Proven Setups Trade Guide

Transcription

1 Proven Setups Trade Guide

2 Embarking on the journey of trading can feel daunting. Regardless of where you are, how long you have been trading, and how much money you are trading with, we are all united in our passion for the markets. Within the markets lies opportunity for all of us. The idea of opportunity is what drives us all to watch, survey, and calculate our next move. Trading is incredibly exciting and rewarding. The website shecantrade is named because of Sarah s solid reputation. Time and time again we get feedback from traders from all around the world you say things like; wow Sarah you can actually trade and She really can trade and so on. This is why we named the website Shecantrade. We can trade and so can you! This guide to trading the SCT system will give you the insights in to why Sarah Potter is known for her trading success. I look forward to meeting you in the trading room, come and find out why the SCT trading room is so different. The SCT trading style is for you if: You want to supplement your current trading style with more trades You want to be able to trade without being stuck in front of your screens every minute You are a new trader looking for a solid foundation You are an experience trader who wants an all weather trade strategy You want 3-5 trades to place every week, all year long Happy Trading! Sarah

3 Choosing a Trade Strategy Decisions about whether to place a trade because the market is about to have a move in one clear direction versus trading with a market neutral strategy is an important decision. The right trade set up is not enough, you need to understand timing and the price variable to ensure a well executed trade entry and exit. Time and time again, trades that have a clear direction from a daily timeframe chart will provide a great guide to whether it is worth while to place a trade with a directional bias versus trading with a neutral strategy. The daily chart is a great anchor and is always the beginning of the decision to place a trade. Strategy should be chosen from three choices, whether price is moving up, sideways, or down. While this may seem simple, this straightforward question will help you ensure you are not setting yourself up to make too many adjustments to the trade. After all, trading without adjustments is the goal because this means faster and more profit targets achieved with the least amount of commissions paid balanced with less time in front of the screen. The following example illustrates how to use multiple time frames to aid in the decision to choose an appropriate strategy to trade.

4 How To Decide What To Trade In this example, you can see that the stock has a clear direction on both the daily and the weekly chart. This is the first indication to begin looking for a call. A swing trader like myself will begin to look at current price action and determine if price is making new highs. In this example, price continues to have a lot of momentum.

5 Entering The Trade Entry of the trade will come from shorter term timeframes. In particular, I like to use the 60 minutes and 5 minutes charts. Notice in this example that the 60 minutes chart shows that price has already had a big move today. Rather than chase in to the trade right at this moment, I will keep watching the trade and wait for price of the underlying to move back to the 8 EMA (the purple line on my chart) to execute this trade.

6 Increasing the Odds Trading with charts is only half way to the SCT system. In order to increase the probability of success of the trade, the options trader will need to be very aware of how the options is being priced and selecting the appropriate strike. By combining direction from the charts and actual strike selection from the options chain we are increasing the odds of the trade in our favor.

7 Top Ten Stocks I Like to Trade Right Now AMZN GOOGL CMG TSLA MA WMT MCD YHOO AAPL FB These ten stocks have been on my watchlist and in my trading account most weeks. They play well with current market conditions and allow me the opportunity to place trades in them several times each month. Using these stocks that have weekly options gives me more flexibility to trade based on an expiry week that I want. Weekly options provide a trader the ability to place and trade and cash out of it each week. The frequency of the trades means that I may be in each trade for a couple of weeks at most and often hitting profit targets in hours of being in the trade.

8 There are many more resources available for you at Shecantrade.com. We are always trading live, with real money. Members benefit from seeing live trades, receiving entry and exit trade alerts, and analysis. Check us out so that you too can find out why Shecantrade really is different. Sarah Potter, she can trade and so can you!