Avoid These Trading Mistakes

[Power Profit Trades] Friday, August 26, 2022 [Billions of Dollars Are Up for Grabs Every Day]( $970 billion, to be exact... that comes out to $11 million just waiting to change hands every second of every day. All this extra volume comes courtesy of the waves of speculative cash thrown into the markets by amateur traders with practically zero strategy. While these newbies are basically just throwing darts in the dark, pattern trading expert Tom Gentile is taking advantage of the incredible rise in trade volume and stock prices with the help of his new brute-force algorithm. [Click here to see the astonishing results so far, and how you can claim your share of the next round](. Avoid the Mistakes of Short-Term Traders By Tom Gentile Daily Watchlist Today's Schedule 8:30 a.m. ET - Catch the [Money Morning LIVE show]( before the bell 1 p.m. ET - Premium subscribers only (private room) Don't miss any Tom Gentile cameos! [Follow the Money Morning LIVE streaming schedule here.]( Short-term trading can be lucrative and personally rewarding, but it can be costly and emotionally taxing if you make common mistakes. I know first hand what it's like to blow up a trading account. In the late 1980's I felt on top of the world as I was learning about and trading short-term options. Then, Black Monday hit in October, 1987. Needless to say, I had to take some real time off to recover, contemplate my future in option trading and to learn more. Short-term traders commonly make three mistakes. - Going it alone instead of enlisting help from experienced traders - Trading without rules, and - Letting emotions dictate trading decisions Each of these mistakes can be costly, but they're also avoidable. Don't Do It Alone Although I knew a lot about option trading strategies, I didn't know what I didn't know - if you know what I mean. That's why I got a mentor. Not only was George Fontanills a great mentor for me, but I was able to work with him and create Optionetics - the world's biggest option education company at the time. Now I'm the mentor to thousands of traders. Trade Systematically One of the most important things a short-term trader can do is have a start-to-finish trading plan. All short-term traders should be able to answer the following questions - before entering any trade: - Why am I entering the trade? - What is my potential for reward? - What is my potential for risk? - What is my exit strategy? These four questions above may not be an all-inclusive trading plan, but they are the critical to every trade. Using technical analysis tools and other repeatable processes is also very important. Be a Mechanical Trader, Not an Emotional Trader There are traders who will sell covered calls against stock shares they own in their portfolios, but only when the stock's price has fallen below a 20-day moving average line. A mechanical trader seeks to follow a set of rules that can be repeated trade after trade. It's called rules-based trading. In the example mentioned, when a trader sees a stock fall below its 20-day moving average line, a covered call is taken. If the stock's price rises above the 20-day the trader simply passes on the trade. The trader is simply following the rules of "If this, then that." Simply put, the trader is not basing the decision on whether he or she thinks the trade is good, but rather, taking the trade when specific conditions are met. This is what differentiates a systematic, mechanical trader from an emotional trader. The benefits of being a rules-based trader is that when something goes wrong on a trade, it can pay off later simply by following the process over and over. Success Through Rules-Based Trading My success has come by learning about the mistakes traders make and then taking action by not repeating those mistakes. I relied on the knowledgeable mentors, along with my own hard work at understanding complex topics. I will always appreciate the mentors I've had in life, which is why I'll say it again - Don't do it alone! By having mentors, I was prompted to apply rules-based trading in my option trading. Now, trading with emotions is just a distant memory. It's important to acknowledge and accept that losses will occur. When they do, it's simply time to move on to the next trade - stick to your plan. Once they've been pointed out to you, avoiding the mistakes short-term traders make is much easier. I succeeded in trading based off rules and not emotions, and so can you! See you soon, Tom Gentile America's #1 Pattern Trader [Tom's Toolbox]( Today's Watchlist is based on the Morning Report's Expensive IV tool. This data is updated after the closing bell each session, and compares current implied volatility (IV) against a set of near-the-money options over the last year. Expensive IV means the current IV is at the high end of this 52-week range, meaning option premiums are running hotter than normal - a ripe atmosphere for selling to open options. The Morning Report tools from the Tom Gentile Suite app are free to Power Profit Traders - [click here for instructions on how to use and download](. [Download the APP]( [Subscribe to Tom's YouTube]( [Follow Tom on Spotify]( Nick Black has pummeled the crypto markets for 6,230% growth in six years. JPMorgan says crypto has found its bottom - and Nick Black agrees... In fact, he's "all-in" with 100% of his liquid wealth. >>[See what he's buying next.]( Join the conversation at [powerprofittrades.com]( Or follow me on [Facebook]( and [Twitter]( [Facebook]( [Twitter]( [More...]( mailto:customerservice@cs.powerprofittradesinfo.com?subject=Tom%20Gentile's%20Power%20Profit%20Trades&body=Check%20out%20https%3A%2F%2Fpowerprofittrades.com%2F mailto:customerservice@cs.powerprofittradesinfo.com?subject=Tom%20Gentile's%20Power%20Profit%20Trades&body=Check%20out%20https%3A%2F%2Fpowerprofittrades.com%2F [Money Morning Red Alert] The best way to receive the most timely, actionable opportunities from Money Morning is by joining our text messaging service, Red Alert - free of charge. [Text INCOME to 21852]( By texting INCOME to 21852, you are expressly consenting to be texted about investing news, trade alerts and marketing communications from Money Map Press, LLC about Money Morning's Red Alert text messaging service at the phone number you use, even if the phone number is on a corporate, state or national do not call list. You also consent and unconditionally agree to our [Privacy Policy]( and [Terms of Use]( including the arbitration provision and class action waiver contained therein. Your consent is not required to make a purchase. Msgs may be sent using automated technology. Message frequency varies. Msg&data rates may apply. Text HELP for HELP and Text STOP to STOP. You are receiving this e-mail at {EMAIL}, as part of your subscription to Power Profit Trades. To remove your email from this list: [unsubscribe here]( or [Manage Your Email Preferences](. To cancel, or for any other questions or requests, please contact our Customer Service team: [Online]( Phone: 888-384-8339 (North America) 443-353-4519 (International) Mail: Power Profit Trades | Attn: Member Services | 1125 N Charles Street | Baltimore, MD 21201 Fax: 410-622-3050 Our Customer Service team is available Monday ‑ Friday between 9:00 AM and 5:00 PM ET. © 2022 Money Map Press. All Rights Reserved. Nothing in this email should be considered personalized financial advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized financial advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Protected by copyright laws of the United States and international treaties. This Newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of: Money Map Press. 1125 N Charles Street, Baltimore, MD 21201. [Website]( | [Privacy Policy]( | [Terms & Conditions]( [sg_hidden_unsub]