Posted in Education
By: Tom Gentile on April 6th, 2022 • 3 mins read
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
Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.
Other times I will have other charts may work to amplify my educational points.
Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.
Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.