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7 steps to placing your first $2K SAJ trade |
Psychology is the most important part of trading. Read Trading in the Zone. Confidence in a winning strategy is key to building a winning mindset. Knowing why you have an edge is how you get that confidence. Here's what you should know about the $2,000 Small Account Journey's edge. |
Step 1: $2,000 margin account |
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Step 2: A few earnings winners |
NVDA, JPM, and META are a few I've been trading lately. By doing a short put spread, there's a very high probability of the trade working. |
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Step 3: Four bullish patterns |
First, the company smashes the predicted move.
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Second, the chart skyrockets.
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Third, we look to enter the short put vertical below the rest phase.
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Do you see the cup with handle on META? I started entering trades on May 8 in the cup rest phase. |
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As of this writing, in my current Journey, Sunday June 18, 2023, 10 of my 30 winners were on META. |
 | Results not typical. Trading is hard. Most traders lose money. Nothing guaranteed. |
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Step 4: Short put spread |
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Step 5: Probability |
So do option SELLERS have a trading edge? |
Based on a CME study, an average of 76.5% of all options held expired worthless. |
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Three key patterns emerge from this study: |
On average, three out of every four options held end up worthless; Of puts and calls that expired worthless, the primary trend of the underlying played a role; And option SELLERS still come out ahead even when the seller is going against the trend
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Of put options alone, 82.6% expired worthless. This is why I do short put spreads. |
It's a neutral to bullish strategy in which I have 3-ways to win. Stock can go down a little, sideways, or up. More on that later. |
Step 6: Time decay of an option |
Options are time-limited, expiring trades. |
Near expiry, the trade "spoils" with less chance for buyers to make a profit. |
In the final 30 days, the rate of decay picks up speed, with the steepest decay occurring in the final 5-7 days. |
This "time decay" is why 76.5% of all options trades expire worthless and of put options alone, 82.6%. |
Step 7: Economic calendar |
Knowing when the market will move helps with the timing of entries and exits. As well as where to position to be outside the noise. |
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My current $2,000 Small Account Journey, as of this writing, is up 461% in a few months. |
I've grown $2,000 into $11,215, winning 30 of 31 trades. My goal is to get it to $100,000. All trades alerted before I enter and exit. |
 | Results not typical. Trading is hard. Most traders lose money. Nothing guaranteed. |
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A strategy, or edge, is higher probability of one thing happening, over another. |
The $2,000 Small Account Journey is the highest probability trading strategy I know of. |
And that's why it's perfect for trying to grow $2,000. |
In fact, I started a second Journey last week, illustrating one can start today. |
 | Results not typical. Trading is hard. Most traders lose money. Nothing guaranteed. |
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Start Your $2,000 Small Account Journey Today |
Learn more at → https://join.ragingbull.com/small-account-journey |
As promised you can download this cheat sheet on Google |
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