SPY ETF – 7 Rules For Profiting In A Choppy Market using the Trading For Pennies Strategy

Jun 19, 2014 | Profit And Income Strategies, SPY ETF Hedge Strategy (SPY), Trading For Pennies Strategy

The SPY ETF has rapidly become my “go to” product for daily profits with the Trading For Pennies Strategy. In particular using the SPY PUT and SPY CALL options on choppy days can net big gains by the end of the day. When the market direction becomes choppy it becomes more important to make sure that you adjust your trading method when using the Trading For Pennies Strategy to accommodate this choppiness. Getting stopped out early when using Spy Put options or Spy Call Options is certainly not going to build the portfolio. Every time there is a loss, that loss must be covered first and then profits added. Spending energy, time and capital on trying to recover losses from Spy Put or Spy Call trades that have failed when using the Trading For Pennies Strategy, is unproductive. When trading using the Trading For Pennies Strategy in markets such as we are seeing this morning (June 19 2014) you need to make changes to your method. This article explains the 7 rules for profiting in a choppy market when using the Trading For Pennies Strategy.

Profiting In Choppiness

The market weakness this morning is understandable. Yesterday the Fed juiced the markets with her comments on interest rates. Today investors need to mull over where that leaves the market long-term. Sitting at all-time highs is also tough for a lot of investors. Every day the news is filled with doom and gloom reports and there is a lot of pessimism that stocks are going to tumble. But you have to trade what you see and there are no big catalysts to the downside at the present time. That of course will eventually change and the market will have a correction and naturally some day we will enter the next bear market.

But right now even today’s Weekly Initial Unemployment Insurance Claims came in looking rosy. This type of environment leads to choppiness. As the chop continues there is even more choppiness as investors and computers jostle for a few pennies here and there.

SPY ETF – 7 Rules For Profiting In A Choppy Market

Eliminate Losses by trading smart

This article on the SPY PUT option trade is 1700 words in length and will require 10 pages if printed. The focus is on how by following the 7 rules outlined in this article, I have been able to profit handsomely from the SPY Put and Spy Call trades while protecting my capital from losses using the Trading For Pennies Strategy.

This FullyInformed USA Members Strategy article can be directly accessed through this link or USA Members can login here. Non-members can join here or read about the benefits of a membership.

Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.