Date: 12/5/2022
Author: Chris Hood
New subscribers often wonder just what type of trader I am.
And I know what they want to hear.
Am I a day trader or a swing trader? Or do I hold options and stocks to follow long and medium-term trends?
Are my trades directional, or do I primarily sell premium and take advantage of profits from time decay and volatility collapse?
It’s a difficult question to answer. I use all those strategies and more.
I tell people, “I trade options for income.”
This usually generates even more questions.
Am I employed by someone who pays me a salary for trading?
Do I earn the majority of my money as a coach?
The answer is no on both counts.
Many need help wrapping their heads around how I can receive a consistent weekly and monthly payout from the market.
Here’s the process.
THE MOST POWERFUL TRADING WEAPON IN YOUR HANDS
Get the details here. The Offensive is Already Underway.
Don’t be left behind.
First, I decide upon reasonable daily, weekly, monthly, and yearly profit goals based on my account capital.
If you want to do this for yourself, you must be realistic.
Bringing in a consistent profit of $10,000.00 per week isn’t going to happen if you have a 25K account. It’s not that it isn’t possible, at least some weeks, but that type of return will take more skill and attention than most can manage.
However, 1K per week on that size account is extremely reasonable.
Once you have the profit goal in mind, your next step is to engineer a process for reaching it.
The second phase of income trading is planning each trade’s number, type, and size.
To do this properly, you’ll need to know your options strategies’ historical win rates and profit factors.
Thus if my rules consistently net me a win rate of 80% on credit spreads, with an average profit factor of 1.5, then I can calculate how many trades it will take to reach my goal.
It’s a simple math problem.
Finally, I ensure that I implement these trades into an overall plan.
The overall plan includes adding more speculative trade types to my books.
My win rate on directional plays is lower, so my long calls, puts, and debit spreads make up a smaller proportion of my trades.
Though these trades can be much more lucrative, the lower win rate makes them less reliable. However, they have a prominent place in my overall plan.
And that’s how it works.
Using this process, I’ve been able to meet my weekly income goals about 90% of the time. Honestly, I nearly always have winning weeks.
Any losing weeks are more than made up for by those where I exceed my profit expectations.
Planning to produce consistent income is my primary method of coaching.
I help traders develop these plans in the TradeCommand network and can do the same for you.
Stop spinning your wheels and start accumulating regular gains.
I’d love to help you set up your plan.
Cheers,
Chris Hood
PS – If you’re struggling in this bear market, let the Trade Command Network put you on the path to profits. Our trade alerts have already provided a 31% gain on XLE, 26% on TQQQ, and two wins of 32% and 27% on NEE. Get in on the action by clicking the link here.
