What Is The Big Kahuna
Trading Club?

Well, hello! Thanks for dropping in! In the months ahead we are going to be posting a lot of great content that demonstrates the power and uniqueness of the trading system I have spent the past few decades developing.

Some of you may be aware that this club has existed in a few different iterations over the past 15+ years and my trading partner at the time, Daryl Thompson, and I had planned to re-open in 2020. But due to a third partner leaving to pursue another opportunity we shelved the launch for the foreseeable future.

That was rather fortuitous because in late 2020 the market exploded running up to the election and combining my rather decent returns going into the fall (300%+) with the acceleration of the market, I was able to 20-X my account in total over the course of 9+-months!!

Yes it was wild...it reminded me of the action of the tech bubble around 2000. I don't think I would have been able to achieve these kinds of returns had I had the distraction of being at the helm of the club...the administrative part of running a club can be overwhelming at times.

With that said, Daryl and I started to envision what we would like the club to look like if we re-launched. We came up with a few ideas that we felt would make the club more sustainable long-term…both of us are in the 4th quarter of our lives and have many things on our bucket list besides trading and being glued to the computer… Update: Daryl has recently developed some health setbacks and in lieu of further delaying a re-launch I am going to move forward and hope that he can rejoin the “old” (literally lol) team in the not-too-distant future.

What we really wanted to accomplish was firstly, to build a solid team of high quality traders around us so that the club wouldn’t be so top-heavy and secondly to have a club structure that didn’t have as many moving parts that required significant administrative support and thirdly to find the “best of breed” traders out there that not only bring significant trading skills of their own (or solid observation abilities and willingness to learn) but can integrate many of the trading concepts we teach and give them a little of their own flair.

This may include combining forces with other stock, futures and Forex traders to see if it’s possible to super-charge other systems out there using the cycles I discovered. I’m especially interested in collaborating with experienced coders in trade automation for various trading platforms.

If you’re wondering what sets the Big Kahuna trading system from other trading systems, here it is in a nutshell. At its heart and soul, the Big Kahuna style of trading is a relaxed form of swing trading designed to shine a light on the best potential stock trading prospects for producing BIG outsized gains on some of the market’s best trading prospects.

The system thrives on riding what we call “super-cycles.” These are momentum-based cycles inside of time-based cycles and they can be powerful predictors of a stocks potential even BEFORE price breaks out. I discovered these cycles through several years (going on decades) of reverse-engineering practically any big winning stock I could find. Thousands of them, literally.

What I found allowed me to create a stock filtering process second to none. The first part is generally automated and brings the universe of stocks in the market down to about 3% of the market (Caveat Here: Typically, once monthly I go through EVERY chart in the market, currently about 6600 charts, to identify potential stocks that may have slipped under my scans).

Part two involves manually going through all of those charts and visually filtering for the best setups based on price action inside of these time and momentum-based cycles. When I find a stellar candidate, I share it with my crew and if my analysis is correct, we all “feast on the carcass in the months ahead” to give it a little “Game of Thrones” twist.

Even in challenging market conditions, these cycles and momentum tools can isolate stocks that move BIGLY over the following several months. Case in point, SGML in July of 2022, flashed a buy signal at the violation of a TM-1 Cycle channel…our momentum filters can take all the guesswork out of the best potential stocks to trade.

SGML-Sigma Lithium Corp.

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“A” below is the momentum part of the equation and “B” is the time part of the equation. When price extremes are reached inside of these momentum and time-based price channels that is the time to start paying attention.

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2022, and a significant part of 2021 had challenging trading action and what worked in 2020 not only didn’t work since then, but like the proverbial 'thousand paper cuts,' damaged a lot of trading accounts (mine included). Fintwit gurus who had been posting their huge daily trading gains for much of 2020 suddenly became quiet. Many switched from trading equities to trading short-term options. Many OTC stock traders dropped entirely out of trading, as volume dried up.

Other than the occasional mega stock that bucked the market trend like SGML above, these periods can be lean for Big Kahuna style stocks, but they can also provide opportunities for tweaking and improving your trading system. In upcoming posts, I’ll address some of the key short and long-term cycles driving the market action currently, and projections based on how these cycles are lining up going forward.

When the markets change, 'adapt or die'. These are sometimes expensive lessons, but necessary to up your trading game.

We’ll get deeper into the weeds in upcoming blogs as to the “guts” of the system…

But to touch on it, the components of the system include: TSS Cycles, BMI (Breakout Momentum Indicator), Vector or VR, (A measurement of “price movement inside of time”) and 'Lemal Lines' which are cycle-adaptive trend lines (sure I could have named them Trump lines, but why?).

TSS Cycles has been my main trading technical analysis tool for the past decade. For trading 'technicians,' whereas Fibonacci can oftentimes be quite accurate as to where price will turn after 'resting' after an initial breakout, it can result in 'Dead Zones' where money is often languishing unnecessary waiting for 'TSS Cycles' to play out. Blindly trading based on Fibonacci retracements (this one 61.8% below) without considering the correct TSS Cycles in play can result in your money not working as efficiently as it could be!   

Fibonacci "Dead Zone"

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TSS Cycles are a LEADING Indicator!

And these cycles can help you avoid these Dead Zones. Elliot Wave and Gann analysis, in my experience were either too complex or too subjective…with that said, I have heard of many traders using these successfully… For me, it was too complicated and confusing. With all things in trading, find what works for YOU!

Which brings me back to the basis of the club.

Like many equities traders we are regularly faced with a quandary, how to rectify a rather long list of stocks that “in the moment” we passed over due to juggling other stocks or the fact that it just didn’t rise to the top of our list when we first saw it…(Case in point TOP which was “top” of my list of prior week stocks and due to other distractions I missed the entry near 6.50.  The price reached $268 or 4,000% in ONE DAY << NOT A TYPO!! Of course, these are uncommon stock price eruptions, all the more reason to examine what we could have done better, especially when a stock ends up at the top of our watchlist).

These missed opportunities are VERY costly. Another example from last year that I missed due to a “cup of coffee” run cost me over $150K (more coming on that one in upcoming blogs)…that is only the tip of the iceberg. These missed opportunities run well into the 6 figures annually and probably even into the 7-figure realm.

The multitude of potential trades missed even in challenging market conditions can be sobering.

This is why having a community of like-minded traders with lots of eyes on setups we see forming can be very financially rewarding for all involved. In a hot market these trades can be plentiful and in a lean market which we are currently in, sometimes it takes even more eyes to spot the laggards.

To clarify, the heart and soul of a Big Kahuna style of trading are multi-month swings based on super-cycles. In normal market conditions there are plenty of opportunities for these trades. However, we are not currently in normal market conditions. Although there are plenty of clubs on the web that are geared to these hyper-explosive 1-3 day breakouts, there are far fewer that focus on subtle trades percolating over weeks and even months. When entered using the correct 'TSS Cycle,' these cycles can allow you to ride potentially multi-month super cycles (and even multi-year on the right stocks) and allow you the opportunity to be out on the golf course without stressing over every ripple in a stocks trend.

It is a system that is obsessively focused on strategies for trading the best and biggest stock trading prospects the market has to offer.

How lucrative can understanding how these new super-cycles form be? VERY! For example if you understand how options greek “Delta” works, you can exploit low option implied volatility (basically lower prices on the options because the trading community hasn’t quite yet caught on to the opportunity ahead) and when you can catch a stock in these cycle-based “price squeezes” it is possible to go a little further out on the option strikes realizing that a significant move over several months lies ahead.

This is what happened to me a few years back on an inexpensive option trade on NVDA based on a 'Millionaire Maker' pattern setup. Due to a tad bit of uncertainty at the time about my timing, I went in light and purchased only one contract with six months out on the expiration for just $600. Over the next several weeks and months, the stock’s price exploded out of the price squeeze and due to the increase in implied volatility and delta…the price on the option was moving dollar for dollar with the price of the stock. Pretty soon the option was up 2000% in just short of 6-months for nearly a $12K gain on the original $600 investment.

This is what is possible when you understand how these super-cycles start and have the capacity to make price projections based on BMI and Vector.

Listen, this is not to brag; it is to show you the potential of being able to read charts like the back of your hand. It’s a skill that often takes many years to master, but I can help speed up your learning curve tremendously. I am reminded of a time a few years ago when five of the top ten performing stocks on that day were stocks I had told my trading partner a few days prior that were primed to pop bigly. Out of 8500 charts I had gone through in the prior week, what are the odds of that happening without some serious chart reading skills? Negligible, I would say. This is what is possible when you understand how to read charts using simple price action clues based on momentum and time-based trendlines.

If you like many other people, have waited until later in life to begin building a retirement nest egg, our unique and proprietary trading strategies can help you close the gap sometimes quickly! Despite being an early real estate investor, I came out of a decade-plus being very involved with a monastery and living somewhat of an ascetic life, with a significant gap between my retirement goals and my retirement reality.

This encouraged me to add a few more tools to my financial tool belt, and thus my involvement with the equities and futures markets has now spanned nearly three decades.

Let me lay out the foundation as to how and why our club is different. Nobody else out there is teaching these cycles because they were developed in-house nearly two decades ago. My vision for the trading club is to train a legion of traders across several disciplines and make this technical analysis tool as popular as some of the better-known ones out there. This is not hyperbole when I say that I use TSS Cycles and Lemal Lines more than any other indicator. They help me 'get out of the weeds' and see the 'Big Picture' price action that often drives stock trends.

I hope to be able to entice more loyal and talented members 'with good game' to become integrally involved inside of the club by learning the trading system and then helping us find trades to feed to other members. Again, I don’t want this to be a 'top-heavy' trading club that consumes the lives of those at the top.

That makes it more sustainable in the long run as we tick off some of our bucket-list travels and may occasionally have limited time and internet connectivity.

You might be wondering why we would spend so much time on this rather than solely trading, but it's a question we also ask ourselves as we consider the time and effort required to produce training and run the club. Obviously, our motivation for doing this goes beyond just making money (you can find more about my motivations in my bio on the 'About' page).

We could use the same time and capital to vastly increase our individual trading capacity. I'm hoping that creating a highly functional trading club with many high-caliber traders will ultimately be a net positive for everyone. Here's one example.

One particular trade strategy uses my momentum and stock cycle timing tools at 'price zones' (specific psychological price points i.e., $5, $10, $25, $50, etc.) where a stock’s price approaches these zones in 3-ways: dropping down from above, rising up from below, or leisurely retesting the price zone from several months back in a sideways/ downward movement. Monitoring dozens of these price zones with stocks approaching at three angles looking for optimal entry zones requires many eyes. However, the reward is a multitude of great trades being served on a regular basis.

It is virtually impossible for one person to efficiently do this without missing out on regular 10-bagger trades like META’s call options in the past few days which were propelled off one of these price zones during an earnings release.

For traders who join and make themselves valuable through research and other contributions, their involvement here may not cost them anything. My goal for this club has been to create a synergistic community of traders who strive to make the club the best it can be, essentially 'Traders Helping Traders.' While I have made the trading game easier to understand and trade, I am by no means a guru. Like you, I am constantly looking to learn and improve my own trading. 

I believe I have made significant progress in simplifying the trading game, making it easier to understand and execute trades. Like you, I am constantly seeking opportunities to learn and improve my own trading skills.

So, if you have any ideas or suggestions that could enhance what we are currently doing or improve the structure of the trading club to make it more efficient and member-friendly, please don't hesitate to share them with us! We welcome and appreciate anything that contributes to helping our members quickly grasp the concepts or aids in developing systems to track and prioritize the multitude of stocks that emerge as top contenders in our trading ponds."

Since we are capitalists, we are not doing this for free, but it is not mine or Daryl's sole motive for doing this. My trading partner Daryl is well into his 60's, and I have just crossed that threshold. Daryl has battled cancer, and his wife recently passed away, and I have had my own health issues. Many of my health challenges began in my 20's, and I consider the fact that I have recently reached 60 and am still on this side of the ground to be a testament to the health and lifestyle choices I have made over the years despite my prior health challenges. 

So, again, we both realize that the clock is ticking, and we both have some life goals and bucket lists that we want to fulfill. For me, one of the things I would like to get out there is the discovery I made of TSS Cycles. It is an elegant, holistic, and cut-through-the-BS approach to price trend analysis that, in my humble opinion, is much easier to read than Fibonacci cycles, Elliot Waves, Gann Cycles, or most any other exotic technical analysis tool you will encounter.

Would you rather use charts like these: 

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RETA - Reata Parmaceuticals, Inc.

Or these: 

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ABT Abbot Laboratories

This one gives me a headache :( 

Simplicity is often best. Just waiting until the correct cycle line appears based on what a momentum stock has done in the earlier stage of a super-cycle, can allow you to catch quick resolution “meat-of-the-move” trades over and over.

But it’s not all about charts.

Due to considerable prodding from my crew about creating more content on my trading style, I realized that if I were going to get this new info out there, I would need to add more writing to the mix. Yes, although I enjoy studying stock charts and look at hundreds per day, if that were all I was writing about, I would quickly become bored, and frankly, so would you.

Besides trading, I enjoy reading and researching lots of great information…HACKING LIFE in other words.

The same intensity I put into researching health and healing back in my 20’s when I recovered from illness is the same intensity I put into about anything I study. I will read a hundred books on a subject to master something if it truly interests me. The 'outside the box' strategies I used to regain my health were a result of hundreds, if not thousands, of hours researching (and trying myself) various natural and alternative health modalities.

Having developed what some might consider a pretty fragile constitution due to my prior health issues, I became acutely aware of the effects of diet and lifestyle on my health. As both a consumer of natural health and later as the Director of an Integrative Healthcare Association, I have some expertise in that area and hope to be able to share some of that information soon.

Look for more blogs in the future on not only health but also personal growth and self-development, and even politics and technology, which I consume voraciously.

Remember, I developed this style of trading to simplify trading. Learning what you learn here, you can take it into any market and trade it successfully once you understand how the cycles work and influence every facet of our existence.

Stay tuned for more insights on trading, health, and life! 

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Paul Lemal
Big Kahuna Trading Club

PS: For those techies of you out there, if you have experience-knowledge-contacts or resources in the development of “Virtual Trading Rooms” and would like to help in that area please contact me at:  paul[AT]BigKahunaTradingClub.com 

(FAQ's) Frequently asked questions: 

  • Q: Why do you call your members area the Big Kahuna Trading “Lab":
  • A: I discovered some time ago that learning how to fish was much more productive than blindly following others’ trade picks. This was during a period in my own trading evolution when I was having spotty trading results and ventured out into the trading marketplace and discovered that even if a particular trading service had a good reputation for stock picks, unless the reasoning behind the picks was adequately explained then it was unproductive since I could not ‘read’ the intentions of the trader or the true potential for the trade.
  • System developers obviously have a lot more time spent understanding their own system and are naturally going to have an edge over someone who dabbles in it. In a Trading Lab environment, we attempt to instill that edge in the trader so they can be proficient on their own.
  • In this kind of environment, traders cooperate to improve the system, which benefits everyone.
  • This reduces the likelihood of forcing trades to demonstrate our ability to find trades, especially in an environment that may not be conducive to trading. For example, during some periods of the last year in the market, trading both long and short was treacherous due to daily news 'land mines' driven by a poor macro-economic environment.
  • Taking this approach, we focus on the strategies that are working best now-whether it’s shorter-term swing trading or even day trading stock index options. We adapt our strategies to current market conditions.
  • Trading can be a solitary and uncertain pursuit. Being in a supportive environment where you can learn from others, bounce ideas off of and get feedback on them, you have a much stronger potential for growing as a trader.

    Q: What kind of results can I expect

    A: That depends on the calendar and general market conditions. Even in a bear market, due to the number of stocks on the exchanges there are always good breakouts happening somewhere. But the market does move in cycles and some parts of the calendar are more productive than others. For example, it might look something like this:

    January 10-February 23 Bearish or Lethargic price action
    February 23-May 10-Strong Bullish action
    May 10-May 25 Choppy Sideways Price Action
    May 25-July 13-Bearish Trend
    July 13-September 20-Bull Trend
    September 20-November 3-Bearish Trend
    November 10-Jan 10-Good Bullish Momentum

    This is an estimation of general bull and bear cycles based on years of trading the markets. I’m sure that with an AI program you can scan 60-years of price action and find these cycles on average may be off a week or two here or there, but this is more to demonstrate that sometimes you sow, sometimes you reap!

    Overtrading in the wrong direction, in the wrong parts of the calendar can be costly.

    Since the Big Kahuna Style of trading is generally a relaxed form of swing trading, the slower periods of the annual trading calendar we may spend building watchlists (we call them trading ponds) and monitor the stock cycles unfolding and make projections based on these cycles when to watch the stocks closer.

    The slower periods can sometimes last for a month or two. That’s ok. Our sniper approach to the market is designed to “give you a life” and not have you chained to the computer (that is, unless of course you want to be 😉)

    In the new market environment driven by elevated inflation, a higher prime lending rate and a mediocre GDP, it requires being even pickier about the stocks we trade. Whereas a strong bullish market environment may consistently allow for extended 6-8+ week trends, a choppy or bear market might mean shortening our time frames to 2-3 weeks.

    It might even require lowering the time frames on trade entries from the daily charts down to 2-hour charts. Still, it is very manageable when done correctly and this might mean “a little less relaxed form of swing trading.” With trading, it is a necessity to constantly adapt to the markets.

    Q: I recall that you mentioned a trade entry tool called “The Chute” in one of your online videos. Could you explain what it is and how it is used?  

    A: Sure, the Chute is a tool we recently developed for making precise entries in consolidation zones. It combines two versions of a commonly known indicator, along with TSS Cycles and price action analysis, to identify entry points for new legs of a trade. We can often enter these trades within one percent of their consolidation lows. 

    Q: Ok, so why isn’t this club free? If it’s such a great trading system, why do you charge for it? Do you need the money?

    A:
    That’s a bit of a silly question. This is a business and running a business costs money. If you’re worried about the relatively small investment required to join the club (which is considerably less than what we’ve charged in the past to make it more accessible to beginning traders), then you have bigger problems than trading capital to worry about. Defeatist or victim attitudes will not get you very far in the trading world. 

    Q: What’s so different about the club that I couldn’t just find with the thousands of other clubs online and in Discord?

    A: Big Kahuna is a different kind of trading club. While sharing stock setups is an aspect of the club, the primary focus is on learning how to test strategies, finding the best possible setups, and sharing them with other traders in the club. We do not want to create a top-heavy club where traders are not motivated to learn the system. Our goal is to teach you how to fish so that you are not reliant on others-in other words 'Becoming Your Own Trading Guru.'

    Frankly, if you’ve spent any time trolling around the web for stock clubs and stock picks you’ll discover a lot of 'dissatisfaction' with stock services. This is in large part due to the fact that the person who is posting a trade can often beat you to the punch by five minutes or more before it filters down to other members. If you’re trading options, that could mean paying 10%, 15%, 25% or more for your option than the trader posting a trade.

    Wouldn’t you rather have a head start on the whole process by seeing the setups form at the same time as others? Cycle based setups can form over weeks, if not months, giving you plenty of opportunity to scale into a trade...This is what we are known for at the Big Kahuna Trading Club-finding these under the radar cycle-based market gems…Come and see for yourself!

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