There is always a bull market somewhere. Take prudent risk.
Stock Day Trading Frequently Asked Questions
Stock day trading: How much money do I need to trade?
For strict day trading the SEC requires the investor hold a minimum of $25,000 in a trading account. We recommend option traders have a minimum of a $10,000 investment trading account. We also recommend real time paper trading for 90 days before actually trading, while following our services.
What kind of returns can I expect with stock market day trading?
This depends upon your risk orientation, and how well you follow our rules and systems. Day traders should be attempting 10 to 21% single day or two day returns, and our longer term trades (up to 4 days) can return up to 57%. Stock option, non-index trades, can return as much as 150%
What is the OEX Options system for stock option day trading? And, what's the difference between that and the Blue Chip system?
It's surprisingly simple -- as good stock day trading systems should be. We buy only puts and calls, typically for the current monthly only. Using charts, we define the "count" of the market and the current trend and advise a new option signal each morning. Strict buy and sell guidelines (at what price to buy, sell and to stop loss) are the keys to our system. We teach you the charting methods we use that include technical indicators such as Slow Stochastic, MACD, ADX, ATR, VOLUME and VIX. OEX Options also makes extensive use of support and resistance lines, and the actual pivot points that floor traders use by the minute. Identifying a trend is not hard. Buying and selling profitably is the hard part and our stock day trading system is comprised of "rules of engagement." At times we suggest a "strangle" or "straddle" approach to OEX option trading in addition to our pre-market signals.
In Blue Chip Options we trade:
1. Stocks and bonds for core, speculative and cash accounts, and have updated charts daily
2. Stock calls or puts. We usually are at least "three months out, but often do 1.5 year LEAPS. We buy and sell these longer term options numerous times, and make them a core position option trade
How complicated is the OEX Options system for stock option day trading?
We believe in simple, and buy only puts and calls for the current month. We seldom hold an option trade more than 4 days. Using charts we define the “bell curve count” of the market, which uses support and resistance lines to help identify the short term bias to the market.
We provide Dow projections daily that work right with the OEX, and the support/resistance and pivot points that traders watch during the market day.
At OEX Options we have very simple rules of trade that we strictly adhere to, including stop loss.
All of this is equally true with Blue Chip Options, although our stop losses are entirely based on Point and Figure charting. We NEVER rush to buy.
How long will it take me to learn this stock day trading system?
Subscribers that “try” an option service for “free trials” and try many of them are called “churners” and are wasting their own time.
Any service that you work with requires your education and study. No real service just “offers signals”; it’s not that easy. As experienced stock traders ourselves we believe it takes a six-month period of study, with 90 days of “real time paper trading” to truly learn how to trade index options.
Sorry if this is a “hard and wrong” answer, but we are NOT a get rich trading options service. 80% of the success in trading options is NOT the signal, but the trader.
We teach you how to be the trader. Whether you are learning OEX or Blue Chip trading or both, we believe the "right signal" is secondary to the education and ability of the trader to buy and sell.
Do I have to be online all day?
Day traders need to have access to a computer or smartphone throughout the trading day to be successful.
Some traders use our signals and market calculations to trade in and out of an option several times a day, while other only trade around our pre-market signal.
The decision to be online is up to how you want to trade.
What can go wrong with trading OEX or Blue Chip Options.
Option trading is risky and everything can go wrong. Without proper training or understanding of what you are buying or selling you can easily lose all your money. You can even go into debt trading options if using “margin” incorrectly. Options are speculative trading, and a learned skill, and can be traded very successfully.
Take prudent risk.
Do you offer a track record of your signals?
This is our most asked question, typically because other services provide “track records” of hypothetical best buy and sell prices, thusly “fictionalized” to “what could happen”.
Each of our subscribers has different trading goals, and we offer a variety of trades, typically one or two EACH trading day. Results will vary from day trading to longer-term hold (4 day), and for the risk level each trader has. In other words, trader A may trade the same signal 3 times in a day for 13% profit average profits, and another trader may only trade once, for a 19% return, and another trader execute poorly and lose money?
How could anyone or any service have a track record? Investors are all different, and we trade with different types of people.
If you read, "win ratios XXX YTD" you can be assured the service is providing you only "best and hypothetical results
Will I need stock day trading software and a charting service to use OEX or Blue Chip Options?
All you need is a good, inexpensive online broker and a basic charting service to show you point and figure charting, available free.
We use “no noise” charting” and provide the tools for those that want to chart with us, but our trades are pre-defined entry and exit points, around DOW and OEX short term projections.
Subscribers receive Floyd’s “charting read” of the day in the pre-market daily alert, along with teaching what we are “seeing”.
We use only point and figure charting and do not use advanced trading system mechanisms, nor believe in them. They clutter the mind with what must be "learned"
I’ve lost a great deal of money trading options. What’s different about your services, and why should I “believe you”?
We are not the Holy Grail. You will NOT get rich trading our signals, but you can make a good living, and learn how to gain larger profits over time. We teach proper entry and exit strategies.
The Readers of Stocks and Commodities Magazine have voted OEX Options one of the TOP TEN ADVISORY SERVICES for FIVE STRAIGHT YEARS-2008 THRU 2012. THIS HOLDS FOR OUR SISTER PUBLICATION NOW COMBINED to OEX/BCO Options
Quite simply, we are mentors and experts in index and stock trading.
Does your stock day trading system work with Auto Trading?
Some of our signals can be auto traded by a brokerage, but not all. Because we offer a variety of signals, it's best to first find out what signals you want to trade. Then, work with your broker.
I've never read a website that talks about "stop losses" and losing money so often. Why is that?
Simply because we tell the truth. Not all of your trades will be profitable. The key to success is not just what the trader buys and at what price. Success in stock day trading online comes with a proper exit strategy and "position sizing" your investment so a losing trade doesn't break your bank. Practice SAFE OEX©
My goal is to make a living trading options. Will your stock day trading system teach me how?
Yes. We can and do teach you how to trade index options successfully. We also teach the "rules of engagement" that separate the "dreamers" from the smart traders that carefully hone their stock day trading styles.
Why don't you promise the high returns that other day trading services do?
Okay, okay we wrote this question ourselves. High returns with options are entirely possible but also higher risk and do not occur all the time. The real profit in trading any options or stocks is the volatility and liquidity of the index and/or market and watching the trends, taking regular and consistent profits; Done right, this is where the real money can be made in option and stock trading with limited risk.
Your service is expensive. Why?
AT OEX and Blue Chip Options we want to limit our subscriber base. "Not just a signal service" means that we teach, as well as provide daily signals.
If the service were "cheap" we'd gain lots of subscribers and the signals themselves would be less valuable to trade! We want to take advantage of the options we trade, NOT provide the signal to 1000's of subscribers. You are paying for limiting our counsel to fewer people.
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