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Don’t Do This When The Market Is Collapsing

by | Mar 2, 2020 | blogs, Editorial | 0 comments

The hardest part when trading is that nobody knows if it is just the beginning or near the end of a massive selloff.  

But one thing is always certain – panicking when the markets are selling off is always the wrong decision.

And to be truthful… that is hard not to do in times like these.

For many just the thought of losing money completely freezes them in their tracks— and any logical thinking quickly disappears.  

Why does this happen?

This happens from poor trading habits and a lack of a robust trading system!

There is nothing more dangerous to traders than having a weak trading plan.

If a trader doesn’t have a plan then in my mind they are just gambling!

So what makes up a robust trading system anyways?

This comes from 3 key components to a robust trading system

The 3 key components:


  • A model for picking, entering, and exiting stocks
  • A plan to safely managing risk
  • Proper record keeping of trades

If you don’t have these elements then you are extremely susceptible to major risks when trades go against you and the markets are in a frenzy!

Want to learn how these 3 key components to a robust trading system will help keep your trading account safe in uncertain market environments?

And most importantly – not panic?


3 Key Components To A Robust Trading System


There is nothing more dangerous to traders than having a weak trade management system to control the entire lifecycle of the trade.

This is because a system keeps a trader from doing anything based out of fear or greed when they are looking to buy and sell stocks.

So what exactly are these three components that make up a robust trading system?

The 3 key components:

  1. A model for picking, entering, and exiting stocks
  2. A plan to safely managing risk
  3. Proper record keeping of trades

These may seem trivial… or almost too simple… 

Unfortunately, you would be surprised by the number of traders that I meet that don’t have any of these rules built into their trading routine!

So let’s go over exactly how each one of these will help take your trading to the next level and keep you safe along the way.


A model for picking, entering, and exiting stocks


So if your strategy is to just buy whatever comes across your mind, that’s probably not a great strategy.

That’s why I developed a proven strategy (based on free tools in FinViz) to focus and bring the best stocks to me.  


Systematically picking the stocks to trade


This does two things..

First, it allows me to add a logical and mathematical funnel to bring 10,000 stocks to a manageable size list.  

Second, it keeps me focused on the stocks that matter the most for selling options strategies and out of the breaking news headlines that are just hype.

It’s generally overrated…but having a strategy that is guided by a screening program will significantly increase the odds of a successful trade!

Think about it like the owner of a franchise… Do you think they just “spray and pray” that where they place their store will be successful?

No way!

There are complex mathematical models they run based on traffic patterns and growth in areas to ensure their business has the most optimal access to clients looking to go into their stores!

And the same goes for trading stocks!

So it’s time to stop “spraying and praying” and get to picking the best of the best stocks to trade options on!


Entering and exiting the trade


Now… once the stocks are selected, you need a system that guides you to get in and out of positions the same every time it’s executed.

What does this strategy give you?

It gives a trader an unbiased, ready for any market set of rules to sell credit spreads on the best-of-breed stocks!

This system seeks out options that are mispriced by the options market makers.  

What’s the benefit of having a system like this?

Well…this strategy is designed to put you in a position to achieve above a 90% win rate and over an 80% return on investments from each of your trades! 

One of the most challenging components to every trade is the exit.

They say… Anyone can enter a trade…but not exit the trade!

Which leads to my next point.  By trading options you will avoid the #1 hardest part of trading, and that is holding your losers.

Since options have a natural expiration, this will prevent the dreaded holding onto losers or turning a trade into an investment problem many traders face.

And there’s nothing better to do exactly that than the Options Profit Planner’s premiere option selling trading strategy!


Proper record-keeping


This last one is a challenge for even the best of traders… and that is making sure to keep proper records of all your trades.

I know.. I know…

Nobody likes to keep records of their trades.  It’s such a pain to do this every day after every trade.

But trust me… it does pay off!

Why?  Well for primarily two reasons…It highlights your winners and losers and it tells you what your bad habits are.

For example, when trading you will begin to notice patterns in some of your decision making that you might never have noticed without a detailed record.

Such as, your system doesn’t work well on biotech stocks… or maybe it doesn’t work on stocks under $10 and over $150.

The only way you would ever connect those dots is by the use of a trading journal!

For me… I make sure to keep detailed information about each trade at every point I make a decision with it.  From entering the trade, adjusting the trade, and finally exiting the position.

[Just click here to see how I track and record all of my trades!]


How Does This Work 


Simply… Options Profit Planner has been crushing it since I launched it last year!

Even through this market turbulence, I am still running a streak of winners and not a single loser to date.  

Options Profit Planner is a trading strategy at which aims to generate high probability and high ROI income to the traders.

And it all starts as a simple trading strategy that tries to buy stock at a discount all while being paid up front to do so!

The best part of this strategy is that if you do not end up owning the stock, you still get to keep your premium and place another trade again and again!

And these trades can happen every single day… Especially in market conditions like these!

Sign up now in order to get updates on each new trade and get 100% return on your investment in just a few months!

Here are some recent trades the Options Profit Planner subscribers were alerted to

RIG:  In Oct ’19 We sold the Feb ’20 $4 put for $.70.  We bought this back in Dec ’19 for $.10 locking in great profit months ahead of time.

And this…

SFIX:  In Sept ’19, we sold the Mar ’20 $11 put for $.95. We bought this back in Dec ’19 for $.10 locking in great profit month’s ahead of time.


Wrapping Up


What does this all mean?

Well, it means one thing…  As a trader you absolutely don’t want to panic when the markets are collapsing all around you!

You want to adhere to your trading plans and make sure you enter and exit all trades with strict rules at all times!

By following a defined risk management and record keeping routine is going to be the best thing you can do to keep your mind clear and a trade log to review once the dust has settled!

So… now stop gambling and start trading like a professional trader by following those 3 key rules to trading!

Looking to learn more about the markets and how to build a trading account around selling options?

Start here by utilizing the power of Options Profit Planner today!

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