The Importance of Discipline | Trading a Smaller Account

[Music] good morning everyone welcome to trading a smaller account it is friday morning the bell has rung and i am delighted to be here with all of you as i can see from the robustness in the chat the gang um all seems to be here the crowd is shuffling in so good morning to vijay lamar osborne ali larry nihan juanita and the rest of the gang and today is a special day because we have scott thompson and if in with us in the chat so he is actually a coaching manager now he's a friend he brings a wealth of experience with him he is as many of you know i'm a client of td ameritrade um and now also a coach but i learned how to trade um from scott thompson and the rest of the group so i'm thrilled that he is here with us in the chat if you have any questions please don't hesitate to ask so what are we going to talk about today i am like really excited about today's topic so we're going to do a little bit of a lot of things in this time where you know somebody typed into the chat early in the morning like wow what a week in the markets and we could really have said that pretty much every week this year there has been no like business as usual it's steadily climbing the hill like some days the market opens down and then by the end of the day it's up or opens up and by the end of the day it's sold off so the whiplap lash continues you know as i like to say tongue-in-cheek the sponsorship by the chiropractic association because we're all like you know getting thrown out of balance watching all this craziness in the market so how do we take advantage of that um as someone who is potentially trading a smaller account and how important is it to manage you know because i remember one time a young man saying to me he was a personal trainer and he said you know if my account gets blown up or the market really pulls back and i'm down 40 or 50 percent i've got time to recover and it's like well that's like saying excuse me let me break your leg because it'll heal quickly because i'm young like do you really want to inflict that wound and so i wanted to do an exercise to kind of show the importance of um you know what it can mean long term if we aren't disciplined in our approach to trading and we don't manage our trades both to the upside and to the downside because um at scott will smile when i say this there was a former coach who used to talk about not bob and not bob would place these trades and they'd do really really well and he'd be up sometimes you know and this was a larger account but one or two or three thousand dollars and then not bob would watch all that profit be returned to the market and sometimes end up with a loss so it's important that we manage both our profits to the upside and things to the downside and that we're disciplined in our approach um so that's what we're going to talk about today um maybe i'm just a nerd but i think that's a pretty exciting topic and um yeah so that's what we're running with so um like i said if you've got questions don't hesitate to ask if you are watching this in the archives as the majority of people do please um know that you too can ask questions sorry you too can ask questions simply by typing them into the comment section also if you love this session you can type that into the comment section as well every comment that we get you might be helping someone that you don't even know somewhere in the country find this content and so help us help other people um so that's that the third way is via twitter and so my handle is at the armstrong underscore tda i'm posting content that i think you'll find relevant and helpful on a daily basis and it's free for you to take advantage of so i hope that you do choose to take advantage of that you know i put a lot of effort into making sure that i'm providing content that i think you guys will find helpful and inspiring okay so let's get through our important information so we can get out to the platform where the magic happens today we're going you know know that we place a lot of trades in this account and we manage a lot of trades it is an intermediate level class so i'm assuming that you understand what an iron condor is what a short put vertical is what a long put vertical is all that kind of stuff if you do not understand a trading strategy or you're not familiar with it please let me know and i'll either take 10 seconds to give you a high level on what that strategy is about and then we can post a link to the getting started with options class that pertains to that strategy in the top right corner okay but all you just have to ask and i also in the comment section in the archives there will be a link to the entire getting started with options playlist because sometimes within one class we'll talk about three or four different strategy okay okay so uh but know that everything we do in this class even uh though it's at an intermediate level it's for uh education purposes only and information purposes um not intended to be construed as a recommendation know that options aren't suitable for all investors there are special risks inherent to options trading that may expose investors to potentially rapid and substantial losses you know that can happen if you're new to td ameritrade you've got to apply for option trading privileges um same goes for futures um in order to demonstrate the functionality of the platform and you know thinkorswim is functionally a very rich platform we place all our trades on the thinkorswim platform um in paper money know that all investing involves risk including the risk of loss and while in this class we discussed technical analysis other approaches including fundamental analysis can provide an important and a different perspective okay um and know that past performance doesn't guarantee future success also know that stop-loss orders do not guarantee an execution at or near the activation price and and you know what we've seen just a lot of extraordinary things happening you know carvana got craned on earnings netflix got creamed on earnings and if you'd had a stop and it gaps down that you know you would have gotten out when the market opened if it was a stock market order you know close to the market open price not necessarily your stock price does that happen often not necessarily but can it happen absolutely okay so you know this always looks you know kind of like wow she put a lot of effort into that but we're going to go and have a look at what's going on in the markets we're going to look at managing our trades and as part of that i want to look at something called the money champ compound interest calculator say that fast um which is a free resource um you know out in the land of the internet um that i think is a pretty powerful tool and then we're going to go and do some both some trade management and then we're going to place some new trades um on the paper money platform on thinkorswim so that's what's up okay so let's start with well let's start start with the russell given that i'm already here so the russell when we look at the last year you know it's been trading uh a lot of sideways and now the last year is starting in april but starting in about february it went into the zone between about 21 2130 and 2360 and largely stayed there until the beginning of this year you know and then it came down this was about a 230 point spread and then it came down and it's been trading in about a 200 point spread since then um and now this old support level seems to be acting as um a new ceiling um so i thought one of the trades we might place today might be oh sorry screen split earth to barb you see it really does take a village so thank you guys for helping me out with that okay so here we are back on the rut we were just one slide in so no harm no foul okay so that's the rut um the s p 500 when we look at the one year chart you know s p 500 was up trending the santa claus rally ended uh basically the first trading day in january and um you know has been downtrending since and if you come to all my classes you know one of my favorite um little unbeknownst to me until about a year ago feature i was shown this by brent moores is you can change to time frame and so we can now see that you know over the last year we're still up but about five percent and we were up over 20 last year so a lot of those gains have been given back and if we come and we look at a year to date number where are we we're down about nine percent on on the russell we're down closer to 15 percent year-to-date you oh sorry i exaggerated 12 and a half and you know which is kind of more similar to the nasdaq so we come to our tech heavy index tech which was like the bella of the ball after the pantema kit as we started to recover for most of 2020 all of a sudden they are getting absolutely clobbered and this index is down the most of the major indices the four major indices down 17 and you know although you know we were saying like you know when i spy with my little eye could this be um could this be an inverted head and shoulders setting up it now looks like it's breaking down and that you know the shoulder isn't happening that maybe we're more likely to end up seeing a double bottom and you know it could end up being a double bottom or it could come down and bounce and can you know continue on down like you know we don't know what's going to happen but we were talking about this setting up as a potential pattern and and now it's looking like oops may maybe not now on the s p 500 okay let me get rid of that spx because px we need the x on that on the spx we can see this same type of pattern right a cup and handle potentially or an inverted head and shoulders and of course the market isn't playing along today because it looks like it's you know continuing its trip to the downside now we've had classes before because we start when the bell opens um you know that this could continue um it could come back up it hasn't kind of broken totally out of that range yet but you know it looks like it may be coming down to perhaps this one too set up a double bottom um what study adds the arrows on the chart i will post something on twitter on that today twitter the green arrows but i i'll take 10 seconds and show you quickly because i i thought this was pretty cool when i first saw it if you come to studies and edit your studies and add a simple moving average so we're going to add a simple moving average and the default is nine days i'm just doing this for example purposes only when you come to the sprocket it'll say show breakout signals and just make it yes and then your arrow will show on the chart and what's the what do the arrows tell us what the arrows tell us is that this is a 30-day moving average is that the s p 500 closed below the 30-day moving average if the arrow's red if the arrow is green it means it closed above the 30-day moving average yeah so that's the breakout signals okay so last one the dow um you know year-to-date interesting so it just shows it's been falling at year to date and setting up this kind of inverted you know this kind of double bottom you know on a diagonal which it has broken out and and it's kind of consolidating and it too it's down kind of similar to the s p it's down about six percent but this one appears to be consolidating right now around this you know 342 ish level okay and then how about our friend the vex volatility and this gives us an idea you know volatility is rising then do we want to be buyers or sellers and you know we'd say like wow look at this volatility is kind of low right now but you know if we look at it over the context of a year it's at the high end of where it's been trading so if i were to draw a line and i can do that you know this is at the at the higher end of where it's been trading over the most most of the last year but it appears like downright snoozypalooza conservative compared to what's been going on year to date doesn't it and so what this can tell us is you know there might be some selling opportunities if we're looking at options you know with it being um moving a little more to the high side again okay and when we come over to thinkorswim or sorry the td ameritrade platform which i do you know use on a daily basis so we've got technology up by a smidge today in consumer discretionary and these are the two sectors that were the bell of the ball back in 2020 we talked about sector rotation yesterday um in portfolio management basics and i'm actually going to be talking a bit about that today also i'm filling in for mike fairborne on his one o'clock class on portfolio management i don't remember the name of it specifically active portfolio management if you want to join me for that but when we look at the last month we've got consumer staples real estate and utilities of course energy you know has been the talk of the town it's been really the one of the leading sectors um in the last six months and for a long time i mean energy's energy just had a lock on last place um again energy utilities materials staples when we see utilities and staples at the top of the heat that means money tends to be flowing into more conservative investments and and you know bonds are having the worst had the worst first quarter i don't know if it was on record but in in many decades um and so you this could be a reflection of you know people pulling money out of bonds even and saying like well utilities they tend to be less volatile they you know they tend to pay a dividend so you know maybe i'll put some money into utilities but you know in second place over the last three months behind energy and and this kind of gives us a feeling for where the market is going when we see staples and utilities closer to the top of the heat okay so that's all i'm going to say about kind of where we are with the the current market now let's look at a couple of positions um i saw some talk on etsy in the chat at the beginning um and you know we try and kind of do a balance so etsy has been kind of getting beaten up since it hit this high back in november and so if we go to a six-month chart it's just been kind of a steady downhill and so i think it was in monday's class was that the 18th yes and and if you are new to this class please feel free to type a greeting in so that we can welcome you but um we partnered this class with a long options class on monday at noon eastern and so we placed this class this trade on monday and you know we did one with a target i don't think it was in this account um you know and we're getting awfully close to that but we also for this class we did a long put vertical so the long put vertical um if we come to the monitor tab we have this long put vertical on etsy you know our profit and loss on this we're up 20 and we've made a whopping 50 bucks like woohoo and you know that's not going to take us you know to tahiti drinking something cool out of a a coconut on the other hand you know base hit and we've actually been hit in this class i looked at this the other day and every single position was down and yet we started the year with 20 000 and we're basically at twenty five thousand which means we're up twenty five percent year to date and all the major indices are down somewhere between five and fifteen so we're doing a bit of all right and have we had losing trades we have in fact here's one on eog right now you know which could end up in the losing trade bucket it doesn't mean it wasn't a successful trade which sounds like an oxymoron but it could end up just being a trade that wasn't profitable but to me a successful trade is a trade where we followed our rules we managed both our profits or if it was not a profitable trade where we managed our losses and our monitoring this has in this class over the last two and a half years have been base hits and it's been it's been really successful so i want to we'll just look at a couple of positions and then i want to talk about the power of base hits over time and we're going to take about five minutes on that but i think it's it's really a worthwhile discussion okay so here we have etsy we did a long put vertical which means we're expecting the stock to go down we bought the 110 we helped finance the purchase of it by selling the 105 and so the goal is for it to go through both strikes well it has gone through both strikes so why aren't we at our max gain well because there's still time value et cetera in the trade if it stays at 100 we'll end up at a max gain now you can see we've got these little chiclets here you know when do we intend to get out well with etsy and let's uh with etsy we're intending to get out when it hits four dollars and right now it's not at quite three okay and then we did the same thing with eog only on the on a bullish side we did a long call vertical we said we wanted to get out when it got to 210 and it's at 2 15. so we're down a little bit oh sorry dang it yep scott got it full screen sorry guys sorry sorry sorry sorry um okay okay so i'm now screen sharing it may take 20 seconds to catch up yeah okay okay so and and i'm just on the monitor tab here so with etsy you can see that our plan is to get out here when it's at four dollars and if right now today this was the stock was really down and we were at 350 or 380 we might choose to exit you know we're at 3 15. and and the trend it seems to be continuing to fall so we're just going to leave that okay we're just going to leave that and you know when i looked at our positions today even though we didn't meet last week um you know we're just kind of you know trucking along here and and things are moving and we're just going to um we're not going to spend a lot of time on trade management this is something that i did want to spend a couple of minutes on though because it just shows the power of the decisions we make today and how it can impact our future and so i'm going to take us back out to our friend google and we're going to come over to this this portfolio and you guys may not know this but every year we reset this the first class of the year and we uh turn the clock back to 20 000. now real life doesn't work that way as we know so let's say we we invest this 20 000 we don't add any more to it um over time and we give it 40 years to grow now i know some of us don't have 40 years to let it grow some of us might have a lot more than 20 000 some of us might have less but let's say that the s p 500 over the last 50 years has on average including up turns like extraordinary years like last year and and recessionary times it is average 10 so where would we be if we just took our 20 000 and invested it in an index like the s p 500 we'd be at just over a million so a million 74. okay so i've written that down 1.074 million that's 40 years

just letting it grow well what if we had a year like we had last year where our account grew by 50 now that's extraordinary but i'm just doing this for dramatic purposes okay but we did grow by 50 last year we did grow by 50 the year before and then we reset the clot this year we're up by 25 let's say we have three years in a row where we have three extraordinary years we get a lot of base hits and we're up by 50 percent so let's take three years and say we grow by 50 what would that amount be 86 949 [Music] and then for the next 37 years we never have a really extraordinary year again but we managed to do the average so what i'm going to do is take this 86 949 so that was our first three years and now we've got 37 more years for it to grow and we're just going to let it grow at this 10 level that it was growing so we would end up not with a million 7 we'd end up with 3.463 million so three times as much more than three times as much like holy spokes batman is it does that not kind of blow your hair back and doesn't that make you think okay i will be disciplined you know for that kind of difference over time i think i can employ a little discipline now what if on the other hand you're like the personal trainer who said i can afford to take a flesh wound and let's say not paying attention you've got that twenty thousand and the first three years you lose ten percent you go down by ten percent a year so at the end of that first three years you'd end up not with 86 000 you'd end up with 14 hundred and ninety seven dollars so now we're going to say okay 14 797 okay we'll round up to 798 we've got 37 years um and we're going to leave that at ten percent what would that be worth about i'm going to round it well 589 000 less than a million so about half and so somebody said i'm not sure how much 3.4 million is going to be worth in 37 years and all i can tell you it's going to be worth 3.4 million more than what two out of three boomers currently have saved for retirement which is nothing you know like that four out of ten americans right now couldn't come up with 500 cash in a pinch six out of ten couldn't come up with a thousand three point four million is still a lot of coin it's still a lot of coin and that's the difference and this is like right at the front end it's just an illustration for dramatic effect but like that's powerful stuff and so what i encourage you to do you can go out to that calculator online and and just have a look but it's important that we're disciplined in our approach and on monday we're going to talk about in long options the one atr approach and and the you know a trading plan guideline and i'm just going to review you know our our guidelines on how we trade that okay okay so that's that so now we want to spend you know the next 20 minutes placing some trades and you know if we come to etsy we already have a long call vertical on that um and so but some people might say could we do something on etsy and say you know could we maybe sell a short call vertical if you wanted to double dip per se on a particular stock um yeah it okay sorry i just got distracted by something in the chat and i want to address it if you're my age like i have kids that are grown scott now has kids that are grown do you think i'm sharing this stuff with them you bet you're sweet bippy i am like what it like what a gift to a grandchild absolutely or to one of your children to be able to not just gift them with money but to gift them with this knowledge i mean this can change family trees my friends like i'm gonna get emotional about it so i'm moving on but yeah this is important stuff anyway etsy um could we do something like a long call vertical here and i know that it's currently trading at a hundred could we possibly get enough to go up to this previous high and if not then we would just pass but could we come out to the trade tab and how far out do we want to go well we might say okay on etsy i don't necessarily need 70 strikes but could i come out 21 days and come up to this 118-ish level and isn't that interesting it's saying it's got a 30 delta on it at that level at that 118 118 yep so could we sell a short call vertical where the idea is we sell the 118 buy the 120 to offset it because we don't own shares of etsy so we certainly wouldn't want to sell a naked call 118 120 so we'd get 47 cents on that we're risking about a buck 50. so we're making 50 that's a 33 return on our risk if we could risk 400 how many of those could we do we could do two and so if we were okay with that we'd say okay we're going to do two let's say we we want to get 50 cents and if we can't get 50 cents then then we don't want to do it we can do that i mean we've got that power so and we can come up here and say and you know what when it's worth 10 cents we'd like to buy it back when we've got you know 80 percent of our max gain so we're going to right click create an opposite order say hey when this is worth 10 cents buy it back we may get in and we may not but this is a way of just saying like hey if this is down trending could we take advantage of it within our trading a smaller account in another way and we're going to put that in our short call vertical which is a bearish to neutral strategy okay so we'll t that one up so that is etsy now one of the things that makes it a little more challenging with this class is that you know the market doesn't open until the class starts okay so five i was thinking about doing something bullish here but it's continuing to pull back today and so i'm kind of rethinking that i'd rather see a different because we've got an inverted head and shoulders here but now it's pulling back again so sometimes these patterns don't fall through follow through do that and then and of course you know the whole market is kind of moving to the downside today so with walmart you know we had this kind of double bottom or basing pattern here it's really taken off pulled back above this previous high you know kind of a bull flag pattern another bull flag perhaps heading up could we set something up and maybe say hey if this goes above today's high and what's today's high 160 36 so if this hits 130 add 50 cents 160 86 we would like to do a long call vertical or we might want to do a short put vertical but only if it continues to the upside okay so it you know how would we tee that up well we might say okay it's trading at about 160.

so if i came here and we came out to say the may expiration so 28 days and i said okay i'd like to do the 160 and the 165 if i was bullish by a vertical this is in the staples arena so or we could do the 161 6250 that means you know it has to move up how much for us to break even our break even on this would be 160 107 you know so it would have to move up just over a dollar for us to have a profitable trade so if we said you know what i'd be okay with that if we could risk 500 now we don't know exactly you know what this we're going to pay for this but one would assume likely under 200 or you know so we could do or under a dollar fifty so we could do three of these if we wanted to do this trade um if we were entering this now we could actually do four but we have to assume that we're going to pay more we're going to make this a market order to get into this good till cancelled and only when walmart goes at or above 160 86. now you might say but the market is pulling back isn't this a counter trend to the market and the answer would be yes the market is overall down but you know as sectors there there have been some sectors that have been leading even within this overall market downturn and we're not doing a trend trade what we're doing is a short-term trade on a sector showing strength and a stock showing strength within that sector does that make sense okay and then if we said well if we get in you know the most we can make on this is 250 we're looking at getting in somewhere maybe around a dollar between a dollar and a dollar 25 you know maybe if it gets to two dollars we'd take whatever that profit is and exit so we can change our single order to first trigger sequence right click create an opposite order we already have this as a market order and we're just going to say we want to get out we want to make it a limit order when this is worth two dollars when we can get two dollars for it we don't have to get the entire 250 if we get to the point where we've made two dollars we'll call it good enough um somebody is saying you know why not a bull put spread we could do the same thing with a bull put spread confirm and send oh we sold our two verticals on etsy we got what we wanted on that um sorry earth to barb three verticals we were doing a long call vertical on this and what we may just want to do on walmart is just give it a minute and see if it continues to come down because if it continues to come down we'd like to sell the bulb put spread or the sh i call it a short put vertical so if we come in let's just hone in here on walmart and and it was a good question so i appreciate that question is saying you know why not sell a short put vertical here below this 157 and we can absolutely do that now to place a trade today would be more aggressive um and so we could do that and just say we're recognizing that this is a more aggressive entry but it's sitting at 160 right now it could come down and and absolutely kiss the 157 and you know or it could come down and continue coming down you know but we could look at that and just recognize that that would be a more aggressive entry so if we looked at the trade tab and we said we'd like to sell something you know could we get enough premium to sell maybe the 155 ish let's get rid of our percentages where would 155 now if we came all the way down here to 155 then the the low of today would be considered one support level this would be a support level this 10-day moving average would be a support level so it would be have to break those three support levels to get us to that 155 and so if we said okay we would take that trade if there's enough interest so we've got over 2 000 contracts delta of 34 meaning we've got about a 34 chance that this could be in the not profitable category in about a 66 chance um it would be in the profitable category so if we look at this cell vertical 72 on um 250. so if we look at our math on that for those of you who don't do a lot of short put verticals 72 if you if you come to this class on a regular basis you do do quite a few in your paper money 72 plus 250 um okay 72 and the difference between our strikes is 250 minus the 72 so that's a dollar seventy eight so we're going to divide that by a dollar seventy eight um why did i just suck 73 divided by 178 i'd messed something up there okay that's a 41 return on our risk so if we're okay with that we'd say okay bob's your uncle um how many of these could we do we're risking 178 so we could do two single order first trigger sequence we're going to get out when we've got you know we could say 10 percent of our max gain with volatility in the market we might say you know what um i'm going to make it 20 so when this is worth about 14 cents i'm going to take my risk off the table confirm and send and we put that in our short put bucket so both of these are bullish but the long call vertical is more directional it has to go up and it has to go up within the time frame that we have allocated for it or it will not be profitable this the most we can make is 142 and the most we can lose is 358 there are transaction fees associated with this but as long as walmart stays above 155 you know we're okay you know and here's basically 155 so if it goes up we we have a profitable trade if it goes a whole lot of sideways we have a profitable trade it can even come back by you know 4.75 cents a share and we would still have a profitable trade okay um somebody is saying that there's an issue with their buying power so if you have something like that that doesn't seem to make sense call the trade desk they are absolutely awesome okay so that was walmart i wanted to look at american airlines and let's see what they're doing today because a lot of the airlines have really had great results on earnings and and again if we hone in here and we say okay we've got this inverted head and shoulders and i'm going to post um some of this on twitter also it broke out on earnings and you're saying man they're losing money yes but if you go and you read the report their expectation is that demand is going to continue to increase and they expect to be profitable um you know for the whole year by the end of the year and so obviously the market seems to like this now this is a 20 stock so this is totally in our snack bracket we could buy and just own this stock and you know it you know a technician might say hey this went from 12.50 to 19. so i'm expecting about a 750 game let's just make sure i've got that right 19 because i'm moving quickly 650 gain i thought that might so you know we could come out here and put a target in if we wanted to make this still a directional trade and take that 19 plus 650 so say i i'm going to do a swing trade i'm going to put a target in when this hits 25.50 i'd like to exit

and you know we could do um you know 500 shares we can take a position up to 5 000 in this account and then where would we put an exit because we want to you know at least attempt to define our risk we could say well if it goes three percent below that 19 we would want to get out and you know do we have money in our account well we've got 18 000 of it most of our account is sitting in cash right now which kind of makes it all the more remarkable that we've had the returns that we've had because the majority of this year the majority of our account has been actually in cash so we haven't ever had you know it to the point where it's like oh we have all our money invested we've done a lot of short-term risk-defined trades so if we looked at this and we said okay so 19 times 0.97 that's 1843. so if we look at american airlines and we say our stop is 1843 our target is going to be 25.50 maybe we make it like 24.89

close like we're you know if we're close you know we'd be up 400. and you might say yeah somebody just typed in buy right covered call we could do that as well in fact if you wanted we could do kind of one of each so let's come in we're going to do a trade buy custom with an oco bracket we're going to put a stop in here at 18 43 18 43 and our original target here was 20 24 50. what was it 25.50 so we'll leave it at that and we can always adjust so good till canceled now the other option given we have money to invest so here's this one we're investing 2 000 it's saying how much are we risking 2 000 because it's not recognizing that you know this could technically go to zero so if if we get stopped out and there's no guarantee we'd get out at 1843 but if we got out around 1843 we'd be down about 233 if it hits our target we're up 474.

in this account if we make 500 or 475 dollars we started the year with 20 000. so 400 is 2 of the total account value that's not just a base hit we consider that kind of closer to home run territory so we're just going to put this in a swing target we're going to call this a swing target and this is based on the inverted head and shoulders head and shoulders and positive outlook positive earnings outlook so you know i'm not going to go over and pull that up in the fundamentals we don't have time but go over to td ameritrade.com or go to the news and have a look you know you because we are investing our money here we want to make an informed decision right the other way we could do this and somebody typed this into the chat could we do a um a buy right and yes we could but you know you got to keep in mind here here's a stock like if we came out to the 22 strike it's already at 2069. we get paid 68 dollars and we'd be in this for um 28 days we're just on the other side of earnings we've got 15 000 contracts a four cent bid ask spread so that's all good and you're saying 68 like 70 cents that's not much but you know what it's three percent you know when you take a look at 69 cents divided by 22 while or the current price is 2068. you know that's 4.3 percent off the current price so if we looked at that and we said okay we'd be willing to sell or sorry buy covered stock it's going to cost us 20 the most we can make is 22 so we're investing 2 000 to make 2 100.

well you know that's a pretty decent return isn't it you take 200 divided by 2 000 that doesn't take a mathematical genius that's a 10 return potentially in 20-some days you might say yeah but we could make more on the other one yeah we could but you know this is you know a conservative strategy we can put an exit in on this one too we can put them both in and just kind of see how they play out create an opposite order when would we want to get out well we'd want to exit this if sprocket please if american airlines goes at or below 1843 and we'll just try these two strategies yes i was going to do an iron condor on the rut today um you know we'll save that for next week yes um we did a lot of iron condors on the rot last year and it was actually on my list and you know i had my strikes all set up but you know what i'm always busy trying to put ten pounds worth of material into a five pound bag in this class my friends um because there's so much uh that i'd love to share with you and it's just hard to be able to do it all um yeah so we're gonna compare that to the other strategy we've got our entrance we've got our exit there is you know a transaction fee for the call that we sold okay and now like i love this but we've got a wrap so i think we did what we said we were going to do um so we looked at the current market conditions we um you know talked about trade management we talked about the significance over time of having a couple of years that are good years and of course i i did this right at the very front end right so it really you know extrapolated or or exaggerated the potential results really appreciate you all being here so here's what you can do i don't think there was a survey today but you can vote by hitting like if you are new to this class and you haven't linked arms with us but you're saying wow this is interesting i'm getting value from this if you haven't subscribed to this channel you'll want to link arms with us subscribe to the trader talk channel and and join our community um because we meet every friday same time we meet throughout the week um yeah so would love love to have you um i i partner this with the long call class on mondays at high noon if you'd like to join us would love to have you there keep in mind that everything we do in this class is for education and informational purposes only none of it is to be construed as a recommendation on the part of td ameritrade or myself i want to thank scott thompson for being here he's an awesome guy a great coach and a great manager and i'd like to thank each and every one of you so welcome to spring have an absolutely awesome weekend my friends uh take care and i will see you in a webcast coming up soon if you want to join me for port active portfolio management i'll see you at around one o'clock eastern take care everyone bye for now

2022-04-23 23:01

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