As the market has been crashing recently, we find there are those who are having a tough time making money.
When we start diving into spreads and options and strategies, we tend to forget a basic truth...
“FIND GOOD BUY POINTS”.
Do you remember this from seminar 1? Buy points were a pretty simple concept there. It was “buy at support, sell at resistance”.
While the advanced strategies might seem more complicated and crazy, this one truth hasn’t changed.
Buy at support, sell at resistance. (or vice-versa for down plays)
When you’ve got a bad buy point, it’s kind of like you’re trying to get into a revolving door but you keep trying to go the wrong way. The door is too heavy and big and it’ll win every time. That’s why we don’t fight revolving doors :-) and, of course, we don’t fight the stock market.
This week, as you look through trades and plays, remember this: There IS money to be made out there. You have the right system, you’ve got this! Just follow those rules and start with the basics…
Get the best buy point for every play.