What you should NOT do trading options!

I was doing one of my webinars and I got this question:

“ I owned a call and the price of the stock went up but my option price went down! I hate options!”

I get this question all the time.

Here’s the problem that so many option traders do and cause pain and losing money: They don’t understand what makes options move!

There are many great reasons to trade options, I gave some a couple of days ago. (You can read it here.) So I am a big fan of options. I actually like them more than stocks!

So you should NEVER trade options without understanding what moves options.

That means that you should understand the Greeks. They are delta, gamma, theta, and vega. These concepts often intimidate people so they never learn them. They look intimidating but really aren’t.

They are the key to understanding why options move the way they do. Understanding the Greeks will tell you about how much money you will make or lose when you trade options.

Trading options without understanding the Greeks is like trading with a blindfold on.

It’s easy to learn the Greeks!

There is a lot of info for free on the Internet. Or, better yet, you can take our amazing upcoming live seminar, Options Success School. Click here to claim your discounted ticket!

 

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TRADESMITH video Free version – September 18, 2017

A big story of the next year! Watch TradeSmith video now!

Courtney Smith’s market forecast, TradeSmith, provides valuable insights on the market from a Professional Trader with over 45 years experience. Courtney Smith is the only person in history to have managed atop ranked Hedge Fund, Stock & Futures Picking Newsletters, & Mutual Fund. Watch & learn from a master trader’s analysis of the market. Courtney has been featured on TV over 1000 times and trained on hundreds of stages around the world to tens of thousands of traders worldwide. Subscribe to the Premium TradeSmith Podcast to receive additional insights and specific trade recommendations at http://bit.ly/WeeklyMarketForecast

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TRADESMITH video Free version – September 11, 2017

I just can’t help it if I’m making tons of money here. Watch TradeSmith video now!

Courtney Smith’s market forecast, TradeSmith, provides valuable insights on the market from a Professional Trader with over 45 years experience. Courtney Smith is the only person in history to have managed atop ranked Hedge Fund, Stock & Futures Picking Newsletters, & Mutual Fund. Watch & learn from a master trader’s analysis of the market. Courtney has been featured on TV over 1000 times and trained on hundreds of stages around the world to tens of thousands of traders worldwide. Subscribe to the Premium TradeSmith Podcast to receive additional insights and specific trade recommendations at http://bit.ly/WeeklyMarketForecast

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Why Options Are Better Than Stocks

Imagine you go online to get your broker’s most recent statement. Imagine you open it up and you see a big profit! You were worried about making your rent and car payments.

But a big wave of relief washes over you.

You smile.

This can be the type of reality you can achieve by using options.

Options have some big advantages over stocks. If you are profitable trading stocks then you will turbo charge those profits using options. If you are unprofitable trading stocks then options may shift you into the profit column.

Here are just some of the advantages:

1. Small capital requirement. The most common reason that traders use options is that they require very very little money. You can buy great options for just $100-400. Far less than the amount needed to buy 100 shares of the stock. This means that you can have a big portfolio and a diversified portfolio.

2. Leverage. Each options controls 100 shares of stock. Yet you can buy many options for $100-500 while it would cost thousands of dollars to buy 100 shares of the stock.

3. Control risk. You always know the maximum you can lose when you buy options. You pay a premium for the option and that is your maximum risk. You don’t need a stop loss.

4. Super cool strategies. You can construct some mind boggling strategies with options and can dramatically enhance your profits.

There is really only one bad news with options and that is that you have to learn some extra knowledge.

I haven’t taught options trading for years but I am pleased to announce that I will be teaching my legendary Options Success School on October 7-8 in the WealthBuilder classroom in Las Vegas.

I’m giving a huge discount right now for you to sign up.

Click here to claim your discounted ticket!

Thanks!

Good trading,
Courtney Smith

P.S. I’ve also put together a daily advisory service called Smith’s Stock Swing Trader. I give my actual trades every day that only take a few minutes a day to put in. So it is perfect for creating a global freedom lifestyle. We are using stocks and options in these trades. You can get more info here.

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How The “Flip Back Strategy” Can Make You Money

Imagine you see a bull market. You see the market take a dip and you strike. You buy a big position as the market is going down.

But you have caught the bottom of the market perfectly and the price starts to skyrocket higher again.

You have a big winner in just a few days!

Now imagine doing that all the time.

This is the essence of the Flip Back Strategy. Perfectly buying dips in bull markets and selling rallies in bear markets.

Here’s how it works.

You first have to define the trend. Is it bullish, bearish, or neutral. You can define it even more precisely. Wildly bullish, bullish, or slightly bullish. And so on.

This is really important. You get the trend wrong and you get the trade wrong.

How can you determine the trend?

There are many ways. You can use a classic definition like the market is making higher highs and higher lows. You can use trend lines. You can use moving averages. You can just use your eyeballs.

Use whatever works for you but make sure you use the same technique all the time.

Now that you know the trend you are ready to find an entry point. Let’s say it is a normal bull market.

We need a technique to tell us exactly when to buy on the dip. We need a technique that gets us buying at the low of the dip or very close to it.

We want a technique that has some type of good risk management or you can use options with to control risk.

It turns out that there are many techniques like this. Let me outline just one.

I have a technique called Boing Boing. Here are the basic rules. I’ll use a bull market as an example but just flip the rules upside down for bear trades.

First, identify the trend. In Boing Boing, I tell people to use their eyes to determine the trend. But, the trend must be perfectly clear. No hesitation about the trend. I want to know the trend for the last 2-3 weeks.

OK, got it? Have you identified a market with a very clear trend?

Now when do you buy?

I use a standard indicator called RSI. You can find it on almost all charting packages. Try  Stockcharts.com for a free chart service with RSI.

The market starts to dip. Wait until the RSI closes below 30. That is your signal to buy. Buy market on close the day it closes below 30 if you can. Otherwise buy market on open tomorrow.

Boing Boing will get you long at or very near the bottom of the dip just about every time. Of course, it is not perfect and you may have the occasional loss. But surprisingly not very often!

Of course you also need to make sure you have good risk management techniques.

Want to learn more about Boing Boing? I offer a super cool online course called How To Quit Your Job Trading Stocks and Options. You can find out more info by  clicking here now. This is where I teach Boing Boing and several other Flip Back Strategies! You can Check it out here.

Wouldn’t it be cool if you could watch me trade Boing Boing “live”? I have a service where I show you my actual trades using short term swing trading in stocks and options. The real purpose of the service is to make a living or create a second income trading stocks and options.

It’s a new product from us but the performance has been terrific. Check it out by clicking here.

Good trading!

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TRADESMITH video Free version – September 4, 2017

How much money do you want to make? Watch TradeSmith video now!

Courtney Smith’s market forecast, TradeSmith, provides valuable insights on the market from a Professional Trader with over 45 years experience. Courtney Smith is the only person in history to have managed atop ranked Hedge Fund, Stock & Futures Picking Newsletters, & Mutual Fund. Watch & learn from a master trader’s analysis of the market. Courtney has been featured on TV over 1000 times and trained on hundreds of stages around the world to tens of thousands of traders worldwide. Subscribe to the Premium TradeSmith Podcast to receive additional insights and specific trade recommendations at http://bit.ly/WeeklyMarketForecast

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TRADESMITH video Free version – August 28, 2017

What do The Big Four have to tell us? Watch it now to find out!

Courtney Smith’s market forecast, TradeSmith, provides valuable insights on the market from a Professional Trader with over 45 years experience. Courtney Smith is the only person in history to have managed atop ranked Hedge Fund, Stock & Futures Picking Newsletters, & Mutual Fund. Watch & learn from a master trader’s analysis of the market. Courtney has been featured on TV over 1000 times and trained on hundreds of stages around the world to tens of thousands of traders worldwide. Subscribe to the Premium TradeSmith Podcast to receive additional insights and specific trade recommendations at http://bit.ly/WeeklyMarketForecast

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Which Of These Two Types Of Trading Should You Do?

You can divide trading into two styles. High speed trading or relaxed/focused trading.

You’ve probably seen the pictures and videos showing traders shouting into phones, “buy!”, “sell!”. They are hyperactive and yell all day.

The second type of trading is relaxed. You go to your computer, focus for 15 minutes, put in your orders, and walk away for the rest of the day to do what you want.

I’ve done both. Both can be very profitable.

I’ve been in a room of screaming maniacs. Heck, I WAS one of those screaming maniacs. I did that for minimum 12 hours a day, 50 weeks a year!

But then I got smart and shifted to making money using relaxed/focused trading. I started to lengthen the time I held trades from minutes to days and weeks. Yes, I had to hold positions overnight.

That bothers some people because they don’t like that risk.

I realized that I could accept that risk. I realized that much greater profits came with that risk. Day trading can never have a trade with life changing profits. Position and Swing Trading can.

I realized that I really enjoyed day trading but got burned out after a while. Naturally, burning out came more frequently as I got older.

My values changed also. Before, I wanted to trade. It was an end in itself. The process of trading was fantastic to me.

Now, I like the benefits of trading more than the trading.

I like the freedom to live where I want. I like the time freedom. I am disciplined and do my trading at the same time every day. But, other than that, I can sleep til noon or party all night.

I’ve got two things that can help you achieve this goal.

I’ve put together an online course that teaches my techniques called How To Quit Your Job Trading Stocks and Options. It reveals some of my core techniques that will help you get the life you truly want. I know you would profit tremendously from the course. Click here to learn more. I’ve created a 4 part free video training that explains it and actually reveals a super cool technique.

Click here to register for the free education! 

I’ve also put together a daily advisory service called Smith’s Stock Swing Trader. I give my actual trades every day that only take a few minutes a day to put in. So it is perfect for creating a global freedom lifestyle. You can get more info here.

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TRADESMITH video Free version – August 21, 2017

Sometimes it’s just unbelievable! Stock market is dropping just like I told you it would and the gold market is rallying just like I told you! Watch it now to find out!

Courtney Smith’s market forecast, TradeSmith, provides valuable insights on the market from a Professional Trader with over 45 years experience. Courtney Smith is the only person in history to have managed atop ranked Hedge Fund, Stock & Futures Picking Newsletters, & Mutual Fund. Watch & learn from a master trader’s analysis of the market. Courtney has been featured on TV over 1000 times and trained on hundreds of stages around the world to tens of thousands of traders worldwide. Subscribe to the Premium TradeSmith Podcast to receive additional insights and specific trade recommendations at http://bit.ly/WeeklyMarketForecast

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What my Fortune Cookie Said

I’m on a date. Attractive lady. Thai restaurant. The meal is over.

Being an American Thai restaurant, they bring fortune cookies at the end. I never eat them or crack them open but the lady insisted I see what my fortune was.

So I ripped open the package and cracked open the cookie. I gently pulled out the small slip of paper and spread it flat on the table.

It said, “Consider gain and loss, but never be greedy and everything will be all right.”

I thought that was awesome!

Doesn’t that sum up trading?

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The best place to keep up with my specific stock trades is my weekly video newsletter, TradeSmith. Please check it out here.

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