My Trading Methods

Today I like to talk about some of my trading methods.

Retirement Portfolio Trading Method

We are fast approaching the end of our time period for the completion of the retirement portfolio. Of course I have since been out of the trade and the feedback we received from some of the Smart Traders who participated was nothing short of fabulous!

One of our beloved members shared her experience:

“I would like to thank you and Mirriam for teaching us the strategy of how to trade to the  S&P 500 option as the retirement portfolio. I attended the Oct 2012 class, and tried this out in last Nov. I’ve achieved 83% return in 5 months. It not only recovered the tuition but also built up my retirement portfolio greatly. I am here to let you know that I’d appreciate the opportunity that you’ve given me…”

Congratulations to you and all the Smart Traders who participated!

Volatility is on its Way

Within the next few weeks we can begin to see some changes in the US market environment (undoubtedly this can impact global markets as well).

It is something we have been sharing with our Smart Traders for some time at previous webinars where I shared how the market has a bullish 4-5 year cycle followed by a 1-2 year bear market.

This time period will soon be upon us and the reason why I am mentioning this is for us to begin to prepare.

I myself will only focus on being in hedged positions and these include:

  • Purchasing Stocks with Puts (as long as the SPY is trading above a key moving average);
  • Investing After Earnings
  • Hedged with Weekly Options where I am in the trade for no more than 4 days being in cash over the weekend.

As far as directional trading goes I may participate in fading Earnings candidates and when the VXO goes into the high to extreme price I can then fade stocks.

Being hedged enables us to hold our trades through all sorts of economic data such as FOMC and Non Farm Payroll.