How to Custom Design Monthly Options Trading Plans

smbcapitalJohn Locke, M21 Trading System, SMB OptionsLeave a Comment

Why You Need to Learn How to Adjust Your Plan

“Jeet Kune Do is simple, but you need to know when to use a certain movement.” -Bruce Lee

Most trading frustrations come from allocating capital at the wrong moment. Learning when to avoid a strategy and, why you should, will eliminate costly inexperience.

Strategies live in a vacuum but the market doesn’t. Each month many traders hope the market conditions match their strategy and they end up confused and lighter in the wallet.

The strategy works when you map out the math, but it doesn’t address that conditions are virtually guaranteed to change after you enter the position.

Each market condition signals the need for a different attack. Each month there are different opportunities to exploit.

Trying to fit one strategy into a moving target is doomed from the start unless the market and the strategy happen to line up at that moment.

How this Will Improve Your Options Trading

john-locke-m21-webinarTo truly become a complete market neutral options trader, you need to learn how to combine multiple techniques to match the market which makes it easier to manage positions. You are in sync with the market, not hoping it does you a favor.

When you eliminate trades that are likely to lose from the start, you improve the odds of a positive outcome with that very decision. An advanced, but important, side effect of this mindset is the fact that when your skills improve each month, you will understand when to trade bigger.

Some trades simply have better odds and justify an aggressive position. Slam dunk opportunities should not be traded with a meager position. Good options traders who understand this concept will earn more as they learn to adapt the strategy to the conditions and will lose less by simply avoiding the application of the wrong plan for that market.

Why Technical Analysis Matters

Technical analysis is, of course, in the mix, to identify market conditions. But we want more. We want you to stack the odds in your favor.

We want to create an expected range for price movement for the duration of our trade. The advantage of this knowledge is that you can take on risk in some areas in order to make more money in others.

We have our options software and it has its place. In addition to that, we can choose technical exit points and sometimes technical adjustment points rather than simply exiting or adjusting our trade based solely on a profit target and a maximum loss.

Improve your skills by attending next week’s online training:

We will discuss many of the core lessons from the last 7 days, but learning to exploit market conditions with the correct strategy each month should be the goal of any serious options trader.

All the best,

John Locke

Risk Disclosure
No relevant positions

Leave a Reply