Power Stock Strategy
You will use to determine the strength and general direction of a particular stock.
You will ONLY trade when the conditions are optimal.
Placing The Trade
Use Options scan to look for stocks that have:
Triggered a monthly Trade Triangle within the last three days
Trend Analysis Score of +100, +90, -90 or -100
Market price greater than, or equal to, $50 (can be lowered to $35+ if there are slim
pickings)
Average daily trading volume of 1,000,000+ shares
Do a 5-year naked chart analysis of the stock candidate. I teach my full naked chart analysis
techniqueOptions, but get a feel for the longer-term trend of a chart.
Once you see a new monthly or weekly Trade Triangle you can then evaluate the options chain
to find a desirable options contract.
Picking An Option
Be sure to pick an option that:
Has an open interest of at least 100
Expires between 6 and 12 months
Is at-the-money (ATM) or slightly out-of-the-money (OTM)
Invest roughly $500 in that trade IF that number fits with your money management strategy. I
teach the 2/10 money management formula in Options, but you can use your own
strategy. The important thing is that you have a money management plan and you stick with it!
When you receive an exit signal, close out the position.
Tip: It is important to be comfortable with any strategy prior to investing with real money.
Consider paper trading the Power Stock Strategy UNTIL you are confident.
I love helping my students find their confidence and move closer to their financial goals using
time-tested methods.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential
rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures
and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or
options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on
this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN
ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE
TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF
ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL
ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO
REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR
TO THOSE SHOWN.
All trades, patterns, charts, systems, etc., discussed in this advertisement and the product materials are for illustrative purposes only
and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and
do not necessarily reflect those of the publisher
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