Month: September 2015

More Orders to Juice Your Options Trades and Preserve Your Capital

The cost of emotional investing can be severe. Traders stay in trades longer when they’re sure a company they have an emotional attachment to will turn things around, even when all evidence is to the contrary.

We simply don’t make good decisions when our emotions are running high, and the ups and downs of the market are more than enough to put you in a state where you’re not making good decisions with your money. And the last thing you want to do is subject your money to the whims of your emotions.

That’s not investing – that’s gambling.

On Thursday, I told you that orders are one of the best ways to remove your emotions from your trade plan.

Today, I’m show you a few more orders to help you maximize your returns and protect your investing capital…

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Target Big Profits (and Avoid Big Losses) With My Favorite Orders

In the world of investing generally – and options trading in particular – it is not only important to know when to get in and get out of a trade, it is also important to know how to do so.

Whether you still call trades into your broker, or enter them into an online platform, or use proprietary software to make your trades, the orders you give to your broker are incredibly important.

Retail investors used to just buy stocks at the market and wait for them to rise in value. But in 2015, it’s not enough to just buy stocks or shares of a mutual fund and sit on them for decades – this is not your father’s market. Things have changed a great deal in the last 25 years.

Thanks to computers and the proliferation of the Internet, the markets move incredibly quickly, and you need to be prepared for whatever happens next.

That means tailoring your orders to fit your trades, and having them into your broker ahead of time.

Today, I’m going to show you how you can maximize your profits (and minimize your losses) with just a few tweaks to your orders.

But first…

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The Chart “Cheat” That Reveals Direction

If I tell you that I love to trade options on one particular stock, which one do you think it is?

Odds are you are picturing a stock that continually trades higher, a stock that makes higher highs and higher lows, a stock that regularly beats analyst expectations and gets a big boost when it reports stellar earnings, a stock that’s been rising more or less with the markets for the past six years.

And you’d be right… but only partly right.

Frankly, I don’t care WHICH direction a stock is headed.

I just need it to move…

And this “simple” indicator tells me everything I need in one simple line.

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Why I’m Taking Profits Before 2 p.m. (and You Should Too)

Yesterday, I told you that controlling your risk and managing your losing trades was an important part of trading – keeping your costs down is just as crucial to your success as harvesting profits.

Today, I want to talk to you about managing your winners.

Especially ahead of today’s 2 p.m. Fed announcement that could rock markets – big.

You may not think that your winning trades require a lot of hands-on attention. And they often don’t – when everything’s working the way it should, your winners are the easiest trades in your portfolio. You enter the trade, everything goes according to your trade plan, you get out at your profit target, and ring the register.

But sometimes the markets have other ideas…

Regardless of what your goals are – be it a 100% return, a $500 cash payout, or some other profit target – there will be times when you have to take the trade off earlier than you planned.

As many of you know, I always look for trades that will double my money. But this week, I have decided to close out some trades earlier than wait around for that 100% return.

Here’s why…

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The Best Way to Cut Your Risk Before Tomorrow’s Interest Rate Decision

On Thursday, the Federal Open Market Committee – the Fed’s monetary policy committee – will meet to discuss whether or not to raise interest rates for the first time in roughly nine years.

The recent selloff has cast some doubt on what they might do – raise rates and hope for the best, or keep rates near historic lows through the end of the year to let the market find its legs.

But no matter what the Fed decides, you’ve got to stay in the markets. I’ve said before that one of the costliest mistakes you can make as an investor is to sit on the sidelines. If you want to make money, you have to be in the markets. So if you want to win – no matter what the central banks do, and no matter what the markets do – you have to keep playing the game.

Sometimes, that’s easier said than done, I’ll admit. But the easiest way to stay in the markets in tough times is to make sure you’ve got a sound risk management strategy.

In fact, when it comes to making consistent money in the markets, controlling your risk in your trades – and managing your losses – is just as important as anything else you do as a trader.

Today, I’m going to show you why options are the best risk management strategy in the markets – and four concrete ways you can use them to protect your investments and manage your risk.

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What to Do When Your Profits Arrive Ahead of Schedule

When trading options, even the smallest move in the underlying stock can result in explosive profits.

Just yesterday, we saw exactly this scenario play out with one of my Money Calendar recommendations. Our stock made its move, our options skyrocketed, and we doubled our money in just a single trading day.

Of course, when you’re trading options, those quick moves can work both ways – so you have to grab your profits when you can. If you hang on to a trade for too long, it could roll over, and your winning trade could turn into a loser just as quickly.

Today, I’m going to walk you through that winning Money Calendar case study and show you exactly what happened – and the best way to protect your profits.

Let’s get to it…

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Finding Your Next Double Just Got a Whole Lot Easier

Over the years, perhaps the question I’ve been asked most frequently is how I select which options to trade on a particular stock.

There are a lot of factors that options traders have to consider when making a trade – which underlying stock, which direction, which strike, and which expiration date are the big ones. But students of the markets understand that there are so many considerations that can affect the price of options, from tumult in the Shanghai markets to debt pressures in the Eurozone.

Markets are global, and so are your options. Everything – including the price of tea in China – that impacts the markets has the chance to affect your trades.

So how do I choose my options? Believe it or not, the answer is pretty simple.

Today, we’re going to take a closer look at one of my favorite options strategies, and how it helps me determine whether or not I’m going to take a particular trade.

I’ll show you how to use it to target only those options that have the chance to double your money before you even risk your first dime…

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Why September’s Volatility Is a Huge Opportunity for Options Traders

The last few weeks of trading have been tough to say the least. After the crash on August 24 that sucked trillions from the markets in a matter of minutes, the markets clawed their way back and held their own for about a week. Then, just two days ago, they fell again, this time dropping by 3%.

It’s no secret that I think this volatility will continue, at least in the short-term, and the best way to weather the storm is to make sure you’ve got options in your portfolio.

Today, I’m going to tell you about the different kinds of volatility and how they affect the markets generally, and options specifically. Then I’m going to give you a roadmap to deal with the volatility that I see continuing for the next few months, including a few of my favorite options strategies.

Let’s get started…

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Three Things Every Master Trader Knows About Options

The last two weeks have seen significant market action in both directions. And it’s just more proof that you need options in your portfolio to help cut your risk and boost your potential returns. Traditional buy-and-hold investors have been taken to the cleaners by whip-saw markets.

I don’t want that happen to you.

While I expect this increased volatility to continue as we head into September and October, things seem to have settled down for the moment, and the markets have, for the time being, resumed their upward march.

So I want take this opportunity to reexamine some of the fundamentals of options to help reinforce your understanding of the more sophisticated topics we’ve been covering lately. It’s crucial that you have a strong grasp of the fundamentals, especially if you’re new to the material – you won’t be a master trader until you have this stuff down.

If you’re familiar with options, this a great opportunity for your to brush up on the basics – you may even learn something new. If you’re new to options trading or to Power Profit Trades, you’ve picked the perfect time to join us.

So let’s take a step away from the market chaos and get back to basics…

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