It is no surprise that like in any discipline, Investing and Trading needs some homework. It does not have to be too complicated or time consuming (Superior Profit Traders use CUE Charts for this homework – and you may find their trades and investment ideas in Traders Community).
Here is an example of a relatively easy and profitable trade as a result of a bit of homework. It also illustrates how one Superior Profit trader took a Day Trade using CUE Fine Tune Intraday charts. And combined some broad market information gleaned from Xenith (EIKON). This particular trade was taken using Weekly Options on QQQ. The same could be taken using QQQ as ETF or the NASDAQ E Mini Futures (@NQ).
I happen to have a look at @NQ (NASDAQ E Mini Futures) through CUE Fine Tune chart during my Sunday (EST). It seemed to be moving sideways as the above chart showed. That lead me to have a look at Global Markets and this is what I observed.
India Market had opened in green – but slowly it turned red sector by sector … most sector ending in red by end of day and so did overall India market index (.NSEI).
I then switched to looking at Europe Markets and I saw most of the European Markets (as was for overall Asian Markets as well) were in negative territory.
The above snapshot is as of around midday EST. However, Europe Markets were mostly negative from earlier time too – even from before US Market Opened.
This Bearishness and overall US Market Internal Bearishness that we saw in our earlier analysis; combined with the fact that QQQ.O seemed weakest among QQQ.O, DIA, SPY; I decided to go for a Short Day Trade on QQQ.O using Weekly Options. I used Stretch Release Entry technique of Superior Profit Way as QQQ.O hit Last Day High / Early Range High and reversed from there with a Stretch Release Bearish Signal. Below chart explains the entry.
For this time, I had also put a profit taking order at around 25%. And having in mind that if that target is hit, I would make sure the overall trade remains in profit (by placing a Breakeven or Trailing Stop on remaining position). Why 25% – I saw from brokerage terminal that this was the highest price of the Put Option today (till my Entry time) – which was at Market Open. And I was happy enough to book my partial profit there.
As you can see from above snapshot … it worked well. QQQ.O right from where our Superior Profit analysis told it might fall. Around 3:30 PM EST my profit was 20%. I did not wait for the initial target of 25% to be reached as the day was coming to an end. I exited more than half at 20% profit. Put a Profit Protect Stop on remaining position at 15% profit. And planning to close the position at End of Day – as it was indeed planned as a Day Trade. As it happened, near Market Close QQQ.O fell further and I exited remaining position at 32% profit. Achieving net about 25% profit in the Day Trade.
This is how we, Superior Profit Traders like to trade. Doing homework. Placing a trade at the right opportunity. And Booking profit as per plan.
That is Superior Profit Way of Investing Profitably. And it is being mastered by traders as I post this trade. There is detail material on CUE System at Education Center.
And we have started Superior Profit University over this last weekend. Our plan is to take series of classes (for series of batches) – to cover all aspect of investing in this way. You may find the scheduled classes here. These classes are live (not pre recorded sessions) and they don’t use slides. We use charts as that is how we trade – using CUE charts and not using slides.
These classes are intended to be detail classes on Trading using CUE System – meant for traders who are using CUE charts – to help sharpen their skill. However, all are welcome to join.