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Best Short-Term Trade
September 9th, 2004

Go to Best Trades Archive Go to Best Trades History

NOTE: We discuss our "best trades" here mainly for educational purposes. The trading examples we illustrate are based principally on our volume indicators. Our main intent is to show you how you can apply our volume indicators and to explain the specific correlations that exist between volume surges and the movement of the indexes. We do not mean to imply that you should follow our exact trades, but rather wish to suggest that you may make use of our volume analytics to develop your own trading style. We also urge you to paper trade before committing your money to the markets.

For this "Best trade", "Buy QQQ Put #1" is opened
in order to close it later with profit if the index moves in our favor.
 

NASDAQ 100 Indicator
Nasdaq 100 stock chart

S&P 500 Advance minus Decline Volume
Nasdaq 100 stock chart

Recommendation:

If you trade options, we recommend you invest only a small portion of your assets - an amount that will fit your personal trading needs and risk tolerance. In our opinion, that amount should be about 10% of your total portfolio; it should never exceed 30%.

At the same time, we do not recommend that you commit more than 30% of your options portfolio to a single trade. If the market doesn't move in your favor, but indicators remain strong, you may choose to invest another 30% of your options portfolio on a second signal, and perhaps even on a third signal. By proceeding in this way, each time you enter the market in a better position, and usually the profit from the last trade will more than compensate for the loss from your first  trade.

In the following, we would like to show you the motivating factors that led us to take above trades. For this purpose, we have created what we call a 'Table of Trade Motivators':
 
Trade Volume Motivation
Buy Put#1
09/02/2004
Left Opened
12:30 - 14:15: As the market moved higher, it generated a very large selling VMA surge to the upside shortly after 13:30.

These are the trades which netted the returns shown above:


Date
Trade Strike Expiration Contracts Contract
Price
Amount Profit
09/09/2004 Buy Put #1 $35 Nov. - QQQWI 75 $1.45 -$10875  

Total:

0

For this "Best trade", "Buy QQQ Put #1" is opened
in order to close it later with profit if the index moves in our favor.

We welcome any questions or comments you might have regarding this "best trade of the week".

 

2004
Date Indicator
March 14, 2006 QQQQ Options
March 10 2006 Trading QQQQ
October 12, 2004 Options Trading
September 25, 2004 QQQQ Options
September 18, 2004 QQQQ Options Trading
September 10, 2004 QQQQ Options
September 9, 2004 Trading  Options
September 7, 2004 QQQQ Trading
September 2, 2004 QQQQ
August 31, 2004 QQQQ Options
August 19, 2004 QQQ
August 18, 2004 Options Trading
August 15, 2004 QQQQ Options Trading
August 5, 2004 QQQQ Options
August 3, 2004 QQQQ
July 31, 2004 Trading QQQQ Options
July 21, 2004 QQQQ Options
July 14, 2004 Trading QQQQ
July 13, 2004 Options Trading
July 1, 2004 QQQQ Trading
June 23, 2004 QQQQ Options
June 20, 2004 Options Trading
June 6, 2004 QQQQ Options Trading
May 30, 2004 QQQ Options
May 25, 2004 QQQ Trading
May 20, 2004 QQQQ Options Trading
May 16, 2004 QQQ
May 12, 2004 Options Trading
May 09, 2004 QQQQ
April 29, 2004 QQQQ Trading
April 22, 2004 Options Trading
April 18, 2004 QQQQ Options Trading
April 10, 2004 QQQQ Options
April 6, 2004 S&P 500 Options
March 28, 2004 Options Trading
March 14, 2004 QQQQ Options
March 7, 2004 QQQQ Options Trading
February 29, 2004 Options Trading
February 22, 2004 QQQ
February 15, 2004 QQQQ Trading
February 8, 2004 QQQQ
February 1, 2004 Options Trading
January 25, 2004 QQQQ Options Trading
January 18, 2004 QQQQ
January 12, 2004 QQQQ Options

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