A Tuesday Trade Edition: One of the most important concepts in trading is to review your work, and learn from the good and the bad. It’s critical to identify what’s working — to do more of it. Each week, you’ll get a trade from my trading journal, in which I explain my whole thought process from start to finish. Trading is all about finding something that works, and applying it, over and over again. That’s how you find trading success. So study up on this “Tuesday Trade” and let’s get to work.
For the last three months, every Tuesday I’ve gone through a different ‘Tuesday Trade’ – but today, we are going to talk about the compilation of them.
How do you use options to change your life?
And, how do you meld your options trading, to fit your lifestyle…?
Let Me Tell You A Story:
Two weeks ago, I convinced Darrell to spend a week at our lake house that doesn’t have the best internet (yet!). Of course, that meant I wouldn’t have my full desktop setup and the internet may or may not work.
He said, “Don’t you have to manage your trades?” Giving me a pained look at the thought of working from his laptop on a Weber Smokey Mountain box setup in the unfurnished living room. We had decided a boat and patio gear was a higher priority over furniture! “Of course I do,” I said. “But that can be done from the dock!”
I knew my portfolio was fully loaded going into Friday afternoon, and I knew my risk was checked and the setups I had chosen were high probability. I had trades in TSLA, CHWY, PTON, WKHS, ADBE, and CRM — the key names that had been on my watchlist in my Mastery program.
Of course, we ended up staying late all weekend, catching catfish, and Monday morning came around quickly. Leo of course came to me immediately upon waking with those big eyes and his best begging voice. “Mommy, can we please go down to the dock?” He of course knows, Monday means workday. However, it just took me about 15 minutes to see that my setups were coming through (quick pattern check was all they needed!) and see that I was up 3k on the day. Everything was stable, I could see. My patterns were coming through just fine.
At that moment, I checked my patterns, and didn’t focus on profit. I could’ve closed my trades, but instead I focused on the lesson I learned very clearly during sabbatical…I knew it was okay to take an hour away from the market. And I told Leo, “Okay, let’s go catch some fish!”
When I was on sabbatical, a key lesson I’ve always known came to be much clearer to me: if I watch my trades less, and primarily focus on high probability setups, that’s how I succeed the best. It’s this that has led me to triple my account since getting back.
But, you ask, how can you watch trades less? Don’t you have to watch them all day long?
No. You have to identify setups, then let them work for you. So, instead of closing out any trades, I notified my members that I’d be holding, reminded them of the target levels — and I went back out to the dock and let them ride.
Another hour later I came back, and low and behold, I was up $4400 on the day. Yet I only spent about 2 hours actually trading that Monday. This is what Five Star trading does for me. And, I got to spend Monday morning with my son.
How is this possible? It all starts with the setup. We’ve walked through many of these setups, but today, it’s about the combination.
Let’s break it down:
- Chewy (CHWY) — This ticker is a combo of Short Interest Secrets, Finding Phoenix, and of course has my signature Five Star pattern.
- Peloton (PTON) — This ticker is a combo of Short Interest Secrets, Finding Phoenix, and is a hot IPO.
- Tesla (TSLA) — This ticker is a combo of Short Interest Secrets, Finding Phoenix, and is a hot IPO.
- Microsoft (MSFT) — This ticker is a Finding Phoenix stock, and it has my signature Five Star pattern.
- Salesforce (CRM) — This ticker is a Finding Phoenix stock, and it has my signature Five star pattern; but I traded it with my Stacked Profits method.
One thing I’ve learned very clearly over my trading career, is that your options trading must be melded to fit your lifestyle, or else you’re setting yourself up for failure. But, more than that, while each setup must have your Five Components, it’s the combination of high probability setups in your toolbox that leads to days like this.
For me, this means selecting high probability swing trades (Five Star trades!) that don’t have to be watched every minute the market’s open.
Five Star traders, you’ve just gotten a sneak peak of what I’m going to discuss tomorrow during my free webinar. I’m going to walk you through my account growth process at 7pm CT, during my webinar.
Good Stuff, and so true..