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.

Examples of a hypothetical trading account:

Hypothetical trading account A
Makes 10 trades with 5 winners and 5 losers. The average gain per trade is $1,500 and the average loss per trade is ($1,000).
  • 5 winning trades X $1,500 = $7,500 in profits.
  • 5 losing trades X $1,000 = ($5,000) in losses
Net result is a $2,500 gain in the account or a 25% increase.


How to turn $5,000 into $1,057,887 in the next 24 months.

Arguably, options are without a doubt the most powerful money-making tool ever devised. Suppose you start with $5,000 and each month put an equal amount into 10 different trades (you should never go all in on one trade). If half your trades win and earn an average gain of 150% (more than realistic with options) and the other half are losers, losing your entire investment (not likely using my system but for our example that's what we'll use). At the end of 24 months, your $5,000 would have grown into $1,057,887.

Here's How It Breaks Down:

At the end of month 1, your $5,000 has grown into: $6250
month 2 $6250 into: $7811
month 3 $7811 into: $9762
month 4 $9762 into: $12,202
month 5 $12,202 into: $15,251
month 6 $15,251 into: $19,062
month 7 $19,062 into: $23,826
month 8 $23,826 into: $29,782
month 9 $29,782 into: $37,226
month 10 $37,226 into: $46,530
month 11 $46,530 into: $58,161
month 12 $58,161 into: $72,702
month 13 $72,702 into: $90,875
month 14 $90,875 into: $113,592
month 15 $113,592 into: $141,990
month 16 $141,990 into: $177,486
month 17 $177,486 into: $221,857
month 18 $221,857 into: $277,320
month 19 $277,320 into: $346,650
month 20 $346,650 into: $433,312
month 21 $433,312 into: $541,640
month 22 $541,640 into: $677,050
month 23 $677,050 into: $846,311
month 24 $846,311 into: $1,057,887

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