Double Your Weekly Profits with the Most Powerful Tool Wall Street Can’t Get Rid Of

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Last month, the New York Stock Exchange (NYSE) eliminated my favorite order.

It may have been your favorite order too.

What it ultimately did was give you the control over your trades… not the other way around.

Now they claim they eliminated it because they’re trying to protect you.

But the real reason is that traders – like you- are just making too much money.

And I’ve got the proof.

I’m also going to tell what they don’t want you to know…

Let’s get started

Unleash the Fury of the Good-Til-Cancelled (GTC) Order


Two weeks ago, on February 22, I recommended a trade to many of my Money Calendar Alert subscribers on GameStop Corp, (NYSE: GME). The following Thursday, that trade hit a double (a 100% return on investment).

In fact, as I write this, Money Calendar Alert subscribers have raked in five doubles in little over three weeks.

But what I really want to talk about today is how you can set yourself up for a double… without having to watch the markets all day long, like I do.

And you can do this with our loyal, old friend – the good-til-cancelled (GTC) order.

The GTC order is an order to buy or sell at a specific price.  What makes this different than, say, a limit order is that it stays with your broker for 30 to 90 days.  If your order to buy or sell has not been filled within the time frame that your broker’s trading platform allows, then it will be canceled via the GTC order (unless you’ve already canceled the order yourself).

You can use the GTC order for both stocks and options AND when opening and closing a position.

And when you look at the market swings we’ve seen this year – including the worst since 1930- you can’t afford not having this tool in your trading toolbox.

Now let’s take a look at just how powerful it is…

This is how the GME trade would show on an options order form:

ppt1gmein.jpg

We had a limit order price to buy the April $27 Calls at $2.75.  And it did just that at the beginning of the same day it got filled. For the rest of the day, there were virtually no other fills at that price.

Now new traders have a tendency to start chasing the option. What I mean here is that, say the price of the option jumps to up by $0.25. New traders will often try to go get that slight bump up, only to find that the price moved up another $0.25… and another $0.25 after that. And what ends up happening is that new traders will end up paying too much or at least more than they had as their limit price.

Having the GTC order in place prevents this cat-and-mouse game and allows you to exercise your discipline and let the trade come back to you at your limit price.

The case and point is in our GME trade… the option came back to us at $2.75 and could’ve been filled at that limit price on that day.

ppt2

As we know, the GTC order can work on a closing order just as well as it can on opening an order. Once the trade is filled, you could place a sell-to-close, GTC order on the option.

This is how a sell-to-close, GTC order would look on an order form:

ppt3

Since our fill was at $2.75 on our GME trade, we’d reach 100% return on investment – a double- once it hit $5.50.

And that’s exactly what happened…

Our GME trade filled at $5.50, giving us a double.

Now I have to stress that you can still go ahead and close your position if you see a profit before the GTC order hits the price you set. If you do that, I would encourage you to exercise caution and cancel the GTC order first before placing a new sell-to-close order.

The bottom line is…

The GTC order allows you to place your trade and move on with your life instead of spending your entire day chasing after it… and reap the rewards.

And as far as the NYSE’s restriction on GTC orders… well the joke is on them…

Because the National Association of Security Dealers (NASDAQ) and most brokers still accept them.

So the way I see it, the GTC order lets you live your life – and make thousands of dollars doing so.

STRATEGY: Using the Good-Til-Cancelled (GTC) OrderWhile it’s true that the New York Stock Exchange (NYSE) stopped accepting GTC orders on February 26, 2016, you can still tell your broker to enter a GTC order for you. Here’s what you should know about the GTC order :

  1. It can be used on stocks and options.
  2. It gives you the control to decide if and when you want to cancel or execute a trade.
  3. It can be used when opening and closing a trade.
  4. It is still accepted by the NASDAQ and most brokers.

Good Trading,

Tom Gentile

2 Responses to “Double Your Weekly Profits with the Most Powerful Tool Wall Street Can’t Get Rid Of”

  2. Rich Mazur

    Tom thank you for these great explanations you are sending. On the GME trade I called in to PNC trade desk with the Buy to Open and received the $2.75 limit order but for some reason when I called back with the Exit Strategy I received a Sell to Close price of $5.80, I don’t know if I was misunderstood of if was a type-o,but with the “Good Till Cancelled” I was able to catch it when you sent the alert to close and got out at a price of $5.64 2 contracts=$1,064.48 Thank you for another fine recommendation. As far as the OIH trade this one got screwed-up because of my lack of trade authority at the time I placed it. I since was granted a level 3 auth. and can place the spreads going forward( by convinceing PNC to use your option trading experience rather than mine for my authorization and they agreed.) As a resuly I only was able to buy the $25. calls for this trade and closed out the entire position with 6 contracts for $2,399.66 Based on my circumstances I very pleased with the outcome. Thanks again. Rich Mazur

    March 9, 2016 at 11:35 am

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