3 Step Process To Successful Trading

Step 1 - Learn to properly analyze a stock to determine the most probable future direction.

To do this we teach you a very unique method of Technical Analysis that combines the Elliott Wave Theory with certain Fibonacci ratios to identify key turning points for a stock or any other liquid market.

Our utilization of ABC and Technical Support gives you clear cut rules and guidelines that must be met in order for a trade set-up to qualify. This allows you to focus in on one key market set-up that identifies the most dynamic moves in the market regardless of market direction or time frame.

 







Step 2 - Understanding and applying proper money management and risk/reward ratios

Even the most successful analysis method will lose money if not coupled with proper money management. And a below average analysis method will make money if used in conjunction with proper money management. We can not stress this point enough.



Hypothetical Trading Account


Beginning Balance: $100,000

Options Portion: $10,000

Stock Portion: $90,000

   
Example Option Strategy
   
10 Total Trades (avg hold time 60-90 days) $1000 position size
5 trades lose 70% -$3,500.00
5 trades gain 150% $7,500.00
   
Net Gain Option portion per period $4000
   
Repeat 3 times per year $12,000.00
Repeat 4 tims per year $16,000.00
   
Example Stock Strategy
   
10 total trades (avg hold time 6 to 9 months) $9000 position size
5 trades lose 25% (-2250 per trade) -$11,250.00
5 trades gain 75% (+6750 per trade) $33,750.00
   
Net Gain Stock portion per period $22500
   
Repeat 1.5 times per year $33,750.00
Repeat 2 times per year $45,000.00
   
Total potential gain stock & options $45750 - $61000
45% - 61%

This is a hypothetical illustration and does not include taxes, commissions, or slippage.


Step 3 - Selecting the proper strategy to take advantage of the coming market move

Strategies you'll learn include:

  • Married Put
  • Covered Call
  • Long Call
  • Collar Trade
  • Long Put
  • Vertical Bull Spreads
  • Straddles/Strangles
  • Vertical Bear Spreads

Many traders may choose to use option strategies as part of their trading game plan, especially if they are starting with a smaller account and want to leverage their investment dollar. Proper money management should still be used when trading options.







47 total trades. 32 winners, 15 losers, 68% win ratio
10-month return 338%. $10,000 grows into $43,831.84

Ticker Ex Stripe Type Price %P/L Entry Date Exit Date Capital Account
PBR Sept 95 P 4.3 100% 8/15/2006 9/11/2006 860.00 10,860.00
XOM Oct 70 P 2.8 100% 8/30/2006 9/12/2006 1,120.00 11,980.00
ECM Sept 10 C 1.1 14% 8/15/2006 9/15/2006 169.40 12,149.40
CL Sept 60 P 1.05 -100% 8/15/2006 9/15/2006 (1,260.00) 10,889.40
EBAY Oct 30 C 1.25 -100% 8/30/2006 10/20/2006 (1,125.00) 9,764.40
WB Oct 55 P 1.8 -100% 8/15/2006 10/20/2006 (900.00) 8,864.40
STLD Nov 55 C 3.4 100% 8/30/2006 10/24/2006 1,020.00 9,884.40
HAL Nov 25 C 3.6 100% 10/2/2006 10/25/2006 1,080.00 10,964.40
S Jan 16 C 2.1 100% 10/16/2006 11/9/2006 1,050.00 12,014.40
BRCM Nov 32.5 C 1.25 100% 10/16/2006 11/15/2006 1,250.00 13,264.40
NVDA Nov 30 P 2.8 -100% 10/2/2006 11/17/2006 (1,400.00) 11,864.40
PDCO Jan 30 C 3.5 100% 11/15/2006 11/21/2006 1,050.00 12,914.40
RS Dec 32.5 C 2.7 100% 10/2/2006 11/21/2006 1,350.00 14,264.40
AA Dec 27.5 C 1.4 100% 10/30/2006 11/22/2006 1,400.00 15,664.40
ROK Jan 65 C 2.8 100% 10/16/2006 11/24/2006 1,680.00 17,344.40
HET Dec 75 C 2 100% 10/30/2006 11/28/2006 1,800.00 19,144.40
EXP Dec 40 C 1.4 100% 10/30/2006 12/5/2006 1,960.00 21,104.40
XHB Dec 33 C 2.75 100% 9/15/2006 12/6/2006 2,200.00 23,304.40
AG Jan 22.5 C 3.8 100% 9/15/2006 12/11/2006 2,280.00 25,584.40
CSC Jan 47.5 C 3.7 100% 9/15/2006 12/27/2006 2,590.00 28,174.40
YHOO Jan 25 C 2.4 100% 12/15/2006 1/16/2007 2,880.00 31,054.40
PEP Jan 62.5 C 1.4 100% 12/15/2006 1/18/2007 3,080.00 34,134.40
COST Jan 52.5 C 1.6 100% 11/15/2006 1/18/2007 3,360.00 37,494.40
BNI Jan 80 C 1.6 -100% 12/4/2006 1/19/2007 (3,680.00) 33,814.40
BUD Jan 45 C 3.6 58% 12/4/2006 1/19/2007 1,879.00 35,693.60
AMZN Feb 37.5 P 2.15 -100% 1/5/2007 2/16/2007 (3,655.00) 32,038.60
NEWP Feb 20 P 1.5 -10% 1/5/2007 2/16/2007 (315.00) 31,723.60
IBM Apr 100 P 4.6 100% 1/19/2007 3/1/2007 3,220.00 34,943.60
CSC Mar 55 P 3.9 -5% 1/19/2007 3/16/2007 (180.06) 34,763.54
SLB May 67.5 C 1.95 100% 3/15/2007 3/22/2007 3,510.00 38,273.54
ACI Apr 30 C 2.65 100% 2/1/2007 4/9/2007 3,710.00 41,983.54
GS Apr 190 P 4.5 -100% 3/1/2007 4/20/2007 (4,050.00) 37,933.54
AVP Apr 40 P 2.75 -58% 3/15/2007 4/20/2007 (2,233.00) 35,700.54
EK May 25 C 0.45 100% 4/19/2007 4/25/2007 3,555.00 39,255.54
DD June 50 C 1 100% 5/3/2007 5/7/2007 3,900.00 43,155.54
NVDA May 30 C 2.15 100% 4/16/2007 5/7/2007 4,300.00 47,455.54
HD May 42.5 P 3.6 17% 3/1/2007 5/16/2007 795.60 48,251.14
BRL May 55 C 3 -100% 2/15/2007 5/18/2007 (4,800.00) 43,451.14
SNDK May 47.5 C 1.4 -100% 3/1/2007 5/18/2007 (4,340.00) 39,111.14
GES May 40 C 2.9 -100% 4/9/2007 5/18/2007 (3,770.00) 35,341.14
F May 8 C 0.5 75% 4/2/2007 5/18/2007 2,662.50 38,003.64
BIIB June 50 C $0.75 100% 5/7/2007 5/22/2007 3,825.00 41,828.64
TOL June 30 C $0.65 100% 5/11/2007 5/23/2007 4,160.00 45,988.64
ATPG June 40 C $4.20 74% 2/15/2007 6/15/2007 3,418.80 49,407.44
ADM June 35 C $2.95 -100% 2/1/2007 6/15/2007 (5,015.00) 44,392.44
FDX June 110 C $2.30 -58% 5/2/2007 6/15/2007 (2,534.60) 41,857.84
XRAY June 35 C $1.50 47% 5/16/2007 6/15/2007 1,974.00 43,831.84

338% 10-month return

In another portfolio of mine I realized a net gain of 136% between 1/1/07 – 12/31/07. Keep in mind, these results I'm sharing with you were in real market trading not hypothetical.


10/10/08 - 11/03/08 Track Record
03/04/09 - 06/29/09 Track Record