Insane ROI: How To Trade Stock Options

In this lesson we cover everything we will go over in Module 1:

• Recommended Broker

• Option Basics

• Definitions and Terminology

• What Is An Options Contract

• What Are Strike Prices

• Selecting Your Expiration

• Determining Contract Value

• Exercise vs Assignment

• Chart Reading

• What Are The Greeks

Best Online Stock Brokers:

Picking the right broker is essential if you want to be successful in the stock market. The broker that you choose has a big impact on your trading moving forward. We've assembled the best brokers and all of the information you should know to help you choose the best broker for you.

TD Ameritrade

TD Ameritrade stands out from other brokers for many reasons. Ever since they were founded in 1971, they have been offering plenty of tools, useful products and research to help brokers do their best. They offer mutual fund screeners, lists of stock, stock analysis and so much more. Choosing a broker with the top tools and newest products is always a good idea and you can benefit from it a lot. With TD Ameritrade, you can trade commission-free and you won't have to pay a fee per trade. They don't have a minimum deposit requirement, which is very useful for beginners. TD Ameritrade has a very good app that investors rate really highly. The app allows you to trade, invest in funds and stream data from your phone! Furthermore, their customer support is outstanding. TD Ameritrade is a great broker for both beginners and experienced traders.

They do still have a fee that you should know about; The paper statement fee. If your account's value is lower than $10 000, you'll be charged $2 per paper statement.

To give an overview of what we mentioned:

The pros;

Useful app

No minimum deposit requirement and no fee per trade

Useful tools and information available

Great customer support

The cons:

The paper statement fee

*Thinkorswim

Thinkorswim is owned by TD Ameritrade and offers a lot of the same benefits. This platform has the best resources and tools that'll help you make better choices during trades and investments. One of their best tools is paperMoney. When you make a paperMoney virtual account, you can test all of your strategies and tricks without risking any real money. You can test out situations with 1000 000 virtual dollars and under to be more prepared for the real deal. Thinkorswim will allow you to evaluate your ideas and stay on top of the markets and that is extremely important in the stock market. Staying educated is great for any trader, not just rookies. Thinkorswim has a big learning center with guides, features and live lessons. All of these features make this an amazing platform for beginners.

TradeStation

TradeStation is generally focused on active and experienced traders so if you have been trading for a while, they might be the right broker for you. Recently they have been trying to appeal to active traders and are now offering $0 trades. This broker has plenty of data and tools to help you out and all of their trading platforms are high quality.

They have no account minimum but the thing is, in order to use TS Select, you need a $2,000 minimum account balance. In order to trade for free on their more advanced platforms, TS Select is required so really you can't use the best with an account that has less than $2,000 on it. TS also has a lot of fees that users have to pay. They have annual account fees, inactivity fees, $125 outgoing account transfer fee and more.

Here are the pros and cons:

The pros;

Great tools and advanced data and research

Professional level trading platform

Great if you are experienced and an active trader

The cons;

You'll need TS Selects to have access to the best platforms

The pricing and the plans are known to get pretty confusing

Lots of fees

E*TRADE

E*trade is another popular broker that offers tools and useful market data. Just like all of the other brokers we mentioned, E*Trade has no account minimum and a $0 fee per trade. They've got a great mobile app with great features and their customer service is impressive. This platform is recommended for beginner investors as well as for the more experienced traders.

However, there is one thing about E*Trade that traders don't enjoy. The website is hard to navigate at times their website transparency isn't the best one out there. It isn't very easy to find some important information and that can leave many customers confused or with unanswered questions. Plus, E*Trade has fees such as the $75 transfer out fee.

The takeaway is this:

The pros:

Great app

Useful tools and educational resources

Helpful customer service 24/7

The cons:

The website isn't the easiest to navigate and it can be difficult to find key information

The multiple fees

Which Broker is The Best?

TradeStation and E-Trade are popular brokers that also have plenty of good things to offer, but the top broker that we recommend is TD Ameritrade. They have less fees and great educational tools and platforms. They are a great broker for any level trader and don't have too many fees that you would need to worry about.

Brokers That Would Help You Get Around The PDT Rule

For those wishing to get around the dreaded PDT Rule, CMEG and TradeZero are great brokers. TradeZero is based out of the Bahamas and CMEG is based out of Trinidad and Tobago so the PDT Rule doesn't apply to them. Both of these offshore brokers are known for being the top brokers that aren't located in the U.S. However there are always risks when setting up an account with offshore brokers. Beware of these risks and stay informed on what you're signing up for. The minimum to open an account with TradeZero and CMEG is $500 but both offer resources and tools that you'll definitely benefit from. These two brokers do have plenty of fees that you'll need to pay, but paying the fees might be worth it since you get to avoid the PDT rule.

To Conclude

We believe that the best broker for rookies and invested traders is TD Ameritrade, but if you're looking to escape the PDT rule you can give CMEG or TradeZero a try. At the end of the day, it all depends on what you value more and what fits your strategy. All brokers have pros and cons and hopefully, you can understand the advantages and disadvantages of opening an account with each one of these brokers better with the information that we provided in this article.

Options basically are contracts to buy or sell 100 share blocks of an underlying stock.

An option contract allows one the right (but not the obligation) to buy or sell 100 shares of a particular stock at a defined price by a defined date

A Call Option gives you the right to buy a 100 share block of a specified stock by a specified date.

A Put Option give you the right to sell a 100 share block of a specified stock by a specified date.

If you are struggling with this concept. Think about it like a normal contract. The most common example is the contract to purchase a home.

So let’s say you found a beautiful 3 bedroom home and went to the seller and offered him $2,000 dollars for an option to buy the house for $300,000 dollars within 90 days. They agree and the option is transferable.

Now let’s say after 30 days you have changed your mind, but the home has increased in market value to $315,000 in order to try and recoup some of your money you find a buyer willing to pay you for the option and buy it for $5,000 dollars.

Now you just made $3,000 dollars, and controlled a $300,000 dollar home for 90 days with only $2,000 dollars.

You never owned the home, but you did profit by just buying and selling the contract. Options much like this.

If traded properly options are safer and much more profitable than trading stocks. Let me give you an example.

Let's say you purchased 1000 shares of Apple and for the sake of the example it is trading around 85 dollars

$85.00 X 1000 shares = $85,000 dollars

This is the money you have put at risk if the stock went to 0 you would lose all of that money, however, if you are using Blake's stop loss method you should only be risking approximately 1.5%.

$85,000 dollars X 1.5% = $1,275

So $1,275 dollars is your total risk.

Now with options, you would only need to buy 10 option contracts to control the same 1000 shares because remember 1 option contract give you the right to buy 100 shares and for the sake of this example the option is worth 2 dollars.

$2.00 dollar contract X 100 shares X 10 contracts = $2000 dollars

With our options, we use roughly a 50% stop so your total risk is $1,000 dollars.

Now let's say Apple (APPL) has gone up 2 dollars or 2 points from $85.00 to $87.00 dollars a share.

With your 1000 shares, your total investment required is 85,000 goes to 87,000 for a profit of $2,000.00 dollars. And your total risk being $1,275 dollars where you put your stop loss. That is approximately a 2.35% return on investment (ROI).

With your 10 options, your total investment required is $2,000 dollars and with the same $2 dollar/point move on APPL your options are now worth 4.00 dollars making your profit of $2,000.00 dollars. And your total risk being around $1,000.00 dollars, where you put your stop loss. That is a 100% return on investment (ROI).

Leverage

With a much smaller amount of money, you can control a large amount of stock. And get incredible returns with small investments.

Risk

If traded correctly and with the adjustment strategies I am going to show you options can put the probabilities in your favor and a much better control over your risk.

Investopedia is your Friend.

https://www.investopedia.com/financial-term-dictionary-4769738

Options - options are financial instruments that are derivatives based on the value of underlying securities such as stocks. An options contract offers the buyer the opportunity to buy or sell—depending on the type of contract they hold—the underlying asset. Unlike futures, the holder is not required to buy or sell the asset if they choose not to.

The October, 2020 AAPL $315 call option is identified as “.AAPL201016C315”

.AAPL201016C315 AAPL refers to the underlying stock, AAPL

.AAPL201016C315 20 refers to the year, 2020

.AAPL201016C315 10 refers to the month, October

.AAPL201016C315 16 refers to the day the option expires for the month on that Friday.

.AAPL201016C315 C refers to a Call option. (For a Put option it would be a P)

.AAPL201016C315 315 refers to the strike price of the option

Calls - a.k.a. “call option” or “call contract” is a contract giving one the right (not the obligation) to buy 100 share blocks of an underlying stock at a specific price by a specific date. In calls, think of “going long.” You buy calls when you believe the underlying stock will go up. By the way, you don’t have to sign this contract or even see a contract.

Puts - a.k.a. “put contracts” or “put options” is a contract giving one the right (not the obligation) to sell 100 shares of the underlying stock at a specific price by a specific time. When thinking of puts, think of “going short.” You buy puts when you believe the underlying stock will go down.

Here we cover the importance of having a watchlist, we also break down how to quickly gauge the markets starting from the Dow Jones Industrial Average weighted approximately 70% to the S&P 500 weighted approximately 20% and the Nasdaq weighted approximately 10%.

We also cover using the future symbols /YM for the Dow Jones and /ES for the S&P 500 to figure out where things will open and keep an eye on the market after and pre hours.

Another point we make in this lesson is the $TICK to gauge where the market is trending this symbol is some our secret sauce it allows us to see when a position might turn we put lines at 0, -500, and +500 to see if the market is trending up, or trending down, or sideways, this symbol will help you with your entries and exits, for example if you are in a trade long buying calls and the $TICK is above 500 the market is moving up if it gets over 1000 it might be a good time to sell because if it pulls too high it indicates the market may be turning around and there will be a pull back. We recommend you use the 5 minute time frame when using the $TICK.

Lastly, I show you the Chicago Board Options Exchange (CBOE) where you can find a list of stocks that have weekly options. The link is below:

http://markets.cboe.com/us/options/symboldir/equity_index_options/

http://markets.cboe.com/us/options/symboldir/weeklys_options/

Included below is a link to our Think or Swim Watchlist for those using TD Ameritrade and we have also included the list on a Google Doc for those who would like a copy and are not using TD Ameritrade.

Bid - A bid is an offer made by an investor, trader, or dealer in an effort to buy a security, commodity, or currency. A bid stipulates the price the potential buyer is willing to pay, as well as the quantity he or she will purchase, for that proposed price.

Ask - The ask is the price a seller is willing to accept for a security, which is often referred to as the offer price. Along with the price, the ask quote might also stipulate the amount of the security available to be sold at the stated price. The ask will always be higher than the bid.

Bid/Ask Spread - A bid-ask spread is the amount by which the ask price exceeds the bid price for an asset in the market. The bid-ask spread is essentially the difference between the highest price that a buyer is willing to pay for an asset and the lowest price that a seller is willing to accept.

Last Price - The term last price is used to describe the most recently reported trading price for an equity or a futures contract.

Strike Price - The price at which the option allows one to buy (in the case of a call) the stock. For example, a June 310 Call on AAPL allows the contract holder to buy 100 shares of AAPL by the third Friday of June at $310 per share.

At the Money Option - An option with a strike price that’s the same as the current price of the stock (note that some traders refer to “one­out­of­the­money” or “one­in­themoney” options as “at the money.” An “at the money” option may appreciate more closely as the stock rises, as compared to options that are further “out of the money” option .

Out of the Money - An option with a strike price that’s more than the current price of the stock. If a stock is trading at $307, a “June $310 Call” would be an “out of the money call” option.

In the Money - An option with a strike price that’s less than the current price of the stock. If a stock is trading at $307, a “June $300 Call” would be an “in the money call” option. An “in the money” option may appreciate more closely as the stock rises, as compared to calls that are “out of the money.”

Premium - the cost of the option, or what a trader pays for the option.

Market Order - A market order is a request by an investor – usually made through a broker or brokerage service – to buy or sell a security at the best available price in the current market. Beware because this will be put in at on the Ask. For Options when the spreads are large this is not what you want to be doing. WARNING

Limit Order - A limit order is a type of order to purchase or sell a security at a specified price or better. For buy limit orders, the order will be executed only at the limit price or a lower one, while for sell limit orders, the order will be executed only at the limit price or a higher one.

Buy to Open - "Buy to open" is a term used by brokerages to represent the establishment of a new (opening) long call or put position in options.

Sell to Close - Sell to close is an options trading order that is used to exit a trade in which the trader already owns the options contract and must sell the contract to close the position.

Sell to Open - Sell to open is a phrase used by many brokerages to represent the opening of a short position in an option transaction.

Buy to Close - 'Buy to close' refers to terminology that traders, primarily option traders, use to exit an existing short position.

Here We Will Cover How To Execute Orders On Thinkorswim.

Options are priced with formulas called the Greeks. These aren’t necessary to fully understand and trade options but it is important you are familiar with them as they will help you with your trade/risk management. So I will cover some of the most important ones to keep in mind.

Delta (Δ)

Delta represents the rate of change between the option's price and a $1 change in the underlying asset's price. The delta has a range between 0 and 1 for a call option, and 0 and -1 for a put option. This is probably the most important as it relates to buying calls and puts, because this determines our money. (Recommendation a .70 delta, I have found to be the sweet spot and is generally what I look for when buying options). When selling/shorting options I look for something else, but that is in my credit spreads course. For example at a .70 delta you purchase a call of AAPL for 1.00 so you spend/risk 100 bucks. If the price of AAPL goes up $1 dollar your option will go up to roughly 1.70 making it worth 170 dollars representing a 70% ROI. We also use delta for an adjustment strategy called delta neutral hedging I will teach you in a later module, it is also sometimes used to determine a probability that the option will expire in the money.

Gamma (Γ)

Gamma represents the rate of change between an option's delta and the underlying asset's price. This measure the price sensitivity. Gamma indicates the amount the delta would change given a $1 move in the underlying security.

So if the gamma was .10 and a delta is at .50 if the stock went up $1 the delta would increase to .60, and if the stock went down $1 your delta would be .40.

Gamma is used to determine how stable an option's delta is: higher gamma values indicate that delta could change dramatically in response to even small movements in the underlying price.Gamma is higher for options that are at-the-money and lower for options that are in- and out-of-the-money, and accelerates in magnitude as expiration approaches.

Gamma values are generally smaller the further away from the date of expiration; options with longer expirations are less sensitive to delta changes. As expiration approaches, gamma values are typically larger, as price changes have more impact on gamma.

Vega

Vega represents the rate of change between an option's value and the underlying asset's implied volatility. This is the option's sensitivity to volatility.

Vega indicates the amount an option's price changes given a 1% change in implied volatility.
For example, an option with a Vega of 0.10 indicates the option's value is expected to change by 10 cents if the implied volatility changes by 1%.

Because increased volatility implies that the underlying instrument is more likely to experience extreme values, a rise in volatility will correspondingly increase the value of an option. Conversely, a decrease in volatility will negatively affect the value of the option. Vega is at its maximum for at-the-money options that have longer times until expiration.

This is something to consider in times of great volatility (earnings, market collapses, times of great fear in the market, we gauge this with VIX which helps us measure volatility in the market. When volatility is high you want to sell options not buy check out my credit spread course to learn more about selling options.

There are more minor Greeks and rho if you are interested you can look them up but they are highly derivative and would serve more to confuse you than help. Trust me we covered the important ones.

Indicators

Indicators are heuristic or pattern-based signals produced by the price, volume, and/or open interest of a security or contract used by traders who follow technical analysis. By analyzing historical data, technical analysts use indicators to predict future price movements. Before we get into it let me show you how to add these indicators .

Moving Average* - this is a lagging indicator, because it is based on past prices. It is just to identify trends and supports and resistances. They are used to help create another indicator we use often the MACD or moving average convergence and divergence.

Moving Average Convergence and Divergence (MACD) - Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA.

Volume - Volume is the amount of an asset or security that changes hands over some period of time, often over the course of a day. For instance, stock trading volume would refer to the number of shares of a security traded between its daily open and close. Trading volume, and changes to volume over the course of time, are important inputs for technical traders.

Volume Average* - is the average number of shares traded within a certain time frame of a given stock.

Relative Strength Index (RSI)** - is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. It is displayed as an oscillator which is a fancy for a line that moves between two extremes from 0 to 100. The way we use RSI is when it is over 70 it generally tells us a security is overbought or is overvalued and when it is under 30 or below it indicates an oversold or is undervalued.

Bollinger Bands - John Bollinger in the 1980s developed this technique of using an exponential moving average with two trading bands above and below by adding and subtracting the standard deviation. The bands expand and contract as the price action of an underlying security becomes more volatile (expansion) and becomes tighter as the price action becomes more bound to a smaller range (contraction).

Keltner’s Channels - a volatility based technical indicator composed of three separate lines. The middle line is an exponential moving average of the price. Additional lines are placed above and below the exponential moving average. The upper band is typically set two times the average true range above the exponential moving average, and lower band is typically set two times the average true range below the exponential moving average.

TTM Squeeze* - this is meant to identify periods of consolidation using three different indicators, bollinger bands, keltner channels, and momentum.

The Squeeze indicator measures the relationship between two studies: Bollinger Bands and Keltner's Channels. When the volatility increases, so does the distance between the bands, conversely, when the volatility declines, the distance also decreases.

The Squeeze indicator finds sections of the Bollinger Bands® study which fall inside the Keltner's Channels. When the market finishes a move, the indicator turns off, which corresponds to bands having pushed well outside the range of Keltner's Channels.

To produce Buy/Sell signals, the Squeeze indicator is plotted along with Momentum Oscillator. The Momentum Oscillator histogram is smoothed up with linear regression and other techniques. When the indicator is on (green) and the Momentum Oscillator is colored cyan, it is considered a Buy signal (this signal is supposed to be correct until two blue bars in a row). When the indicator is on and the Momentum Oscillator is red, it is considered a Sell signal (this signal is supposed to be correct until two yellow bars in a row). When the indicator is off (red), no trade is recommended.

Support and Resistance* - The concepts of trading level support and resistance are undoubtedly two of the most highly discussed attributes of technical analysis. Part of analyzing chart patterns, these terms are used by traders to refer to price levels on charts that tend to act as barriers, preventing the price of an asset from getting pushed in a certain direction. Think of the support as a floor, and the resistance like a roof.

Pivot Points - A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames. The pivot point itself is simply the average of the high, low and closing prices from the previous trading day. On the subsequent day, trading above the pivot point is thought to indicate ongoing bullish sentiment, while trading below the pivot point indicates bearish sentiment.

Probability Out of the Money - The probability of OTM shows the probability that an option will expire Out of The Money (or worthless).

Open Interest - Open interest is the total number of outstanding derivative contracts, such as options or futures that have not been settled for an asset. The total open interest does not count, and total every buy and sell contract. Instead, open interest provides a more accurate picture of the options trading activity, and whether money flows into the futures and options market are increasing or decreasing.

Liquidity - Liquidity refers to the ease with which an asset, or security, can be converted into ready cash without affecting its market price.

Williams %R - Williams %R, also known as the Williams Percent Range, is a type of momentum indicator that moves between 0 and -100 and measures overbought and oversold levels. The Williams %R may be used to find entry and exit points in the market. The indicator is very similar to the Stochastic oscillator and is used in the same way.

Exercise - exercise means to put into effect the right to buy or sell the underlying financial instrument specified in an options contract. In options trading, the holder of an option has the right, but not the obligation, to buy or sell the option's underlying security at a specified price on or before a specified date in the future.

3 Reason to Never Exercise an Option

1. Time Value2. Increased Risk3. Higher Margin Exposure

Assignment - the dreaded assignment, occurs when an option contract is assigned, the option writer has an obligation to complete the requirements of the contract. But there are other types of business transactions known as an assignment. If we are buying long puts and calls, we will never be assigned.

The most common questions about assignment are:

1. What situations would cause me to get assigned stock? If you sell options.
2. What can I do to prevent being assigned stock? Close or roll the trade before expiration.
3. And…If I am assigned, what should I do? If $$$ you will get shares or short shares to hold for a profit or loss, if no money you will need to sell ASAP or the broker will do it for you by the end of the trading day for a profit or loss.

In this lesson we cover everything we will go over in Module 2:

• Evaluating Markets

• Trade Times

• Time Periods

• Analyzing Trends in the Market

• Market Bias

• Watching Call and Put Volume

• Using The Volatility to Measure Fear

• Sideways Market Effects

Dow Jones Industrial Average weighted approximately 70% of the market. The Ticker on Thinkorswim is $DJI (not the DJX like in the video)

S & P 500 weighted approximately 20% of the market. The Ticker we use to track on Thinkorswim is the ETF SPY

Nasdaq 100 weighted approximately 10% of the market. The Ticker we use to track on Thinkorswim is the ETF QQQ

Pay attention to the New York Stock Exchange $TICK for your intraday trading as well as your entries and exits.

Pre Hours - 4:00AM to 9:29AM EST

Regular Hours - 9:30AM to 4:00PM EST

Post Hours - 4:00PM to 8:00PM EST

9:30AM - 9:45AM - Market opens- Profit taking

9:45AM - 10:00AM - Look for “Pull backs or Reversals” ( Profit taking )

11:30AM - 2:00PM - Lunchtime Slow Trading Low Volume

2:00PM - 3:30PM - Stock Break out for the Afternoon

3:00PM - 4:00PM - Treasury bonds stop trading Profit taking starts. “Shorts” start covering their Trades.

4:00PM - The Market Closes Regular Hours

We have 4 types of Trends in the Market:

1. Uptrend - Everything is going Up

2. Downtrend - Everything is going Down

3. Sideways - Everything is going sideways

4. Market Train Wreck - Things are going up and down with not much of a discernible pattern.

A term that is used to reflect whether the majority of investors view the broader market as being in an uptrend (a bullish bias) or in a downtrend (a bearish bias). Technicians measure market bias with breadth-of-market indicators. Also called market sentiment.

We generally use these three things to measure market sentiment.

• The Commitment of Trader Report

• The VIX Volatility Index

• The Put/Call Ratio

In This Lesson We Will Cover How To See Put and Call Volume within Thinkorswim.

In This Lesson We Will Cover VIX and using it to measure Fear In The Market.

It is definitely something to add to the watchlist and keep an eye on while having any open positions in the market, as well as when looking to enter a position.

In a sideways market it is important to consider the following below:

Theta Decay

Selling vs. Buying Options using Covered Calls or Credit Spreads

Scalping

In this lesson we cover everything we will go over in Module 3:

• Exchanges and Tickers

• Market, Sectors, Industries, Stocks

• Learning The Sectors

• Identifying Strong Sectors

• Stock’s Life Cycle

An exchange is an organization, association or group which provides a marketplace where goods or services are traded or “exchanged.” Exchanges work a lot like auctions. When you agree on a price or meet the target price, you exchange your money and get the product. If you do not agree on the price, no exchange takes place.

The two United States stock exchanges are:

New York Stock Exchange (NYSE) - If the Ticker or symbol meant to identify a stock has 3 letters is traded on the NYSE. Example. MSO and IBM

National Association of Securities Dealers (Nasdaq) - If the Ticker or symbol meant to identify a stock has 4 letters is traded on the Nasdaq. AAPL and GOOG

The Market is divided into Sectors.

The Sectors are then divided into Industries.

In the Industries there are individual Stocks.

The Market is divided into 11 Sectors by grouping like businesses together. Here is a list of the Market Sectors in alphabetical order and with their ETF Tickers if you would like to add them to your watchlist or trade a sector as a whole.

1. Consumer Discretionary - XLY

2. Consumer Staples - XLP

3. Energy - XLE

4. Financials - XLF

5. Health Care - XLV

6. Industrials - XLI

7. Information Technology - XLK

8. Materials - XLB

9. Real Estate - XLRE

10. Telecommunication Services - XTL

11. Utilities - XLU

Finviz.com

FANGS -

Facebook, Amazon, Netflix, and Alphabet

There are 4 stages that a Stock will go through in general throughout its life cycle.

Embryonic - Where a company IPOs

Growth - Where the company will go up. Consider buying long by buying calls.

Maturity - Where the company has reached its market potential and generally will begin paying dividends. Consider trading covered calls at this stage on these types of companies.

Decline - Where the company is no longer able to serve its market because of technology, competition, or changing demand. Consider shorting these types of companies by buying puts.

In this lesson we cover everything we will go over in Module 4:

• Candlesticks Pattern Recognition

• 15 Major Candlestick Signals

• Bullish Candlestick Signals

• Bearish Candlestick Signals

• 22 Major Candlestick Patterns

• Setting Up Alerts For Your Favorite Patterns

• 3 Patterns We Recommend You Know

Candlestick patterns are a way of recognizing movements in price that help us to predict a market movement. We use these to put the probabilities of success in our favor when determining our trade entries and trade exits.

In this lesson we will cover chart time frames.

Generally I setup all my trades on a larger time frame (Daily or Weekly), then look for an entry on a shorter time frame (5 minute or 10 minute), and the best trades are where the same pattern forms on multiple time frames.

The shorter the time frame you can trade the greater potential to make money on the volatility (up and downward movements in price).

In this lesson we will cover how to setup the 10, 40, and 200 moving averages.

15 Major Signals

• The Doji

• The Kicker

• Bullish and Bearish Engulfing

• Hammer

• Bullish and Bearish Harami

• Shooting Star

• Cup and Handle

• Hanging Man

• Morning Star

• Evening Star

• Inverted Hammer

• Piercing Line

• Dark Cloud Cover

Study these patterns each day

Look for the patterns on the charts after they occur.

Soon you will be able to see them as they form.

Description

The Doji is always comprised of one candle. The Japanese say when a Doji occurs, one should always take notice. It is one of the most important Candlestick signals. The formation is created when the opening price and closing price are the same. This forms a horizontal line. The implication is that the bulls and the bears are in a state of indecision. It is an important alert at both the top and bottom of trends. At the top of a trend, the Doji signals a reversal without needing confirmation. The rule of thumb is that you should close a long or go short immediately.

However, the Doji occurring during the downtrend requires a bullish day to confirm the Doji day. The Japanese explanation is that the weight of the market can still force the trend downwards.

The Doji is an excellent example of the Candlestick method having superior attributes compared to the Western bar charting method. The deterioration of a trend is not going to be as apparent when viewing standard bar charts.

Criteria

1. The open and the close are the same or very near the same.

2. The length of the shadow should not be excessively long, especially when viewed at the end of a bullish trend.

Description

Explosive and powerful, the Bullish Kicker should not be overlooked. Most traders place it amongst the strongest and most influential candlestick patterns in existence, so when you spot it, be prepared for action! Although you would typically confirm the reversal by checking for more bullish movement (continued uptrend, white candles, a gap up), the Bullish Kicker candlestick pattern is a strong indicator of change on its own.

Criteria

1. The open of the current candlestick is opposite the last closed candlestick. If bullish kicker the open would be greater than previous open and vice versa if bearish kicker.

2. The wick of the current candlestick does not extend past the into the body of the previous candle stick.

Description

The engulfing candlestick patterns, bullish or bearish are one of the easiest of candlestick reversal patterns to identify. Because these candlestick patterns are two-candlestick patterns, they are more valid and are often looked upon as reversal patterns. As with any candlestick pattern, the bullish or bearish engulfing pattern takes more priority depending on the time frame that they are formed on.

Criteria

1. Bullish/Bearish Engulfing candlesticks take two candlesticks to be identified.

2. A bullish engulfing pattern is characterized by a bullish candle whose body, the open and close engulfs the previous candle’s body. A bearish engulfing pattern is characterized by a bearish candle whose body engulfs the previous candle’s body.

Description

The Hammer is composed of only one candlestick. The candlestick must have a short upper shadow or no shadow at all and have a wick underneath it. Color doesn’t matter as the Hammer pattern can be green or red.

Criteria

1. The top of the candlestick will have an extended shadow and flat top.

2. The length of the wick will be long and extend down past the body of the candlestick.

Description

The Harami candlestick pattern comes in two different varieties: bullish and bearish reversal patterns. Whether you're talking about a Bearish or a Bullish Harami, the pattern will contain two candles and the second will be smaller than the first .

Criteria

1. In a Bullish Harami, the higher the second candle closes up on the black candle, the more likely it is that a reversal will occur.

2. In a Bearish Harami, the lower the second candle closes down on the white candle, the more likely it is that a reversal will occur.

Description

The Shooting Star signals the end of an uptrend. With a long wick from the top to the body of the candlestick this pattern is the opposite of the hammer pattern. Keep in mind the longer the wick is to the upside the higher the potential for a reversal.

Criteria

1. The Shooting Star candlestick must occur after an uptrend.

2. The shadow of the candlestick must not have a wick at the bottom.

3. The wick must extend through the body to the top of the candlestick.

Description

The “cup and handle formation” is a bullish signal pointing to a continuation of the current trend. It may extend over several weeks or even months and contains specific attributes. As the shape of the cup is completed, expect the handle to emerge. The handle is a consolidation prior to the breakout occurring.

Criteria

1. The stock initially was bullish at the start.

2. The pattern of a cup was formed.

3. The handle is formed as the stock slowly decreases within a consolidation.

Description

The Hanging Man is also comprised of one candle. It is easily identified by the presence of a small body with a shadow at least two times greater than the body. It is found at the top of an up trend. The Japanese named this pattern because it looks like a head with the feet dangling down.

Criteria

1. The upper shadow should be at least two times the length of the body.

2. The real body is at the upper end of the trading range. The color of the body is not important although a black body should have slightly more bearish implications.

3. There should be no upper shadow or a very small upper shadow.

4. The following day needs to confirm the Hanging Man signal with a black candle or better yet, a gap down with a lower close.

Description

Have you ever wished upon a star? Hopefully that star was a Morning Star or Evening Star candlestick pattern. the Morning Star is a sign of good fortune. If you spot this bullish reversal signal, which is composed of three candles, you can expect stock prices to increase. The Evening Star is an omen that hints bad things are to come (i.e., low stock prices).

Morning Star Criteria

1. First, the stock must be in a downtrend before the signal occurs

2. Second, the candlestick will form what is similar to a doji pattern but will have a small body shadow near the top.

3. The wick will extend above and below the body. Longer the wick the greater the potential reversal will be.

Evening Star Criteria

1. First, the stock must be in a uptrend before the signal occurs

2. Second, the candlestick will form what is similar to a doji pattern but will have a small body shadow near the bottom of candlestick.

3. The wick will extend below and above the body. Longer the wick the greater the potential reversal will be.

Description

The Inverted Hammer is comprised of one candle. It is easily identified by the presence of a small body with a shadow at least two times greater than the body. Found at the bottom of a downtrend, this shows evidence that the bulls started to step in, but that the selling was still going on. The color of the small body is not important but a white candle has slightly more bullish implications than the black body. A positive day is required the following day to confirm this signal.

Criteria

1. The upper shadow should be at least two times the length of the body.

2. The real body is at the lower end of the trading range. The color of the body is not important although a white body should have slightly more bullish implications

3. There should be no lower shadow or a very small lower shadow.4. The following day needs to confirm the Inverted Hammer signal with a strong bullish day.

Description

Piercing Line patterns suggest the downtrend in effect will potentially end and the stock will retrace to the high of the day.

Piercing Line Criteria

1. First, there must be a clear and definable downtrend in progress for the pattern to qualify as a Bullish Piercing pattern.

2. Second, the first candlestick (which appears at the end of the downtrend) must be a black (or red), bearish candlestick.

3. Third, the second candlestick must be white (or green) and bullish.

4. Fourth and finally, the second candlestick (the white one) must open below the black candlestick and close above the black candlestick's midpoint.

Dark Cloud Cover Criteria

1. First, a definite uptrend must be occurring.

2. Second, a negative candle (which can be black or red) must follow a positive candle (which can be white or green).

3. Third, the black candle must pass through the midpoint of the previous candle.

Bullish Stock Signals

• Hammer/ Inverted Hammer

• The Kicker- Bullish Engulfing

• Morning Star

• Bullish Harami

• Three White Soldiers

• Cup and Handle

• Piercing Line

• Bullish Doji Star

• Inverted Head and Shoulders

• Pennant

• Ascending Triangle

• Triple Bottom

Bearish Stock Signals

• Hanging Man

• Shooting Star

• Bearish Engulfing

• Evening Star

• Bearish Harami

• Bearish Kicker

• Bearish Ladder Top

• Black Cloud Cover

• Bearish Doji Star

• Head and Shoulders

• Bearish Abandoned Baby

• Descending Triangle

• Double Top

22 Major Candlestick Patterns

• Ladles

• Channels

• Channel Breakouts

• Blowoffs

• Double Bars

• Consolidations

• Compression

• 3 in the Green/Red

• Symmetrical Triangles

• Ascending Triangles

• Descending Triangles

• Ascending Wedge

• Descending Wedge

• Slides

• Pennants

• Flags

• Gaps

• Double Tops

• Double Bottoms

• MAC the Knife

• Brinks Truck

• ADX Break

Study these patterns each day.

Look for the patterns on the charts after they occur.

Soon you will be able to see them as they form.

A ladle is defined as a consolidation with a breakout that reverses its pivot point to the opposite direction.

Price runs up to a point where profit taking comes in, and there is some selling.

A ladle pattern forms.

If prices rise to above the handle of the ladle, it could be a long entry point.

A reverse ladle is defined as a consolidation with a breakout that reverses its pivot point to the opposite direction.

Price runs down to a point where buyers are no longer holding up the price action and selling pushes the price action below the support level.

A reverse ladle pattern forms.

If prices fall below the handle of the reverse ladle, it could be a short entry point.

Channels

A channel is a consistent range in the price bars with the same average trading range.

Stock moves up and down within support and resistance lines.

Can scalp when hitting support or resistance.

Ascending Channel

Price stays within trending support and resistance lines.
Enter as price bounces off support for scalp or when price breaks out of channel.

Descending Channel

Price stays within trending support and resistance lines.
Enter as price bounces off support for scalp or when price breaks out of channel.

Blowoffs indicate a steep and rapid increase in a security's price and trading volume followed by a steep and rapid drop in price and volume. The rapid changes indicated by a blow-off top, also called a blow-off move or exhaustion move, can be the result of actual news or pure speculation.

A pair of two consecutive trend bars, which possess evenly-sized bodies but have opposite directions.

Bullish reversal will start with a bear trend bar acting like a sell climax, followed immediately by a bull trend bar acting as a bull breakout.

Bear setup consists of a bull trend bar playing the role of a buy climax, followed by a bear trend bar of relatively equal size, which marks a downward breakout.

Consolidation is defined by price movement of a stock between a defined high and low.

Breakout: Price stays in tight range within Support and Resistance lines.Stock then breaks above or below Support and Resistance.Enter on second bar of breakout.

We use the Squeeze to identify consolidations and compression.

Compression happens when candles become increasingly smaller, and go into consolidation (very similar to consolidation).

Box in support and resistance lines and wait for break out with volume for a play.

3 consecutive Green or Red candles that are at least twice the size of the average candle.

Generally an indicator of a price exhaustion and reversal.

Symmetrical triangles are a form of price compression.

Stock will usually break hard either up or down after the apex.

Bullish indicator.

A form of price consolidation.

Bar tops are at resistance and level.

Bottom of bars are sloping up.

Enter at second one-minute bar of upward breakout.

Bearish indicator.

A form of price compression.

Bar bottoms are at support and level.

Top of bars are sloping down.

Enter at second one-minute bar of downward breakdown.

Bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows.

Bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge.

Large spike in price (blow-off bar), followed by stepping down back towards to support.

Can enter short on second red bar after blow-off.

Can enter long as price bounces off support.

Large spike in price (blow-off bar), followed by stepping down back towards to resistance.

Can enter long on second green bar after blow-off.

Can enter short as price bounces off resistance or the fib.

Pennants look very much like symmetrical triangles. But pennants are typically smaller in size (volatility) and duration.

Pennants can be categorized as a continuation pattern. They usually represent only a brief pause in a dynamic market. They are typically seen right after a big, quick move. The market then usually takes off again in the same direction.

A flag is a bullish indicator. A long, or two long green candles that do not come down, but is then followed by a consolidation near the top.

A reverse flag is a bearish indicator. A long, or two long red candles that do not reverse back up, but is then followed by a consolidation near the bottom.

A gap is a change in price levels between the close and open of two consecutive days.

50% Fibonacci Retracement

Price shoots up at open.

Profit taking occurs.

Price falls no lower than 50% of initial high.

If price then begins to rise again, it’s likely to increase further.

Look to the Market for cooperation.

Or the Price shoots lower at open on a gap down

Fear of missing out on an opportunity occurs

Prices rises on but do not go higher than 50% of initial low

If price then begins to go down again, it's likely to fall further.

Look to the Market for cooperation.

Double Top

Stock price makes two attempts at breaking resistance (at least four minutes apart).

Watch to see price breaks/or bounces off former top’s resistance.

Watch to see if second histogram is smaller than the first.

Watch the second MACD cross.

Enter short on second red bar after price, MACD, histogram and volume show agreement to go short.

Look to the Market for cooperation.

Double Bottom

Stock price makes two attempts at falling below support (at least four minutes apart.)

Second histogram will be less than the first.

Enter at second green bar after hitting support.

Look to the Market for cooperation.

Mac the Knife occurs when there is a level consolidation and a strong Declining/Ascending MACD.

Look for volume coming in.

MACD begins to climb.

ADX comes from below 20 and begins to climb.

Look to the Market for cooperation.

Very high angles of climb will not last as long as lower angles of climb.

As price falls, ADX moves up.

MACD falls as price falls.

At support, ADX will peak and “break.”

Stronger recoveries of price will happen if ADX breaks above 40.

Enter at second bar above support after ADX break.

Look to the Market for cooperation.

In this lesson we will cover setting up alerts for your favorite patterns on Thinkorswim.

3 Trailing Stop Criteria

1. Fast MA or 8 MA

2. Half the Blow Off

3. 2 Candles Back

3 Patterns We Recommend You Know

1. Morning Stars/Evening Stars

2. Consolidation/Compression

3. Channels/Support and Resistance Levels Bonus: Stock Charts - Black Candles

In this lesson we cover everything we will go over in Module 5:

• Paper Trading or Start Small

• Practice Your Execution

• Using The Active Trader

• Monitoring Greek Changes

In this lesson we will cover the importance on paper trading or starting with a small account when just starting.

In this lesson we will cover the importance of practicing your execution.

In this lesson we will cover how to use the Active Trader on Thinkorswim.

In this lesson we will cover how to monitor the changes in Greeks.

In this lesson we cover everything we will go over in Module 6:

• Risk and Rewards

• Understanding Your Trading Risks

• Accepting Your Rewards

• Profiling Risk vs Reward

I want to debunk this myth of the Win Ratio. I love debunking this!

Everyone is always so proud of their win rate when in reality if it isn’t paid with risk vs. reward it doesn’t matter.

You can be right 90% of the time and still lose money.

Risk is inherent in all our trades.

I like to think about my time I am exposed to the market when considering all my trades. Because as long as you have a position in the market you are exposing yourself to risk.
Risk Management is the most important thing we are wanting to teach you in these courses, because that is how you can consistently make money.

We talk about critically thinking and that you have to find the trading style and strategy that matches your personality but really that is only so you can reduce your risk by finding a strategy that compliments your strengths as well as covers your weaknesses.

In Trading Stock Options I recommend at the very least a 50% stop loss on any position really a 30% stop should be enough however. And a position size of roughly 5% of your account. The reason we recommend this is so you can let probabilities play in your favor. That will give you 20 attempts.

Example think of it like dating, would you want to be holding a loser, who is at home eating all your food costing you money, or would you rather be with a winner who is paying for you to eat out and go on expensive trips around the world. Cut your losers as soon as possible, and review it is likely you got an entry too early or missed an indicator. And you will be glad you can recover your money when it turns into a winner and you make up your loss and then some.

Trade Example

1000 dollar account

You put 50 dollars at risk on a .50 cent option that is one contract. Let’s say SPY they trade around this price all the time.

You put your stop at .25 cents. Essentially you are risking 25 dollars for this trade.

You set a target for SPY to go up 1.00 and the delta is around .70 so your target is 1.20. Now your Risk to Reward is to make 70 dollars and risk is 25 dollars

I have a few sayings from my mentors I would like to share here that have stuck with me and really helped me with taking profits as well as to eliminate feelings of greed and fear of missing out.

“When you are emotionally happy with a trade you should take it.”

“I keep 300 dollars next to me on my desk to help me maintain perspective of money, most of the time I don’t even trade with the money meter on."

“You can’t lose money when you are making it.”

A risk profile is essentially a determination of your tolerance to risk, but honestly in all strategies I have ever traded the human element of the strategy is always what makes it risky. Staying disciplined to the strategy is what works and habitualize good behavior when it comes to trading is key. If you are new then it is actually in your favor because you haven’t learned any bad habits to break yet.

Another example of this would be changing your stop criteria, for example a practice I have started to employ is when I see that I am 10% green in an option trade I will pull my stop limit order up to that 10% mark. I recommend doing that or doing it at break even, because at that point you have reduced your risk to nothing and are able to see if the trade will play out. I know I said take money when you are happy but that is your limit or target and moving that down, it is a different story entirely from covering your downside risk, which really should be goal and priority # 1. I can’t stress it enough.

The goal with all of my strategies now and I highly recommend you keep this in mind for yourself when determining your risk profile is to reduce my risk profile at the earliest possible opportunity, as your account grows for example you can change your target % (percentage) goal to a $ (dollar) goal that may be less but still something I am happy with making but by doing that the percent I have to risk 5% of my account gets decreased to 3% and with my stop 1% essentially.

Even being exposed to the market is risky we have seen this with news and major events, the market can get severely shaken even in stock positions, holding overnight on a day trade position for myself is a no go. But what I have done also to reduce my risk profile is when planning a trade I will look at the time it takes for the pattern to play out previously. For example if it is a consolidation breakout and previously when the stock broke out it took 2 hours for it to hit my target, I will set a 2 hour time limit for myself for the trade knowing that after that time something was wrong with the pattern and it is safest to close the position and look for something better.

In this lesson we cover everything we will go over in Module 7:

• Develop Your Trading Plan

• Plan Your Trade First

• Managing Your Trade

Plan your work and work your Plan

Reverse engineer your plan:

What Markets do I want to trade?

Do I want to trade alone or in a group?

How am I going to Trade:

1. Entry/Exit System/Criteria

2, Money Management

3. Stop Loss Size

4. Risk Management

5. Keeping Records/A Trade Journal

Evaluate your Plan:

Daily, Weekly, Monthly, Yearly

1. Execution: Are you an expert on whatever platform you are using? If not then it is time to paper trade until you are 100% confident in your skill set.

2. Preparation: Are you in an environment conducive to the mental challenges of trading? Remember you are competing against some of the best in the world. Being prepared and feeling good is a big part of the equation.

3. Are you following Risk Management Rules: Are you honoring the 1.5% (30-50% for options but 1.5-5% for your total account size) rule and setting stop losses?

4. Setting Goals: Did you plan your trade and set realistic price targets.

5. Did you Do Your Homework: Did you check the pre-market, news, indicators, or are you going in blind? Don’t gamble have an idea going into your trade.

6. Did you Set Your Charts: Add drawings and alerts so you don’t miss important crosses.

7. Did you Plan Your Exit: Are you watching the charts for patterns that contradict your decision? Exits are important because they determine if you close a trade positively or negatively. So plan your exit before your entry.

8. Did you follow your Entry Rules: Your system for identifying trades depends on what style of trader you feel most comfortable being. With that being said are you allowing yourself to stay consistent when you find a style that best suits your personality or are you all over the place.

9. Do you log your trades in the Trade Journal: History repeats itself and if you don’t pay attention you can end up in a pickle. So the best thing to do is log your trades and review them consistently.

10. Analyze Your Performance: After each day it is important to analyze your performance. Take a look to the left finally and see why you made the decisions you made. Good or Bad they both will provide you with insight for the future.

Common Trade Adjustments for Options

Rolling (roll forward)- refers to extending the expiration or maturity of an option, futures contract, or forward by closing the initial contract and opening a new longer-term contract for the same underlying asset at the then-current market price.

Hedging - is a strategy in which losses in one position are fully or partially offset by gains in another position.

Adding to Winning Positions, Not Losing Positions

Why Traders Should Not Add To a Losing Position
When a trader is in a losing position, the market is telling him he is wrong. The market is the total sum of psychological, technical and fundamental knowledge. The market is the total sum of all investor knowledge and market opinions. It includes institutional money, sovereign wealth funds, hedge fund managers, trend following funds, commercial hedging interest, and every other participant, large and small.
Now I know we just went over averaging down and determined it is okay to do so if the technical analysis was confirming your position. However, if you average down without the correct technical reasoning you might risk blowing up your account

Admit When You Are Wrong….

Being able to admit you are wrong and take a loss is the first step in the journey of successful trading. No one is perfect in trading. Taking a small loss is a minor victory in trading.

Add to Winners….

Knowing what you want and setting goals to achieve it = WINNING. Wishing for things, but taking no action = LOSING. The most successful traders I’ve seen not only cut their losers quickly, but they let their winners run and add on as they go in their favor.

In this lesson we cover everything we will go over in Module 8:

• Warren Buffet Strategy

• Covered Calls

• Naked Puts

• Beware of Earnings

The man that makes 37 million a day.

Find a company that is worth buying at a value.

But if the company isn’t at the price he would like to purchase it for he will sell naked puts.

Then if he gets assigned the shares he will sell covered calls and collect money on the stock.

Naked Puts

A naked put is an options strategy in which the investor writes, or sells, put options without holding a short position in the underlying security. A naked put strategy is sometimes also referred to as an "uncovered put" or a "short put." The primary use of this strategy is to capture option premium on an underlying security forecast as going higher, but one which the trader or investor would not be disappointed to own for at least a month or maybe longer.

Covered Calls

A covered call refers to transaction in the financial market in which the investor selling call options owns the equivalent amount of the underlying security. To execute this an investor holding a long position in an asset then writes (sells) call options on that same asset to generate an income stream.

I Recommend You Use This Strategy With Blake's Stock Trading 101 Strategy for Finding Stocks that are under 30 RSI. That way you have less risk rather than just getting good premium you have a greater chance that the stock will go up in price. This strategy paired with Covered Calls is a conservative way to make a ton of money in the Market!

CLICK THE LINK BELOW FOR

Born to Sell Covered Call Screener

CLICK THE LINK BELOW FOR FREE ALTERNATIVE

Bar Chart Covered Call Screener

What Are Earnings?

Earnings per share is the portion of a company's profit that is allocated to each outstanding share of its common stock. It is calculated by taking the difference between a company's net income and dividends paid for preferred stock and then dividing that figure by the average number of shares outstanding.

What is a Dividend?

A dividend is the distribution of a portion of the company's earnings, decided and managed by the company’s board of directors, and paid to a class of its shareholders. Most brokerages require you hold the stock over 60 days to be eligible for dividends and hold throughout earnings announcements.

Why Should You Care About Earnings?

Traders should care about earnings because they undoubtedly drive stock prices. Strong earnings usually result in the stock price movement. Sometimes a public entity with a surging stock price might not be making so much money, but the rising price can mean that investors are hoping the company will be profitable in the near future. Remember, there are no guarantees that the entity will fulfill investor expectations.

In this lesson we cover everything we will go over in Module 9:

• Motivation & Health

• A Wealth of Knowledge

• Distraction Free Environment

• Valuing Your Knowledge

Motivation And Health

Many skills are required for trading successfully in the financial markets. They include the abilities to evaluate a company's fundamentals and to determine the direction of a stock's trend. But neither of these technical skills is as important as the trader's mindset.

Your mindset dictates how you make decisions so it is very important that you are healthy and motivated throughout this journey. Incorporating a morning routine is a good way to stay healthy. A combination of exercise, reading, and making meaningful relationships is a good way for you to prioritize the good things in life. Lastly, if you encounter psychological issues it is best to recognize these issues, just be aware of them and don’t deny they exist. In order to “fix” psychological issues, we must first become aware of the issues that are causing the problems in order to heal.

Remember our present circumstances don’t determine where we can go; they merely determine where we can start.

A Wealth Of Knowledge

Success in trading is a direct result of a sound trading system, sound money management, proper capitalization, and sound psychology. All of these must be in sync to be successful in your trading. The only area where you may need additional help once you have mastered your trading skills is your psychology.

Mastering your psychology is an ongoing process that really never ends. To master your psychology to be a profitable trader can take time, and the amount of time will be different for each trader.

Our goal as traders in regards to psychology is to maintain an even keel so to speak when trading. Our winning trades and losing trades should not affect us. Obviously we are trading better when we are winning, but emotionally we should strive to maintain an even balance emotionally in regards to our wins and our losses.

Distraction Free Environment

Have you ever tried to solve a tough problem only to have someone over your shoulder constantly asking you if you fixed it or solved it?

This kind of nagging will surely throw you off your game. As a trader it is important to work within a distraction free environment. The first step to creating a distraction free environment is making your friends, family, and peers aware this is not a hobby. To trade the markets and be successful you will need to block out a lot of the noise and really focus on what you are doing.

Learn To Say No...

When you are trading the markets and find success you will most likely want to share your story with your family and friends. Let me tell you a quick story about the time a friend of a friend came to watch me trade….

Congratulations you are on the path to becoming an incredible trader in the markets and we know you have what it takes to profit from the market. You worked hard to understand these concepts and paid to have the information you’ve acquired. It is important to recognize that the skills you now possess are of immense value.

You literally have a way to login to your account on your computer, laptop, or tablet; analyze the markets and create your own wealth from the stock market. You can be anywhere in the world and earn income. This is odd to say but you should consider who you share stories of your wins with. Some will believe you when you tell them you’ve made what they make in a whole month in a day others will doubt you or even worse mock you.

In all honesty, though it is important to know this one thing. It is easier to pull someone down then it is to pull someone up to your level. Value the knowledge you have and be careful the people you attempt to pull up in life aren’t placing an equal effort in pulling you down.

DO NOT SHARE THIS FOR FREE

You can benefit and so can the person you are wanting to help.Consider to Partner With Us