Our weekly options trading system uses the acronym TRADE
RIGHT to help you establish a method of trading weekly options that fits your
profile as a trader and enables you to consistently profit from trading weekly
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WEEKLY OPTIONS TRADING SYSTEM - THE PRELIMINARY STEPS
The first five steps of the "Trade Right" trading system help you to understand yourself as a trader, and set a solid foundation for making ongoing right trading choices.
The first step in our weekly options trading system is to take
account of your trading goals. Are you trading to earn a living? To save for
retirement? To make your money work for you? To beat the interest rate of
Next, rate your experience and success as a trader. Are you a
novice, somewhat experienced, or a seasoned trader?
With the experience you have had, what have your results
been like? Disappointing, inconsistent, moderately successful, or very
The next stage in the "Trade Right" weekly options trading system is to assess your style of trading. Are you a hands-on trader who
likes to watch the market and make decisions or do you prefer a more of a ‘set
it and forget it’ approach with pre-set targets and stop-losses?
Determine your target profit percentages. Will you aim for
100% increase, which is the target we use as a guideline with our membership
services? Are you happy to make small increases of 20% on each successful
trade? Would you prefer to ride the wave until the moment that the price begins
to turn and be ready to get out fast?
The same goes with your exit strategy for losing trades.
Will you get out of a trade at the mark we suggest, which is a 60% loss, or do
you have a higher or lower threshold?
Establish the amount of capital that you will use for your
weekly options trading system. Divide that amount by twenty, and aim to use
each of these 5% amounts to enter each trade. Doing this avoids the pitfall of
putting too many eggs in one basket, and allows you to balance the risk and
potential that your trades bring in a more stable manner.
WEEKLY OPTIONS TRADING SYSTEM - THE NITTY GRITTY
The next five steps in the "Trade Right" weekly options trading system are where you get down to work, figure out which trades to make, prepare to trade, enter and exit the trade and apply trading strategy.
Research the companies that are ideally suited to trading
weekly options. Gather information about upcoming catalysts that are likely to
create significant price movement. Investigate factors including volume and
volatility that will impact the suitability of certain options. If you don’t
have the time or desire to do this yourself, use a service such as our Weekly
Options Advisory Service.
Interpret the information given by analysts, news reports
and market data to assist you in planning a trade, including your entry and
exit price points.
Get ready to trade. Make sure that your trading account is
correctly set up with sufficient funds and ready for you to set the trade in
motion at the right moment.
This step of the weekly options trading system is to handle the purchasing of the contract. If you are not able
to watch the market, and wish to buy the option at the start of the trading
day, you can use an AMO (After Market Order). This can be placed between the
close of the previous day’s market, and several minutes before the start of the
new day’s trading.
Trade the plan. After you have planned the trade, make sure
that you stick to your plan, and don’t become swayed by emotion.
Take the profit you intended to achieve, or the loss that
you were prepared to sustain, and move onto the next trade.