PowerPoint Presentation Outline
Here is an outline of a PowerPoint Presentation to get you started and somewhat familiar with our trading system. Please contact us with any questions.
Note: Do Not try to implement this strategy without full training by InvestmentResourcLLC.com
Investing For Life
Make Good Investment Decisions For the Rest or Your Life!
Issues
When Making Investment Decisions You are Going Against Hedge Funds, Mutual Funds, Institutional Investors, and Me.
Those Investors Have a Lot More Knowledge and Experience.
How Do You Level the Playing Field?
Our System
We Have Developed an Indicator/Strategy That Levels the Playing Field With the Professionals.
Our Indicator (The Guide) Predicts the Short-Term Movement in a Stock’s Price (1-4 Days).
Implementation
When Our Buy Signal is Triggered, You Buy To Open an At-The-Money Call Option.
When Our Sell Signal is Triggered, You Buy To Open an At-The-Money Put Option.
In 1-4 Days, You Sell To Close Your Option For a Profit or Loss And Look For Another Opportunity.
Methodology
First, We Use Tradestation as Our Discount Broker to Analyze and Implement our Trades.
We utilize Candlestick Charts With 60 Minute Bars.
Our Guide Strategy Utilizes 2 Different Measures of Price Volatility. Next We Confirm the Signal With A Daily Chart.
Strategy
Our System Works By Triggering a Buy or Sell Strategy When the Price Breaks out of a Volatility Range Defined by Our Custom Indicator.
One Advantage is That it Makes NO Difference Whether the Price Break is Up or Down. Both Sides are Equally Profitable. Never Worry About Your Investments Going Down Because the Market is Declining. If the Volatility Decreases, the Option Risk is the Premium
Tradestation
Opening a Quote Screen.
Opening a Chart.
Inserting Analysis Techniques.
Inserting Strategy.
Setting Candlestick Chart Type.
Setting Time and Session Settings.
Choosing Stocks To Screen for System.
Examples
Let’s Look at a Few Examples:
GOOG
BIDU
ICE
APPL
GS
AMZN
Candlestick Patterns
Doji
Green or White Candles
Red or Black Candles
Island Reversals
Gaps
Buying or Selling Options
Getting to the Options Quote page
Bid and Ask
Entering Order-Buy To Open
Closing Position-Sell To Close
Limit Number of Positions Open
Screening For Stocks
Stock Selection
Price Range $70+
Beta-Volatility Measure
Volume-Daily 650,000+
Option Volume (Liquidity)
Market Trends-Don’t Defy, Go With the Trend. If Trend is Up, Buy Call, If Trend is Down, Buy Put.
Alternate Strategy
Buy Stock in 100 Share Lots and Sell Covered Call Against the Stock When Buy Signal is Triggered
Sell Short Stock in 100 Share Lots and Sell Covered Put Against Stock When Sell Signal is Triggered
Cautions
Select Stock with Plenty of Volume (Liquidity).
Choose Option Far Enough Out to Have Time to Move Positively (At Least 2 Weeks Until Expiration). Options Expire on Third Friday of Month.
Diversify (Don’t Choose Stocks From the Same Industry at the Same Time).
Cautions Continued
If You Plan to Utilize the Strategy For Covered Calls or Use a Longer Time Frame, it is Important to Consider the Stock’s fundamentals.
To Research Fundamentals, Right Click on the Chart and Scroll Down to Research.
Tools You Will Need
A Computer (Decent Processor Speed).
Plenty of Ram (1 Gig. Min., 2 Preferable).
Tradestation
Account ($5000. Min. Preferably $25000 +).
The Guide (Our System).
Paper Trade to Practice.
Tools Cont’d
www.earningswhispers.com for earning release dates and estimates.
Don’t buy options at earnings release dates.
http://basic.econoday.com/calendar/US for economic report dates. Watch for PPI, CPI, Fed reporting days, and GDP report release.
Gaps
Don’t Trade if Stock Gaps Up or Down More a couple of Points.
Gaps are Reversal Not Continuation Patterns Most of the Time.
Caution
We Trade Either Lightly or Not At All During Earnings Reporting Season Two Week Reporting Period.
Earnings Reports Often Whipsaw the Market Even Though it is not Your Company Reporting. That is Uncontrollable, and We Don’t Trade That Way.
Losing Trades
Accepting Losing Trades is a Part of any Good System. On This System Losing Trades Should be Less Than 20% of the Trades.
Remember, Any System Will Have Losing Trades, Accept That Fact, and You Will Be Happier and More Successful.
Forex trading involves substantial risk of loss and is
not suitable for all investors.