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.

Intraday Trading 50 Percent Profit in One Hour

In my last post I told you about Johnny Howell's awesome teaching on intraday entries and exits. He actually prepared us for an intra-day entry signal on BXB - we were waiting for it to form today. And form it did. One of the guys in the trading room actually got in and out in just one hour... and made a 50% profit!! I gotta say I wish it was me. He got right in at the bottom of a trough and out as the price rose... bought calls obviously. I'm in a trade right now - I didn't get in as early as the other guy - wanted to wait for the trough to form "more fully" (for want of better words). Anyway, lets see how we go with it. I would not have the foggiest idea out to do this if it wasn't for the Planet Wealth trading room - trading options on the ASX using technical analysis - and Johnny Howell.

Intraday Entry and Exits Signals

In today's trading room, Johnny spend the first 30 minutes going into detail about how to enter and exit an intra-day trade based on peaks and troughs, with the added help of Fibonacci Levels.

We start out with a 60 minute chart to identify peaks and troughs... then move to the 10 minute chart to time the entry.

In these types of setups, Johnny Howell usually has a profit target of 20% for the day. It's really exciting to think that if you have $10,000 on a trade - a 20% profit in a few hours is possible!

Even a 10% move makes for good money on a $10,000 account in a few hours! Absolutely.

When you trade with Johnny in the trading room, he shows you how to stack probability on your side. It's important to stack the odds in your favour before trading... especially before trading intra day.

If you want to learn more about intra day options trading on the ASX, the Planet Wealth trading room is exactly what you need.

LGL is still going down!

I'm pleased to confirm that my analysis from Thursday, July 31, 2008 was correct! Actually I'm stoked. Even though I didn't get on a trade. I'm just so excited that the professional trading techniques I've learned in the pro trading room are actually becoming easier for me to understand and implement!

Technical analysis is about reading the charts. It gives a clear picture of where a stock is going, based on it's past footprints.

AMP Breakaway Gap

Friday's trading room... identified a Potential Breakaway Gap on Australia's AMP stock. The room is buying Puts.

• Breakaway Gaps source: Stockcharts.com
  
• Breakaway gaps are the exciting ones. They occur when the price action is breaking out of their trading range or congestion area. To understand gaps, one has to understand the nature of congestion areas in the market. A congestion area is just a price range in which the market has traded for some period of time, usually a few weeks or so. The area near the top of the congestion area is usually resistance when approached from below. Likewise, the area near the bottom of the congestion area is support when approached from above. To break out of these areas requires market enthusiasm and, either, many more buyers than sellers for upside breakouts or more sellers than buyers for downside breakouts.

I personally am choosing to stay out of this trade because I'm not confident that AMP has broken down through resistance yet. The resistance line is not definite (to me) - it's quite wide, so IMO could rebound a bit... as it's doing today. I will re-assess this trade during this week. If it breaks down more with good volume, them I may enter with bought puts.

Note to self: this post is created with ScribeFire... first one like this... just trying it out.