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- My bread-and-butter trade šš§
My bread-and-butter trade šš§
I make this the foundation of everything
Buying options can be exciting and get your pulse racing.
There is no doubt that having the ability to make (or lose) lots of money, really fast can be exciting.
But at the end of the day, for nearly all traders, it is simply gambling. š²
Now, I like to gamble as much as anyone, but when it comes to my personal trading, I take it very seriously. I want to use techniques that give me an edge in the market, and not feel like I am gambling on every trade I make.
One of the easiest edges you can get in trading is by selling options.
I wanted to walk you through a trade that I set up with my Alpha Hunter members today, where I teach thousands of people how to harness the power of option selling.
This is a trade that Iām pretty proud of.
I am not proud of it just because I made money on it, but I am really pleased with how I was patient and let the market was going to do.
I am not normally a day trader, but in this market, it has been working very well for me, so I am going to keep it up.
If you look at the chart, youāll see that SPY gapped up higher this morning, and then it started to drop shortly after the market opened.
I was very confident that we would see the dip get bought, so I wanted to sell puts to āsuckersā who wanted to bet things were going lower.
A few times, I wanted to jump ahead of things and get this trade on too early because I was so confident, but by waiting for my technical indicators to flash the ideal time to make the trade, I nailed the timing on this one.
As soon as I saw the setup I was looking for, I acted quickly, by sending out an alert to my memberās phones with my plan, as you can clearly see in the screenshot I grabbed from my phone (lower alert).
Then, I sent another alert out that the profit trigger was hit (upper alert). What a great trade to start the day!
Losses happen and are learning opportunities. Donāt expect to replicate.
In trading, timing is everything.
If I was too early, I might have stopped out for a loss. If I was too late, I would have missed the idea entry I wanted. In either case, I would have missed out on the opportunity for that profit.
I was talking about this with members in the Market Masters trading room today.
By the way, if you donāt have access yet, you can join us in this live trading room for a great monthly price right now. (Make sure you use the code: CHEERS.)
Oh, and that trade put $1500 of profit in my pocket in under 26 minutes!
Yeah, a 45% return in less time than it took me to drink a cup of coffee!
Of course, all trades donāt work out this perfectly, but I have dialed this system in pretty good now.
I wanted to share with you how I used a bracketed entry for this.
After I opened the trade, I was finally ready to go have some breakfast (I know it was 11am, but had a busy morning!)
But, I have a rule that I donāt leave a day trade unmonitored.
Things are too wild during the day, and just stepping away for a few minutes can lead to a big loss if Iām not careful.
When I want to set up a stop loss for a trade, but also grab a profit on it, then I use what is called a ābracketed trade.ā
With this type of trade, the system will automatically trigger my order for whatever happens first.
I took a screenshot of the trade I just made as an example for you of how that works.
You can see that I set up either a 45% stop loss or a 45% profit. (fortunately, the profit side hit!)
By doing this, I am pairing what I already know is a high-probability type of trade with what I think is a high-probability technical setup.
I have been winning more than 70% of the time on these trades if you look at my trading journal.
This means that if I set both my stop loss and profit targets to the same amount, then the math says I should make money over time ā and thatās exactly what I can do using a bracket order.
That is why I am so eager to set these trades up often!
Iād love for you to learn how to make these types of trades, too.
I know it can be scary to get started on something new, so I am offering an unusual guarantee on my Alpha Hunter program right now.
It is a guarantee I have never made before, and I am only allowing 50 people to get access to it.
Iām not going to spill the beans here, though. Youāll have to click the link and see what this surprise is for yourself!
If you want to join me on my trading journey and see how I am going after my goal of making $10,000 each and every month, there has never been a better time.
I promise you will become a better trader if you put the lessons I teach you to work.
In fact, I even want you to copy every single trade I make in a paper trading account of your own, so you can really learn the nuts and bolts of how this works.
Youāll be blown away once you start doing this on your own!
P.S. If you want a link to my online trading journal and see all of the Alpha Hunter trades, just contact Jeff Brown @ 800-585-4488 or email [email protected]. He can also answer any questions, help with payment plans, or assist with applying any existing credits you may have on your account.
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