Cheat sheet 1: $2K SAJ

7 steps to placing your first $2K SAJ trade

Psychology is the most important part of trading. Read Trading in the Zone. Confidence in a winning strategy is key to building a winning mindset. Knowing why you have an edge is how you get that confidence. Here’s what you should know about the $2,000 Small Account Journey’s edge.

Step 1: $2,000 margin account

Step 2: A few earnings winners

NVDA, JPM, and META are a few I've been trading lately. By doing a short put spread, there’s a very high probability of the trade working.

Step 3: Four bullish patterns

1. First, the company smashes the predicted move.

2. Second, the chart skyrockets.

3. Third, we look to enter the short put vertical below the rest phase.

Do you see the cup with handle on META? I started entering trades on May 8 in the cup rest phase.

As of this writing, in my current Journey, Sunday June 18, 2023, 10 of my 30 winners were on META.

Step 4: Short put spread

Step 5: Probability

So do option SELLERS have a trading edge?

Based on a CME study, an average of 76.5% of all options held expired worthless.

Three key patterns emerge from this study:

1. On average, three out of every four options held end up worthless;

2. Of puts and calls that expired worthless, the primary trend of the underlying played a role;

3. And option SELLERS still come out ahead even when the seller is going against the trend

Of put options alone, 82.6% expired worthless. This is why I do short put spreads.

It’s a neutral to bullish strategy in which I have 3-ways to win. Stock can go down a little, sideways, or up. More on that later.

Step 6: Time decay of an option

Options are time-limited, expiring trades.

Near expiry, the trade “spoils” with less chance for buyers to make a profit.

In the final 30 days, the rate of decay picks up speed, with the steepest decay occurring in the final 5-7 days.

This “time decay” is why 76.5% of all options trades expire worthless and of put options alone, 82.6%.

Step 7: Economic calendar

Knowing when the market will move helps with the timing of entries and exits. As well as where to position to be outside the noise.

My current $2,000 Small Account Journey, as of this writing, is up 461% in a few months.

I’ve grown $2,000 into $11,215, winning 30 of 31 trades. My goal is to get it to $100,000. All trades alerted before I enter and exit.

A strategy, or edge, is higher probability of one thing happening, over another.

The $2,000 Small Account Journey is the highest probability trading strategy I know of.

And that’s why it’s perfect for trying to grow $2,000.

In fact, I started a second Journey last week, illustrating one can start today.

Start Your $2,000 Small Account Journey Today

Learn more at → https://join.ragingbull.com/small-account-journey

As promised you can download this cheat sheet on Google