Trading rules need to be established before you begin trading with real money. The perfect time to develop your trading rules is while you practice trading with the virtual trading platform. Always follow your trading rules, never bend under any circumstance.
Here are our trading rules:
- Follow proper money management at all times.
- Know your entry and exit strategy before you place your trade.
- Never enter a trade with less than 30 days to expiration, we prefer a minimum 75 days to expiration.
- Do not hold a position with less than 30 days to expiration.
- Open Interest should be 30 times the number of contacts you wish to trade.
- Delta in long positions must be greater than or equal to .25, example .25 to 1.00. Remember, you make more money the higher the Delta!
- Delta in short positions must be less than or equal to -.25, example -.25 to -1.00.
- Optional: Once the stock gains 5% to 7%, take profits on one-half the position and move the stop to the break even point. In volatile markets when the VIX is above 35, it is recommended to take all your profits off the table at 5%.
- Optional: Once the stock gains 10%, change to a trailing stop and let the position run.
- Optional: Take the month of August off each year. Nearly all head traders of larger firms and institutions take a vacation this time of year. This results in lighter trading volumes, creates a drifting or choppy market and subject to whipsaws.
Trade Options Like a Pro costs only $99.95 per month, or save by subscribing for an entire year for only $999.95! Not sure? We offer a 30-day unconditional money-back guarantee to test the service.
