Archives September 2023

TRADING FOR INCOME: 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://start.TradingWithInsight.com

My Trading Journey (…in a nutshell)!

THE INTRO:

After learning about what stock options are, then learning how to analyze charts to find profitable trade setups, I finally started trading options strategies for profit! Now, here I am years later in my trading career as a fulltime Stock Options Analyst and Coach. I focus my time and energy on (A) teaching others how to trade in the stock market for income and (B) analyzing stock charts while running simulated trading scenarios for my clients to help them find ideal trade setups. I absolutely LOVE it!

THE PROBLEM:

I started trading on and off for about 4 years straight, not really focusing on any one market or asset in particular. (BTW I have a degree in Mechanical Engineering, so naturally I was drawn to the “numbers” and “analytical thinking” that comes with trading!) I started looking into binary options, then stock shares, forex, crypto currency, etc. And during that time, I learned a lot about technical analysis and how to use it in my trading. The problem in many cases, though, was that it required me to enter trades at the EXACT right moment, or else my trades would have too much risk in them. And unfortunately, I never had the patience to be a day trader or sit and wait around all day for the “exact right moment” to enter trades. I wanted the “trading lifestyle” that gave me more free time in life and less “sitting behind a computer” all day. Needless to say, it was very frustrating! But, the problem wasn’t the technical analysis… the problem was that the markets I was trying to trade didn’t give me the flexibility that I truly wanted…

THE EPIPHANY:

After seeing what the true problem was, I started focusing solely on trading stock options. It was the only market that would give me the kind of flexibility that I was looking for. I realized with options that I didn’t need an EXACT entry point to place a profitable trade… I just needed to be in the general area! In most cases I even had all day (and sometimes, all week!) to be able to enter that trade. And even better, I didn’t even need to stress over guessing which direction I thought the market was headed. Sure, I could use the technical analysis skills that I learned to increase my chances of winning… but even if I didn’t, I could still place a trade with a 70%-90% probability of success regardless of which direction the market went. It was the most stress-free way of trading that I could find!

THE REALITY:

Fast forward to today – even though I may not have been trading for 30-40 years like some of the wall street traders and guru investors, understand that it does NOT take nearly that long to learn how to trade. Once you’ve learned some profitable income strategies AND traded them for a few months (to prove that you can earn a consistent income with them), you’re basically set! From there, just continue to learn as you earn!

THE MISSION:

I immediately saw how trading could truly change not only my life, but others’ as well! So as I was learning more and more, I started sharing my trading knowledge with others. And I loved it! And strangely enough, it turned out that my true passion in this trading industry isn’t just simply placing trades… my true passion is analyzing stock charts and sharing my knowledge, my skills, my experience, etc with others! So, since that is now my main focus, my mission is to teach you some of the options strategies and trading skills that I’ve used in my own trading. That’s the whole reason I created the “Trading With Insight” Course… it’s just for you!

48% Profit for Adobe Trade

We saw an 87.5% win rate for our Monthly Neutral trade setup on Adobe. We opened this trade right at the beginning of the monthly expiration cycle and closed it a few weeks later. Price started moving towards our high target during that time, so we actually did a minor adjustment to shift the entire position up AND to take in even more credit. That worked out pretty well in our favor to allow us to capture a 48% profit. Depending on your account size you would be looking at:

– 1 Contract Traded (for really small accounts) = $84 Profit

– 5 Contracts Traded = $420 Profit

– 10 Contracts Traded = $840 Profit

– 20 Contracts Traded = $1,680 Profit

Interested in knowing how to place these trades? Check out our training – https://start.TradingWithInsight.com