How We Found Our Latest Winning Trade: A Guide To Options Trading
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– ETF Watchlist –
After the meteoric rise of the stock market on the back of the tech sector and the AI boom, it seems things are taking a bit of a breather. By the looks of things in Thursday’s session, that breather looks to be prolonging itself. So, where can traders look for a good trade to put on?
Well, today let’s take a look at a trade we currently have on in our Smart Trades trading service for a possible idea. Important to note that for those who were not apart of this trade or the service in where I announced it, you will want to be extra careful if you decide to make a similar trade as things in the market have shifted once again. Use caution, this is for educational purposes.
Industrial Select Sector SPDR ETF (XLI)
Our current trade on the XLI came as the stock broke out of a key area between 103-104, but not during the breakout. The break of this demand area was our clue to take notice of the trade in the first place. However, where we entered was on a retest of this zone.
Once price came back down to this level, we entered our trade to the upside with our stop loss set on the event that price broke down this area after the initial breakout. This is how you find success in trading. You figure out your edge and strategy, you find a stock or ETF that’s in play, you have the patience to wait for your entry, and then you execute once the time is right.
You may hit a winner and your analysis could be perfect or you could put on a loser, but risk management is king and will save you from suffering losses your account can’t come back from. This is the battle many traders lose and, thus, never find the success they dream of in trading.
Trading is as much a battle with yourself as it is with the market as a whole. The only way to win long term is to learn to listen to your emotions and use your edge to your advantage. Learn to lay the foundation to your own specific style of trading and how to find winning trades, regardless of what the market is doing, and you will find the success you’ve been searching for.
Join my Smart Trades options trading service today to see exactly how my students and I trade these types of scenarios! Smart Trades is where I teach my students how I trade options on some of the largest ETFs on the exchange. As you learn, you’ll get exclusive access to all my trades with notifications any time one is put on. Now, you can learn how many use this high-income skill to achieve financial freedom. Join today and as always…
