See, I told you how easy it is:
In yesterday's morning post (which our Members have access to pre-market) I told you that tomorrow (today) I would tell you how much money our Futures shorts made and that most of you would say "why do I never catch these great trade ideas." Our three Futures shorts did, in fact, make $2,500 PER CONTRACT as a group and even this morning, just in case you missed yesterday, I put out another alert to our Members AND tweeted it out for free – to short the Russell (/TF) Futures again at 1,200 ahead of the ECB decision.
This isn't complicated folks – this is what we teach you how to do if you want to take control of your financial future. Yesterday was the 11th time the S&P had been rejected at 2,100 and this morning we saw more weakness but the S&P didn't get back to 2,100 but the Russell was back to 1,200, where we shorted it yesterday – so we shorted it again this morning – but we're taking the quick $500-1,000 off the table today as we expect the real meat of the ECBs decision to come in their 8:30 press conference so this morning's trade was much shorter-term.
We don't give away free trade ideas during earnings months but yesterday I thought everyone could use a nice holiday boost so we gave you all a very easy one. I would say don't be afraid of Futures trading but I'd hate for you to get the wrong idea – you should be VERY AFRAID of Futures trading because it's a very powerful tool but not having it in your trading toolbox is like not having power tools if you are carpenter – you might get the job done but it will take 5 times longer and you'll exhaust yourself for no good reason.
The key to our success in Futures trading is that we do not trade the futures all that often. We only trade the Futures when our FUNDAMENTAL analysis indicated they are mispriced and when we feel the trade is very obvious. Even then, we only have a 60-70% winning percentage but, combine that with position management techniques we also teach our Members and you have a very powerful combination that can lead to some tremendous profits.
For those of you who can't trade the Futures, we put up an S&P 2x Inverse (SDS) spread that was nice and cheap in the morning as the markets opened higher but, by the end of the day, the spread was up $500 (47%) out of a planned $5,000 in just the first day of trading.
I suppose you could still enter the trade (see yesterday's post) but now you can only make about 250% rather than the 500% had you caught it in the morning yesterday. Don't worry though – it's December and, even if you don't have anyone nice enough to give you a PSW Subsrciption for Christmas, we love to give away holiday trades to help our fans upgrade their gift buying power.
The last free trade idea we put up in a morning post was actually on 11/4 as we looked at shorting China (FXI) using the Jan $43 puts, which were $4 that morning and now $6.05 as of yesterday's close after topping out at $7. Even if you didn't catch the exact top – a 50% gain in less than a month is still a pretty good boost to your holiday shopping account, right?
The index itself fell from $39.50 to $37.30 at yesterday's close and that's a gain of 5.5% on the short stock position but the reason we prefer the options play is that you would have to have shorted 1,000 shares of the stock for $39,500 to make $2,200 while all we had to do is buy $4,000 worth of puts to make $2,000. See – options can be as much fun as Futures!
The only problem with our style of trading is we don't know WHEN there will be an "obvious" trade to make. This week, for example, we sent out Top Trade Alerts on Wynn (WYNN) and Target (TGT), both from the bullish side. WYNN was very surprising to me as our last trade on that one was shorting them when they were over $200 but when they got down to $60 – the value proposition finally kicked in and we switched sides.
Clearly we don't expect WYNN to retake all of it's former glory but we were able to collect $850 per contract for promising to buy 500 shares of WYNN for $45 in Jan, 2018 by selling 5 of the 2018 $45 puts for $4,250. This is the same "How to Buy a Stock for a 15-20% Discount" strategy we talked about in yesterday's post but, in this case, the net entry on WYNN would be $36.50 ($45 less the $8.50 collected per share), which is 46% off yesterday's $68.50 close.
Imagine if you bought all the stocks you liked for a 46% discount! Do you think that would enhance your trading performance over the years? This is another one of those "tools" you need to have in your trading toolbox unless you prefer doing everything the hard way. The hard way may be good for building character – but it sucks at building wealth!
