How I would trade if I had 5-figures to invest

[00:00:00]If you handed me 50K and you told me to grow it, protect it only using 30 minutes a week, here's what I wouldn't do. Day trading and swing trading. That is statistically proven to lose you money. I wouldn't buy and hold an index fund because I can't get paid or guarantee I will make money in a 30-day window. No, I will use a system inside this video that you may never have heard of and I'll tell you down to the tickers, the trades, and the week to week management, how to implement it.

[00:00:32]Because at the end of the day, at this level, the game changes. The 20K and below account, it's hard to use this strategy. It's hard to maneuver the markets and be consistent. Because what I see from most new students, and we coach a lot of people that import their portfolios, we can see their trades the day they start and the day they're in month one, two, three, four, and how they progress. But this is a typical portfolio from someone who just starts off with us before we help them. It's scattered. They have a bunch of stocks and leaps and maybe other trades and maybe no cash. They're fully allocated and sometimes at the wrong moments. This is a portfolio that is meant for destruction for one reason. It's impossible to gain clarity. It's impossible to gain understandings of what you're doing and have a plan for each position. This is a scattered way to make money and this held me back for years in being able to focus and use the system I'm going to teach you today finally got me to being consistent. So let's get into how we can turn a scattered portfolio into something that becomes a money-making machine. Before I teach you this strategy and the tickers and the trades, you have to know the key number, which is three to four. If you can have that many positions in your portfolio and never go over and never go too much in one position, this is where you have this sweet spot, the secret sauce to maximizing your decisions, focusing on eight trades and using a lot of size behind it. The reason this makes a lot of sense is because if you enter into a trade and use 1% of your account, even if you doubled your money, your account only moved 1% higher, which is not substantial. This doesn't change your life. And if we take 1% bets and we did 100 of them, the chance of us making any money becomes smaller. Our focus drops down.

[00:02:38]If we can't look at these trades and understand them, we're never going to end up making money from them.

[00:02:44]So, before we get started, the key here is understand how do we get to three to four positions? Because if you can consolidate everything you're holding just to that, you can likely juice it with the strategy I'm going to teach and really juice the most out of it, make the most out of it. But here's the next key step. Because once we eliminate the crap positions, the things not moving the needle, we need to understand the strategies that are best fit for us to reach our goals. Because there's strategies out there that are literally gambling. If you buy a zero day option, it's decaying by the minute. So, you're losing money every minute and the chance of success is 20 to 30%. And if you're buying options seven days out, 30 days out, 60 days out, those are just flushing your money down the drain. So, I would check every portfolio for a student and if they have leaps or short-term options, that is the high-risk section I would flag. If that section is too high, if they have too much capital there and it's too many positions, we would want to at least, number one, reduce it or just eliminate it. Anything with an option buying strategy or any positions that we are holding that are decaying assets need to be cut, especially for not profitable because that's the reason we're likely not profitable. So, figuring out how to stop being the gambler and switching to the house is key. So, going back to the other portfolio here, the stock section is also gambling. We don't know stocks are going to go up, right? We don't know stocks are going to make us money tomorrow. If I want to take a portfolio and generate something I can rely on over the next 30 days, I certainly am not buying a stock.

[00:04:36]And index funds are a big trap if you need to generate something in a window of time. So, the big fear when I see new students join our program, is they're stuck in those two scenarios that create this gambling effect. And I call this dead capital.

[00:04:54]It's money that has really no way of making new money to a high degree of certainty.

[00:05:00]If anything, you're hoping, and hope is not the strategy that produces a paycheck at the end of the month. So, where do we go from here? This is the key. I want to do something crazy. I want to actually show you in one week how you can restart, get going with our system, and find trades that make sense.

[00:05:19]Trades that are are aligned with an actual strategy with rules and structures. Let's go day-by-day on how you could attack this on a Monday to a Friday. Basically, Monday, what we want to do is just fund an account. You know, go on Robinhood, WeBull, thinkorswim, E*TRADE.

[00:05:37]Applic- put an application in, put money in, boom, you're ready to go. It should take 1 to 2 days to settle, which is fine because the next step is to build a watch list. A sustainable watch list, one that's not just scanning for the hottest trade of the day, signing up for five different Discords and hoping their call outs hit. No, the watch list should have stats that prove themselves time and time again. So, here here are CRP results over the past couple years. As you can see, there's not much red in here. And in fact, the tickers we use they're like this.

[00:06:13]It's a very small select group of tickers. And this is the secret sauce, building the right watch list allows you to stay focused. And what I want you to take away from this video is successful people eliminate things from their trading to make money. They don't add, they don't add time, they don't add more indicators, they eliminate the time they're in the markets, they eliminate the time they're looking, they eliminate the indicators that they watch. And more importantly, the most thing The most important thing to start off with is the watch list. Eliminating the watch list to become smaller.

[00:06:50]Because once we have that, all we have to do is set an alert. And I'm going to show you the simplest alert to set, how to do it, and this should allow you to have a trade trigger two to three times a week.

[00:07:00]And then, we're going to start that morning routine on Thursday, and we're going to wait for the alert to trigger.

[00:07:05]The crazy thing is, you might not have an alert trigger today, or tomorrow, or the next day. And that's what I've seen year in and year out from our system, week in and week out. The best trades happen twice a week, and that's really hard to find in some markets. So, you find yourself sitting in cash waiting, which is fine. The system is meant to make you be patient, because patience beats chasing. Patience beats pushing in money, trying to force things. Forcing does not get you to your goals, and is likely a strategy that is deploying money, 100% of your money in everyday every trade going to crush you one day in the wrong market in the wrong trade. So having the patience is the edge we teach everybody. And patience is really simple. The structure of entering a trade needs to be well defined because that edge of patience and eliminating the moves you can make every single day helps us maintain this win rate not over months but years. So let's dissect what patience looks like and what focus looks like.

[00:08:17]We have this fruit salad analogy. So if you have a fruit salad, it's got a bunch of stuff in there. You might not like cantaloupe and grapes, but it's got everything. So you're picking out the strawberries, you're picking out the blueberries because that's the best stuff in there, right? So when you have a stock portfolio, you likely are holding the crap that you don't want to eat. And then the good stuff what if we just only held the good stuff?

[00:08:44]This is mind-blowing and this is the game-changer for people that get started out learning how we operate. And this is countercultural because most of the videos teach you to use 10% of your account, to use 3% and go small, manage your risk. If you do the strategy I'm going to teach you, you don't need to manage your risk because if you can have a one-year win streak like we've seen, you can basically go heavier and be more confident and not lose sleep. That's why being patient, being selective can help you maintain a win rate over long periods of time.

[00:09:22]But the downside of this strategy is actually not a downside at all. That's why this is a flipped risk management scenario in our head. We're not planning for a profit or a loss. No, we're planning for a profit or an assignment.

[00:09:36]We'll talk about that later. But, what I want to go over is this idea of my ticker list. I don't have a slide for it, but this is the ticker list. I'm going to show you the actual software, which tickers are on it today. Right down here is probably the top four and the top three here in the markets right now. It's seven tickers, which is a lot, but I tell most students just to focus on the left side. The left side is safe and diversified, like an index fund. So, if you're investing in index funds, you're going to love how we sell options, the tickers we use, because SOXL is the semiconductors.

[00:10:18]They're supporting and kind of helping the AI boom, and they're getting tons of money flow to do that. So, this is probably one of the top sectors to focus on because of the tech boom. We have TQQQ, a little bit more diversified by over semis.

[00:10:36]That is also highly related to the tech boom. TNA's growth dividend is going to be space and defense. There's some more out there, but these are the bread and butter that, as you can see from our stats, like some of the top tickers we used, SOXL, TQQ, Tesla, these have closed out dozens and dozens of trades over the last couple years. But, this list, all it is is leveraged ETFs. So, a leveraged ETF is you're just taking the IV and doubling it, which means you're taking the money you can make and doubling it.

[00:11:17]In some cases, SOXL is a triple.

[00:11:20]So, what I'm going to teach today is how we can sell puts, what that means. But, all you need to understand until we get to that point is SOXL is a 3x mover on the semiconductor SMH.

[00:11:35]That means there's three times more risk, three times more volatility. But, as an option seller, there's three times more safety. There's three times more premium.

[00:11:46]This also gives us a high edge, where this number here, chance of profit, can get up to 93% for this trade. That makes 100% sense to even put on today. I love this trade. I love this number here. I'll explain why later. But, being focused on just a couple stocks, make it two, three, or four, is how you succeed. And those are the stocks we're focusing on today, so you get a little bit of the secret sauce.

[00:12:17]For me personally, I am hammering and this slide didn't translate yet. Here it is.

[00:12:23]Hammering Ethereum.

[00:12:25]My portfolio is 70% Ethereum right now.

[00:12:30]So, what What we're seeing is Ethereum is a high high conviction trade.

[00:12:37]I've studied option selling, I know the risks, I know the time to kind of take the stock verse take the put verse buy the leap. I've been doing this a long time. This is what my portfolio looks like today. This was not a portfolio for me in the beginning, and it certainly shouldn't be yours today because this is an advanced high risk, high return opportunity portfolio. But, if I was to coach someone for the first time in option selling, they would they wouldn't look like this at all. I just want to be transparent, because what I'm trying to do is buy and accumulate Ethereum from option selling.

[00:13:14]And over the past 2 months, I've been accumulating a lot of it. So, 50% of my portfolio is just holding this stock, which is actually not leveraged.

[00:13:25]But, ETHU, as you can see, is a leveraged Ethereum. I'm selling puts, I'm buying stock on that, too. The point is this is concentration. This is what winning looks like. This is what focused looks like. If I had 10 tickers, my results wouldn't beat this portfolio in 2 years. I guarantee that. So, as you learn, as you earn, as you figure out options selling, as you figure out stock buying, you're likely going to focus on these two names. And there's nothing wrong with that because guess what?

[00:14:00]Everything is diversified already from the stocks I showed you.

[00:14:04]So, if you're trying to size in for the first time, let's go over those rules.

[00:14:09]What I typically say is keep every name 30%, which means your first entry might be 10%, 15% of your account size. Your next entries 10 to 15 again. So, that's 30% of one ticker.

[00:14:24]So, when I go into what we call the guac, >> [laughter] >> if I have a 300k portfolio, this means 10% 30k. As you can see, it's already calculated for our students here. If I want to get to 20%, it's 60k. But, I would tap myself out of this position of SOXL at 90k.

[00:14:47]That's 30% and then this flags red for the students so they can understand it's too high.

[00:14:53]From here, I know what my initial size is and how I can build it because you do want to build slowly as a beginner. You are going to get in at the wrong times, you're going to get impatient. We're all humans learning how to deal with being a human with emotions in the markets. But, building slowly is the key.

[00:15:13]Here's the one rule that is the only rule. This is the patience rule. And if you are trying to figure out how to get in this game, how to develop a system.

[00:15:24]It's just what stock are we looking at?

[00:15:28]Let's say SOXL, SOXL, and when do we get in? That's the whole system. It's mind-blowing to think it has to be that simple, but it does. And that's how people succeed is having two rules, three rules, not making it complicated.

[00:15:42]If your kid can understand it, if your grandma can understand it, you did a good job.

[00:15:47]But selling puts on down days has been my rule for the last 2 years of how we've coached students. A down day is a 5% drop in the market. So, what I do is I go to my software and I just check is anything down 5%? 1% 0 -1 3 0 1 -2.

[00:16:08]Boom. I don't put on a trade. That took 10 seconds. Can you log on to a platform, check that, have a a trade opportunity trigger, you enter it, and then boom. That's 60 seconds. Can you manage that every week? Yes. It's not hard. And figuring out if there's a down day isn't rocket science. You can even set an alerts set the alerts on your TradingView platform. So, let's show you that pro hack. Because if I take SOXL and I right click the chart, I can say add alert.

[00:16:42]And then what we could do is just say if it's less than moving down moving down money moving down percentage.

[00:16:51]Um this makes sense here. If it's moving down 5% in one bar, so we're on the daily chart, that would trigger this. And we can make this once per bar. So, it triggers every day and it doesn't expire.

[00:17:08]That is a 5% trigger where you don't need my software. So, save your money.

[00:17:14]You can have this trigger and send you an alert when it happens. That's simple. That's easy. And that saves you the 10 seconds of checking. So, you have no excuse why you couldn't get an alert and make money and enter the trade because it doesn't take any time.

[00:17:31]And so, right now we have to understand this 5% threshold is only going to trigger maybe twice a week. Which means you're not doing anything Monday, Tuesday, maybe Thursday. And only Wednesday and Friday would you have a trade in some cases or Tuesday and Thursday or Monday and Wednesday. Who knows?

[00:17:52]The point is this is not a system for people that need a full-time job. That need to look at something every day and make a decision. This is a system I designed so I can live my life, teach other people, spend time with my family, go on vacations and not worry about X Y Z. More more importantly, pay for the vacation while on vacation, while enjoying the vacation. There's been scenarios where that's happened over and over and over again like clockwork. So, all you need to do is have two down days where you execute. So, make sure you're patient for those opportunities.

[00:18:32]So, I want to go over option selling a little bit more in depth. What does it look like? What do the numbers look like? Let's dissect it. So, when we look at the option chain, the strike price is the price you're going to own the stock. So, if I go back to SOXL, this is going to be telling us to get the 75 strike. The price today is 100 and 60. So, 160, 75, that's a massive difference. It's like 90 points.

[00:19:02]So, the market, if it drops, doesn't necessarily mean I'm going to lose money. So, if it drops, it can drop far enough where I actually don't lose money and I still get paid. So, there's this gap, this safety gap that is from the inherent process of option selling without of the money options. This gap is 55% to what we call break even which is the strike price minus the premium you sell an option at. So, when you sell an option has a negative sign, you're collecting that money. So, if I sell one option, I'm going to collect 400 bucks.

[00:19:44]This is money that lowers my entry if I get into the stock.

[00:19:49]So, all you do is you look at the gamblers in the market buying this option with a 7% chance of profit. Listen, people are doing that which is nuts. 7% chance of profit and you're taking that person's money gladly because you have a 93% chance of basically non-assignment.

[00:20:11]Basically, this stock stays above this price at expiration. That's your chance of success from just selling this put.

[00:20:21]So, what we have to understand is 93% of the time you're crushing it.

[00:20:26]You're going to make money. You're not going to get assigned. But, if you do get assigned, you do need this collateral available. This collateral needs to be on the sidelines ready to be deployed to buy the stock and you can always opt out of this. But, the point is if you do get assigned, that's the amount of money needed. So, if you sell 10 contracts and you don't have 75 grand on the sidelines, you're in margin. And margin is where you get screwed. So, be very careful selling on margin.

[00:21:00]Be very careful going over the collateral or under the collateral requirement.

[00:21:07]Because at the end of the day, this shouldn't get assigned, but when it does, we want to be prepared and we want to be safe.

[00:21:14]So, what this also looks like is I'm going to go back to one contract again here.

[00:21:19]We are looking to make a 5% return. This one's 5.4. So, if I take a one contract entry, 7500's my collateral, $400 is my premium. There's a next step of my system that most people skip, which is auto exit at 50% return, which is not $400. No, we only want to make 200. What Why would not want to do that? Well, the point is, if you enter with my system, as the system's designed, you're not making money in the expiration time, you're not taking 30 days to make a profit. No, you might make money in one day. I'm not kidding. I've had trades do this over and over and over again. It might be two, three, or four, or five, for the most part.

[00:22:10]So, this means 30 days, you're only taking two of that to get half.

[00:22:16]So, that means you have 28 days to make four more trades, three more trades, two more trades. But, what people don't see is the major benefit of this is that time frame is not meant to undercut our returns. It's meant to maximize the returns, but also maximize our safety. So, let's say this is 30 days, right? 30 days and then one day.

[00:22:44]You enter the trade. If within two days, you're out of the trade and you make 2% return, which is kind of the goal we have, you have this amount of time to maximize the trade. But, let's say day two to five, you don't find a trade. This is where there's a gap. This is a gap trade. There's nothing here. There's nothing holding. This is where we're in cash and we made no returns. So, it might feel depressing to wait 3 days, but that's the point. Patience is key.

[00:23:18]Cash is key. Cash is our superpower because let's say we get into a trade and then at day eight, we make another 2% and then we wait from day like eight to even day 15 and then the last trade is 15 to let's say 20 and you get a 2%. So, I'm going to mark these areas where there's no trade. No trade and no trade.

[00:23:42]Somewhere in there.

[00:23:44]So, if we spend 3 days here no trade, if we spend 3 days here no trade and 4 days here no trade, the point is if you had half of the month where you're in cash, let's say 12 out of the 30 days, it might feel uncomfortable, but this puts you in a position of defense because if the markets crash for random reasons, which happen all the time, not crash crash, but just one-day drops, and you can't enter on the down day, well, you messed up because the point of the system is to be in cash ready for the down day. So, if you miss it, if you don't take advantage of it, that's on you because that cash ability and that time in cash, that 30 days where in half in cash, maybe a third in cash, gives us that offensive stance to be ready to attack the market, to be ready to enter in. And that's why we can hit a 5% return in a month with two to three trades, but the superpower of what I'm telling you is you're in cash for half of the month, still hitting five with a 30-day option. So, I might be talking Spanish at this point with all the terms I've introduced, but the point is this is a great system.

[00:25:06]It keeps you def- defensive, offensive. It keeps you in a place where you don't have to spend time worrying, monitoring.

[00:25:16]30 minutes a week, comfortable in index fund-based plays. I mean, it's absolutely wild. So, this is exactly why we developed it. And 15 minutes a week sounds ridiculous, but hopefully this video can show you how to set it up on your own, even without our software, so that you can profit. Hopefully, by the time you wake up, that income from option decay is hitting your pocket. So, the honest number is if you have 50k from what I've shown you earlier, a good month should be 2,500. A bad month should be 1k. And a really good month could be 10. So, that's the threshold I think is possible with that 50k account that we were mentioning earlier.

[00:26:01]So, what I want you to do today is go through that weekly game plan. If you've never sold an option, Monday, Wednesday, Friday, get going.

[00:26:11]Stop wasting your time day trading. If you're interested in scalping with us, this is a better path to do it faster. I mean, we just know the better systems, the better ways to manage the markets with today's price action, today's conditions, and we know which tickers are the best to focus on right now. So, being able to juggle those things and learn them in the moment is tough if you don't have a system and a mentor and constant attention with the calls that we do, the Discord we do. So, all I want to do for new traders is have them copy my trades in the first month. Easy peasy. And then month two, I want you guys placing your own trades. Then month three, scaling to past 5%. Push yourself. Look for opportunities to get that little bit you've been leaving on the table to maximize those things you've been leaving out. Because that's the goal. So, the capital flywheel is what we call the strategy that I've developed. If you want to learn it with us, fill an application with the link below. We will reach out in 1 to 2 days.

[00:27:17]And if you're a good fit, we'll hop on a call, explain the program, get you in the software, get you in the trades, get you in the Discord, and get you a personal coach. Hopefully you guys are ready to crush some option selling, and I'll see you on the next video. Peace.