Trade Ideas FAQ

Overview:

• On average, every week there will be between 2 - 3 trade ideas.

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• Most of the trade ideas are what I call "Core Trades."

  • Core Trades are longer term, moderate risk ideas.​

  • I typically allocate 8-10% of my total portfolio to Core Trades.

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• "Lottery Trades" are high risk ideas.​

  • Lottery Trades are never more than 2-4% of my portfolio.​

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• "Earnings Plays" are exactly what they sound like and are special situation trades.

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• "Daytrades" are when I believe the conditions are high probability to daytrade an individual stock or index.
   

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Whenever I post a trade idea, whether they are a Core Trade or a Lottery Trade, I will always discuss the following information so you may follow along and learn.​

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• Thesis - why I am taking this trade, why do I believe there is an opportunity to profit.​

• Symbol - the stock or ETF symbol

• Current Price - what the current price of the stock or ETF is, the "underlying."

• Stop Price - at what price will I stop out or take a loss.

• Target Price - the price of the underlying that I believe price can move to.

• Chart - A daily chart showing current price, stop price and entry price.

• Option - the actual option contract I am using with underlying name, expiration date, strike price and theoretical value. and timeframe I believe it will take to move to the target price.

• R Value - the amount of expected return vs. the possible loss

• Theoretical Projections - Using IV and other data, what the possible option value will be in the future as well as what the possible stock price will be.

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• I almost always use options although the way I trade, I could just as easily use the stock or ETF itself.​