Have you struggled with chasing the markets higher just to second guess your trade?
It’s a pretty common problem a lot of traders have, so if it’s happened to you…
Don’t be embarrassed; what’s important is you learn and grow from it.
I get it, it’s hard to break the cycle of second-guessing the trades you want to take.
You see, that type of stress is common among traders who are chasing momentum.
But not me.
When I focus on Fractal Energy, I wait for the trades to come to me.
And I’m only trading what I’m good at… selling credit spreads.
Great traders have one thing in common; they are focused on making consistent and steady money week over week.
But the sacrifice you give up are those “grand slam” wins of 200% or more.
For me, I don’t need any of that. I just want the steady profits that I can count on to run my trading business.*
And that’s exactly what I did last week when I landed a nearly perfect score with 5 out of 6 stocks returning almost 100% returns, each!*
Now, I know I can’t predict what a stock is going to do, but with the tools I want to teach you, I think you can start to get on the right side of the trade as soon as your next trade.
But this is just my opinion, and you should find out if this is a strategy that’s for you…
Fractal Energy Drives Price Action
While many traders are out there searching for the next breakout stock, there is just one problem they fail to realize.
By the time the stock breaks out, all of the stock’s energy is used up. So they are not really getting much juice left in their trade for making profits.
Now, don’t get me wrong, they could make some money but it sounds like it’s more work than it’s worth.
And in my opinion, it’s not worth my time to spend that much energy chasing stocks that can’t provide me over 50% returns.
Instead, I focus on stocks that are generating energy before days or weeks before they break out.
This way, I can get in before the rest of the traders and ride the wave longer for more profits.
So how do I do this?
I make sure I focus on two indicators, the Fractal Energy and Bollinger Bands to give me an edge on my trade.
I find that Fractal Energy is a true indicator of what the stock is ‘feeling’.
I know I repeat myself, but Fractal Energy really is the only gauge for how a stock’s internal energy is acting
When I’m looking for a trade to set up, I need a few things to play out first.
- I need the price action to be exhausted
- The stock must be trading at key technical levels
- Fractal Energy must support the price action
This is my “checklist” before placing any trades.
Remember, technical analysis can only get you so far, the rest needs to be done by the trader to make sure this is a trade that’s worth taking.
Which is why I use 3 different signals to give me the best overview of the trade I’m about to take
Here is an example of SMSI that I just closed out for:
Here is the trade alert my Options Profit Planner members received when I entered this position.
SMSI: I sold the Oct ’20 $4 put for $.60. SMSI ended the week at $3.62. I rolled this out to Jan’21 for some nice credit.
And then…
SMSI Rollout: I rolled the Oct ’20 $4 put to the Jan ’21 $4 put for an additional credit of $.40. My breakeven on the share is now about $3. SMSI finished the week at $4.83 and I have a nice profit going.
For those who aren’t counting… my total profit is now up to $1.00 per contract.
And now I just sent out my alert to exit this trade…
SMSI: I will buy back my Jan ’21 $4 put for $.10 or less.
Which lands me over a $0.90 profit on this trade in just a few short weeks or about a 90% return on my investment!
Now let’s take a look at another trade I just closed out for nearly a 90% profit*
You see a similar pattern in this trade as well.
I found where Fractal Energy was getting charged up and let me know the stock was going to start trading higher once the Bollinger Bands supported the price action.
Now, I of course cannot predict the future price of a stock, but statistically, I had a good edge it was going to trade higher
So, I sold Puts that were below the technical support 52-week low
And my Options Profit Planner subscribers received this alert when I was trading these puts.
AAL: I sold the Feb ’21 $6 put for $.65.
Then in a few short days, I was able to close this trade out for less than $0.10 a contract for nearly a 90% return on investment
AAL: I will buy back my Feb ’21 $6 put for $.10 or less.
Seeing the pattern yet?
You see, I found these stocks by using a 3 step process and it’s a strategy that’s easy to rinse and repeat… but that’s just my opinion and you should find out for yourself
And with the way the markets have been acting recently, it’s a relief to get away from the day to day struggle with this back and forth that makes it difficult to land a good trade.
Many traders are being shook out of their trades early, leaving huge amounts of profits on the table each day.
Now Fractal Energy has been able to help me identify some “certainty” in this chaos, and has given me a defined edge against the rest of the market.
Want to learn more?
*Results presented are not typical and may vary from person to person. Please see our full disclaimer here: ragingbull.com/disclaimer
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