Evolution of a Trader
Danielle’s Trading Path
These are the trading strategies I have used, overtime,
throughout my growth as a trader. It’s most important
to use the correct strategy during the correct market
condition.
7 stocks to success - Selling OTM put credit spreads w
the trend (trending -- I didn’t know how to read technical
analysis in the beginning, but I eyeballed the trend.
Risking $1 to make $0.20)
Five Star Options Income - Selling ATM put credit
spreads with the trend (Fibonacci, read the trend,
squeeze, 1:1 risk/reward)
Ready, Aim Freedom - Buying long calls with the trend
and squeeze (trend, exponential growth w trend because
you’re using calls plus spreads)
Finding Phoenix - Buying relative strength/selling relative
weakness (you learn that the trend isn’t the only thing is
important. Macro background, sectors, strength and
weakness across sectors, impact trends and squeezes,
when the market pulls back, you buy what was already
strong, because it’ll bounce.) With this, you can use any
options strategy but it is great when the market pulls back,
for buys, or when the market starts rolling over, for sells.
Stacked Profits - Using butterflies to obtain 1:4
risk/reward with trend, Squeeze and Fibonacci. This
‘Stacked Profits’ strategy can be used with any technical
setup. The focus of this class is on mastering butterflies.
Short squeeze - more aggressive than buying a dip
because you’re buying near a high, but you can still do it in
‘conservative’ way because you can use multi leg options
strategies with low risk, high reward, this is the strategy
that works great at the highs - unlike everything else that
works on a pullback or at the lows. When the market is
very strong, it’s a good time to look for it. You can also
look over the oversold, short squeeze rip, from the lows
after a correction, or on earnings.
Pinball mode - The market is in consolidation and you
have wide opening range days, lots of volatility, support
and resistance, using unbalanced butterflies and regular
butterflies (for example, when the trade war hits, or
coronavirus news hits).
Toolset breakdown:
Everyone always asks what tools they need. I like to think
of it as a toolset. Different tools work better for different
traders. We bring forward what we personally use. But, it’s
best to cover these areas with your toolset, and see where
the gaps are.
1) Trend - A method to identify trends.
Moving averages, Fibonacci, candles
2) Consolidation/breakout - A method to identify
when stocks/indexes are consolidating, and are
likely to breakout.
a) Squeeze - Squeeze Pro, VZO
3) Candles - How do you like your candles?
a) TTM Trend (free), TrendStrengthTurbo (trend,
volume momentum, 10x bars (volume
momentum)
4) Oscillator - The oscillator shows flow. It can be
oversold, overbought, and give you triggers.
Examples are: VZO, Ready, Aim Fire, MACD
5) Triggers - This gives an idea for entries and exits.
candlestick patterns, oscillator, top hats, HOLB (break
of the high of the low bar), 8/34 moving average cross
6) Identify trades - A method for identifying setups is
very important. TOS scanner, Simpler Trading
scanner, Phoenix Finder -- personalized watchlists +
trendstrength candles
My personal toolset:
1. Moving averages: 8, 21, 34 EMAs, 50, 100, 200
SMAs, and I do my own Fibonacci work
2. Consolidation: Squeeze Pro + TurboVZO
3. Candles: TrendStrength Turbo Candles
4. Oscillator & triggers: Turbo VZO + signals, I also like
the 8/34 moving average cross and Ready, Aim Fire
5. Trade Identification: Phoenix Finder, Simpler Trading
Scanner, personal scans
I don’t think there is a ‘right’ or ‘wrong’ way to go about
any of this, it’s what works for you.
