I can only recommend you to watch and study the video:
- if you traded Options and still not get a consistent trading results, or
- if you don't trade Options yet, and desires a more consistent trading results, or
- if you simply desires a more consistent trading results with a high win rate,
and then, take it from there to further enhance your learnings and your trading journey.
Daniel Loh Passive Income Mastery (PIM) Programme
That's Daniel Loh on the left :-) We were Batch #70 (!) with over 80 attendees (including those who re-sit). A few of us who read my blog prior were pleasantly surprised that Daniel also used the same Karen the Supertrader video as our inspiration in the PIM programme! We watched video #2 together!
Daniel then summarized the key points, with discussions surrounding Karen's trading approach in more detail.
A good alternative to getting more consistent result than trading stocks
PIM graduates were invited to join Daniel's Closed FB website, which has now grown to 1,438 members, with 69 new members from Batch #70.
In the course, he shared the video testimonies of a few of his graduates that demonstrated high and consistent returns. As his students traded Options on Futures with even higher leverage, coupled with much smaller account size, their returns even exceeded those of Karen the Supertrader. One has gone on to manage a hedge fund, another is doing charitable work to invest the insurance proceeds of one of his friends who has died prematurely, leaving behind a very young daughter so that she will have better future in life later. Another was able to retire early and able to invest his own funds, and he is very conservative targeting "only" 3% per month returns. In addition to Karen, Daniel's students also provided quite an inspiring story.
My own experience
My own personal experience with credit spreads are similar, although less spectacular as until PIM, I was not trading options on Futures, but the past 1.5 months only on indices, ETFs and a handful of individual stocks.
E.g. from my previous article, the monthly returns are approximately:
- SPX: $3k / $48k > 6%.
- RUT: > $1.4k / $20k = 7%.
These 2 instruments only utilized $68k capital.
In short, if you use just 50% of your trading capital to trade SPX and RUT, then, it is very realistic to earn 3% to 4% per month, just consistently trading these 2 instruments. If you know when to enter (not every day, but patiently waiting for the right setups, just like stock trading), how to exit (Risk Management, just like stock trading), how to Position Size (Money Management, very similar to stock trading), have the right attitudes, mindset and beliefs (Psychology, similar to stock trading), it is very possible to earn 36% to 48% per year.
If you have an excellent foundation in consistently trading SPX and RUT profitably, over time, I expect you should have little problems transitioning to even higher leveraged products such as the /ES and other Futures products, which you can then expect to double the above returns over the longer term. However, if your trading basics are not on a solid foundation (e.g. if you simply and regularly violate what Adam teaches in the WAI course for stocks), then, the higher leverage from Options and Futures will most likely cause you to go bust faster.
Karen the Supertrader Video #2 - the power of simplicity - selling Credits in SPX, RUT and NDX
I can only urge you to watch and summarize for yourself Video #2, as this is the start of my journey to selling Credit Spreads. It doesn't mean the video provides a complete course, far from it. However, it provided me with the basics and sound technical tips, which I am then able to compare and integrate parts that I learnt from Leong Wei Ping in his special Credit Spread course, coupled together with many other parts that I learnt from many others over the Internet, including Van Tharp. And after having attended Daniel Loh's PIM course, I am gradually incorporating Futures. But if you are starting, learn the baby steps first with a solid foundation.
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