September 28, 2016 was a very interesting day in our trading. It was a losing day for us in our tracked performance on the website, but the price action is worthy of commentary. We forecasted an up day and entered the call at 2.80. However, it quickly went in the opposite direction, we were stopped out at .85 for a 70% loss for the day. In our trading as tracked on the website, we only do a single trade per day. Because most often, once a position has gone that far against us, it does not turn and become positive.
Advanced Trading Strategy for re-entering a trade
But there are days, when we will re-enter a trade, in our personal trading. These trades are not tracked on the website, because they are not according to the daily strategy we share publicly each day. To re-enter a trade can be extra risky, because it can result in another large loser for the day. That is why we don’t share this approach officially on our website in our performance section. But we are often asked do we ever re-enter a trade after we exit. Normally we don’t, but occasionally we will take the risk, and this day is a prime example of when we will re-enter a trade. This is a day where entering the trade again later in the day, turned out very nice. Our personal rules for re-entry are as follows:
1- we must have been stopped out earlier in the day.
2- The SPX should have been solidly against us most of the day, not a sideways day.
3- The reversal and break back through the daily target level must occur between 1:30-2:30 pm EST.
When that happens we will most often re-enter the trade and look for a quick gain or exit the trade if it goes more than 70% against us.
The Details of our Trade
On this day we had been stopped out of the trade, and the SPX was solidly against us most of the day. Then it was clear around 1 pm EST the market started to change direction, so we began watching closely. Then at 2:10 pm it broke through our daily level of 2161. When that happened, we entered our position. We entered at .50 and it exploded! We were able to exit the position in just about 20 minutes at 4.10 for a very nice 720% profit. By the close, it hit a high of over 1,300%!
Clearly this type of huge return so quickly is a rarity. In the past 7 months we’ve only re-entered trades approximately 5 times. This is why we don’t explain this advanced trading strategy as a normal part of our daily newsletter. But this week was such a huge winner, we wanted to share this advanced trading strategy with you. Perhaps you will be able to implement such an approach in the future and see nice gains. This is yet another powerful way to use our SPX Daily Outlook. The key to this day’s profit was the SPX target levels.
Just another example, of how our service and our Daily newsletter can help a trader each and every day. The key to this day’s trading was our SPX daily forecast, which our members receive within 5 minutes of the open. We had a good week and look forward to another one ahead day trading SPX weekly options.