We have over 20 years of trading experience.
Options trading can be very complex, the successful execution of which requires a significant amount of time and dedication. Traders who are new to options trading may learn just enough to get themselves into trouble, giving them a horrible first experience. As a result, most traders tend to shy away from trading options, telling people, "It's too risky." and to, "Stay away!" Unfortunately, the same naysayers most probably had not simply invested the time to learn even the basics, much less the more complex strategies, in properly forming their opinions. The problem lies in the lack of research and not in the trading of options. This is one glaring aspect in which we strive to stand out amidst the plethora of newsletter services.
We've spent over a decade learning, not only the basics, but also more advanced option strategies available. We have carved our niche in options trading and honed our skills on the strategy that we've had the most success with Credit Spreads. To predict where the market WILL be by a certain time is extremely difficult. Instead, we forecast where the market WON'T be by a certain time. With this approach, we are able to meet our profit goals on a consistent basis.
Instead of using multiple strategies, we have mastered one and focus on that.
We've been trading the Russell 2000 Index (RUT) for years and share that experience with our members. Credit spreads is our strategy of choice. These are directional trades that expire the same day (0DTE). We use proprietary trading software to help time our entries and determine which direction we believe the market is headed.
The stock market has averaged an annual return of 7-10%. With the use of our conservative strategy, we've been able to double this average on a consistent basis. Our profit goal is to earn 20% each month. This is accomplished by opening 3-5 trades each month. Each trade has a target return goal of 4-6%.
Disciplined risk management without emotion.
Prior to opening any trade, one first needs to map out a strategy to achieve profit goals and for effectively managing trades. Knowing when, where and how to get out of a position is, undoubtedly, even more important than knowing when, where and how to get in. Unfortunately, exit strategies are often afterthoughts to the casual trader and the results are often disastrous. Proper planning, or the lack thereof, is typically the defining attribute separating the novice trader from the seasoned professional. Without a plan on how to properly manage open positions from start to finish, traders run the risk of letting emotions take over, resulting, more often than not, in huge losses and irreparable damage to trading accounts. We fully understand how powerfully influential our psyches can be when managing trades as it is, after all, human nature to hope for positive results when caught in impossible situations. Making great leaps and bounds over the psychological hurdles in implementing sound trade management strategies in options trading is a major key to achieving long term profitability. Trading in any other fashion would be mere gambling.
If our stop-loss limits are triggered, we move decisively in exiting any trade. To stay ahead, we try to limit our losses to a range of 10% to 15%. We choose to take our lumps and move on without any second-guessing. All emotions are eliminated from our decision-making process and we've been able to consistently execute successful trades over the years.