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Trading Quotes | Trading Charts | Trade Recommendations | Trade Signals
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Click the link below for an example of our trade signals. What is MyTradeSignals.com? Trade recommendations aren't created equal and the majority of what is accessible to the public typically ends up being not a thing more than an exercise in hypothetical trading that never becomes a viable purchase. The majority of trade signals offer entry points and if you’re lucky you can even get an exit point to shoot for. The dilemma is that telling somebody to purchase Gold at 450.00 and sell Crude at 60.00 has become the standard layout for a trade signal in the industry. These types of signals are vague, not backed by any any research (technical or fundamental analysis) and let’s face it these are typically not lucrative. This is where MyTradeSignals.com distinguishes itself from other services out there. MyTradeSignals.com is a service dedicated to helping individuals become better traders. A lot of the community venture into the planet earth of trading with very little understanding of the risks involved. Risk spelled another way is opportunity. However managing risk is something a lot traders don't have a strong grasp on. MyTradeSignals.com is a service dedicated to defined risk, high probability option spread tactics that are applied to the futures markets. So let’s begin by explaining why we use options. Any market whether it's Corn, Stocks, Bonds, the Euro, etc. can just ever do one of three things…Go up, go down, or go nowhere. Traditional futures traders can just ever earn an income in one of the three directions. Bulls earn an income if the market goes up, Bears earn an income if the market goes down, and both donh don ';t make anything if the market stays flat. Options, on the other hand, can provide a trader more flexibility by enabling the trader to make a plan that can often profit in 2 out of three scenarios; up and/or nowhere for instance. However prior to we get into that let’s talk about a topic that a lot of the community might call boring, however actually is the most significant part of trading…Risk Management. To start with, if you're a traditional futures trader your risk is usually theoretically undefined. Still whether you are making use of stops, markets can always gap through your stops causing a larger loss than expected, and it could go lock limit. In a lock limit market traders cannot get out at any cost, and losses can often become overwhelming. Defined risk options spread tactics are an fantastic way to solve this unlimited risk problem. So what are defined risk option spread tactics? Defined risk means precisely that…risk is clearly defined up front.. This means that prior to you ever enter a trade you know precisely how much cash is at risk, no matter what the market does. Any experienced trader will let you know that managing risk is far more essential than being right on calling a markets direction. How frequently have you entered a trade with little more in your plan than how you will spend your winnings? It's a common mistake that traders make. When MyTradeSignals.com looks at a trade the first question we ask isn't where we think the market is going or how much we think we can make on a trade, however rather how much are we prepared to risk. All trade decisions ought to begin with this one question. No exceptions. So if we decide that we are prepared to risk $500 per trade, immediately we look at how much we think we can make. If we cannot ma ke at least 3 times the risk ($1500) then we don't recommend the trade. This is where risk to reward ratios come into play. Mytradesignals.com will for all time strive to place out trades that have at least a 3: 1 risk to reward ratio. There's a very sound reason as to why. If you're risking $500 per trade to create $1500 per trade, and you lose the first 2 trades you've lost $1000. Immediately if the third trade is the winner you make a net profit of $500 ($1500 profit - $1000 loss = $500). So here you were wrong on market direction 2 out of three trades and yet made cash for the reason that of sound risk management. The majority of traders shall explain to you (if they're honest) that they lose more trades than they win. So how can they even now be trading if they lose more trades than they win? Risk Management is the easy answer. Immediately a lot of you can ask why don& don& #8217;t we do trades that have a risk reward ratio of 10:1 or greater…the thinking behind that being if 3:1 is great than 10:1 is good. This isn't correct for the reason that immediately we must balance both risk and reward with probability. We can construct trades that have a risk/reward ratio of 100:1 however the probability of great achievement on a trade like that's nearly always under 1%. Balancing risk/reward with probability is the “;art” of being a great trader. So how does Mytradesignals.com produce trades? We use a combination of standard technical analysis coupled with fundamental analysis to arrive at a trade. If we've a strong technical pattern backed up by confirming fundamental data we will then gaze at the options markets and determine how we can greatest maximize leverage and probability of great achievement in under a defined risk trade. We attempt to target $500 as the average risk per trade however that's not always possible depending out there and the trades design. A lot of the community have traded options and been frus frus trated by it, lets look at a number of circumstances why. If you've ever bought an option and had the market move your way and yet lost cash you know the frustrations which could come with option trading. The majority of individuals simply purchase a call, or purchase a put, then just risk the premium that they paid for the option. On paper this looks great however again we must look at probability. The majority of individuals purchase out of the cash options for the reason that they're cheap. As with the majority of things you get what you shell out for here. Options are a wasting asset. This means that as time passes the cost of the option declines even the possibility of the market is moving in the correct direction. For the reason that out of the cash options have just time value, as time passes their value decays. By expiration, if the market has not moved through your strike cost you lose the premium paid for that option. Again this is for the reason that the majority of options traders purchase out of the cash options which tend to have the least probability of becoming winners. Option spreading is a technique to turn this dilemma into an advantage. Option spreading is the combining of both buying and selling certain options to make a defined risk strategy. Purchase selling the out of the cash options instead of buying them we raise cash that we can use to purchase an at or in the cash option. At or in the cash options are often over priced and therefore a lot traders ignore them. Here's the main reason options traders get frustrated. By selling options that have a high probability of expiring worthless and utilizing that cash to purchase and options that have a higher probability of being a winner instantly improves our odds.
Each trade recommendation from MyTradeSignals.com is spelled out from begin to finish with a Trade Description, Technical/Fundamental Explanation for the trade, clearly annotated Charts and full on Risk and Reward scenarios. Market: April Crude Oil (CLJ5) Tick value: 1 point = $10.00 Option Expiration: 03/16/05 Trade Description: Bull Call Butterfly Spread Purchase one April Crude Oil 50 call, sell 2 April Crude Oil 55 calls, and purchase one April Crude Oil 60 call for a combined cost and risk of 50 points ($500) or lower to open a position. Technical / Fundamental Explanation: The Crude Oil market has been all around the map over the previous year. Crude oil continues to be very volatile. The short term trend is up and tiny specs. are net s hort, stochastics are turning up, and seasonal's are very bullish for this time of year. Rarely do we've all of these factors pointing in an identical direction however for immediately it seems we have a fantastic chance to be in this market while keeping risk in check. This trade is designed to enable smaller traders to participate in this large market. This trade offers one of the top risk reward ratios of any trade we've had this year. This is 1 of the lowest risk techniques to be long Crude Oil for the following 30 days. Profit Goal: Max profit assuming a 50 point fill is 450 points or $4500 and occurs at expiration if Crude Oil is at $55.00. This trade offers a risk to reward ratio of 9 to 1. This trade is lucrative amongst market trading anywhere between 50.50 a.50 a nd 59.50 at expiration.. 2 Risk Analysis: Max risk is the price of the trade assuming a fill of 50 ($500). This occurs at expiration amongst market trading below 50.50 or above 59.50 at expiration.
**Max profit and max risk don't include a deductions for commissions, clearing, brokerage and NFA fees. A reasonable deductions per contract would be $40. Get in touch with us for specific details.
While MyTraMyTra deSignals.com strives to cover all possible market scenarios in a trade recommendation we also relize that adjustments to tactics are necessary at times. So for our subscribers we issue Updates periodically to inform customers on exits or any other changes that we've made to anto an existing trade. So here's the layout that all trades from MyTradeSignals.com puts out. All the info you desire to learn regarding the trade is spelled out. From what the market is and a good way to place the trade what to risk and when to exit. 2 Click the link below for another example of our trade signals.
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The My Trade Signals Preferred Broker for Futures and Options Trading is Odom and Frey Futures and Options. Visit the Odom and Frey Internet site at odomandfrey.com for info on the way to successfully trade Futures and Options. While you are on the Odom and Frey internet site, be certain to join up now for the free eNewsletter.
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