MARKETVOLUME®

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This week we made some good mid-term S&P 500 index share trades (options trading would be similar) where our professional trader was able to purchase calls based on strong signals and what we published in our Market Outlook.

NOTE: This chart of the week is meant mainly for educational purposes only. We don't recommend that our customers follow these exact trades. We suggest that you develop your own trading style and try doing some paper trading before using our volume analytics.

Even though all the above trades were not entirely without risk, we came out on top with a profit of $1,912

If one had even traded February options, they could have made more than 20% on each trade, but we don't generally recommend options trading for our new members.

Why buy only stocks (index shares) and not options?
Due to the current climate in the market, and the fact that this trader's goals were to make a decent return but still remain fairly safe in his trades, he decided to only purchase index shares. Even if the market had not changed in his favor, he could have held onto these shares for months without having to worry about losing a lot of money like he would if trading options on futures. Simply put, he wanted to make a secure mid-term trade.

Should I Trade Options?
Only very experienced traders should trade options because of the high risk. You can always trade index shares instead of options and still make profits; returns will not be as large.

What is a 'VMA surge to the upside'?
Simply put, that means that most of the VMA surge was connected with the index while it was moving up.

The same principles mentioned above works for trading NASDAQ 100, S&P 100, Dow Jones, and other indexes.

We welcome any questions or comments from our customers regarding this chart of the week.

To see more details about the motivations behind the above trades and trade details, sign up for a Free Trial today (no credit card information will be collected) by clicking on the following link:

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