Master This To Take Your Trading To The Next Level

What many beginning options traders fail to realize is their system and trading plans do NOT need to be overly complex. One thing you will rarely see my students or I rely on is a bunch of different indicators. Now, there are some that can give you a sense of where meaningful levels are relative to where price currently is, but you don’t need very many. Personally, the two indicators I primarily use in my trading are the 50 and 200 simple moving averages.

This because these indicators can be used as a way to confirm a move we may be planning, reject or bounce off these indicators for example. However, trading is mostly about keeping it simple. Traders all around the globe have built very successful trading strategies off of a select few principles, mainly price.

That is should be you main indicator. To illustrate this point, we move on to today’s Daily Smart Report stock, Lululemon (LULU)

In the case of this stock, we can see price setting the stage for us and a possible trade opportunity. Throughout the year, 370 has been the price to beat, with some significant moves coming each time price reaches this zone. Coming off a hot earnings report that catapulted their stock from 315 to this 370 mark, we can now begin to plan trades around this price level.

If the stock is able to break above 370 and hold, perhaps setting up for a break and retest scenario, this could set up a nice long opportunity. However, if the price rejects hard off this level, it may back down we go.

Practice finding these levels ahead of time to literally map out the market, allowing this map to guide your trading. This, coupled with proper risk management, can take your trading to the next level.

When you join The Profit Machine, you’ll learn all about my favorite stocks, setups, strategies, and plenty more. The best part, you’ll receive all my trades every step of the learning process, so not only will you get a world-class education, but you’ll also earn while you learn.