OK, so people ask me all the time,
what is the best trading
strategy? Is it the PowerX
Strategy? Or you might have heard me
talking about Binary Power
Spreads.
Recently I've been selling put
options, and then you also know that
we have been issuing the Power
Alert. So which of these strategies
is the best strategy?
And that's what we are going to talk
about right now.
So when we talk about the best
trading strategy, you need to
understand that each trading
strategy is for specific
market conditions.
And let me actually show
you on a chart what I mean by
this. So let's just take a look at
the Dow Jones over,
let's say the past year, since 2019.
Now, as you can see, you know that
we have been in the longest bull
market in history.
The bull market has been going on
for eleven years.
So if you look at this and you see
that you have a market that is just
crawling up with smaller
retracements but overall, we are
going up, making new all-time highs.
Do you think that you trade this
differently than something
that we have going on right now
in March and April 2020
where we have this meltdown where
the market went down by 30%?
Absolutely.
So one of the things that you need
to understand when you look at
trading strategies, there is
no one-size-fits-all.
It's almost like if you only have a
hammer, everything looks like
a nail to you. You have heard about
this, right?
So in your arsenal as a trader,
you should have multiple
trading strategies, and most
importantly, you need to know
when to apply what
trading strategy.
Now, you know that
the strategy that I personally
trade most of the time is
the PowerX Strategy.
So the PowerX Strategy
is perfect for normal
market conditions.
And what does it mean when we talk
about normal market conditions?
Here's what I mean by this.
I want to see a VIX,
the volatility index below
30.
So let's talk about the VIX
and what it means.
The VIX is the volatility index, the
fear factor that we have in
the markets.
And as you can see, normal
levels for the VIX are between 10
and 20. We can go back over
the past few years.
Now, as you see, every now and then,
the VIX is spiking like crazy.
So here the last time it did it, it
was in 2008, 2009.
No surprise.
This is when we had the last
financial crisis.
So during these times, you
of course have different trading
strategies that work than your
standard bread and butter strategy.
But you see, most of the time it
stays below 10 and 20, every
now and then it has to spike up
there. If you go back in time,
I believe that here in 2000,
as we had the market crashing
we were also spiking.
But most of the time, as
you can see, it is pretty
normal. I'm switching back here to
the daily chart where the VIX is
trading between 10 and 20, and right
now we are still pretty high levels.
So we are right now at above 40
here. So the PowerX Strategy
right now, I'm not using
that strategy.
I wait until the VIX,
the volatility index, is below
30 again.
Now, another trading strategy that
you might have heard from us are
the so-called Power Alerts.
The Power Alerts are
a long-only strategy.
I designed this strategy so that you
can trade it in retirement accounts.
This is where we are issuing buy
signals for certain stocks.
So what do you see?
We have been in a crash
over the past few weeks and right
now we are still
diddling around a little bit and
don't know where we are going.
So we did have a few
Power Alerts coming up when
we actually moved up here.
But I didn't send them out to you
because I'm very, very skeptical
right now about what
is going to happen.
So this is why
if you have signed up for the Power
Alerts that we have and you say,
"Well, I haven't received anything
since February." Look at this.
This is when we had February.
In February, the markets were still
going up.
That's when we issued the Power
Alerts. Will we issue them in
a market that is going down?
No, of course not, because this
is when you lose money
if you would try to buy
when the market is falling.
Is this making sense?
Is this helpful thus far?
Now we'll talk about Binary Power
Spreads and also selling puts in
just a moment, but if this is
helpful and you understand a little
bit better of when to use what
strategy, do me a favor and give me
a quick thumbs up so that I know
you're with me and I'm not going too
fast or too slow that I'm going
at the right pace.
Also I want to make sure that this
video is helpful for you because my
goal is to be here for
you and show you the stuff that you
can use in your trading right
away. So number three,
you know that we love trading binary
options and we have a strategy that
is called the Binary
Power Spreads.
Now, this is a strategy
that is perfect for small accounts
and you can trade this pretty
much all the time.
And this is a strategy that we
are trading in all market
conditions. So it doesn't matter
whether the VIX is high or
the VIX is low, whether we are going
up or are we going down, the
Binary Power Spreads is a strategy
that we trade all the time.
So again, this where you can get
started with as little as $1,000,
$1,000 - $2,000, ideal is to get
started with around $3,000
but that's a strategy that many
of you are trading right now that
is actually really fun to trade.
Now finally, a strategy
that is working really, really well
right now is selling
put options.
This is a strategy that works
perfect as long as
the VIX, the volatility index
is above 30.
So this is why
I believe it is super important
that you have more than just
one strategy.
So I want to share with you right
now what I'm doing.
So as the VIX, as we are
recording this on April 15th
the VIX is at 41,
I actually like to trade this.
Now, some of you know that we
had a course about How
To Sell Puts and today
we finished day 2 of live
trading.
So one day I explained the strategy,
we were trading live yesterday
and we were trading live today.
Would you like to see where we end
up thus far after two days
of live trading?
All right, let me show you my
account right here.
So as you can see right now we
are up around $1,100.
It just jumped up down a little bit,
but you get the idea.
$1,200 right now.
This is for the past
two days since
yesterday and today.
Now, again, I need to make sure
that you understand my results
are not typical at all.
I've been doing it for a very, very
long time. I know what you are
doing.
Your results might be completely
different. And by sharing my account
here, it is not that I say, "Oh, my
gosh, if you learn this
strategy, you will make the same
amount of money." No, not at all.
Your risk tolerance is different,
your execution might be different.
So for you, the results might
look completely different.
The reason why I'm showing you
my account is that you see exactly
what I personally do right
now and the results that I
achieve. And again, these results
are not typical at all.
So as you can see, it is important
that you are not a one-trick
pony. You want to have multiple
trading strategies in
your stable.
So, I know that
that you might have just purchased
The PowerX Optimizer or
you might have just purchased The
PowerX Strategy.
And you know what?
It is a great strategy to learn
because in normal market conditions
which we have 95%
of the time or 98% of
the time.
This is a perfect strategy that I
like to trade. It is my bread and
butter strategy.
But every now and then you see that
we have crazy market conditions as
we have right now.
And when this is the case, you
just look into your own
playbook and see which trading
strategy should you trade right now.
Think about it, if you had only one
trading strategy, it's like because
we talk about playbooks here, it's
like playing a football game with
only one play all
the time.
Can you even win a football game if
you only had one play for
the whole game?
Of course not.
Now I personally believe
that you only need three
to four different strategies.
I don't think that you need to have
more than four different strategies
and here's why.
When you do, you might get confused.
But if you have a strategy that
works really well when
you have high volatility,
which we have right now, that's why
I love selling puts, great!
When you have a strategy when you
have normal volatility this
is when you want to buy options,
great. And then if you have another
strategy that you can trade all the
time, like the Binary Power Spreads,
that's perfect.
Is this making sense?
So when people ask me, "What is the
best trading strategy?" I say,
"Depends on what the market
conditions are right now."
Because depending on the market
condition, you have to grab into
your toolbox and get the right
tool out.
You cannot fix everything
with a hammer.
It's impossible.
Hope this is making sense.
If it does, do me a favor and click
like right now so that I know that
this video was helpful.
And also right now, there's a few
videos popping up on the screen.
If you enjoyed this video, watch one
of the other ones, the one that you
like best, and I'll see you in the
next video.