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The $1 Million Dollar Trading Lesson (Part 2)

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How To Make a Substantial Monthly Income with Little $50 Dollar Trades!

So would you like to make a living as a trader?

Do you want to enjoy life traveling in an RV, hitting your favorite vacation spots or just relaxing in the sun at home?

All while making $1,000’s weekly from your trades?

Most people experience some success as a trader but they (and 95% of the trading population) eventually start to lose money. (If they ever make any at all.)

Then they go crazy trying to figure out why, then they move on to the next shiny object and repeat the cycle.

Then, as the years go by they eventually give up, or just continue to struggle year after year after year.

Sound familiar?

So what’s the fix?

Optimization!

This is going to sound real simple because it is.  Lets just dig right in.  I’ll show you step by step, how to set this up using a FREE tool called Google Sheets!

This will allow YOU to QUICKLY optimize a handful of trade setups that WORK with remarkable consistency.

My ideal model personally is a $50 to $100 option trade that returns about $250 to $400.

You may be different, but I would say this is the minimum “Level of Play!”

This will work on ANYTHING by the way, Stocks/Options, Forex, and any number of other contracts, Barrels or Bushels!

Ideally, you’ll want to be trading 3-5 “Setup Types” I’ll give a few of my favorites to use FREE.

You want a little variety.  This could be some breakout, bounce, reversal or continuation, but it needs to be clearly defined so that it TOO can be optimized! (Don’t worry its EASY as PIE!)

You can expand your “setup” diversity as you become well versed in the setups you optimize and master.

When things get ruff, you’ll cut to only your strongest winning strategy symbol combinations.

These types of thoughts are what will run through your mind as you begin to trade like this.

There’s just nothing quite like knowing that something DOESN’T WORK AT ALL, as well as pinpointing SOMETHING THAT WORKS EXTREMELY WELL, and optimizing your results!

JUST FACTS – No “Head in the Sand Trading” allowed.

If you want additional help with setup, and how to “Turn the wheels” so to speak, there’s more help available at the end of this article.

Starting Out

I like to teach people how to do this the easy way.  Ill show you the kind of tracking you CAN do, and the kind you should start with.

It all starts with a setup. In the first article we looked at my BBX setup.  This is a Bollinger Band Extreme setup, where we take action if minimum criteria are met when price reaches an extreme Bollinger Band level, it’s a reversal strategy that uses small trades ($50 to $100) with potential gains of $250 to $400+. Its very easy and stress FREE when done correctly.

So our BBX setup has a set of “Criteria” that we use to get into and out of the trade our trades the only thing different is now OVER TIME we optimize our rules for peak performance.

So let me throw this out there to get you thinking, so you can see where I’m going with this

Testing Combinations Options

You can test in various ways and for various reasons.  NO ONE does this, so what you are about to learn will put you HEAD AND SHOULDERS above even pro level traders.

Here an example of variations I test…

1 Setup / 10 Symbols – Here we are trying to find a good fit for our “setup” attempting to identify which symbol, pairs or contracts work best with our a particular setup.

5 Setups / 1 Symbol – Here we are trying to find out how to best trade a specific symbol, pair or contract so we are essentially testing setups.  We can use one symbol that has nice range and flow, and test it with 5 setup types to identify which setups work best for said symbol.

5 setups / 5 symbols – Here we are kind of doing both.  It may take more time to identify profitability here, but in the end, we end up with some setup and symbol combinations that can have us sitting pretty for 6-12 month stretches.

Keep in mind we are tracking and optimizing rules as well as basic trade fundamentals.

The simplest way to start out, and start to see immediate success is to test one “proven” setup and 10 symbols or pairs or contracts or whatever.

The goal being to find some underlying and time frame that your setup “favors” then scale up your winners until you’re hitting your monthly income or wealth building goals.

Then move on to the next optimization process. Once you get the hang of it you will actually enjoy the heck out of it!

Don’t worry if this SOUNDS intimidating, ITS NOT.  Its all about data, and once you start compiling it properly, you are not going to believe the doors you open for profitability.

So, for the sake of learning something cool lets look at 1 setup and 10 symbols on options deal?

But first let me tell you something about…

Swing Trading

Before we start I really need to tell you this.  We are all swing traders.  It doesn’t matter how long or how little you stay in a trade, we are all swing traders because we are relying on swing structure to dictate probabilities.

If you’re not, you’re trading simply trading with a blind fold on.

Many of you don’t even know this, so let me give you a quick lesson.  Swing structure is everything.  Swing highs and swing lows as well as impulse and corrective wave patterns make up every move on a chart.

You can pinpoint low risk entry and exit by simply observing swing structure on a couple time frames.

You can come up with dozens of your own setups by simply mastering swing structure.

We can see strength and weakness make up its mind by simply observing these patterns.

 

There are some subtleties within this image that are KEY to your long term success. In and of itself this is a complete system in its most basic form, and its imperative that this becomes a part of you.

The image above is a typical reversal.  Study it, notice how on the way down you have a series of lower swing lows, and lower swing highs. Then we get a double bottom where price fails to make a lower low, (clue) the next swing high takes out the prior swing high, and now, with a high degree of certainty, we can assume that the reversal has completed.

This is the only “pattern” you ever need to learn.

Flip it upside down, zoom out to a larger time frame or zoom in to a smaller one and you will see this same pattern just repeats its self into infinity.

Want to study something? Study this!

What You’ll Need

All you need is Google sheets or an Excel spreadsheet and a couple setups to start with.

Depending upon what we are optimizing for will depend on what you track, here is what a fully optimized month can look like with just 1 setup.

This is for the BBX setup which is a little unique in that we are simply optimizing the system rules because of the nature of the setup.

A symbol or pair may not reveal a setup on a daily chart but about every 1-3 months or so.  In which case we are really only optimizing setup rules. You’ll see what I mean in a second…

In this case we use our spreadsheet to optimize our “rules tracking sheet” and then we end up with highly profitable results like this after just a couple months of trading.

Now we can scale this!!!

96% Profit across the board after optimization and rules that have been adjusted as a result of our efforts, and now we can scale.

We can easily turn this into a $5,000 a month income!

Now I don’t want to confuse you, I just want you to see the potential here.

This is how simple my rules were to get the optimization for the trades above we traded approximately 30 trades over a two month period, optimized our rules and in round 2 hit a 96% overall return!

All With Incredibly Small Risk!

(BELOW) Our initial BBX rules and our optimized rules that allowed us to achieve the 9/10 winners and 96% profit on $50 dollar trades.  The trade amounts are higher because of adding to positions which we’ll cover later. 

The image below is our OSB setup LONG its just about ready to blow, this setup is a little different than BBX because it occurs more often, so we can optimize rules and for symbols. Make sense?

When things are HOT I can find a few of these a day on a daily chart. So in this situation we will optimize  rules as well as symbols! AGAIN, the high occurrence of the setup allows us to optimize for symbols.

The OSB uses consecutive lower closes, strong prior support and a stochastics confirmation.

Simple stuff really…

But The magic is in the optimization!!!

Any of this making sense? 😊

It really is easy, however I understand many of you may need some help with setting up charts, scanning for ideal conditions and formatting your google sheets for optimization.

To help you get up to speed fast Im in the process of making a series of 6 step by step videos that cover the following in great detail. No fluff just 6 short 20-30 min. videos that cover…

  • Tracking and Optimization – How to optimize rules without “over-optimizing” and how to optimize for symbols with common occurring “swing structure” style setups.
  • 3 Killer Setups – In my 15 years of trading its these 3 that outshine them all!
  • How To Trade Swing Structure – Your life will change when you learn how to Master Swing Structure!  I’ll cover it with you in a way that takes the blinders off permanently!
  • The Only Scans That Matter – So many traders go crazy with scans, but the truth there is only a couple thngs you need to scan for. I’LL SHOW YOU THEM!
  • Scaling Your Winners – You put in the work, you go your data, notw the fun starts and you’re about to hit profit gaols you never dreamed possible. Thats all I can say here! 🙂
  • Setting Up Charts and Spreadsheets – How to setup your charts and spreadsheets for tracking and optimization toward scaling wining combinations.

To get more information and FULL ACCESS to these videos CLICK HERE

If you have been frustrated with the markets and your trading, this may just be the ticket you need to finally make a living trading.

We have taken setups and trading systems that produced losses or marginal returns, to double digit monthly returns consistently.

Click here to get access to the videos, and if you have any questions shoot me an email or write your comment below.

Get Full Access Here

The $1 Million Dollar Trading Lesson

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How To Make a Comfortable Living with Super High Profit $50 to $100 Dollar Option Trades…

This will be a unique approach to conveying an important message. One that has the power to steer you down a financial path of success that you may NEVER realized was possible.

Sounds dramatic I know, but its true.

I’ve been trading for over 15 years now, and it wasn’t until recently that I discovered something rather AMAZING.  This involves a little work, and some thinking, I hope that doesn’t scare you off.

Many of us are not willing to put in the work, and you’ll know if that’s you or not because when the work is presented to you, and you look at it and think “No thanks” it just means you weren’t ready, you weren’t hungry enough, you weren’t serious enough.

So if you trade “Just for Fun” and don’t really care about your results, this will be a turn off.  If however you truly desire to make a profit as a trader, if you really want to supplement or replace your income, you’re gonna love it!

The work isn’t that hard, it just takes a little time and a little advanced preparation, as well as rock solid tracking.

So if you are READY to “Next Level” your trading game, then please, keep reading!

Imagine you had 1 or 2 very specific trade setups, and each worked like magic on a very specific time frame, and market cycle. One of them gave you 1-3 trades a week on the 15 min. or the hourly chart, while the other revealed itself on the daily and hourly chart, also 1-3 times a week!

But you could count on these 2-6 trades like clock-work…

What If You Could Pull in $1,000’s in Profits a Week or More?

Can you imagine discovering something like that?  2 Stocks, 2 Time frames one setup and $1,000’s weekly!

Would you like a little help sniffing out such a plan?

So the question becomes, how do we identify these 2 setups?  How do we know which time frames, AND how can we pinpoint which stocks, Forex pairs or Futures contracts?

AND so many other details!

Rest easy, keep reading and not only will I show you exactly how its done, I’ll even hand you for FREE, my most prized setup for you to practice with as you hone your craft.

Quick Story…

So over the last 2 years I spent almost $1 Million dollars marketing various products on Facebook, Youtube and Google – electronic gadgets to the mechanically inclined as well as preppers and survival types.

And I learned something extremely valuable that sent my trading profits soaring.

It took some time to implement and I WAS NOT profitable for a couple months, but then suddenly it was as if I had a crystal ball.

Once I put the work in, every trade I did was a winner!!

I learned this from a MILLION DOLLARS in advertising experience.

Without going into great detail about my Facebook, YouTube and Google Marketing experience, let me just say this, and we’ll start with this image…

What your looking at is about 10 days of advertising results, and the column on the right side is what it cost me to get a new customer.

If I can get a new customer for under $25, Im making a lot of money. Notice my average down below is just over $23, so over all I’m VERY happy.

Notice above however, we have several adsets that are costing me $40 to $80 dollars to get a customer, and that’s a problem.

You see I know that in order for me to make money I need to be under $25, and at $40 to $80 to acquire a customer those adset are actually LOSING me money.

You see ultimately its all about DATA!!!

When your advertising on Facebook, YouTube and Google its about the image or video in the ad, the words or “copy” you write in the ad, and the audience you show it too.

When you get all of that up and running and you are tracking everything, after a few weeks, the best image, the best words, the best video and the best audiences will reveal themselves.

If you do it right, you almost REMOVE the risk!

Then it becomes about cutting out the bad and shifting budget to the good.  In the pay-per-click advertising business we call it optimization!

Would you like to learn how to optimize your trading, and improve it over time?

When I shift those budgets that are getting me customers for $80 dollars, and spend it on the ones that are performing well, what do you think happens to my $23 average?

It drops to $15 or $18!

Adding $5-8 dollars extra to my per order profits! At 50 sales a day, a simple shift in budget ads $250-400 a day to my pocket!

Shifting Budget

So in the example above I would take the $200 a day spend on each of those $40 to $80 adsets and shift about a $1,000 a day TOTAL spend to my best performing adsets.

We call this “Shifting Budget!”

Again we are optimizing for performance… profits.

Are you starting to see how this might be beneficial to your trading?

In the business of marketing ANYTHING online we use another term called METRICS.  And within all the metrics we can watch closely there are some KEY METRICS that really matter.

KEY METRICS refer to the ones that REALLY MATTER!

So lets talk about trading now…

So the first thing you need are 1-3 (or 4-5) high probability setups.  Trading “situations” that are likely to produce a profitable outcome.

Be aware that NO MATTER HOW AMAZING YOUR SETUP IS, if you apply it to the universe of stocks (options or pairs or contracts) you will always lose, or at best have a 50/50 shot for a win.

Your setup needs optimization, it needs to be applied to a set of circumstances that you have proven have merit through some form of back or forward testing.

Once you have a setup that you are comfortable and it makes sense, you have to start looking at KEY metrics and recording them as you go, in a spreadsheet, in detail – we call this PAYING FOR DATA.

In the advertising world we will spend $5,000 USD or more to identify winning combinations, we are willing to LOSE MONEY to get this information. We’re looking for things like…

The best IMAGE
The best WORDS in the ad
The best audiences, etc…

Most of it won’t work, but when the dust settles we very often find one or two things that DID work, that we can SCALE! (Scale means GO BIG!)

In advertising the bottom line metric we look to, to see if we are making money is called our CPA, which means cost per acquisition.  If we can acquire a customer for $25 for example and bring in $70 for each sale, and deliver goods for $20 total cost, then it costs us $45 to bring in $70.

That gives us $25 profit per customer, then we take our winning combinations and scale to 100 sales a day and make $2500 a day.

You can do the same with your trades…

Track and Scale Your Trades

So what do you track? How do you scale?

Again, this starts with a setup, so lets use a very specific example.  I call this setup BBX, it is a Bollinger Band Extreme Setup, lets look at how it works.

DXC Technology company

This is DXC on 5/29/18 when we entered the trade.  This is a trade setup we rated 7 out of 10 which is SOLID.  Im usually game for 7+ on my trades because my odds are extremely high with a rating of 7 or above. Its a real simple setup where price moves outside of the upper or lower Bollinger Band in an extreme fashion, to solid support or resistance.

Here is the criteria we use when deciding to take a BBX setup. This criteria is for this setup, other setups have other criteria.  Sometimes I’ll add more to my criteria, sometimes Ill remove some of this. Bottom line is I want an effective yet efficient way to GRADE my setup, and make entry or skip the trade.

So this is an extreme move that is likely to “Bounce Back” towards the mean. Things that make this “more likely” are how quickly it happened, how big the moves are relative to prior days, and the levels of support that may have been reached.  So we judge them all on a scale of 1-10.

This takes a little practice but you’ll get a feel for it after a few simple trades.

BBX Criteria:

  1. How big is the move to the extreme? – From the past you can see this 2 day move took out 20 days of prior price action. Its extreme for sure.  I rated it an 8, but it could easily be a 9.  I rarely rate things 10 because I want to lean to the conservative side as I assess.
  2. How much bigger than prior days price action? – Prior days averages are around a $1.00 dollar.  These two candlesticks dropped $10 dollars, so thats 1000% greater than prior days. So a rating of 8-9 is appropriate.
  3. How fast? – Real fast it happened in 2 days, an easy 8.
  4. Retracements or Extension Compliance? – Ill cover this later, but I like to use Fibs retracements and extensions for added support or resistance, and DXC almost touched the 261.8 extension level exactly before its reversion to the mean. Had it touched before the reversal I would have rated it a 7+.  Also when this is happening its time to enter, so usually this is the last thing you are watching BEFORE you enter.
  5. Support or Resistance Level Reached? – There is some swing high support on the left, nothing real important so I gave it a 5.
  6. Is There More Than 1 Extreme Candle? –  The more the better, although 1 extreme candle can work if you’re other criteria are 7+.  So if there is just one extreme candle I might rate it a 5 or less, and if there are two or more extreme candles Ill rate it a 5+ depending on size and number of candles.

So this is how we rate our BBX setup. Its not hard, just takes a little practice and you can do it in literally 1minute.

Now that we have covered the setup itself, lets look at what we track, and I’ll use this trade as an example.

There are lots of things you can track when it comes to trades. The end game is your overall profit right? That’s the bottom line metric! In the end its “How much did I make this month?”

What you must realize is that there are a ton of metrics that lead to how much you make.

Market cycle, spread, risk, profit taking, cutting losses, % return, overall attempts at setup, how you rated the trade, volume and MORE.

Its these metrics that DEFINE your profitability!

Are You Tracking Them?

How can you get better if you’re not making these observations?

You see, if I make 20 BBX trades and I track everything, even if I lose overall, I can go look at what did work, and duplicate my efforts there.  This allows me to optimize toward higher profitability.

It makes it so that if I traded $2500 and only broke even, I can now go through my data and find the “winning combinations” and take my losses BACK 10 fold!

Can you imagine taking back all the money you lose over the years back 10 fold?

You will do that from now on.  Any future loss for you from this day forward will always improve your game, you will forever be optimizing your trading if you follow this plan.

Very often the several thousand you trade will break-even, but after optimization your next several thousand will net you substantial, sizable profits.

You will be able to identify the problems with your losers and the common traits from your winners and expand on the winning metrics – AND SCALE!

Here’s what Im tracking right now… (Click to enlarge)

Basically I need to track the following:

  1. How much was the trade?
  2. How much did I make?
  3. How much did I risk?
  4. How long did it take?
  5. How did you rate the trade?

Then we got symbol, spread, stop, take profit and METHOD!

Now imagine for a moment after tracking 3-6 trades a week or more or less, for a couple months you would have DATA on up to 60 trades!

Do you have any idea what you can do with that information?

If your setup is right, and your diligent at your tracking you can literally write your own check!

It really is Amazing.

If you want to see more on how to do this let me know in the comments below.

Here’s the outcome on DXC, about a 52% return, which takes me out of the trade with a healthy profit! 🙂

This trade went on to produce much more, but I have a 50% rule and I very often get it with just a small POP like this on the BBX setup!

If You Want To See More Comment Below!

Comment below.  If I get enough interest in this I’ll elaborate!  Feel free to ask questions as well!

99% of all traders don’t do this.  And those that do, don’t do it right.  A lot of people keep trade journals to “reflect” but have NO IDEA how to optimize going forward.

If you’re not hitting you’re trading goals, this is the WHY!

If you want to learn how to do this effectively so that every trade you make is optimizing your profits going forward, just comment below – let me know you’d like to see more. If I get enough interest I’ll either make some videos or condusct a free webinar!

Mark Deaton

Stop Loss Metrics

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Let’s talk about your stop. There’s 2 STOPS to consider, the most important being your stop loss.  It’s important because it defines your risk.  But again there are 2 stops…

  1. Stop Loss (Protective Stop)
  2. Moving Stop

In this article lets master your STOP LOSS shall we?

Ideally we set a stop loss based on swing structure because we know swing structure will “hold true” if the trend stays intact, AND such a stop isn’t likely to kick us out of the trade!

HOWEVER, if such a stop adds too much risk to the trade you have to adjust RISK.

There two ways to adjust your risk…

  1. Move your stop OR
  2. Allocate less to the trade.

Let’s get into an example trade so you can see what I mean. I’m going to use options for my example, which will lead to more questions I’m sure that I’ll actually address in a later article.

Take a look at the following image.  On the left is offered a solid Dead Simple Swing Trading entry right near the recent swing low.

Price jumps up past our green 21 EMA right after near perfect swing compliance and our RED is UP! A perfect DSST Trade as discussed here. 

Entry at $125 and a STOP at $116. ($7 dollars in risk.)

On the right would be an example of a late trade where using the swing low as a stop might be more risky than were willing to take, let’s examine both.

AGAIN, using a swing low in an uptrend for your stop is ideal because if swing structure stays “Bullishly Intact” this should provide almost a barrier between your entry and your stop.  Many times this area becomes strong support, again ideal!

On the right let’s pretend that this is what’s offered, its much further away from the prior swing low, its more prone to retrace because it’s a little extended. The question becomes, are you willing to let price move down against you that much

Either entry CAN be fine but you must examine and establish RISK.

ALWAYS REMEMBER: Risk is the only thing you have complete control over.  It’s how you’ll make your money – never forget it.

As a pre-cursor: When it comes to determining risk with options we use DELTA to figure risk.  If the DELTA on an option is .50, it means every $1.00 move on the chart is a .50 cent move on your premium. (Up or down.)

Let’s go over the options on both.

Here we have the following metrics.
1. Entry $123
2. Stop Loss $116
3, Option Premium $2.70
4. Delta .35
5. STOP $7
6. 90% Loss

So if we reach our stop, that’s a $7.00 move against us, if my Delta is .35 that means my premium will go down .35 x $7 = $2.45

A $2.45 hit on $2.70 leaves me with .25 cents…

My $270 is now worth just $25 a LOSS of 90%+
My $2,700 would shrink to $250

NOT GOOD!

Let’s look at B…

Here we have the following metrics.
1. Entry $130
2. Stop Loss $116
3. Option Premium $3.60
4. Delta .45
5. STOP $14
6. 100% Loss

So if we reach our stop, that’s a $14.00 move, if my Delta is .45 that means my premium will go down by – .45 x $14 = $6.30

That’s a 100% loss! It will take my premium to nearly ZERO, it will hold some value as it still has time left but its basically a 100% loss

As you can see BOTH are BIG losses, but consider this…

YES, if I put up $1,000 today and my stop got hit tomorrow and I was down 90% or 100% that would BLOW!

But, if I had only $50, or $100 allocated to the trade, all the sudden it’s not so bad now right? This is all relative as well.

See how we can manage risk by allocating less?

See how it doesn’t really matter what % loss is at stake if we determine in advance and allocate properly?

Now, you can never go BELOW a single contract with options, so in these examples $270 and $360 are the bare bones bottom we can get in for.

FYI: Every options contract has a 100 shares in it, and the minimum you can buy is ONE contract, so if the premium is $3 that = $300 for a single contract. ($3 x 100=$300)

So if we want to allocate less MONEY to a trade and we can’t achieve that at $3, we would need to focus on lower priced stocks like $24 to $50.  These will offer options at $.50 cents to $1.00 and therefore allow you to go all the way down to $50 per trade! (.50 x 100 = $50)

Now, because we CAN’T allocate less on B, we do have the option of simply moving our stop up higher.

What if we moved our STOP to $125, right below the low of the current long candlestick?

Its not perfect but it is the next best LOGICAL place that price “ought NOT” move below, IF the uptrend stays intact.

Always be considering trend and price thresholds – lines in the sand if you will.  Its very logical to assume that if the trend up is strong this candles low will not be violated.

HOWEVER, sometimes you just got to tighten up the stop NO MATTER WHAT!

In this case under the low if this candle just makes a lil sense.

Here you go…

NOW we have the following metrics…

  • Here we have the following metrics
    Entry $130
    2. Stop $125
    3. Option Premium $3.60
    4. Delta .45
    5. STOP $5
    6. 63% Loss

So if we reach our stop, that’s a $5 move, if my Delta is .45 that means my premium will go down by – .45 x $5 = $2.25

My $360 is down $2.25 to $$135. 

About a 63% loss

Personally I’m OK with risking $225 bucks for the potential gain at hand, but as you can see RISK can work for you or it can work against you.

NEVER just take blind risk always figure it out, make adjustments to how much you allocate, where you place your stop etc., and see if you can’t make it more favorable for YOU!

Lets recap…

1.Entry $123
2. Stop Loss $116
3, Option Premium $2.70
4. Delta .35
5. STOP $7
6. 90% Loss

  1. Entry $130
    2. Stop Loss $116
    3. Option Premium $3.60
    4. Delta .45
    5. STOP $14
    6. 100% Loss

1. Entry $130
2. Stop Loss $125
3. Option Premium $3.60
4. Delta .45
5. STOP $5
6. 63% Loss

Ass you can see you have OPTION when it comes to risk.  You can adjust risk by allocating more or less to the trade as well as moving your stop.  Swing structure placemnt of a stop is ideal, but doesn’t always work

Explore your STOP options!

See how I find my Dead Simple Swing Trades here.

The Art of Low Risk Profits

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Imagine, a 477% gain a week, possible?

The $90 minimum on this trade would have reached $424.53

And $180 bucks would have landed you $850!

And to put this in perspective we have had about
30 of these BARN-BUSTERS in the last 6 weeks alone.

Its All Here Go Read The Step By Step Instructions.

A simple scan brought it on the radar…

We used the hourly chart and the daily to decide that
this had enormous upside with extremely low risk…(DSST!)

Here’s what the daily chart looked like when it came up on the radar…

We always move to the hourly to make sure we get the low-risk feel we need to justify the risk. Here’s what the hourly chart looked like…

So far “All Systems Go!”  If you go read the DSST Article Here you will see that both these time frames are in 100% compliance of the DSST method for a “Green Light!”

Next we needed to make sure the option chain wasn’t going to ream us a new one, so we went to the out of the money calls to see what was offered…

We were able to get a .90 cent fill!  This trade is a prime example of why I would rather look through 50 stocks that have crossed over rather than apply tons of filters to my scans.
You miss these IF you filter too much.  In my search and scan course I cover the importance of going lite on your filtering and instead sorting your results by performance and volume and % change.
Anyway about 6 days later we were ready to exit…
Our .90 cent option was worth over $5.00!

I’ve made this real easy for you to learn.  I’ve laid out the step by step instructions in the link below.  If you want to learn the art of swing trading LOW RISK setups, use that link below to get started today.

The Art and Craft of Dead Simple Swing Trades.

Dead Simple Swing Trading

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I Always Come Back To This One Method

I can attribute my largest and most consistent gains to this very method of trading, It always work and never fails although I’ve been known to still screw it up once in a while, as you will too.

But when it comes to reliability, consistency, and accuracy over time…

Nothing Compares

That’s why I’d like to give this to you as a gift!  FREE

Today I want to show you a method of trading that can be used to scalp a fortune from just about any market in the world!

  • If you like Forex, you’ll love this!
  • If you trade, Options or Stocks, this will next level your game!
  • Like Futures?  – This is for you!

This ONE Simple method of cutting risk and increasing overall gains works on anything because it’s PRICE BASED!

Learn this one system and you can DOMINATE any market – Guaranteed!

** There is a catch! You do have to be able to follow some basic instructions.

I mean if you can’t send a text message, OR you have difficulty firing off an email…

This may not be for you.

But if you’ve been blessed with even basic motor skills, I’ve got good news!

You’re about to make a killing in the markets! (And I’m giving this to you FREELY!)

I have to be really careful here with claims, so I’m not about to make any.

Instead I thought I’d just share this with YOU, and if YOU have the desire to make a difference in your life, you can use it as you please.

Fair enough? Great!

Would you like to learn something that can have a huge impact on your financial wherewithal now, and for many years to come?

Want to dominate the rest of 2016 and grow an account beyond your greatest  expectations in 2017?

This IS The Method That Will Do Just That!

If you like it and it works for you, you can use it freely to make a killing in the markets, for as long as you wish!

Let’s begin…

Two Words… Swing Structure

You can’t even begin to talk about a reliable trading method if you don’t bring up “swing structure”- it’s the cornerstone of forecasting where price might move to next.

It’s the ONLY LOGICAL analysis of price movement based on the length and angle of the impulse and corrective price waves!

And don’t worry its very simple and very easy to understand. (I’ll sum it up for you in a single image!) And once you get this you will be able to forecast right along with smartest financial forecasters on the planet.

Don’t worry this has nothing to do with Elliot Wave – remember I promised this was easy, AND IT IS.

When it comes to swing structure just remember……

A down trend consists of an impulse move down, followed by a smaller corrective move up until that impulse move down stops taking out prior swing lows. (A Failed Lower Low!)

Likewise an uptrend consists of impulse moves up followed by corrective moves down until the impulse moves up stop taking out prior swing highs. (A Failed Higher High!)

And if highs and lows are not being taken out in any direction we are channeling sideways.

The image below shows a down trend, then a failure of the impulse move down to take out the prior low, followed by an uptrend.  That uptrend was identified initially when the impulse wave took out a prior high.

Take a look at this text book REVERSAL…

If we follow swing structure carefully we can see above how the trend down came to a halt when the new swing low failed to go lower. (A) Then the next swing high went HIGHER than the prior swing high, (B) and so begins the new uptrend.

This is how price moves – in swings.  A trend down is defined by lower swing lows and lower swing highs.  A trend up is defined by higher swing lows and higher swing highs.

The transition between the two looks like the image above!

This “swing Structure” is the core to the life changing method I’m about to share with you.

If the image and explanation above seemed confusing, take some time to re-review , trust me it’s worth it.

In my 13 years of trading I’ve come to really rely on swing structure to give me the ability to forecast price direction and timing.

I decided to take this TRUTH, this FACT, this SIMPLICITY, and turn it into a kind of automated options short-term trading method. (That’s also very effective on Forex and Futures as well!)

It’s AMAZING… $150 here, $175 there, and at a half-dozen or so EVERY two weeks, you’re looking at $900-$1500 every couple weeks. (Mix in a couple of 700%+ trades here and there and you have something you can get profitable with immediately AND grow and SCALE!!)

It’s All about Simplicity

In order to take this ALREADY RELIABLE price leading method and turn it into a “system” we needed a way to define a low risk entry, as well as properly manage our highly leveraged risk!

I decided to incorporate, along with pure raw swing structure, a couple of trend defining Moving Averages, as well as a few breakout and reversal patterns that have also demonstrated Ageless Accuracy in Times Past.

Here’s where it gets interesting…

And there’s nothing magic about this, it’s just basic math – you’re going to simply go after highly “likely to move fast” setups, and you’re going to join the FUN with some pre-defined low risk!

You’re going to make a killing because your $50 and $100’s in risk has the potential to grow by 2, 10 and even 30 times!

The accuracy is there to hit some big gains, you just gotta stick to the basic “Patterns of TRUTH” this method reveals!

You’re outcome is never certain, but 10-30X gains are not uncommon!

Take a look at this recent trade that netted $2,200 in just a few days. Price went from $120 to $150 and the $2.70 CALL option went to a crazy $22 dollars!!

Not all your trades are this big, but they do come frequently enough. The key here is even with a $2.70 option we still risked only $135 during the entire trade.

Imagine even TWO trades a month where you put up $135 bucks to make $2,200

Life Changing!

You will always know EXACTLY what’s at risk, at all times.

Big winners like this give you much larger room for error as you learn to master this!

Let’s walk through this trade so I can show you how the method works.  There are just two rules for LONG entry…

Simple Easy Rules

Rule #1 – Swing Structure Must Be Compliant In Trade Direction.

Rule #2 – Enter Long When Price Closes Above Green EMA

Easy right?

Here’s what that might look like on a chart…

On The Chart:
Green = 21 Day Exponential Moving Average
Red = 200 Day Forward Weighted Moving Average.
** Bollinger Bands 20, 2.0 (I’ll explain how I use Bollinger Bands later, it’s not critical for success.)

Here’s the trigger entry explained on video…

Watch the Video

Trade Walk-Through #1, SIVB 814%

In the image below we enter long on SIVB because swing structure was compliant LONG.

We have higher swing highs and higher swing lows, (as indicated by the red dots and lines) and the current swing low did not go below the last swing low, AND price moved up and through our GREEN 21 EMA, plus our 200 FWMA is up… ENTER LONG!

Then, in less than one week the $130 strike CALL option went from $2.70 to $22.00 and we made an absolute killing. AND, we only risked $135 bucks TOTAL!  We risked just $135 because we bought one contract for $270 and set a stop at 50% of our option value.

Couple things to note here. First off, this trade setup came to us by way of a daily chart.

What I’ll show you in a moment is that very often you will find price making the kind of move we want, but you won’t see your complete setup.  Just fast moving price action, which is great, but it’s not good enough!

For stocks I like to scan DAILY charts for range, meaning I look for nice BIG moves relative to the underlying price, if my setup hasn’t appeared in the past and doesn’t appear now on the daily, I look at the 15min., and the hourly charts.

You must HUNT DOWN your setup on the right time frame.  This is KEY!

Once you find it, you’ll spend your time there!  Your targets can come from the daily chart but your triggers may be on the 15 min, OR the hourly for the purposes of defining risk and setting a stop.

More on this in a minute.

Trade Walk-Through #2, UNH – 587%

In this trade we were stopped out once, but that didn’t have much of a negative impact on the trade, we still walked away with over 500% Return as you’ll see!

In this example I only used 3 dots because only 3 swings are actually required for swing structure compliance – a swing low, a swing high and a higher swing low.. (Long)

This trade lasted just 3 days and our $2.40 CALL Option blew up to $8.25! Not even a $10 move on the stock and we managed to make $825 on $120 in TOTAL RISK!

Now I want to point something out, because our stop was set to 50% of our investment of $240.00 we were actually only risking $120.00 to make $825.00

So in Actuality We Walked Away with Over 500%.

It’s really all about how much is at risk when it comes to your return.  With a typical CALL or PUT option my stop usually results in a 50% loss so allocate accordingly.  If you want to keep risk LOW like me, look for $1-$2 dollar contracts where $100-$200 total positions are limited to $50 to $100 in risk.

Make sense?

You can easily make a killing with this all day long risking just $50 a trade.

Time Frames

Now as I hinted to you a moment ago the real “Magic” that is offered comes by way of YOU lining up the right time frame with the right price action.

Remember: Price moves up and down in a series of IMPULSE and CORRECTIVE waves.

Remember the Swing Structure image above? (You should print that out.)

It’s a fundamental TRUTH that you can count on. It’s what makes this so powerful a system!

Your job is to simply match up the movement with the time frame. This is where most traders get all goofy and give up.

The Good News is Its Dead Simple!

Take the daily chart on GATX for example…

Rules for entry were violated on the daily chart and did not allow for the low risk and high reward we need in a trade. (see how the swing low before the arrow went lower than the prior swing low?

We had the initial set-up spot on, but there were swing structure violations that did NOT allow low risk entry.

But look what the 1 hour chart revealed…

Notice how perfect the entry is? (Several times in fact on this time frame.)

See how we meet the guidelines of the 2 rules required for entry? (just on a different time frame.)

See how we first found the “Movement” required for the big dollars, and then we matched up the time frame to meet our minimum requirements?

This trade product $1,320 on a $36 investment…

That’s Over 3,500% in 23 Days!

Now once you find your setup and you have identified the time frame that holds compliance, you want to ask yourself 3 simple questions…

When You Find Your Set-Up Ask These 3 Questions…

This question filter is designed to really sharpen your skills AND keep you IN the trades with the best possibility to perform! You’re going to ask yourself the following questions and you’re going to begin make some quick observations…

  1. What Are You Coming off of? – Was price channeling? Is it in an uptrend and how can this impact my initial move? Does this have larger breakout potential? Anything provide clues about future potential or risk?
  2. What Recent Pattern Can You Compare It To? (Risk purposes only!) – Focus on prior impulse waves, their size and reach! If you have impulse waves with smaller corrective patterns inside them, ignore them and focus your attention on the larger impulse. (Sometimes swing structure on smaller time frames show up on the bigger ones – I cover this a little in the video below.)
  3. What Price Risk Is There? – Relative to recent past – Look at prior pushes up and retracements and see if there’s usually any heat on your stop? (23% 50%, 61.8% More?)

Here’s a quick video on the 3 questions filter…

3 Questions Overview Video

Here’s kind of how this plays out going forward….

At this point it’s all about successful trades vs. failures and how much you win vs. how much you lose.

It becomes a game of simply managing these metrics.

I don’t want to dive too deep here right now, but when you step back and look at 20-50 trades there will be those you win on, those you lose on, and the amount you win on your winners vs. the amount you lose on your losers.

That’s why having the ability to WIN BIG on a bucnh is so important.

It TIPS the Potential for Success in
Your Favor BIG TIME!

ANYTIME you can take $50-$100 and turn it into $1,800 to $3,500 you’re on to something good, this gives you a nice wide margin for error!

Think about it, with that potential, even just 2 in 10 winners would make you extremely profitable!

In other words you can screw up a lot and still make a killing!

It Kind of turns it into CASINO ODDS where YOUR the House!

Now you just need to find the setups!

If you want to see more just fill out the form and I’ll shoot you some videos I just made!

 

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