By: Tom Gentile
on April 6th, 2022
I have 6 distinct, quick trading rules I teach on how to be a successful options trader.
Today I will present the first rule. I will continue to provide an article with the next rule until I have provided you all with the full 6 rules.
Developing an Effective Plan
When it comes to trading, the best way to succeed is by developing an effective plan – and sticking to it.
Successful traders make informed decisions based on rational data. Never allow your emotions to get in the way of your trading.
By following a consistent trading plan that includes the 6 Trading Strategies for Success, you’ll be in an optimal position to make significant earnings no matter what the market does.
SKILL #1: Qualifying Your Trades
Do Any of these descriptions characterize your trading style?
- I get in to trades because a TV guru said to
- I act on the recommendation of analysts (half of whom say to sell, and the other half say to buy – on the same stock)
- I flip a coin and pray
If so, you could probably use a better trading system.
The reality is that nobody has control over the markets. Just look at the show Mad Money on CNBC.
While the views expressed may be acceptable for some long-term investors, the majority of the stock picks can go against those views for days or even weeks before turning and going as one wishes.
Therefore, If You Want to Trade Successfully
- Thinking unemotionally is the first step
- Trading a proven trading system is absolutely essential
Qualify a Trading System
To qualify a trading system, we need to have a set of rules.
From there, we back test the rules using historical data, This allows us to get a feel for how our system would have performed over the time frame allotted.
It also gives us insight into whether or not the system was profitable.
Some Systems Perform Better than Others
Take a cerebral journey to find out which are profitable, and which are not, and which ones suit you as a trader.
Zero in on systems that fit your time frame and comfort zone as a trader.
Don’t try to day trade if you have a full-time job. You are likely to lose at both if you try to concentrate on them at the same time.
KEY TIP: Use of my software and the pre-computed scans available in them is an easy way to get started with a trading system.
My App Toms Option Tools has the means to search up options based on a variety of qualifying options data and 6 lists can be found in the Morning Reports Lists.
App: Toms Option Tools
Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.
Stock and options trading has large potential rewards, but also large potential risk.
You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.
This is neither an offer to buy/sell/ or recommend a particular stock or option.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.
No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
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