On June 16 I did a morning Trading For Pennies Strategy trade through using SPY PUT options which provided a 40% return. I found it interesting that a forum member was also attempting the same SPY PUT trade and commented that he entered a Trading For Pennies Strategy trade on the SPY ETF through purchasing puts expecting the market direction to be down but then was stopped out and missed the entire pull back. He wondered about methods that could be used to help prevent being stopped out early from a potential winning trade on the SPY ETF.
This article was written around his questions and a look at why his trade using SPY PUT Options failed while the same trade succeeded for my portfolio.
June 16 2014 Trading For Pennies Strategy Trade – SPY PUT
Entering Signals – 10:20 AM – Wrong Entry Signals
The investor entered the trade at 10:20 AM on June 16 2014. This entry was far too early for either a put or call trade on the SPY ETF. The signals at that time did not indicate any trade should be entered. To have regular winning trades an investor needs to understand when to enter the trade and how to select the correct point in the SPY ETF.
This article is a full strategy discussion on understanding the signals for properly entering trades on the SPY ETF. It includes a full analysis of the June 16 2014 morning trade and presents the stop-loss method I use in a sideways market to assist in trying to insure maximum profit potential while protecting the capital at risk.
SPY ETF Trading For Pennies Strategy Analysis for June 16 2014
Maximize Profit and Pinpoint Entry Points
This article on the SPY PUT option trade is 2000 words in length and will require 11 pages if printed.
This FullyInformed USA Members Strategy Analysis of the Trading For Pennies Strategy 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.
Trading For Pennies Strategy Links For Members
The Trading For Pennies Index Page (A Great Place To Start Understanding This Strategy)
The Trading For Pennies Strategy Explained (Learn the Strategy Here)
Trading For Pennies Trade Alerts (trade alerts as they happened)