I am proud to announce starting the week of 4/22 2019 I will be primarily dealing with trading options with my alerts. After many months of back-testing on my own, I have come to the conclusion that this trading style best fits me, and has reflected very well in my trading account. I know many across the board (and in my group) probably have never traded options before. Take it from me when I say it's very easy to make the switch and go from trading regular stock shares to trading options. I will walk you step-by-step whether you're the newbie on the block or the seasoned options trader that has been trading for years; this is what my site and this blog are all about. Not only is it just as easy to trade options, but it's a great way to manage your risk on a trade. The way I trade options makes it so that you will never lose more than what you have in a trade, and you don't have to invest much with a single position using my method. Most horror-stories you hear of is due to traders buying in way too heavy on a trade, risking a huge chunk of their account, or just repeated bad trades. I avoid both of these mistakes and the result is a steady building of your account at the end of each month. Based on many months, I average out around 23% gains’ per option trade, and cut losses small. The win ratio is 7-8. wins out of 10 trades. Even if you've never traded options before, my method makes it very easy to understand and follow trades. So the platform I would recommend to trade options is Robinhood for many out there because it's such a simple and easy to use the platform, and the best part is it’s free. That's right, totally free option trades. After you officially sign-up for Robinhood, be sure to signup for Robinhood Options when you open the app. It's very easy and quick to sign up.
Before you get started,
Please be aware of the pattern day trading rule as this applies to options also. This is a rule across all platforms which states that any account under $25,000 can only day-trade (which all I do is daytrade, usually playing an option every day) 3 times within 5 trading days. Please, people, keep track and watch your day-trades. I've seen it happen many times where one’s account gets restricted for 90-days for breaking this rule! A great way around this is to open an additional trading account with another brokerage and split the funds between the two accounts. This would easily get you around 24 day-trades a month doing it this way! I would recommend eOption for a second account if that's the route you wanted to take, especially since it's only $3.00 a trade on their platform. Ally is another good choice and has a good option’s trading platform.
I will now show you 2 trading examples which will both be applied using my alerts. This example would be as you were trading my alert. We’ll use Robinhood for both examples. I get this question a fair amount, and for those wondering, I personally use Etrade for many other reasons. However, I don't recommend eTrade for many investors out there. This is just my thought and opinion. Again, Robinhood and eOption are my top two recommended picks for trading options. Enjoy the video.
So now that you've seen the video, and have a small taste of how trading my option plays operate, I would like to add a final thought. The number one thing I notice that people do is talk themselves out of trading options before they even begin. Most of the time its because they don't really understand what an option is, or the many ways to profit from it. Don't be that person, and at least give yourself a starting chance before knocking it. It's the best thing that ever happened to me, and this is coming from me being an avid stock trader for years! I keep my options trades really simple by just trading the option itself and profiting from that. (buying low and selling high) What many fail to understand is that trading options don't have to be difficult, it’s only difficult if you make it that way. Please don’t get me wrong, one can make it very difficult which only frustrates and confuses the trader. I don't want you to be that trader, and I certainly don't either! I know many of you out there have a list of questions I'm sure after watching the video, especially if you've never traded an option before. The most common question I always get after is ”Cameron, what is a put” and ”Cameron what is a call”. My answer is simple, look up the textbook definition on calls and puts to get the basic understanding of what it is. Going back to what I said before, don't be that person that digs so deep into option terms that you talk yourself out of it before you even give trading options a fair fighting shot. And certainly, don't listen to the noise of all the horror stories out there about trading options. Let me tell you, there's plenty of horror stories about playing the regular stock market! You'll find story after story all day. I always say, if you listen to the noise, you would never have had a shot anyway. I keep my plays simple and very easy to understand. It wouldn't matter if you didn't know what a ”call” or ”put” is, and as you can see in my video I really go into detail and really explain how to execute each trade. On this note, I hope each of you enjoyed. For those out there that are new to the group, I say welcome and I'm glad to have you on the team! Let's go out there this week and kill some trades with me!