THE LIVE ACTION TRADER
May 11, 2019
Live Trading Plus Options and Futures Education
Learn to Trade, Trade to Earn
Trading Performance This Week?
This week we focused on the importance of balancing trades between futures and options.
The AO Entry / Exit signal method produced excellent profits again this week. One key success factor to trading is timing the entry of a new cycle. Our AO strategy, did not disappoint!
What makes the AO Entry/Exit so powerful is this single approach to identifying an entry signal can be used to:
- Open a futures contract,
- Trade an ETF option,
- Buy a stock or
- Trade a cash index options strategy such as a diagonal, calendar or vertical spread.
The market, and trading short term one and five minute signals was more challenging this week due to a spike in volatility. China trade definitely influenced this!
However, holding the full AO cycle provided opportunity for 130 points of profit on NQ. This translates to $2,600 on just one contract!
We do not take every trade and we do not always hold for the full cycle, however, it is important for the wide range of traders we work with to understand the strength of the opportunity.
Each trader will choose how they want to participate which is why individual results will vary.
During the week, due to stops being hit on short timeframes, we backed out to a longer view, 30 minute chart. This reduced the number of trades but smoothed out most of the choppy entries and gave us better profits with less drawdowns.
We provide guidance on trading everyday in our Live Trading Room, so you don’t have to trade alone!
14 options trades opened and closed in the past two weeks….100% winners!! Thanks to the AO Entry/Exit signals!
We evaluated technical patterns this week on DIA, SPY, IWM, and QQQ. The ETFs offered some low risk opportunity to take advantage of a great downward bias chart set-up.
We alerted seven new positions this week to our Freedom5 base, and closed two positions that we carried over from last week.
SPY, two put trades, closed for 23% and 110% return.
IWM, one call and one put trade closed for 15.5% and 10.7% respectively.
DIA, three positions. One carried over from last week was closed for 63.7%. Two others opened this week were closed for 33.8% and 11.9%
QQQ, a put position opened on 5/9 was closed for 13% and one was opened 5/10 and is still open.
We use a combination of technical signals which, when paired together, provide a high probability directional move. The AO Entry/Exit Strategy is a technical approach to spotting when to enter and when to exit a position.
This is what allowed us to take 14 options trades in two weeks with 100% winners!
During the month of April the AO Entry/Exit Strategy produced 141 points of profit on NQ. That translates to $2,820 profit for the month on a single contract.
It is effective for trading futures and any type of options strategy, as evidenced by the profits on NQ futures and the ETF options trades listed above.
When trading options, we use a daily chart to see what the current cycle is, then refer to shorter time periods to time the entry and exit of the position.
To review AO performance being traded on NDX futures (NQ) since its release in September 2018, click here and see all trade detail.
Learn the AO Entry/Exit strategy and apply to your own trading! Excellent for Futures, Options or both! Click the button below to learn more and sign-up for instant access to on-demand training.
The Art of Trading Education Review
Every week in the Live Trading Room, we will be providing training on topics which support our philosophy of, Learn to Trade and Trade to Earn.
The training will generally be a 30 – 60 minute session every trading day. Each session will be recorded and sent to our members.
This week we profiled:
- Balancing futures and options trading and how to adjust depending on the timeframe which is showing and signal as well as how volatile the market is.
- We also discussed how to view the different timeframes from 1 and 5 minute to a 30 minute chart.
Interested in learning about Futures and/or the AO Strategy? Click below to get immediate access to the training.
Review the section below for topics we will be teaching this coming week.
During the past week I taught our new Covered Calls education program! This is far deeper than traditional Covered Call Trading.
I shared with our community of traders how to trade a Covered Call strategy without ever buying the stock, how to buy stock at less than market value and how to open a position with practically zero cost basis.
When paired with our Advanced Options Spread training, this offers powerful knowledge to help any trader!
The Covered Calls program and our Advanced Options Spread program are now both available on-demand!
Click the button below to view an overview of the Covered Calls and the Advanced Options Spread programs.
You can get both programs NOW for 50% off the regular value price!
The Art of Trading Education Coming Next Week!
In addition to live trading, each day we provide training on topics which help traders deepen their understanding of how to trade profitably.
These sessions start between 11:30 and 12:30 ET, depending of what active trades we may be focused on, and last approximately 30 minutes. The sessions are recorded so you can review them at your convenience if you missed it live or if you want to replay something we discussed.
If there are topics you are interested in learning more about this coming week, we offer an opportunity to join the Live Trading Room for a month or just one week.
Topics for the coming week are:
- General chart pattern review of stocks in the S&P500 index, plus a review of SPX, NDX and RUT. We review charts and identify directional patterns then discuss options strategies best suited to take advantage of the opportunity.
- More about balanced trading – How to view options trading versus futures trading. It is important to have knowledge of both futures and options. Understand how to balance trading time between a short term, active focus approach (futures and same day options trading) versus a more passive approach of researching the directional bias opening an options position and putting the trade on auto-pilot. Lots to discuss this week on this topic!
- Using the 30 minute chart to smooth out choppiness and reduce being stopped out for a loss.
Want to Learn More about the coming week’s topics?
Choose a one week or one month subscription to participate in the Live Trading Room. Click the link below.
Key Success Factors for Profitable Trading
Successful trading requires learning technical charting skills as well as options strategies to take advantage of what the chart is showing you.
It also requires the right mindset and emotional balance.
Trading can be emotionally challenging. There will be periods of losses and it is important to have a personal approach to putting those losses in perspective.
The following are ways to keep your trading emotions in balance:
Track your trade performance daily, weekly, and monthly.
This creates a “look-back” period where you can see your overall performance. Having a losing day can be challenging emotionally however, when you are able to look at that losing day compared to your 3 month, 6 month, or 12 month look-back period, you will put the losing day in perspective and see that your overall performance is on track to meet your goals. If it is not, you may have some more learning to do.
If you are a short term trader and you struggle with losing trades or losing days, increase your timeframe for trading.
Trading futures and same day expiration options can be challenging. The time available for the trade to workout is limited.
A way to lessen the emotional impact of trading and relax a bit is to choose longer expiration options trades. Instead of trading same day expirations, go one or two weeks out of the options chain to select your expiration.
This allows you to close the position for a profit immediately, if available, but if not, it allows you to hold and monitor a longer chart cycle such as the 10 or 30 minute pattern.
Trading is emotional yet, it can be one of the most satisfying professions. Be conscious of your emotional IQ and make adjustments when necessary.
CEO/Founder of Options Money Maker