Chuck Hughes is about to share the secrets behind his Triple Threat strategies that were able to help grow a small $5,000 account… into over $212,217 in just two years.
Real money, real trading.
This will be an exclusive reveal, not shared with the public… Trades that you have never seen before… And the opportunity of a lifetime.
Tomorrow, you could begin doubling your account every single month starting with one letter.
The letter will come from a 20-year trading professional named Ian Cooper. He says, “In 2017, following my trades you would be doubling even tripling your account some months. Let me show you how.”
He will show you exactly what to do... and he’ll give you the blueprint for just $1.
What is it about option trading that makes it so fascinating? Besides the obvious desire to "make money" and "beat the market" (part of everyone's goal), trading provides a unique opportunity in today's business world: the ability to set up 40 small businesses (the number of option markets), each with limited risk and unlimited profit potential! You can set up these businesses with\ very little overhead (phone bill, chart service). You can be wrong many times and still come out ahead (by using the old maxim of "...cutting losses and letting profits run.") And, you don't need to know anything about what you're trading! In fact, unless you are an expert with up-to-the-minute information, it is better if you don't. (You won't have any preconceptions to make you change your plan).
Our money management principles can be summarized in four easy rules:
Follow Trends - let the market tell you where it's going. Don't guess or predict.
Take Small Losses - get rid of losers quickly.
Let Winners Run - add to the winning positions on pullbacks.
Trade Only When The Best Opportunities Arise - otherwise practice the three R's - rest, research or recreation.
One of the major differences between winners and losers in trading is placing an emphasis on money management principles. We rely on our objective of obtaining a "trading edge" through the use of options and don't predict the direction of the market. Instead, we let the market "tell us" where it's going - by its trend, technical pattern, or variance of action when fundamental news is released. Rather than guess on ideas or views, phases of the moons, triangular lines or other methods that work perfectly about twice a year (just like a broken clock!), we prefer to trade only on what the market has already told us by its pattern, trend, or action.
"If you take an infinite number of monkeys with an infinite amount of time, sooner or later they will write all the great works of the world." Unfortunately, this also applies to market prediction - the problem is trying to find the right monkey! Anyway, why should we predict, when the market tells us everything we need to know?
In addition to using the characteristics of options to obtain a "trading edge" and trading on a long-term basis, money management is another crucial (if not THE most important) principle. Money management means never risking more than 10% of your trading account's capital on any one position. (In fact, larger traders use even lower figures of between 2% and 5%). These figures may actually be better for strict money management principles; however, for smaller accounts and more aggressive traders, a 10% maximum would still be within reason on selected trades.
Does this mean you can never build a large position, since you take so little risk initially? Absolutely not! You can still accumulate a large long-term position, keeping your risk within these manageable guidelines.
First, you must determine your risk level for every trade. Every trade is entered with a certain set of principles. In determining the amount of potential loss, you have to decide what would change your mind from this reasoning. Then you determine the options you want to use by analysis of various options strategies and their benefits.
Next, you must calculate what the loss level would be if the market "stopped you out." This makes it easy to determine how many positions you can afford to initiate. (I have a standard rule: I will not risk more than $500 per position, in any case, and occasionally, when I feel that there is not a great "stop-out" point, I limit my risk to either one-half of the premium of the option, or to some other arbitrary maximum amount, such as $150, $200, etc.)
All of these principles have one goal in common - the preservation of capital in times when your positions are all wrong. Limiting losses to 10% of your capital gives you at least nine more entry points into the markets.
You would have to have a very bad string of luck to quickly lose your capital using this principle. In fact, this principle gives you more than the ten times it seems to challenge the markets.
Assume that in your $10,000 account you are stopped-out for the maximum 10% loss each time. The first time you lose $1,000 your account would be worth $9,000. The second time you would lose $900 and your account would be worth $8,100, etc., giving you, in fact, twenty chances at the market before your trading capital got down to $1,000.
For a change, let's look at the much more exciting time when your trading decision is right and the market begins to move in your favor. Are profits limited because you entered into too small a portion instead of using all of your capital as margin? Not at all. Although some initial profits may be missed, as a long-term trader. I have almost never seen a market in a long-term trend that didn't pull back or consolidate several times, providing traders with many chances to enter along the way.
As described in Jack Schwager's Market Wizards, one trader did extremely well in silver's move in 1978-1980, when silver moved from under $3.00 to $50.00. He did not enter the majority of his position at $3 or $4 or $5, or even at $7 or $8 or $10. In fact, most of his position was entered into at $15.00 when the trend in silver was confirmed. Then was he lucky/intelligent enough to exit silver at the top near $50.00? Nope. He got out at $30.00 after the uptrend had been broken, and only made an average of $15.00 or $7,500 per contract! What he did was take the easy money out of the market looking for only 50% to 60% of the trend, out of the middle, without trying to pick tops or bottoms.
How do you apply this to your trading? After you enter into your initial position, always have a profit objective and look to hedge your trades, take some profits or turn your positions into "free trades" after the market moves in your favor. When you have your initial capital protected and more funds available for new positions, you can then look to enter into new option positions on the next reaction. This type of trading continues as long as the trend continues. It is entirely conceivable that over a period of a year this could become a large position, never having a risk exceeding your initial amount.
You must keep your losses small when the markets don't work for you! You are then in a position to hit the markets hard when you are correct! Using options to get a "trading edge," being disciplined to trade only at times when the best opportunities are present, and continually following your trading plan are the essence of good trading. By following these guidelines, your odds of success will be greatly increased.
PLEASE READ: Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC’s website: All About Auto-Trading, TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. You should always consult with your own professional advisers regarding equities and options on equities trading.
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