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Pattern Day Trader RuleI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. Now I want to talk to you about the pattern day trader rule because this rule requires that you have at least $25,000 in your trading account if you are day trading. Here’s the tricky part. The tricky part is that you could trigger this rule even if you’re only swing trading, and not day trading, which is why it’s important that you are aware of what the pattern day trader rule is. I will give you examples of what can trigger it, even if it’s accidentally, and I’ll break down what then happens if you trigger it. Most importantly, I want you to be aware of how you can avoid it. What Is The Pattern Day Trader Rule? So what is the pattern day trader rule? According to FINRA, who set the rule, a pattern day trader is a trader if you execute 4 or more day trades in 5 trading days. So if you execute 4 or more day trades in 5 trading days, then you’re being flagged as a pattern day trader. This is not a good thing. So what actually is a day trade? A day trade is a trade that you open and close, during a trading day. So as an example, if you buy a stock at the open, at 9:30 Eastern Time, and then sell it before 4:00 pm Eastern Time, you are placing a day trade. Now, very, very important: this whole rule only applies to stocks and options. It does not apply to futures, forex, or binary options. It only applies to stocks and options. How To Trigger The Pattern Day Trader Rule How can you actually trigger this rule even if you’re swing trading? Well, it actually happened to me very recently. My head coach, Mark Hodge, and I, we were trading with our Mastermind members. I asked Mark to place a trade in my account, but he accidentally placed it in the wrong account. When something like this happens, I have a rule. “When you make a mistake, liquidate.” So I asked Mark to close the position, and when he did that counted as a day trade. So we opened the trade, realized we made a mistake and closed it right away. This lead to me having one strike in this account. And again, if we would get 4 strikes within 5 business days, then we are flagged as pattern day traders. Now, here’s another scenario. Let’s say that we enter a trade tomorrow and it hits the profit target or stop loss on the same day. So this would be another strike because now we are also entering and exiting during a trading day. So as you can see with this, even if you’re not day trading, it is possible that this could happen a few times. If this happens 4 times within 5 trading days, then you’re flagged as a pattern day trader. What Happens When You Trigger The PDT Rule? What happens when you trigger this rule? Well, first of all, if you have more than $25,000 in your account, nothing happens. This is because the pattern day trader rule says, if you are a pattern day trader, then you need to have $25,000 in your account. Now if you don’t have $25,000 in your account, then you will be restricted to trade on a cash basis only for 90 days. What does this mean? Well, see, as a day trader, you actually do need a margin account, and when you trigger the pattern day trader rule and cannot put $25,000 in there, this means that now you are restricted to trading with cash only. So let me give you an example. Let’s say you are trading the Wheel trading strategy, and you put $20,000 in an account. This means if you put it into a margin account, that you get $40,000 in buying power. So when you trigger the day trading pattern rule, you no longer get this buying power here, the 2:1 leverage. You are now basically going back to whatever cash you put in there when you trigger this rule. How To Avoid Triggering The PDT Rule? Now the question is, how can you avoid this? Well, and I want to give you three tips for how to avoid it. Number one, have $25,000 in your account because if you have $25,000 in the account, then triggering the rule won’t matter. What about if you don’t. Number two, you want to make sure that you count the number of day trades. Leave the date you placed a day trade on a sticky note, and count the number of day trades that you do even if it is accidental, so you can keep track of how many strikes you have. Number three, you can avoid it here by trading a cash account. So if you’re not trading a margin account, you don’t have to worry about it. Then, of course, if you are trading futures, forex, bitcoins, so cryptocurrencies, or if you are trading binary options, this is also when the day trading pattern rule does not really matter. Summary Now you know what the pattern day trader rule is, how you can trigger it, even if it is accidentally, what happens when you trigger it, and how you can avoid this. So let me ask you this, at this point, was this helpful at all? If so, feel free to share this video on Facebook, on Twitter, and I’ll see you for the next article.
NASDAQ:NDXEducation
by rockwelltrading
1
Put Option Plan for $GMEI invested in $GME and Initially when I first heard it trended massively, My instant thought was to short the stock because of the obvious overvalue of the company. I went into the situation oblivious to what was actually the WSB's community moving in on the stock. After a lot of research I learned what was going on and gained a complete understanding of the situation at hand and decided to move in. I believe the stock will end its shine by the end of this week, with that thought I came up with my strategy to purchase 2 put option's. I've been day trading for about 4 to 5 months now, and what I have noticed some of the time in the market, is that; Say when the price of a stock is increasing rapidly, there's spots of selling pressure that occur in between Long Bullish sticks. The opening/ Closing price for these moments of selling pressure in a underlying Bullish trend, are points in price where the stock reacts differently around these resistance lines. I am planning on placing my puts strike price $37. The yellow lines represent the range I believe it will be traded in based on selling pressure points and movement around the resistance line off of the first initial Pump. Off Topic: My first time uploading a post here. Let me know what you think of it! Thanks for reading!
NYSE:GMEShort
by GreenDayTrade
1
Should I Buy GME Stock Right Now?I’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. Let’s talk about GameStop GME because the stock’s gone absolutely crazy. I mean, yesterday, January 25th, it was up 144% before swinging into negative territory. Then it reversed again and closed up more than 18%. And today, it’s up another 22% to trade at $93.50. One month ago, it was trading around $20! So, today, I want to look at exactly what’s happening with GME, and let you know if it looks like a good time to buy the stock. What is Happening with GME? GME made its first big move in mid-January after adding Ryan Cohen to its board. This guy is the co-founder and former CEO of Chewy CHWY — the online pet supplies store — so he knows a lot about retail. The stock jumped from $20 to above $40 when that news hit, and this caught a lot of short-sellers off-guard. In fact, according to one CNBC article I read, GME is the most heavily shorted U.S. stock. The article states, “GameStop has been a popular short target on Wall Street. In fact, more than 138% of its float shares had been borrowed and sold short, the single most shorted name in the U.S. stock market.” What’s a Short Squeeze? For those that don’t know, short interest is when a trader bets against the stock, meaning they want it to go lower. To do this, they’ll borrow shares from their broker at one price. If the stock price falls, they can buy the shares back at a lower price to repay their broker and keep the difference as profit. But if the stock rallies, short sellers will have to buy back the shares at a higher price to limit losses. For stocks that are heavily shorted, this can create a sort of ripple effect: Because how do you close a “short trade”? Well, you SOLD the stock earlier so now you have to BUY it back. So when more shorts start covering, i.e. BUYING, the stock climbs higher and higher. This is the short squeeze. And in GME’s situation, as the stock rallied on good fundamental news, shorts started to cover. Then the Reddit crowd got involved. There’s a forum on Reddit called “WallStreetBets”, and their purpose is to, “make money and being amused while doing it.” Their words, not mine. As GME was rallying, online traders on Reddit began posting about the stock and buying it to manipulate the shorts. And as they bought the stock, the price soared, forcing more shorts to cover their positions, and again: This means that more people are BUYING. It’s not surprising there are a lot of traders upset about this manipulation. Famous short-seller Citron Research is one of them and said it would no longer comment on GME because of the “angry mob” on Reddit. Is GME a Buy or a Sell? Now, you could make an argument for GME stock to keep going higher. There are probably some shorts still hanging on. And fundamentally, the company did report solid holiday same-store sales and digital sales growth a few weeks back. But in reality, it’s dangerous to trade GME right now. For starters, look how overbought this stock is. And a lot of times, when these stocks fall, they fall fast. Remember Eastman Kodak KODK last summer when it went from $2 to $60 in two days. And then back down to $6 a month later. And implied volatility is all over the place. This means options premiums are crazy high right now for options buyers. But it’s not a good time to sell options, either, because it’s hard to pinpoint levels of support or resistance. So, yes, you could have made a lot of money trying to trade GME stock, but you could’ve lost a lot of money, too. And whenever I see a parabolic move as we’ve seen in GME , I leave it alone. The risk is simply not worth it. Because at some point, the Reddit traders might lose interest in this stock. So they would just sell it and move on to the next stock, and that could make the stock crash. After all, there are 2.3MM people in this group! More Stocks to Watch Before we go, I just want to check out some more of these “short squeeze” stocks that have been volatile this week. The first is Palantir PLTR , which ran from $26 to almost $40 in two days. Today, the stock is down 3% at $35.12. Another is BlackBerry BB . BB stock ran from $7.50 in mid-January to above $20 yesterday — its highest level since 2011. Today, the stock is up 3.6% at $18.60. And here’s Bed Bath & Beyond BBBY , which was trading around $18 earlier this month, but hit a three-year high near $48 yesterday. Today, BBBY is up 0.1% at $30.68. Finally, there’s AMC AMC . It was trading below $2 at the start of the month and hit a high of $5.19 earlier today. While I’m not going to be trading these stocks because of the risk involved, I’ll certainly be keeping my eye on them.
NYSE:GME
by rockwelltrading
4
Covered Calls For BeginnersI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. Covered Call For Beginners For good reason, the covered call strategy is one of the first option strategies that new traders start trading. This is an effective strategy that options traders often use to provide income on stocks they already own. Questions to be considered in this article: - What Is A Covered Call? - Should You Trade It? - Specific Example Can You Do It In A Retirement Account, EG, IRA? What Is A Covered Call? A covered call is an options strategy used traders to produce income on stocks on long stocks held in their portfolio. This strategy is used by traders who believe that stock prices are unlikely to rise in the short term. A covered call strategy is defined as holding a long position in stock while simultaneously selling a call option on that same asset. This strategy can provide income to a trader who is long term bullish on stocks but doesn’t believe there will be a significant increase in price immediately. A covered call will limit a trader’s potential upside profit if there is a significant move in the price of the stock upwards. This strategy provides little to no protection if the asset price moves downwards. Covered Call Example For the specific example that we’re going to cover today, we’ll take a look at JP Morgan JPM . The price information reflects the price of JPM back in July at the original time of writing for this guide but is just being used as an example If you were holding JPM stock in your portfolio before the pandemic, chances are that you are currently underwater. DISCLAIMER ***For the purpose of full transparency, I do not own or hold any JPM stocks*** I typically only hold stocks between 5 and 25 days. Stock Price Movement Recap For this example, we’re going to assume that I own 100 shares of JPM . If I were to purchase 100 shares for $96 it would mean that the capital requirement for this position is $9600. You’re probably familiar with the way profits move in relation to stock prices… but just to be safe: - If the stock increased to $106, or $10, I would earn $1000. - If the stock increased to $116, or $20, I would earn $2000. - If the stock decreased to $86, or -$10, I would lose $-1000. How Does A Covered Call Work? Sell one call option contract for every 100 shares of the underlying stock in your portfolio. The contract selected would ideally have a short expiration date of 7 days. You would choose an “out of the money” call at a higher strike than the current price of the stock. When choosing this strike price, you would typically choose a price at least one standard deviation away from the current strike price. In other words, choosing a strike price that you do not believe the current strike price will exceed before the date of expiration. If you’d like to learn more about this options strategy, or options in general, I have an awesome Options 101 Course. What’s the benefit of having a Covered Call for the stocks in my portfolio? It’s simple really. When you sell a call option contract, you will receive a premium. This strategy generates income when you don’t expect to profit from the movement of the underlying stock price. In this example with JPM , I received a premium of $55 for selling a call option contract at the price of $116. Provided that the underlying strike price does not move above $116, the contract will expire worthlessly and I will keep the premium I collected by selling the options contract. Let’s take a look at how a covered call will affect your portfolio with the same stock movements. - If the stock increased to $106, or moves $10, I would earn $1000 plus the $55 - If the stock increased to $116, or moves $20, I would earn $2000 plus the 55 - If the stock decreased to $86, or moves -$10, I would lose $-1000 but keep the $55 for a total loss of -$945 Why does this work? If you take the entire amount of premium you received and divide it by the number of days between no and contract expiration, you come up with a number like this: $55 dollars in 7 = $8(ish) per day. This covered call contract is paying us $8 dollars per day. If you take the $8 dollars, divide that by your total capital investment of $9,600 it equals 0.08%. This may not sound too incredible, but… If we do some basic arithmetic and take 0.08% and multiply that by 360 trading days per year, you end up with a return of over 30%. This is in addition to what you earned from the growth of the stock. On some stocks, it’s possible to earn upwards of $20 per day. This could increase annual returns in excess of 40% to 50% Does this sound a little more exciting? YES! Should you trade it? ABSOLUTELY! BUT…. There is a risk associated with this strategy. If there is a large movement of the underlying stock price that surpasses the strike price of your call option contract, you will be forced to sell your shares at this price. This would limit your upside potential to the difference between the current stock price and the price of the call option contract. Example: If the price of the stock went up to $117 (past the $116 call option) and the options contract expires, your stocks will be sold $117. This means you would earn $1,100 + $55, or $1,155. In other words, you would lose $100 for every $1 the strike priced moved above your call option contract. The silver lining is that you can probably buy your stock back the next day if you wanted to hold them long term. This type of trade can be taken inside of your retirement account such as an IRA, which provides you with another way to grow your account conservatively.
NYSE:JPMEducation
by rockwelltrading
DKNG split chart 4hr and WeeklyBullish. Let me just lead with that. I've played numerous calls over the last few months. Huge fan of the stock, the chart, and the company. So of course I am back ready for more calls. $DKNG follows $PENN a lot don't forget that. Right now I am watching: jAN 22 $55 WEEKLY CALL FEB 19 $60 CALL Most of my target calls I will not even think about until Thursday or Friday. On the top chart, the 4 hour, top resistance setting it at the $55.19. Bottom support should be around the low $44 area. The moving averages are packed very tightly - they appear to have flattened out and are trying to turn sideways. Bottom chart, I went with the weekly, because I wanted to show the volume trend over the life of the stock. Notice the peaks between Sept-Nov an the gradual cool down since then. Would like to see some of that range come back. $DKNG.
NASDAQ:DKNGLong
by BradWeber82
$GIK Feb 19th Calls 25 Merger between Feb 15 and March 31Recently GigCapital3 (Ticker: G I K) announced they will merge with Lightning eMotors in the Q1 of 2021. They are also the EV Maker for PLUG Power to create the world's first electric Fuel Cell-Powered Class 6 truck, to target the Middle-Mile delivery solution. In terms of growth they expect to deliver 20,000 ZEVs by 2025, with already enough purchase orders to fulfill 100% of the 2020 and 2021 expected revenue. The company also has a three-year battery partnership with Romeo Power. *Info from various sources
GLong
by BADQOMOCAWGOWLD
Short Selling Put OptionsI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. Short Selling Put Options When short selling put options, a question people ask me is, “Okay, Markus, how do you decide what strike price do you want to sell and whether there’s enough premium in there?” I made a put options calculator called “The Wheel Calculator” that I gave away as part of my recent class on selling put options (Theta Kings) that helps me determine just that. This calculator is now also integrated within The PowerX Optimizer Software as well. Using my put options calculator, I can enter a few different figures and it quickly lets me know if this stock makes sense to sell put options on. I started a small account with $25,380, and have continued to grow it substantially. This was all done by selling put premium using my handy put options calculator! So let’s take a look at a few examples using the airlines. Here’s how you can quickly compare if an option makes sense to sell. So United Airlines UAL , at the time of this is trading at $31.08/share. So I’m going to take a look at the April 24th expiration and the $20 strike price. I’m thinking maybe it would be a good idea to sell the $20 United Airlines UAL put option. So now that I have the strike selected that I would like to sell put options on, let’s take a look at the premium these options have. This will let us know if this trade actually makes sense. Right now, the Bid/Ask is $0.74 over $0.87. So I probably can get $0.80 for selling this option. This is all I need to enter in my spreadsheet, along with the expiration. With the needed inputs entered into my handy dandy put options calculator it tells me, “United Airlines can drop 36% and you’ll still be okay.” It has to drop 36% before we get in trouble. I think that’s pretty good odds in my opinion. The cool thing is that it also says that based on my account size, I should buy 17 options, and I would collect $1,320 in premium. So this means that per day I would get $110 in premium. That’s not bad at all if I can make $100 on just one position. And I like to have 4 to 5 positions in my account at any given time. So based on the number of positions I like to have, this means that you can make $400 to $500 per day collecting premium. I like this a lot because it means annualized I would make 87%! 87% is nothing to sneeze at, right? Short Selling Put Options — American Airlines So now let’s do this same thing with another airline, American Airlines AAL , and see how the numbers look. So like we did with UAL , I’m looking at what strike price in relation to where AAL is trading would it make sense to sell. For American Airlines AAL it looks like probably the $8 strike price would make sense right here. You always want to do it below the previously established low. So let’s take a look at American Airlines AAL . The price right now is $12.26. the options strike price, we said we’d probably have to look at is $8. Here we’re able to collect $0.35 per contract at the $8 strike price. And you see, I could actually, since American Airlines is so cheap, buy 41 options based on my account size. So 41 options and I would collect $1,444 in premium. This means I would get $120. That’s not bad at all. And you see, American Airlines AAL also can drop 35% and we would still be OK. We only get in trouble if American Airlines over the next 15 days drops more than 35%. Possible? Yes. This is why you should always be willing to own the stock. And this is why you want to make sure that you’re not getting in trouble. You need to adjust your position size based on your account. Here obviously, I don’t want to trade two airlines because if airlines are crashing, they probably all do. With that said, let’s take a look at Boeing AAL . Boeing Example I like trading Boeing. I'm looking at a Boeing AAL chart to see where might be a good level here to sell Boeing. Based on where AAL is trading at right now, it looks like $100 would be a good level to take a look at. Let’s first try a strike price of $100, shall we? For $100 we get probably a $1.55 right here, with Boeing AAL trading right now at $150. So if we were to sell the $100 put option on AAL , we are looking to make $1.55/contract. And you see, this means that Boeing AAL could drop 33%, so we’re good here. However, we can only buy three options. Why? Because Boeing AAL is really expensive. So if we would have to buy Boeing at $100, this is when it gets expensive, right? So you see, the strike prices here are much, much, much lower. This is where you see I would only trade three not to overextend myself. And that’s very important when you’re selling puts. You want to make sure that you’re not overextending yourself because otherwise, you’ll get margin calls. Margin calls are ugly. A margin call means that your broker tells you, “I want more money.” You want to avoid that at all costs! Because if you don’t have the money, you would have to sell the stock at a price that you don’t want. Usually, this is how you can wipe out an account. Anyhow, you see this is how we would only make $43 a day. Let me ask you, what would you rather make? $110 to $120 per day? Or $43 per day? I don’t know about you, but for me, these are better. So it’s very easy to quickly compare which options you should be trading when you’re selling puts. One of my favorite trading strategies right now is selling puts. This is what you have seen in the past few examples. My goal is to make $400 to $500 per day by doing so. The best days to sell puts is on a down day. On a down day, the VIX is usually shooting up and options premiums are higher. This is exactly what you’re looking for as a premium seller. For experienced options traders, selling put option premium in an environment like this can be a great way to consistently generate income, even if the stock doesn’t do exactly what you want. I hope this helps!
NASDAQ:UALEducation
by rockwelltrading
1
PVR NSC 14th DecHi traders, this is a price action analysis of the PVR LTD Co. and i can see that there are some good chances to SELL CALL option at strike price :1700 and SELL PUT option at strike price of 1100 with strike date of 31 DEC 2020 we can see currently we are facing a heavy resistance zone and there are high chances that the market gets range or goes bearish if not able to break the 1500 to 1650 resistance zone so we are hoping the price to be range bound between 1100 and 1700 so you can pocket the premium money with selling both call and put you can increase your breakeven price on both the upper and lower side of the setting in this scenario we are betting against the volatility of the market and wishing the market to be range bound so we can capitalize on the premium please comment your opinions
P
by BitonGroup
2
PG Bearish inclined naked calls - 22 Jan expiryJanuary's Secondary Trade This trade is slightly riskier and is the opposite of the general market movement ( bullish ). The reasons why I pegged this as bearish is: Based on the 9 Nov price movement due to the US elections, where post COVID-19 stocks spiked, PG fell. Consumer Defensive sector seems to be in a position where traders in the short term don't see much aggressive growth vs other sectors which have taken a beating and are poised for bigger climbs as we advance against the virus with the vaccines PG also seems to be contained in a range that puts my strike in a favorable position as it is near the upper S/R Line. I'm slightly worried about the Earning release on the 20 Jan and might close this trade before just to be safe. This trade will be hedged with a bullish VXX trade, paid by the Jan premiums Sold 7 CALLs @ 1.5, Strike 142 BP block: 17k Max gain est: $1045
NYSE:PGShort
by Ronin_trader
Earnings Push With earnings coming up there's no doubt for traders to buy NFLX and expect to make some big returns based off of a solid earnings report as Netflix is most likely doing exceptionally well during these interesting times. Aside from the fundamentals, I want to dive deep into some technical analysis. If you have been following long enough you know I love candles and that I can find trends, highs, lows, price movements, floors, and ceilings. Of course I am not perfect and have made plenty of mistakes but over all I am still maintaining my 90% accuracy rating or $1000 lost for every $10000 I make. It is not about my credibility though, it is about the signals and divergence that show where the price is heading and as you can see the MACD is showing a decrease in bear strength while D+ is showing an increase in bull strength. There are also 2 buy signals for the 3x confirm that is also very accurate. My plan is to buy a call or two Monday 1.11.21 for NFLX to hit a strike price of $525 by 1.15.21 Ultimately I do not want to hold all week, I plan on buying in Monday and selling Tuesday or Wednesday. The sooner the better! Follow to keep tabs on this chart & see my trade activity Comment your thoughts below and if you would like one of your stocks analyzed, shoot me a PM. Happy Trading and lets make some big $$ this year!
NASDAQ:NFLXLong
by Myantman101
23
spx's options total volume, much safer to trade high volume Hey guys, nothing really solid here, jus a safer zone to trad than another. Both success rate for buy/sell are not that good at all. -------------------------------------------------------------------------- 8 signals low volume: ------------------------------------- 77 days before a crash 63 days before a top up swing @ a top going down 63 days before a top sideways 286 before a crash ------------------------ - 4 @ months before a top like months !!! - 3 false signals -1 @ a top ***Summary: 50% months before tops 10% @ top 40% false signals HIGH RISK HIGH RISK HIGH RISK ---------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------ 11 signals high volume: ---------------------- Going down bottom going down going down up siwng bottom up swing bottom bottom bottom up swing --------------------------------- 3 going down, 5 bottoms, 3 up swings -------------------------- Summary: - 45 % @ bottoms. - 27% up swings - 27% false signals -Trade high volume is safer. lower risk lower risk lower risk ----------------------------------------- trade above our High volume trigger line is much safer.
SP:SPX
by samitrading
How To Start A Successful Trading BusinessWhen you start trading, you need to go into it like you would if you were getting ready to start a business. Too often, I see new ‘traders’ who open their account and before ever mapping out any goals, a strategy, a trading plan, or anything, they’re already putting money into the markets… …and for me, this isn’t trading, this is gambling. So in this article, I’m going to walk you through how you can start your own successful trading business. So let’s dive in! Starting A Trading Business: Step 1 – Charting Software First, as a technical trader (like me) you MUST have good charting software. Charting software is your window into the world of stocks. As a technical trader, we rely on charts and indicators to find high-probability setups. Charting software with good indicators is an essential first step in your path to being a successful trader. I personally use (and highly recommend) TradingView. It is a paid service and for what I do, I use the Pro Version which currently costs $14.95 per month but it is well worth it. Remember, starting your own successful trading business requires a modest investment into the ‘infrastructure’ of your business. Step 2 – Finding The Right Broker Now on to step 2, finding the right broker for you! Finding the right broker can be a tricky process, especially if you live outside of the United States. If you’re trading stocks and options, I highly recommend tastyworks, or Interactive Brokers if you live outside the U.S. Starting A Trading Business: Step 3 – Trading Strategy Next, now that you have your charting software and broker, every trader needs a good trading strategy. Similar to the broker, one size does not fit all. Why? Well, there are a LOT of variables that can go into developing your trading strategy. For example, are you trading for Income or Growth or the amount you have to trade with? All of these things play a big factor in the type of strategy you want to, can, or should trade. Right now, I’m trading two strategies. My core strategies right now are, The PowerX Strategy and The Wheel. Step 4 – Trading Computer The next thing to consider when getting your trading business set up is you will need a computer. Almost all brokers and trading software are cloud-based, so you don’t need a seriously advanced computer anymore. Most computers that are less than 3 years old should be more than powerful enough to run even the most system-intensive trading platform. Step 5 – Additional Monitors. Now, for your home set up, I think at least one additional monitor is a must. The good news is that if you have a laptop, you already have one monitor! If you travel a lot (like me) I would highly recommend the ASUS MB169B+ 15.6″ Full HD 1920×1080 IPS USB Portable Monitor. They’re lightweight and work great on the road or at home. It fits easily in my backpack (because I HATE checking bags) and doesn’t add much weight. Step 6 – Trading Newsletters Next, over my morning coffee, I like to read a few different trading newsletters. I have three primary newsletters right now where I get most of my market-related news. Most of the talking heads on TV are absolutely terrible for getting non-biased information anymore. No matter what station, everything you hear is coming through some sort of filter. For this reason, I stick with these three newsletters that I’ve found to provide good info: - Morning Brew - Seeking Alpha’s Wall Street Breakfast - The Rockwell Trading Newsletter Summary Now that you have all of the pieces in place to start your trading business off on the right foot, in my next article I’m going to go through something that at first, I’m sure you will cringe: Trading Taxes. But I assure you if you’re proactive and take the time to get set up and structured properly, taxes aren’t actually as bad as you’d think for full-time traders. I hope this has helped and you’ve enjoyed it. Good trading!
DJ:DJIEducation
by rockwelltrading
JETS ETF Bullish inclined naked Puts - 19 Feb expiryAs the Primary Trade is this aligned to the larger market direction and is deemed less risky. I'm bullish inclined for JETS as it is considered one of the COVID19 recovery sectors. More vaccine news and it's potential positive speculation could start increasing it's frequency, resulting in traders trying to capitalize on it by entering sectors previously hit hard by COVID19 Sold 140 Puts @ 0.40, Strike 19 BP block: 27k Max gain - est $5600
AMEX:JETSLong
by Ronin_trader
2
$OEG PT 9-11 and higher Calls 5 Feb 19th 2021 Return +108%$OEG Solar farms for $AMZN Orbital Energy Group, Inc. engages in the design, installation, and commissioning of industrial gas sampling, measurement, and delivery systems for energy, power, and processing markets in the United States and the United Kingdom. It also provides engineering, construction, maintenance, and emergency response solutions to the power, utilities, and midstream markets; and engineering, procurement, and construction services in the renewable energy industry The company, formerly known as CUI Global, Inc., was founded in 1998 and is based in Houston, Texas.
OLong
by BADQOMOCAWGOWLD