How to Trade Our Alerts

Managing Risk and Maximizing Profit: Key Guidelines for Your Trading

  • Before diving into any trade, always consider your own individual risk tolerance and profit objectives. These factors are unique to each trader and should form the foundation of your trading decisions.

 

  • Our alerts typically focus on momentum setups, aiming for trades that move quickly and reach our targets within 1-3 trading sessions. After sending the initial alert, we follow up with a second email outlining our entry price and adjusted parameters. While we send this additional information, not all members wait for it, and we encourage you to adapt to your own trading style that best aligns with your personal risk and profit goals.

 

  • Our approach emphasizes taking profits along the way. We recommend booking half the position when an option hits a +30% gain. At that point, raise the stop-loss (either real or mental) to your entry price on the remaining position, ensuring a profitable trade. From there, let the remainder of the position run with a goal of achieving 100% profit on the rest.

 

  • To manage risk, we limit losses to 40%-50% of the position via a stop-loss, usually based on key support levels for the stock outlined in the alert.

 

  • Each alert also highlights key higher levels for the stock. You can choose to hold the remainder of the position based on these levels or book profits according to your own profit objectives. It’s important to remember that your risk tolerance and profit goals are key factors in every trade. Some members may prefer shorter timeframes and higher-risk trades, while others choose longer-dated options to reduce volatility and hold positions longer.

 

  • Important Reminder for Accounts Under $25k:
    If your account balance is less than $25k, you are limited to 3 day trades over a 5-day period. Be sure not to exceed this limit, as most brokers have counters to track your day trades.

 

  • By following these guidelines and aligning trades with your risk tolerance and goals, you’ll be better equipped to navigate the markets successfully.