Take advantage of the Holiday to pay for your Gifts with Stock Market. What does this mean? A real trader does not think about saving money. They think about generating revenue.
In the Internet bubble of 2000, I lost everything in the “crash”. This is because I did not have the correct “mindset”. I was gambling instead of trading!
In 2002, when I started to trade again, I did not have much money. Due to my situation, I would trade my lunch and dinner money in the market. If I won, I would eat… If I lost, I would eat only a protein bar or protein shake. With this thought process, failure was not an option. It forced me to become consistently profitable.
Today, I still work off the same principle. Everything is my life has to be paid from the market. I do not hesitate in spending because I am always thinking how to generate profits in the market to pay for what I spend.
Thanksgiving and Christmas is a perfect example. During the holiday’s, everyone is spending money on family and friends. There is no escape for anyone in spending money. Once the new year comes about, everyone then tackles how to pay for all the expenses.
Why not take advantage of the holidays and make money in the holiday so when the new year comes, the market has paid for everything! Lot’s of people do not think of that. I do not know why! The holiday season is the perfect time to make money. Why? Everyone is spending. All you have to do is to OBSERVE your surrounding!
Go to the stores, the shopping malls, etc and see what people are doing.
This Thanksgiving, I was in Atlanta for “Black Friday”. On Thanksgiving day, all the stores opened at 5pm. My friend and I decided to go the North Georgia Outlet malls because my friend needed to buy some cloths. As a result, we began our one hour drive to the outlet malls. For me, i do not need to buy anything until I make the money in the market. I venture out at the crazy hours to observe what people are buying and where.
When we arrived, it was crazy. It took us close to 30 minutes just to find a parking space. In walking around, there were some very very very long lines at certain stores. The Nike store along with all women pursues like #Coach, Micahel #Kors, etc had long lines where lot of people waiting a long time just to get inside the store. Women pursues seems to be in real demand. We noticed this in Macy’s department store too.
This observation research, now told me to look at companies that sell women’s pursues.
Here is a daily chart of KORS. I have placed a vertical line on Thanksgiving day. The chart shows we are in a bullish trend already. There is no setup on the daily time frame so we have to look for an opportunity on the lower time frame to minimize the risk and maximize the reward.
Here is the 240m chart. The bullish breakout has already triggered before Thanksgiving.
All the swing and long term charts are already in a bullish trend. Therefore, we are going to have to look for a day/swing trade and enter with a risk of a day/swing timeframe and then hold that stop to trade the higher time frame.
Below is the 60m chart. The vertical line shows Thanksgiving. The bullish trend is already established with some purple dots. The purple dots are day/swing support. We setup a pull back trade at these day/swing support with a small stop of 0.50 cents. With Stock options, this is half a delta risk on any option we choose.
To keep our risk minimal, we traded it with options. This risk is off the 60m but we want to trade the longer time frames because we want this trade to last to the next earnings. Earnings is in February 2018 so any option February or further is good to trade. We choose a strike price 1 or 2 levels OTM depending on the volatility. An alert was placed so we know when to exit this position if it reverses.
Below is the current daily chart. it shows that the stock has moved 14%+ in 19 days! The options are over 3:1 reward/risk. In fact, we have taken 50% of the positions already so the rest of the positions are “free”. Our stop is now off the daily time frame too so we do not give back all our profits.
This one trade has paid for expenses that have occurred during the holiday season! I did not have to worry about paying for expenses after the New Year!
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EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and Options Trading has large potential rewards, but also has large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provided on the Blog is for educational purpose.