- Jason Bond Picks
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- The problem with trading a $2000 balance
Good morning, Jason here with training #3.
The pattern day trade rule makes it hard to trade any balance under $25,000.
Here’s an edge that benefits from swing trading.
As the seller of options can collect Theta decay or what I call “time” decay.
Think of it this way.
A 10-day vacation for $10,000 loses $1,000 a day.
When we sell options it’s very similar.
Traders love to buy options which are like going to the casino.
You don’t have much of an edge buying options.
In the vacation analogy above, the seller collects rent from the vacationer.
In the market the seller of options does the same thing when Theta is positive.
Time decay hurts the buyer of options, even on the weekends and holidays.
It’s like a bucket of water with holes in it.
Each day the option buyer stays in the trade they lose more and more time decay to the seller.
All I do in the $2,000 Small Account Journey is sell put credit spreads.
And collect time decay.
When I’m Theta positive (I’ll teach you) it pays to stay in the trade day after day. Thus avoiding the pattern day trade rule.
How about a real world example.
Tuesday I alerted AMZN at $.35 to subscribers’ smartphones.
A bull put is a neutral to bullish strategy. It’s the only trade I make in this service.
To win on this trade I needed AMZN to trade lower, but above $143, sideways, or higher.
See the blue line?
That’s the 10-day EMA.
In an uptrend algos will buy off it.
I have a video lesson on the 10-day EMA you can watch at your convenience.
Watch that later though. Back to the lesson at hand.
AMZN went higher Wednesday, so I alerted a 71% win or $1,000.
Lots of subscribers LOVE the $2,000 Small Account Journey.
Here’s some morning feedback from the chat room.
Each member’s experience will differ.
And not all trades are 70% winners.
For example, this balance started 11-13, the %R shows the percentage gains.
Results not typical. Trading is hard. Nothing is guaranteed.
That’s a $2,000 balance to $6,093 without a loss.
Or a 205% return in 9-days.
I want to point out that I cannot speak for my members’ performance, as results may not be typical and trading is HARD. And I can't guarantee you'll make money. But what I can guarantee is that I will work my BUTT OFF to teach you WHY I trade WHAT I trade.
Now’s a great time to get started with the $2,000 Small Account Journey.
And you have subscription options.
You can join monthly at a huge discount in RagingBull’s Black Friday sale.
Or apply coupon code: SAVE40 to get 40% off a LIFETIME plan.
Jay
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