader.
Mindful Trader – The Cheat Code
Trading options has numerous advantages. They are a leveraged trading instrument, which means they can offer large potential rewards. But if trading is a puzzle, trading options could be likened to trying to solve a puzzle that changes shape constantly.
Options contracts can be complex to master, even for seasoned traders. And their leveraged nature means they carry a bundle of risk.
The options pricing algorithm takes into consideration more than just the range of underlying securities. At times contracts can lose their “juice” and leave traders in the red despite the underlying security moving in the right direction.
But Ferguson is trying to tackle the problem with Mindful Trader.
Developing and executing a trading strategy is challenging, but following Ferguson’s options picks is not.
One of the biggest advantages of the trading service is that Ferguson provides entry and exit signals. This makes it extremely easy for members, particularly inexperienced ones, as they don’t have to perform any guessing work of their own.
Ferguson is a swing trader, so his time frame for holding a trade lasts about a week on average.
Unlike day traders, who need to be glued to their monitor following every tick, all Mindful Trader members have to do is follow his picks. The entire process can take as little as 15 minutes per day on average.
This approach can also appeal to busy investors and traders looking for a hands-off approach.
It’s like a cheat code for traders. All they have to do is input their order into the system, and they can follow Ferguson’s trades.
Ultimately, there are no guarantees when it comes to the stock market and options trading. There is a high degree of risk involved. But for the last six months, Ferguson has shown that it is possible to earn substantial returns.
Even in a down market.