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Every January, without fail, the TV news networks run endless stories on the best New Year's resolutions to make. You probably saw at least one today.
At the top of those lists is "make more money." And by February, at least 80% of people have already failed.
Now that's not because making more money is impossible to do… it's not.
The real reason is that they didn't set a specific goal – and specific and proven path to get there.
But you're not going to become a part of that statistic this year…
"Making More Money" in 2017 Boils Down to These Three Simple Steps…
- Identify Your Trading Type
Of the hundreds of technical tools at your fingertips today, none of them will be able to do one thing: control your trading behavior.
Your personality, your emotions, and your risk tolerance are unique. Even if you have memorized every form of technical analysis and studied Warren Buffet's every move, that doesn't mean you're going to have the same success. If you simply copy what a book or trader says to do and when to do it – without identifying your own trading type first – you're actually doing yourself (and your portfolio) more harm than good. Ultimately, you're doing nothing more than gambling and hoping for the best.
You need to know which type of trader you are (directional or non-directional) so that you can whittle down the strategies you should focus on for profits. Directional traders focus on price and time. On the flip side, if you're a non-directional trader, you're going to be looking at volatility first.
But before you even think about placing a trade, make sure you do this…
- Set Your Price and Time Targets – Every Time
A lot of technical indicators are constructed around moving averages that give you "buy and sell signals." In fact, we talked about one of those signals just last week. But what if, for example, you see a signal to sell before you've gotten any kind of real profit – and THEN take a loss? I think it's safe to say you wouldn't be too happy – and would probably think whatever indicator you used failed.
That's why it's best to establish your price and time targets first. You can do this easily by looking at a stock's past price moves and patterns and eyeballing the time frame in which you need the price moves to happen. Establishing the price at which you need a stock to move and the time frame in which it needs to move is extremely important because it prevents you from taking a trade costs too much and requires you to wait several years for profits.
Trust me, this will save you a lot of headaches in the future.
And once you've done that…
- Use a Back Tested and Proven Strategy to Make Money Quickly and Safely
Now this may not be the first thing that came to your mind…
But trading options is a worthwhile and very easy way to double your income by next month.
For starters, options offer an amazing versatility that you can use in a variety of ways to profit from a rise or fall in the underlying market. And in times of high market volatility, options are a welcome relief from the uncertainties of traditional investing methods.
In fact, options were created to lower your cost and boost your profits. With the old buy-and-hold strategy, you're at the mercy of the markets. And that could cost you bigtime… U.S. stocks are more expensive now than ever before. So, for example, if you want to buy one share of The Priceline Group, Inc. (PCLN), you would have to spend around $1,487.29… for a single share. And more often than not, people want to own more than a single share of stock in their portfolios.
But with options, you can actually control 100 shares of an expensive stock like PCLN for as low as even $500. Just imagine the kind of money you could make in one month controlling 100 shares of stock at $500 compared to trading just one share of stock at over $1,487.
And options are easy…
When people first started trading options, they mainly had to rely on newspapers and brokers to find, place, and track their trades. Nowadays, you can search for and place your trades online. And you can track your trades in a matter of seconds – and free of charge – using financial websites like www.cboe.com.
Not only does trading options take very little of your money, there's never been so much information available at your fingertips for you to earn while you learn, like Power Profit Trades. As a trader for nearly 30 years as well as an options teacher of over 300,000 students, I welcome the opportunity to be your coach.
Now nothing is 100% guaranteed, of course, and I am not naïve enough to think otherwise. But if you follow all three of these steps, you can get pretty darn close.
Happy New Year – and cheers to a prosperous 2017!
The post This "New Year's Resolution" Could Double Your Income by February 1 appeared first on Power Profit Trades.
About the Author
Tom Gentile is one of the world's foremost authorities on stock, futures and options trading.
With more than 25 years' experience trading stocks, futures, and options, Tom's style of trading systems and strategies are designed to help individual investors propel themselves past 99 percent of the trading crowd.