Category Stock Options Trading

TRADING WITH INSIGHT: Question #5 Do I Need To Use Technical Analysis?

I think technical analysis has become a bigger deal in the trading industry than it needs to be. Especially when it comes to trading Options. Do you really need 8 moving averages, 6 momentum indicators, 7 volume indicators, 15 different trend lines, 20 different levels of support or resistance, and so on? Absolutely NOT!

While technical analysis can be helpful, it’s better that you use it in moderation. That cheesy cliché that you hear in the trading world – “Analysis Paralysis” – it’s a real thing! You can literally analyze your charts to the point that you’re too paralyzed to trade. Why? Because you have 5 indicators saying the stock will go up, 5 showing that it will go down, another 5 saying that it will move sideways, and still another 5 indicators with inconclusive results. How are you supposed to trade like that?

I’ve actually found that one of the best ways to trade is by using technical analysis, but without looking at your charts at all. This allows you to make strategic, data driven decisions instead of decisions based on your gut feeling.

So how do you trade without looking at the charts? We use a process that I’ve developed called “Insight Trading”. All of the technical analysis involved is automatically combined to calculate a win rate for the strategies we trade. That win rate that’s calculated is our “insight”… and that’s literally all of the technical analysis that we need to trade highly successful and profitable trade strategies. The higher the win rate, the higher the chance of profiting on that trade.

Wanna learn more about how we use our Insight Trading process for super simple technical analysis (…without even having to look at our charts)? Check it out  – https://TradingWithInsight.com/start

TRADING WITH INSIGHT: Question #4 Is It Better To Buy Or Sell Options?

Which one is “better” is really just a matter of opinion, and my opinion is to sell more options than you buy. Here’s why… Buying options can give you a great risk to reward (which is what makes “buying” them so appealing) but, there are still a lot of concerns around buying instead of selling options…

Usually when you’re buying options, Direction, Distance and Time are your biggest enemies! One of the biggest issues is that the stock you’re trading MUST move in order for you to make any real money. Not only does it have to move, BUT it also has to be moving in the right direction. Not only that, it also has to move in the right direction before your option expires…. And not only that (as if that wasn’t enough already) but it also has to move in your direction fast enough AND far enough to reach profit region before that expiration date hits. It’s a lot, right?! And what all of that adds up to is a generally low win rate. Not cool at all!

On the other hand, we could just sell options. I’ll be honest… when you’re selling options, you typically don’t get the most attractive risk to reward (which is why some many new traders shy away from selling) BUT what you gain in return is much more valuable and profitable in the end! Why? Because selling options allows you to have Direction, Distance and Time working in your favor.

Usually when you’re selling, your stock does NOT have to move at all in order for you to make money. You’re LITERALLY just making money as time goes by, regardless of what the stock is doing. If the stocks moves in the direction you think it will, if it doesn’t move at all, and even if it starts moving against you… you can still be profitable selling options. And you know what all of that adds up to? High win rates and consistent income.  Check out our “Trading With Insight” course to see how we’re buying and selling options – https://TradingWithInsight.com/start

TRADING WITH INSIGHT: Question #3 What Are The Best Stocks To Trade?

So, you decide you wanna start trading in the stock market, and then you realize… you don’t know which stocks you should be trading! Some of the best advice I can give you is to NEVER invest or trade anything just because you heard some “great” news about the company on TV or because your friend Bob tells you to… Very rarely do those trades work out in your favor because you don’t have the right “insight.” 

In my opinion, the best answer to this question is this: the best stocks to trade are the ones that give you a profitable edge. What I mean by that is that you want to place trades on stocks that (A) give you a high probability of winning, and (B) give you enough credit or profits to allow you to be profitable over time.  

I call this process “Insight” Trading, because you would be trading based on calculated, systematic insight that you have (as opposed to trading on emotions and opinions.)  

So for one week, Apple, Google, and Home Depot could have been the “best” stocks to trade because, based on their recent price action, they had high trade win rates. And for another week, maybe Microsoft, Netflix and Comcast were the “best” stocks to trade because they had high trade win rates.  

So, the obvious next question is how do you get these win rates? Well, we actually give you a full list of amazing stocks to focus on trading PLUS the fully-loaded chart layout and trade signals that automatically calculate the win rates on these stocks for you. And of course, we show you how to actually trade these stocks as well. Just check out our “Trading With Insight” Course to learn more – https://TradingWithInsight.com/start

TRADING WITH INSIGHT: Question #2 Can You Make Money When The Stock Price Drops?

Yes you can! Many people who are new to trading, or who have never traded in the stock market before, are not aware that you can actually earn money from a stock that’s dropping. The best way to do that is by trading Options, which is what we teach in our “Trading With Insight” Training Course. Stock Options can be used in a number of different ways, but we use them to build trades that allow us to profit from stocks that are moving up, moving down, or even moving sideways!  

And if you’re wondering how it could be possible to make money from a stock that’s falling and losing money itself, think about it like this… when you trade with options, you’re basically making a strategic bet on where you think the stock price will or will not go (up, down, or sideways.) And so if you’re correct on your “bet”, and the stock price pretty much does what you think it will do, then you can make money on that trade. In some cases, you could be completely wrong in your assumption, and you could still make money on the trade. That’s one of the greatest benefits of trading stock options!  

Be sure to check out our “Trading With Insight” course to learn more about how you could trade stock options for income – https://TradingWithInsight.com/start

TRADING WITH INSIGHT: Question #1 How Do You Trade In The Stock Market For Income?

There are a number of ways to trade for income. We like to focus on trading Stock Options because (A) they give us a lot of leverage without having to risk a bunch of our capital, and (B) we can profit if a stock is moving up, down, or even sideways.

Usually, we just wait for the market to give us a signal that it’s about to start moving in a certain direction, then we hop in a trade to profit off of that move. So if we think the stock will move up, we open a trade where we profit from an upward move. If we think the stock will drop, then we open a trade where we profit from the market falling. We could even put on a neutral trade if we think the market is going to move sideways and not make much of a move at all.

How you choose to trade in the stock market ultimately depends on your preference, but I highly recommend that you choose to trade Stock Options – they give you so many opportunities to be profitable!

Learn how you can start trading stock options Today – https://TradingWithInsight.com/start