Citi thinks that oil will sink to $65 a barrel

JP Morgan thinks that oil will soar to $380 a barrel.

Now these are 2 of the top investment banks in the world.

The cream of the crop.

With some of the smartest people on the planet working for them.

And they have come up with polar opposite predictions for a single commodity.

So if they can't even get in the same ballpark on oil - how on Earth could they get anywhere close to being accurate on something as complex and dynamic as the financial markets.

I was explaining this to one of our Capital Gains Multiplier students recently.

Forecasting revenues for a single company is one thing.

Trying to forecast stock prices is a completely different and far more nuanced field.

That's why I always ignore analyst price targets for stocks

(whether they are in-line with my thesis or not)

Especially right now when many of them are 50% or even 100% higher than the current stock price... making you think that everything is a bargain.

Or they are simply reactionary and lowering their price target when a stock is already down 50%.

It doesn't make any sense.

And that's why I always ignore them.

What to do instead?

Use a proper valuation method... like the one we teach inside our books and training programs.

As an example, I was walking through insurance disrupter Lemonade with a student - and even though the company is down around 85% from its all time highs...

I still think the stock is around 35-40% overvalued.

So I told him to hold off on buying for the time being.

And it's this discipline that ensures that you limit your losses... while maximizing your upside.

Another form of discipline is having proper entry/exit rules for your option trades.

Because that alone can turn a losing strategy into a winning one.

You can find the complete list of our rules inside our bestselling book

The Options Wheel Strategy

​Get your copy on Amazon here.​

Oliver