Congratulations on Getting Started in the Wonderful World of Systematic Structured Trading!!!
Here's all the support I promised you in our bonus session at the end of class.
First off here's my welcome letter to you about the daily handholding you'll get. Download this, read it!
Get your 5 Week Daily Hand Holding Outline click here .
If you have not downloaded the trading tools you'll be using make sure you get that done ASAP . You will use them every time you build a trade. You get them all for a $149 dollar investment. They are essential to trading like a pro.
A Trade Example for the Next Week: (for practice purposes only, not investment advice) Posted 10/13/13.
(Each Sunday evening I will put up another virtual practice trade example so check back each week. Also, make sure and follow the blog link at the bottom of this page for the $15,000 dollar free money experiment)
This weeks practice trade is a nice neutral to bullish trade in CCL (Carnival Cruise line). As you can see by the chart, CCL has been rolling down for some time and finally seems to have found a possible new level of support and had started to rebound. Both the MACD and Stochastic are turning up. This trade is a naked put which will make money as long as CCL stays above 30 over the next 32 days. See the trade chart below.
Here is the trade and the entry mechanics:
Sell to Open 10 contracts of the Nov. 30 strike puts. Do this as seen above. It will require margin of $4,513.56. The premium received should be at least $.25 cents (Limit sell order of $.25) minus a $10 dollar commission equals $240 dollar net credit. That equals a 5.3% return potential in 32 days. (63 % annualized potential !) The stop loss on this trade would have us exiting this position if the credit we received on the trade ($.25) rose. In other words we sold these options for $250 dollars with the goal of them expiring worthless. I would let them rise in value to $330. So we are risking approx. $80 dollars to make $250 (about a 3 to 1 profit to risk ratio) This is an above average trade with an 82% probability of success trade based on the delta reading and your standard deviation calculator that you should be using on all your trades. (remember to exit trades you simply reverse what you did to get in. In this case we sold puts so your stop loss to exit this trade would buy those puts back at the specified value)
(Remember all trades are educational examples and not investment recommendations and should not be considered financial advice/council)
(All margin requirements/commission costs are calculated with Options house brokerage figures using portfolio or risk based margin rules)
Remember to do your own due diligence on all your trades. We do not give investment advice. If you haven't reviewed my risk disclosure yet make sure you download it here
If you still don't have a brokerage account open check out Trade Monster. You can trade for free for 30 days!
-Option Strategies guide: Download here (use guide to practice your virtual trades)
- Excellent guide for what strategies do and how to build them here
-We also want you to start practicing the collar trade right away. A detailed view of it here. This is another example right here. Finally, here is an audio guide and video clip to help.
-Use this matrix to analyze appropriate strategies for market conditions here
-You need to understand Options Greeks. Download this guide here
I also promised you a bunch of free "stuff" that's helped me be a better trader over the last five years. Here are a bunch of links to them below:
SFO mag subscription: Trader Daily mag subscription: Journal of Index mag subscription: Futures mag subscription: Equities mag subscription: Traders Mag subscription:
Spread sheet link to the new "weekly" tradable options here Covered call strategy guidebook: Download here John Wooden's Pyramid of success : Download here
Killing Sacred Cows book: Download here 3 Common Candle mistakes: Download here Technical Analysis from A to Z: Download here Understanding profit and loss graphs: Download here
25 rules of trading: Download here Acres of diamonds book: Download here As a man thinketh book: Download here Free Countdown clock: Download here Dreamline Worksheet: Download here
J.Paul Getty 8 keys to wealth: Download here William Ekhart keys to trading success: Download here Jesse Livermore book: Download here Networth tracker spreadsheet: Download here
Position sizing calculator: Download here Putting volatility to work article: Download here Richest Man in Babylon book: Download here The new rules of money: Download here
The covered call trade is one of the most straight forward trades that a lot of students start with. I use a calculator that I find indispensable for building these trades. Check it out here.
Set up your corporation right here starting as low as $99 dollars (plus any State filing fees)
Download your free guide book to Exchange Traded Funds.
You could cut your taxes in Half! Just from the tax benefits of a trading business. (watch the 14 min. video) Sign up for the newsletter. You get access to the 7 categories of tax deductions. Your also going to want to make sure and grab all the free tax savings tools there as well.
Go to IRS.gov website and in search bar find the following publications and download them all for free:
#334 Small biz tax guide, #463 Travel expenses, #535 Business deductions, #552 Record keeping, #583 Starting a business, #587 Home based business deductions, #929 Hiring your children, #970 Education /Tuition deductions
Are you earning better than 10.6% on your fixed income money? Check this out. I throw a little of my "spare change" into this program every month. I love it as a diversified option in addition to the stock market. You can get started with as little as $25 dollars! I'm currently averaging 12.00%+ A.P.R. on my savings.
Make sure you are signed up for your Binary and Pairs trading account and have all your manuals downloaded to get up and running with this fun type of trading. You can fund this account with $250 dollars right from a credit card in a few minutes and get a $50 rebate back via PayPal. That's an instant one day profit of 20%! Once your account is open send an email Here with your PayPal address and you will receive your bonus!
Bookmark this link to all my favorite trading related websites www.TheMotherOfAllTradingLinks.com (coming soon...this should be good!)
This is just a glimpse into the tools and help I want to provide for you. As you have questions getting started please email me any time at: Scott's Email and I will be happy to help you in any way possible. For faster responses make sure and follow me on Twitter! Follow @thetaseller Remember...I'm here for you on a daily basis if you need it. Please follow this rule when we email: Do not ask any questions that are outside the scope of your current learning level. (I.E. I'm not here to teach you. That's what your classes are for.) I'm here to help you understand and implement what you've learned.
Utilize that offer! If I do not hear from you on a daily basis asking for guidance and help I just assume it's because your making too much money to take a break and email me! Please utilize me if you need help. Here is my fiduciary commitment to you.
Also, make sure you sign up for my free monthly email newsletter!
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One quick favor I will ask of you. Go to the You Tube video of Robert and Kim Kiyosaki introducing me and click the "like" button and leave a comment. If you will do that and then email me that you've done so I will email a special gift to you for your effort. The video link is right here.
Here's the link to my blog on the $15,000 dollar experiment! Let's see if it's really possible to give yourself a raise of $15,000 dollars a year by just using O.P.M. (other peoples money) and creating a positive forward carry.
Last but not least!!!! If you didn't get this done in our bonus session together at the end of day three's class I want you to download and sign in blood, with threat of death (o.k., that might be a little much). Sign and commit whole heartedly to your Personal Responsibility Contract. Download a template right here. Failure is not an option!
Good trading my friends!