VIDEO: How Real Traders Actually Make Money in 2026
Core Trading Strategies for 2026
The video “How Real Traders Actually Make Money in 2026 | Trading Titans 8 w/ Tom King & Uncle Tony” features a deep-dive conversation between two experienced traders, Tom and the host, discussing their current market strategies, personal updates, and philosophies on wealth building.
1. Core Trading Strategies for 2026
Tom King outlines his primary trading mechanics, focusing on capital efficiency and risk management:
Dynamic Poor Man’s Covered Call: Instead of buying deep in-the-money calls, Tom utilizes a synthetic stock position (buying a call and selling a put at the same strike) one year out. He sells weekly covered calls against this, aiming for approximately 1% extrinsic value per week [04:12].
The 112 Trade (and 113 Variations): This remains a core strategy, though Tom has modified it to a 113 ratio to reduce Vega risk and account for a more “neutral to bearish” market outlook [23:00].
Market Regime Trading: He adjusts his trade sizing and direction based on the “regime” (bullish, neutral, or bearish), determined by the 8 and 21 EMAs and RSI on daily charts [51:55].
2. Portfolio Management and “The Two Buckets”
The discussion emphasizes a clear distinction between active trading and long-term investing:
Investing vs. Trading: Tom advocates for a “two-bucket” approach, typically putting 70% of wealth into long-term investments and 30% into active trading [54:10].
Asset Conversion: They discuss the strategy of taking trading profits (e.g., $500 from a trade) and immediately converting them into “hard” assets like SPY, GLD (Gold), or Bitcoin [53:20].
The “He Who Dies with the Most SPY Wins” Philosophy: A recurring theme is the goal of consistently accumulating SPY to grow long-term wealth regardless of short-term trading fluctuations [55:18].
3. Market Outlook and Risk
Bearish/Neutral Lean: Tom expresses a cautious view of the current S&P 500 market, moving his “traps” closer to at-the-money to capture profit in a sideways or slightly down market [31:35].
Commodities: He discusses the difficulty of trading Gold and Silver futures due to high margin requirements, often opting for ETFs like GLD or SLV instead [44:36].
Oil and Geopolitics: Tom mentions a long position in Oil (CL Futures), betting on continued geopolitical tensions [42:34].
4. Personal Updates and Advice
Lifestyle Changes: The host shares that he has recently exited the golf business after 40 years to focus on new projects and trading, while his pickleball game is improving [00:34].
The Importance of a Trade Plan: Tom stresses that a written trade plan is the only way to remove emotion from the process, which is the primary “killer” of traders [49:52].
Education: Tom manages Income Navigator, where he focuses on teaching traders how to be dynamic and adjust their deltas rather than just blindly following alerts [49:24].
Video Link: How Real Traders Actually Make Money in 2026