THE LIVE ACTION TRADER
May 18, 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 looking for a consensus of signals across different timeframe.
The AO Entry / Exit signal method identifies entries for high probability trades. This method applies to any timeframe. The timeframe you choose to focus on will depend on what strategy you are trading.
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
- Trade a cash index options strategy such as a diagonal, calendar or vertical spread
Shorter timeframes are best for futures trading and options day trading. Longer timeframes provide excellent entry signals for stock investing or options trading on stocks, indexes and ETFs.
We trade NASDAQ futures (NQ) in our Live Trading Room using the AO entry/exit strategy.
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 past week, the AO Entry/Exit strategy produced 90 points of profit. This is based on holding the full cycle and using a fractal as a protective stop. Protective stops are critical when trading futures in order to limit risk.
Each point of movement on NQ equates to $20 for one contract so 90 points of movement during the week provided traders with as much as $1,800 of profit!!
What makes this method even more exciting is the scalability! Once you understand the AO Entry/Exit strategy, just adding one more contract doubles your potential profit. As long as you understand your risk, this is one of the most powerful ways to grow your income!
Here is a short testimonial from Josh regarding his personal trading using the AO Entry/Exit strategy:
“As of May 17, 2019
$3175 Net on NQ (5 trades) on 5 contracts.
$2250 Net on ES (3 trades) on 5 contracts.
Weekly Results Summary:
$21,678 trading 5 contracts.
Month to Date (3/4 weeks).
$56,733 trading 10 and 5 contracts on different days. It all goes into the same bank account so I’m not concerned with the details lol.
Life changing. The AO entry strategy is no joke.
30 hours invested roughly = $1891 USD/hour. Not even my 30 year veteran corporate lawyer (partner in the firm) makes that!”
We provide guidance on trading everyday in our Live Trading Room, so you don’t have to trade alone!
19 options trades opened and closed in the past three 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 technical signals.
Trading options, in addition to futures, allows us to plant a “profit seed” when we see an excellent entry signal. Unlike futures, we can put on an options trade with an expiration 3-6 weeks out and then wait for the price action to follow the chart.
This is an excellent way for traders to balance time between being actively engaged in a futures trade versus putting on an options trade and being patient for it to provide a profit.
We alerted six new positions this week to our subscriber base, and closed one position which we carried over from last week.
QQQ, one put trade carried over from last week, closed for a 37.30% return.
DIA, one put position we cost averaged and closed for an overall return of 3.85% and one call positions closed for 2.37%. In addition, we also opened a DIA put that we are carrying over to next week.
SPY, we opened a put diagonal spread based on some conflicts in the chart pattern. We took action on the spread resulting in an overall profit of 12.13%. We also opened and closed a put on 5/17/19 for a return of 8.76%.
Overall, we are averaging a 27% return per position for three weeks with an average hold time of 1.4 days.
We provide detailed explanations of each trade during the Live Action Trader portion of our Live Trading Room.
This is what allowed us to take 19 options trades in three weeks with 100% winners!
May month-to-date the AO Entry/Exit Strategy produced 336 points of profit on NQ. That translates to $6,720 of profit potential for the month on a single contract.
The AO Entry Exit strategy requires some time commitment to learn but once you have made the commitment, there is significant opportunity available to you. Depending on experience, personal objectives, and risk tolerance, each trader’s performance will vary. The key is learning how to take advantage of the opportunity and then refining your personal style.
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.
- How to view a consensus of signals from different timeframes.
- Using an options spread strategy when the consensus of signals is showing some conflicts. This week, we traded a diagonal spread on SPY and showed how to leg out of the spread.
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.
Last 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 and 5 minute charts to time the entry of an options trade.
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.
Following a set of rules is critical to successful trading however, the more experience a trader has, the more likely that trader will develop an intuitive sense of what action to take based on a foundation of rules.
The steps to learning the Art of Trading are:
1. Learn – buy a program, immerse yourself in that program and commit to following the rules.
2. Trade Virtually – start out applying your understanding to live market action by paper trading. This approach gives you an opportunity to validate your understanding and makes adjustments without the risk of losing real money.
3. Begin Live Trading with just one contract – be smart and go slow. The opportunity to make bigger money is on the horizon but first it is important to build your base of knowledge and practice with minimal risk.
4. Ask questions and/or Hire a Coach – traders who are just starting out or those who desire to improve their performance should hire a coach to get personal, one-on-one guidance. The cost will more than pay for itself.
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