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Choosing the Best Strategy

One of the most popular questions I get at the conclusion of each Training Series is how a new Member should attack the Market. Some want to start off with multiple strategies in their toolbox. Others like to have one or two to focus on and master before moving forward.

So, what do I suggest is the best way to approach this? Well, as always I am not here to give specific investment advice, and I always encourage Traders to do their own due diligence. With that said, while I certainly believe that everyone is different, I have always been a proponent of mastering one strategy at a time. I guess the old adage “Jack of all trades, master of none” comes to mind here. Knowing a little bit about everything is certainly the best way to begin your trading career. However, once that foundation is laid, I believe it is time to build and the most effective way of doing this is one piece at a time.

The Training is designed to help us focus on all aspects of the Options World, and give a proper foundation for success moving forward. Once we have a foundation, it is much like building a house. What do you think would be the best way to construct a house: One wall at a time or work on all the walls and roof at the same time? Well, I am not contractor, but I think that mastering one thing at a time is probably the best and most efficient route. The same applies here.

For the beginning trader, mastering Calls and Puts is certainly the first step. Once we have those in our toolbox, Credit and Debit Spreads are the logical next step, then Calendars and Straddle/ Strangles, and then the advanced strategies. They typically build on one another anyways, so mastering the basic trades will make your efforts much easier when you are ready to tackle the advanced ones.

Now that we have that clear, the next question is which one is the “best strategy” to use? Well, that depends. I know, easy answer right? Well, when you think of all the different market conditions, all of the different types of Traders, etc. it is actually the only true answer. Rules based trading simply does not work. A one strategy approach to trading will never last over time. We have to think on our toes, be willing to mold with the market, change our approach when necessary, and only then will we realize true success. And this is all I want for ALL ETNtraders. No matter what your definition is, I wish you nothing but pure SUCCESS!

Happy Trading,

OptionDave

Upcoming Boot Camp Training

Starting with this Friday's New Member Orientation, ETNtrade will begin another round of our popular Option Spread Trading Boot Camp Training Series.  This fantastic training will run July 15- 25 and will cover all aspects of option trading including Strategies, Risk Curve Analysis, the Greeks and most importantly the Psychology of Trading (to include Risk Management, Asset Allocation, Trading Plans, etc.).

Don't miss this opportunity to join us.  We will be hosting a Free Introduction Class this Thursday and we would love for you to join us.  You can simply click here to register: https://www2.gotomeeting.com/register/937532674.  On that class, we will cover the ETNtrade Trading System, put together some live trades and give you the opportunity to join us while saving $300 off the normal tuition rate for the Boot Camp. 

I hope to see you there!  Happy Trading,

OptionDave

May Expiration... Breaking Records

This has truly been a very special year so far here at ETNtrade. While we have always been able to show results that would be considered record breaking in most trading circles, this year we have taken it to a whole new level.

 

May was certainly no let down month for us… not by a long shot. For starters we had not 1 but 2 record breaking weeks during the May Expiration month. Obviously, that is a big reason why May was a record breaking month in itself. But calling it simply a record month would be a real understatement of what actually happened this month. Here is a rundown of the months highs, lows, records and results:

 

Our Mock Portfolio, which tracks every trade we give out during our Live Trading Sessions, started off the May Expiration month on 3/21 with a balance of $229,650. That in itself was quite impressive, seeing as we started the year at $100,000. But put on your seatbelt as I announce where the portfolio is currently valued. As of May Option Expiration on 5/16, the Mock Portfolio had a value of $468.829. That is an incredible $239,179 profit, or 104% Rate of Return!  Let’s break it down further.

 

 

For starters, we did 65 trades this month. 40 of those trades were winners; 25 trades were losers. That is a success rate of 62%. Not bad, but that is not what is important. What is most important is how big the winners were and how small the losers.

 

Our top winner of the month, and one of the best ever in the 5 year history of ETNtrade, was a 454% ROR Credit Spread on Disney. Our biggest loser, of course, was 100% as we sometimes have spreads that will go worthless. However, with good money management, these trades will not wipe us out, and they are easily offset by trades like the DIS one.

 

Some of the most successful trades we did were Credit Spreads, Debit Spreads, RICs and Iron Condors. Many of our Technical Analysis based trades performed very well, and comparing Priced In versus Average Move has netted us some great results on Earnings trades. We plan to continue this style of trading until the Market dictates a change. In the meantime, our hardest decision will be where to take our next vacation, and not what to do with our portfolio. It was a great month, but just wait until you see what we do in June!!!

Happy Trading,

 

OptionDave

Record Breaking Week!

The numbers are in, and despite our getting a late jump on the week by holding our Live Trading Class on Tuesday instead of the usual Monday, we have done something that has never been done before in ETNtrade's 5 year history:  40% RATE OF RETURN on our entire Mock Portfolio in 4 DAYS!  We began the week with $267,000 in our portfolio, and we ended the week with $375,000.  That is a profit of $108,000 less than 4 days.  What a week it was!

Now, let's break the numbers down a bit.  Probably the most impressive part of these numbers is the fact that we began the year with $100,000.  So, not only does that mean we are up 275% year-to-date, but it also means that we over doubled our initial investment this week alone.  While we cannot expect this every week, we sure don't need many like it to be happy for the month, or the year for that matter.  Many Traders would be happy quitting here and it would be their best year ever.  But not us... we are going to keep cool heads, not get greedy, keep doing what we do and keep making money. 

The trades that were most successful were our OTM Debit Spreads on Earnings, a few RICs and Iron Condors targeting the skew between Priced In and Average Move, and our best trade of all, a 400% ROR Put Condor on Priceline (PCLN). 

Are you impressed YET?  Our Members have reported some fantastic results themselves, and we look to continue growing, learning and making money.  Are you a Member?  If not, WHAT ARE YOU WAITING FOR?  We have one last Open Enrollment opportunity left for this quarter, and it will be this coming Monday night.  Join us for the Free Session by registering in the column on the right of this page.  If you have already been to an Intro Session and you are just ready to get onboard, feel free to do so at www.JoinETN.com.  If anyone has any questions, would like to chat or need any assistance in any way, do not hesitate to ask.  Support@ETNtrade.com

Happy Trading and God Bless!

OptionDave

$21,000+ in Profits This Week

Another great weekly option expiration day has come and gone at ETNtrade, and a very profitable one it was.  Even though our Win/Loss Ratio was only 10 Wins to 8 Losses, we walked away the end of the week with an additional $21,000 in the books for our Mock Portfolio.  To update our Year to Date Numbers, we now have $250,477 in our mock portfolio.  Given that we started the year with $100,000, it is safe to say that we are well on our way to a record breaking year at ETNtrade.  I hope everyone reading this is onboard the train already, and if not, WHAT ARE YOU WAITING FOR?

Here are a few key takeaways from this week: 

  • Wednesday's trades were spectacular.  6 of our 7 trades were profitable, with our best being AMZN which netted a whopping 284% Rate of Return.
  • On our Free Class on Tuesday, we gave out a trade on AAPL that netted us a 107% Rate of Return in just 3 Days.
  • We are still in one trade that expires next Friday and two that expire the 3rd Friday of May, and all three are looking good. 
  • The mixture of trade types was very diverse.  We had some Iron Condors, Reverse Iron Condors, Credit Spreads, Debit Spreads, Butterflies, etc.  So, we attacked the market with a full toolbox and brought out the right ones to get each job done.

Have a great weekend everyone, and for our Premium Members, we will see you all on Monday at 1pm ET for our Live Trading Class.  Keep an eye out over the weekend for the Week's Watch List to be posted to the Calendar.  For everyone else, we will see you in May.  Keep in mind, the Core Training Series will be taking place starting May 6th, so if any of our Members would like to audit it again, you are welcome to join us. 

God Bless and Happy Trading,

OptionDave

ETNfree

Next Free Webinar Event:

 The ETNtrade Trading System

Focus: Introduction to Options

Thursday, March 7 @ 1pm ET

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