What is your most important trading rule?
Obey every trade signal, without exception. But we know that the devil lurks in the shadows of the trader's mind, ready to pounce at the first sign of any weakness or hubris, and we accept that we will make mistakes (override trade signals), so we do not dwell on mistakes for too long and try to minimize the damage. We don't trade to be perfect, we trade to make money.
What is a whipsaw trade?
A whipsaw trade is a trade when the price of a security suddenly moves in the opposite direction of our position, resulting in a loss within one to three days of entering the trade. Whipsaw trades can be extremely frustrating and often test our mental fortitude, but they are an unavoidable part of the trading process. We have come to learn (the hard way) that unless we learn to embrace whipsaw trades (and accept the small losses) we will never catch the big trades and book the BIG gains when they do happen.
Do you have an opinion as to what the markets will do over the next 12-month period?
No. We're too dumb to know and too smart to care. Let those who are paid to have opinions spout their prognostications. We're content to simply listen to the price action. We repeat the following trading motto to ourselves several times everyday: The market knows where it wants to go. All we have to do is follow.
How much can you lose on your Options Trades?
100%. Everything. The whole kit and caboodle. These options can carry leverage of 10x to 30x. A sharp move in the underlying stock or ETF can wipe out an entire position. The good news is that we can't lose more than 100% on any given trade since we are buying call or put options and can only lose the money invested in the contract.
Can we talk on the phone?
No. Since we are not permitted to offer personal financial advice we need to have a written record of all communications with Members or potential Members. Email us and we will answer any questions you may have.
Where is ChartMasterPro located?
In the nether regions of the internet, somewhere between the 3rd and 4th dimensions. Just kidding. We are located in Toronto, CANADA.