Options Trading Secret #1: Have a Trading System
Secret 1: Make sure you have a trading system in place before putting capital to work.
Talk to any successful trader and you will find that they have a detailed system in place that they follow on every trade. Trading options is no different.
You have to have a system in place telling you when to get in and when to get out before you ever put your hard-earned capital on the line. There are many trading systems available in the marketplace that claim to give you an edge. The big key here is to have a system that prints entry, target, and stop points right on the charts for you in real time.
You don’t want a system that requires a lot of discretionary decisions to be made. You also want to use a system that works on all stocks and ETF’s. You don’t want to be limited to a few products. Trading a diversified list of products will make a huge difference in your returns. Markets change, and you want a system that can adjust to those changes quickly.
This is the only way you can stay disciplined to your system. I use this example with traders all the time. Would you ever try to build a house without blueprints? It would be a long shot to do and have it turn out. Trading is no different.
You have to have the blueprints there to guide you on every trade. If you don’t you are left taking trades with your fingers crossed hoping they work out. Using a trading system will put a methodology in place that you can trust when putting your hard-earned capital to work
The system that I use in my own trading are our Options Superstars programs.
You can see from the screenshot below we have exact entry, target, and stop levels in place before we ever put our hard-earned money into a trade. If not having a trade system in place is missing piece in your trading approach, I highly recommend recommending joining us for our Nasdaq Options Superstars webinar.
You will find a link below to register for our upcoming webinar so you can see how we use our system to find the best options trades each week.