You Can Trade Tips: Timing is Everything
There are many Options Trading “Master Classes” out there that promise you three tips to the “secret sauce” of trading.
However, there’s no secret to successful Options Trading. It’s all about doing your research to identify opportunities – then knowing when to get in…and when to get out. In essence, Options Trading is all about timing.
While we all wish we had a Time Machine to look into the future and profit from the markets, you might be surprised to know that you don’t need a DeLorean with a flux capacitor to time your trades. Who needs a Time Machine, when you have charts and technicals to get time on your side?
Here’s an example where I used technical analysis to determine that the timing just wasn’t right to trade – limiting my risk and saving myself from thousands in potential losses as a result.
Timing Example: FedEx
Here’s a recent example where I was very interested in FedEx. The stock looked good for a number of reasons. For one, it had strong support at the $245 level. I identified levels of exponential moving averages in FedEx’s weekly chart.
The daily chart indicated the same momentum – a level of support around the $245 price range. This strong level of support made me want to trade with FedEx even more.
But the timing wasn’t right to trade a Call option in FedEx.
Even though I think FedEx can easily move to $260, and perhaps even $270, I didn’t see a signaled entry. If I bought FedEx at the time indicated in the chart, I run the risk of getting caught if the stock pulls back. I still like FedEx but the timing just wasn’t right. I’ll look at trading FedEx again when it hits the $249 range – and be out of that trade for profit in a couple of days.
For more of my detailed tips about FedEx and other market insights, you can see the full 5-minute video here:
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