Weekly Trade Plan - 18 Nov
As i mentioned a few days ago the volatility leading up to the monthly expiration tomorrow has come to pass. We currently have 10 open positions in the Alpha Hunter put spread portfolio and considering the level of volatility I am inclined to not add more trades until we close some off. We have the COP put spread expiring tomorrow. I detail some management options available to you in the weekly video which has been posted. Please check it out and make the decision thats best for you. Our AMZN put spread that we added yesterday is up 50% already and I detail some roll trade opportunities as well.
Part of the reason for the volatility that we are seeing is the upcoming decision of who the next Fed chair will be. Honestly, in my view, it will make little difference to the reality of inflation and with that the stock market will continue to be the best place for your money and effort.
In the video I also detail the major signal elements for put spreads:
1) Entry at or near the 21 MA
2) Reversal signal
3) MA Cross
4) B score above 50
5) Alpha Score above 70
6) Stochastic Buy
7) Squeeze compressing with upside momentum
As traders, your plan should dictate whether you will trade on 1, 2, 4 or 7 indicators. I will trade on a minimum of 3 and my sizing of position will increase with an increase in a number of signals confirming the trade. Your exit signal can be a reduction in the number of confirmations (you entered on 4 and now you have 2 for example...). There is no right or wrong - only what works for you.
In closing, now is the time to ensure that all the small issues in your trading are fixed - nerves, fear, set ups, discipline, whatever is holding your performance. Your goals for 2022 should be already drafted so you know what you need to do in order to achieve your goals. In order to be successful in 2022 its about consistently following the rules you create. Sounds easy, right?
Have a great week ahead folks,
Chris
Part of the reason for the volatility that we are seeing is the upcoming decision of who the next Fed chair will be. Honestly, in my view, it will make little difference to the reality of inflation and with that the stock market will continue to be the best place for your money and effort.
In the video I also detail the major signal elements for put spreads:
1) Entry at or near the 21 MA
2) Reversal signal
3) MA Cross
4) B score above 50
5) Alpha Score above 70
6) Stochastic Buy
7) Squeeze compressing with upside momentum
As traders, your plan should dictate whether you will trade on 1, 2, 4 or 7 indicators. I will trade on a minimum of 3 and my sizing of position will increase with an increase in a number of signals confirming the trade. Your exit signal can be a reduction in the number of confirmations (you entered on 4 and now you have 2 for example...). There is no right or wrong - only what works for you.
In closing, now is the time to ensure that all the small issues in your trading are fixed - nerves, fear, set ups, discipline, whatever is holding your performance. Your goals for 2022 should be already drafted so you know what you need to do in order to achieve your goals. In order to be successful in 2022 its about consistently following the rules you create. Sounds easy, right?
Have a great week ahead folks,
Chris
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