How to Trade Our Alerts
First, you have to keep in mind your own individual risk-tolerance and profit-objectives. These are different for every individual and must be the basis for your trading.
Our alerts generally use momentum set-ups, trades that move quickly and that reach our objectives within 1-3 trading sessions.
We send a second e-mail with our entry and adjusted parameters. Not all members wait for this e-mail and we urge you to use your own trading style that aligns with your own risk-tolerance and profit-objectives.
We always urge members to “remember to be taking profits”.
We look to book some profits (half the position) when an option achieves a +30% gain.
We then raise the stop-loss (real or mental) to our entry price on the rest, effectively ensuring a profitable trade. We allow the remainder of the position to run as we look for a 100% profit on the remainder of the position.
With each new trade we limit our loss to 40%-50% via a real or mental stop-loss. You can also use the levels of support for the stock provided in the alert.
Each alert spells out key levels for the stock, you can hold the remainder for those or book profits according to your individual profit-objectives.
Remember use your own risk-tolerance/profit-objectives. Some members buy shorter timeframes and swing for the fences and are ok risking it all.
Others use further dated options to lessen the volatility and look to hold longer.
Keep in mind that if your account is less than $25k, you are limited to 3 day-trades over 5 trading sessions. DO NOT exceed this, most brokers have a counter on your account to keep you informed of how many you have used.