In this video I’m going to go over why Meet Kevin’s alert service is not for you. And as you may already know my name is Karl Domm, Karl with a ‘K’, and I’ve been trading options and stocks online since the mid 1990s and I make money trading options and I prove it by sharing my P&L on this channel. And I’m the only Youtuber that shares my P&L with my daily balance. Which is really the only way that you can be credible when showing P&L.
Now, this channel has two things going on. It’s about trading and learning about options and second I spend my own money taking online courses to give my honest opinion. And I only provide affiliate links if I think the course is worth taking. Most of my reviews do not have an affiliate link and if you do see a review with an affiliate link, it’s a good reason to be skeptical.
Okay, let’s get into Meet Kevin’s alert service. Should you follow his alerts? He has two separate alerts. He has the long term and the short term alerts. And I’m not going to be reviewing his long-term stuff because I won’t be around long enough to follow to see if it’s worth following or not. But I am going to focus in on the short-term alerts that Kevin provides.
Now, alert services are designed for an instructor to provide a clear path for students to follow. Typically, the instructor calls out a specific trade, this can be done via text, email, Discord, Slack, some form of mass communication is used. And once the alert is called out, it’s given to the student and it gives them the ability to copy the instructor’s trade. Now, this helps avoid confusion as to what the instructor is recommending. An alert is clear and concise leaving little room for error for the student. In theory, the student will follow the instructor’s trades, place them in their own account, and make money in theory.
Okay, so how do I know Kevin’s alert service is not for you? Well, I’ve taken his course and in the course Kevin says he trades stocks and options in his short-term alert service. After looking through the archives, he mainly focuses on options and here’s the problem. Kevin says he only trades one half of one percent of his portfolio in a short-term options plays. This makes the short-term options plays difficult to impossible to duplicate. Now why?
Let’s say you have a $100,000 portfolio, this means that you want to take one half of one percent of your capital and that would be about $500. Now, this is not enough money to copy Kevin’s short-term alerts. Even if you had $1,000,000 in your portfolio, you would only be left with $5,000 to follow Kevin. Now, Kevin is in approximately 5 to 15 short-term trades at any one time. So a $1,000,000 portfolio would leave you with approximately $500 per position.
Now Kevin is trading anywhere from $5,000 to $30,000 per position. So when he talks about making $5,000 or $10,000 or $20,000 on a trade; by the way I will get to whether his short-term alert trades are profitable or not in another video. But when he makes that money on a trade a person with a $1,000,000 portfolio that follows him might be making a $100 to $500 per trade. And if you only have a $100,000 portfolio forget it. So the point I’m making is that following Kevin’s short-term trade alert service is not actionable unless you have around $5,000,000 to $10,000,000 in your portfolio or unless you break Kevin’s rule of allocating a very small portion of your portfolio to the alerts.
Now, most people that have $5,000,000 to $10,000,000 or more have figured out on their own what to do with their money. And are not going to follow Kevin’s short-term trading service. Now, Kevin’s short-term alert service is just Kevin having fun throwing around money, you know. And based on Kevin’s own advice, you should not follow his service unless you have $5,000,000 to $10,000,000 in the market. The conclusion is that based on Kevin’s own advice, his short-term alert service is not for you the average investor.
Now, by the way, I have two free courses available in order to help people learn how to trade options. And I believe trading options is where you’re really going to find an edge. I don’t believe you’re going to find an edge just picking the direction of a stock. One of the courses is an actual trading system with black and white rules that has been statistically proven profitable through backtest. And you can see the link in the description below for the 2060 course. And if you’re brand new to options, I’ve created a beginners options course for free called Options From Day One and there’s a link in the description for that course as well.