The formula for success

Plus a super special deal

As the end of the month draws to a close, I always like to reflect on what’s worked — so that I can do it all again next month. 

Some of my biggest winners this month have been several of these names:

  • WMT – 79% gain 
  • TGT – 231% gain
  • ROKU – 69% gain 

I always hone in on how I got there, so I can continue to hone my rinse and repeat strategies. 

It always comes down to this combo…

Setup + Strategy + Tool + Execution = Success. 

Let’s break it down.

Setup: The reason we get into a trade. It’s a high probability, moment in time, in which you have a distinct pattern that you know has a likelihood of success. Each trade should always be taken when you have a defined setup. 

Do you know what yours is?

Strategy: The options strategy selected to take specific advantage of the setup. Options strategies mature differently and behave differently under varied circumstances. Which one is the best for the distinct setup? 

Do you know which strategy should be used with your setup?

Tool: Technology to help you locate your distinct moment in time. The market’s a vast beast, with setups and strategy possibilities galore. The quicker you can identify your distinct moment in time, the better you can act on it — and make money.

What type of tools do you use to help you make money?

Execution: The completion of this process, that ends with you making a trade — and closing it to make money. To execute the trade properly, you need to have confidence in the first three pieces of this process. 

Is one of these first three pieces getting in the way of your perfect execution?

Going back to the wins…

When I look at my winners, I know they all have one thing in common — these are strong, relative strength stocks, that are the leaders in their group — the Phoenixes. As for the losers? They definitely didn’t qualify to be the best of the best. 

That’s why, on this Black Friday weekend, I wanted to give you the never before seen opportunity to get my ‘Finding Phoenix’ package (that includes all four pieces: setup, strategy, tool, and execution) that allows me to find my best trades. You can take advantage of this for a very limited time — for 30% off. 

We never do discounts like this, especially on such a popular class and method. But, I wanted to do this for all of you for this weekend only, so that you can Find Phoenix, just like me. 

Check out the deals right now here (through Cyber Monday). 

3 thoughts on “The formula for success”

  1. I’d like to know how many trades didn’t work and what the overall profit was. I’m having a really hard time with hey these were winner’s but there is a higher percentage of losing trades especially if you can’t take every trade recommended I get it not every trade works I really question if I should be trading at all the way the market is I don’t see anyone consistently making money without a lot of losing trades, I see Jonh killing it but with a small account how can you suffer the losses?

    Reply
    • Hey Andrew,
      I know and can really appreciate your situation. I have on often occasions had the same problem.
      What I have found is….
      1. Document your trades, take a screen hot of the chart when you enter, and another when you close out your trade, have a look and see why you entered and more often see why you exited. John quite often says ‘You can not S$*t like an Elephant and feed like a Bird’
      2. Look at position sizing- if the trade is going against you and you are nervous you are over invested in the Idea.
      3. Risk- If the trade totally goes against you what effect will it have on your account + Emotional effect. Are you happy with that effect.
      4. In times of Volatility it is quite often better to take profits sooner rater than later, small profit+small profit = larger return.

      I am not perfect and I am struggling as well hope this helps.

      Craig

      Reply
  2. I totally second this. I have found the same to be true. It’s just a very tough time to trade and I would like to see the context of how these winners fared in comparison to a portfolio. It’s about probability and profitability.

    Reply

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