Surfers of market probability waves

We are surfers of market probability waves. The ChartMasterPro Trading Model is structured on the Heisenberg Uncertainty Principle which states that all knowledge is limited and that there is no such thing as absolute certainty. We learned to trade by learning from 20 years of mistakes; we still make mistakes, but we limit the damage by being disciplined and adhering to our trading rules. It was only when we learned how to stop asking "why" and started following "where" that trading the markets became enjoyable, and profitable.

ChartMasterPro is our way of sharing our tradings skills with investors and traders who want to build wealth by trading options on the equity markets.

time in the markets increases risk

Our view is that the longer someone is invested in the equity markets, the higher the probability of something disastrous happening.  Since losses are far more devastating than gains of equal size, we need to structure our approach to mitigate large losses of capital.  We may think we have a decent insight about what’s going to happen in a year, based on a great deal of evidence, but if the crowd disagrees, who cares?  The longer we have to wait, the more unexpected things can throw a monkey wrench into the works. 

the power of options

Keynes probably never said that “markets can remain irrational for much longer than you can remain solvent”, but there’s wisdom there nonetheless.  This is the primary reason we focus on options.  They force us to have a relatively short time horizon, and thus each trade demands much less of us.  

Options provide us with leverage, and leverage decreases the amount of time we need to be exposed to the markets; a 2% move in the underlying stock can generate a 40% gain for a trade. We don’t know what the next year will look like, let alone the next five or ten, so in the short run we’ll trade on our limited knowledge, in a limited way, and hopefully make some good money. 

price is truth

We can’t easily summarize our approach to fundamental analysis, but where we differ from many is that we feel the price of a stock itself is an excellent source of information.  Price tells us what the crowd is assuming about the future for a given company, and we’ve made some great trades attacking those assumptions. 

We trade options. Sometimes our trades last a few days, sometimes a few weeks, sometimes a few months. Please review our trade history to get a feel for our trading style.