Day Trading Options

How You Can Start Day Trading Options

With the end of the Planet Wealth Live Trading Room - you might be searching for another trading room that can help you with trading Australian Stock Market options. And here's the answer!

If you'd like to get starting day trading options on the ASX, here's a fantastic strategy that anyone can use... from a complete novice to the veteran-trader.

Click here to learn more: day trading options - trading on rocket fuel.

Get ready. I know you'll love it!

Trading Room is Now Emini's Live Trading Room

I'm sad to say that today marks the last day of John Howell's live ASX trading room. But it's not all bad news!

If you love to follow John Howell - he's now teamed up with Planet Wealth and opened the E-minis Trading Room. This is fantastic news - especially if you're an Aussie working a day job... since you can now trade at night.

Discover more about the Planet Wealth E-Minis Trading Room with John Howell by clicking here.

25% Profit In Under 24 Hours with Simple Trading System

In the last hour of trade on Thursday afternoon, the trading room identified a bearish trade on Newcrest Mining - NCM on the Australian Stock Exchange. With the market being so extremely volatile in the last few weeks/months, it was imperative that traders in the room were stacking the odds on our side when entering this trade. Using the technical analysis trading system we are taught by our mentor Johnny Howell, we identified the following factors in our favor:

1. Short term trend line broken on the daily chart
2. Trading Room Proprietary indicators all bearish.
3. Bearish Down Day - (if you don't understand what this is, you can learn the entire concept in the free home study that you get when you sign up for the trading room).
4. Increase in volume.
5. RSI pointing down
6. Other momentum indicators bearish.
7. Peaks and troughs bearish.
8. and there were actually even more indicators stacked in our favor for a bearish day on Friday.

Obviously, I don't want to go into too much detail here, because I think it's dangerous for me to equip you with information if you're not truly understanding what's going on.

If you really want to get your head around this stuff, you should get your butt into the trading room ASAP. Winning trades such as this week's NCM trade are identified on a regular basis. Sure - some of the picks are losers, but we are taught to cut our losses short, which means overall traders in the room are running at a nice profit.

Anyway, on Friday we were pleased to see NCM do exactly as the system had predicted. The trading room system had yet again picked a winner! Depending on the instrument used for this trade, most traders in the room achieved a profit of 20% to 25% on this trade by noon on Friday. Of course, the profit varies depending on whether traders traded options, CFDs or stock. For me personally, I love that the ONE trading room system can be used to trade in these MANY different ways on the ASX.

I'm sure you'd agree that the Planet Wealth Trading Room's Success is an AMAZING accomplishment in these current market conditions!

Here's why momentum is key for serious traders

OK, so I haven't posted here in a while. Why? Simply, because I lost momentum! And yet again, Johnny Howell has hit the nail on the head (for me at least) with a pep talk in the Trading Room about momentum.

And I don't mean momentum indicators for technical analysis.

What I mean is momentum in life... and more importantly momentum in trading.

To keep your momentum in trading, all you need is a little study each day. Keep on top of the charts. Keep up with the news. Even if - like me - you're sitting on the bench while the "Global Credit Crunch" slams the market, at least you should stick to a routine... just 10 minutes a day will do it. If you spend just 10 minutes a day studying charts and catching up on the news, you'll be primed for the day when the door of opportunity opens again.

Now, you might be thinking to yourself that you can sit out for a while and get back into chart study later. But be warned... that is how you will LOSE YOUR MOMENTUM! You'll become out of touch with the stocks you love to trade... and it could take a lot of work for you to get up to speed again. If you're like me, when you're faced with the prospect of a massive amount of study, you're inclined to procrastinate. Don't let that happen.

Instead, keep up your momentum. Stick to your routine every day. Study the markets and stay on top of your game!

P. S.
The more I trade, the more I realize how VITAL my overall psychology is in becoming a successful trader. This post on momentum is just one tiny example. The way you behave when you face financial loss or massive profits can make or break you as a trader... and as a person. This is serious business. Just recently, people have committed suicide due to the huge financial pressure created in these falling markets. If you need help with your mind set, get yourself into the Planet Wealth Trading Room today! It's the place to be for serious traders. Not only do we get stock-picks on a daily basis, but we get mentored in trading strategies and overall psychology - all for less that $20 per hour. I really can't believe I've found this gem. I urge you to join us if you really want to make trading work for you!

Live Trading System Suits all kinds of traders

I think in this blog I've mainly mentioned that we trade options in the Planet Wealth trading room. It's true that when the trading system we use identifies an entry signal, Johnny Howell uses The Bourse software to view the options series. Then together, we're able to look at the options volume, Open Interest, etc and pick the best option for the trade. Of course the option we pick will depend on the price target and time frame of the trade. Personally, if the trading system is predicting a one-day move, I pick an in the money option with a delta close to 1. If, on the other hand, we are looking at a large price movement over the long term, I might trade a riskier far out of the money option.

I should make a point though, that Johnny Howell's trading system suits more than just options trading. You can buy/sell the actual underlying stock - or you could use CFDs.

I'm actually looking into setting up my account for CFDs as I write. I like the idea of trading in smaller amounts. In the Australian market, 1 options contract is usually over 1000 shares. That means to trade options, you usually have to trade around $4000 to make any profit after brokerage. CFDs on the other hand can be traded with as little as $100 per trade. So, I feel more comfortable trading in smaller amounts - especially given the current market volatility.

Anyway, I guess the point of this post is... if you like the idea of the trading room, but you don't want to trade Options, then you don't have to. Trade any way you like. Johnny's trading systems work. You only have to look at the testimonials on the Trading Room page to see that!

Day trading case scenarios - buy and sell signals

I've just finished listening to yet another awesome pre-recorded day trading session with John Howell in the Planet Wealth trading room. As you read in a previous post, we've been studying day-trades and the best entry and exit points based on peaks, troughs, moving averages and support/resistance/trend lines.

Today John added to the teaching by introducing us to the concept of "Case Scenarios". I guess we can get caught up, trying to fit each trade into a step-by-step mould. But, it's not really that simple. Johnny stressed that each trade is different - and so must be analyzed and executed differently. For each and every trade, a good trader must construct a separate case scenario:

* What is happening right now.
* What is the technical entry.
* What is the technical exit (where are you placing stops).

If you, like me, are just starting out day-trading, then don't expect your next trade to execute the same as the last. It will be different. Construct a case scenario for your trade and be prepared to exit at any time. As the old cliche goes: "plan your trade and trade your plan". Keep your eyes open... and don't leave the screen!

My first look inside the Planet Wealth Trading Diary

I thought I'd post a bit today about how I got started with the Planet Wealth trading room. It actually all started when my husband stumbled across the 21st Century Academy's website. Their package was too expensive for us at the time... but we noticed in a lot of their testimonials that there was reference to the Dimitri Strategy. At first (when I got started) The Dimitri Strategy referred to a method of selling put spreads in a bull market as a form of generating income. Andrew Dimitri uses fundamental analysis to recommend a put spread - and places his recommendation in the Planet Wealth forum - part of the Planet Wealth Trading Diary.

As of 2008 - the Dimitri Strategy has been vastly expanded and now includes about 8 (from memory) ebooks covering various investment strategies. These were created when the bull market ended early 2008 and selling put spreads started to result in losses to many members of the PLanet Wealth trading Diary. Thankfully, we had all been taught excellent money management by Andrew Dimitri and Bill Stacy - and so most of us are still in the game.

With these additional strategies came an interest in trading puts and calls on their own (i.e. just buying a put or buying a call - not selling spreads) and some of us dabbled in option strangles and straddles. Before long, there was a demand for more knowledge in how to trade options - we needed a system.

And in walks Johnny Howell! I'm sure it wasn't that quick and easy from Planet Wealth's point of view. But for the trading diary members, he has been a godsend.

Johnny teaches us in-depth technical analysis - chart analysis - and we're all on the road to becoming full time professional options traders.

So that's a long story made short!

If you're looking for an options trading course - forget books and DVDs. There is nothing like trading live with a pro trader by your side.