Traders' Library

Option Income Strategy

By: Chuck Hughes

Buy Stocks at a 30% Discount

A little known option strategy allows you to buy stocks at a discount. Buying a stock at a 30% discount enables you to profit if the stock price increases, remains flat or even declines 20 to 25%. This option strategy continues to profit even during non trending markets. Learn how to hold your stock during volatile price swings and still realize a good return even if the price of the underlying stock remains flat or declines.
 

For more information, please visit www.tradewins.com

FUTURES. STOCKS, FOREX AND OPTIONS TRADING INVOLVES HIGH RISKS WITH THE POTENTIAL FOR SUBSTANTIAL LOSSES.

PLEASE READ. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS A SUBSTANTIAL RISK OF LOSS TRADING STOCKS AND OPTIONS WITH OR WITHOUT THIS OR ANY OTHER ADVERTISED PRODUCT, SERVICE OR SYSTEM. ALSO, HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

Trading in the Direction of the Major Trend

By: Chuck Hughes

When I am considering taking a short position, I will only will take a short position in a stock or ETF if the Major Trend System for that stock or ETF is on a ‘sell’ signal. Taking short positions in the direction of the major trend helps prevent ‘whipsaw’ trades when counter-trend rallies occur. Preventing whipsaw trades can increase profits, reduce losses and increase the percentage of winning trades.

Trading in the Direction of the Major Trend

•     The 1-Month/20-Month EMA Major Trend System can be used as a filter that only allows trades in the direction of the major trend

•   This helps prevent ‘whipsaw’ trades when counter-trend rallies occur

•   Preventing whipsaw trades can increase profits, reduce losses and increase the percentage of winning trades

 

For more information, please visit www.tradewins.com

FUTURES. STOCKS, FOREX AND OPTIONS TRADING INVOLVES HIGH RISKS WITH THE POTENTIAL FOR SUBSTANTIAL LOSSES.

PLEASE READ. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS A SUBSTANTIAL RISK OF LOSS TRADING STOCKS AND OPTIONS WITH OR WITHOUT THIS OR ANY OTHER ADVERTISED PRODUCT, SERVICE OR SYSTEM. ALSO, HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

3 Keys to Successful Short Trading

By: Chuck Hughes

Short trades profit as stocks or ETFs decline in price. Short trades can greatly increase your profit opportunities and open up a whole new universe of trade possibilities. Normally short trades are considered high risk as you incur almost unlimited risk if you are short a stock that continues to rally in price. The key to successful short trading is to only take only ‘limited risk’ short trades. Learn the three keys to successful short trading:

1. Only take short positions in stocks or ETFs when the major price trend is down to prevent ‘whipsaw’ trades
2. Only take limited risk short trades
3. Confirm the price down trend with the On Balance Volume indicator

For more information, please visit www.tradewins.com

FUTURES. STOCKS, FOREX AND OPTIONS TRADING INVOLVES HIGH RISKS WITH THE POTENTIAL FOR SUBSTANTIAL LOSSES.

PLEASE READ. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS A SUBSTANTIAL RISK OF LOSS TRADING STOCKS AND OPTIONS WITH OR WITHOUT THIS OR ANY OTHER ADVERTISED PRODUCT, SERVICE OR SYSTEM. ALSO, HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

 

Trade Selection Process

By: Chuck Hughes

My trade selection process involves three steps:

1) Determine the Price Trend
2) Confirm the Price Trend
3) Use the Keltner Channels to Time Your Entry

$295,799.77 In Actual Profits

This trade selection process is easy to implement but has been very effective in finding stocks and options with the best profit opportunities. My brokerage account Portfolio Profit/Loss reports below show that I currently have $295,799.77 in open trade profits after commissions. Learn how I used my trade selection process to select the trades in these portfolios.

For more information, please visit www.tradewins.com

FUTURES. STOCKS, FOREX AND OPTIONS TRADING INVOLVES HIGH RISKS WITH THE POTENTIAL FOR SUBSTANTIAL LOSSES.

PLEASE READ. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS A SUBSTANTIAL RISK OF LOSS TRADING STOCKS AND OPTIONS WITH OR WITHOUT THIS OR ANY OTHER ADVERTISED PRODUCT, SERVICE OR SYSTEM. ALSO, HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

High Probability Trade Signals

By: Chuck Hughes

The Keltner Channels are one of the simplest but most effective timing indicators that help you select trade entry and exit points. The Keltner Channels are also useful in identifying high probability buy and sell signals, selecting option strike prices and allow you to select stocks with repetitive and predictive price patterns. Learn more about this versatile and easy to use timing indicator.

Keltner Channels

• Provide high probability buy and sell signals
• Can be used to help select option strike prices
• Allow you to select stocks with repetitive and predictive price patterns

For information on Chuck Hughes Wealth Creation Alliance please call PTA at 800-624-5352

For information on Chuck Hughes exclusive advisories please call SMS at 866-661-5664

FUTURES. STOCKS, FOREX AND OPTIONS TRADING INVOLVES HIGH RISKS WITH THE POTENTIAL FOR SUBSTANTIAL LOSSES.

PLEASE READ. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS A SUBSTANTIAL RISK OF LOSS TRADING STOCKS AND OPTIONS WITH OR WITHOUT THIS OR ANY OTHER ADVERTISED PRODUCT, SERVICE OR SYSTEM. ALSO, HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Ultimate Timing Indicator

By: Chuck Hughes

My trend following systems recently produced $472,065.39 in net profits in my trading portfolios during difficult market conditions and a period of economic uncertainty.

My trend following systems identify stocks in a price up trend. Once I identify a stock in a price up trend I use my trend confirmation indicators such as On Balance Volume and new 52-Week high to confirm the price trend. I then use the Keltner Channels to select a trade entry and exit point for stocks and options.

The Keltner Channels are one of the simplest but most effective timing indicators that help you time your stock and option trades. The Keltner Channels were originally developed by Chester Keltner and updated by Linda Raschke in the 1980s and are available from stockcharts.com.

 

 

For more information, please visit www.chuckhugheswca.com

FUTURES. STOCKS, FOREX AND OPTIONS TRADING INVOLVES HIGH RISKS WITH THE POTENTIAL FOR SUBSTANTIAL LOSSES.

PLEASE READ. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS A SUBSTANTIAL RISK OF LOSS TRADING STOCKS AND OPTIONS WITH OR WITHOUT THIS OR ANY OTHER ADVERTISED PRODUCT, SERVICE OR SYSTEM. ALSO, HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

 

The Fail Safe "EMA" System

By: Chuck Hughes

The Fail Safe Exponential Moving Average System (EMA) is a technical based investing system that utilizes exponential moving averages to define "buy" and "sell" signals. Technical analysis is a discipline that focuses on historical price patterns, trends and quantitative analysis with the goal of determining future price movements in a stock or index.

 

For more information, please visit www.tradewins.com

 

Update on This Year’s Best Profit Opportunity

By: Chuck Hughes

Apple stock has been trending up since our video outlining Apple as this year’s best profit opportunity. Although Apple stock is over extended as a result of the recent price increase, it is still undervalued by historical standards and I plan to purchase more if Apple stock retraces back to support. Discover a great timing indicator that I use to time entry and exit points.

For more information, please visit www.tradewins.com

FUTURES. STOCKS, FOREX AND OPTIONS TRADING INVOLVES HIGH RISKS WITH THE POTENTIAL FOR SUBSTANTIAL LOSSES.

PLEASE READ. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS A SUBSTANTIAL RISK OF LOSS TRADING STOCKS AND OPTIONS WITH OR WITHOUT THIS OR ANY OTHER ADVERTISED PRODUCT, SERVICE OR SYSTEM. ALSO, HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

Volatility Strategy

By: Chuck Hughes

Despite daily volatility the broad stock market as measured by the S&P 500 Index is virtually unchanged over the past 4 months making it difficult to profit from long or short trades.

If you use money management rules to limit losses during volatile markets, many times you will be stopped out of a trade even though you were ultimately correct about the market direction. Learn the ideal strategy to profit in volatile markets even if markets are unchanged this year.

 

 

 

 

For more information, please visit

www.tradewins.com

 

 

FUTURES. STOCKS, FOREX AND OPTIONS TRADING INVOLVES HIGH RISKS WITH THE POTENTIAL FOR SUBSTANTIAL LOSSES.

 

PLEASE READ. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS A SUBSTANTIAL RISK OF LOSS TRADING STOCKS AND OPTIONS WITH OR WITHOUT THIS OR ANY OTHER ADVERTISED PRODUCT, SERVICE OR SYSTEM. ALSO, HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

Selecting an Option Strike Price

By: Chuck Hughes

Selecting an option strike price is an often overlooked but important part of profitable option investing. Option premiums consist of time value an intrinsic value.

Option Premium = Time Value + Intrinsic Value

The strike price of an option determines the option’s time value and intrinsic value. Options lose all time value at expiration.

Options Lose All Time Value at Expiration

When you purchase an option the time value portion of an option is a decaying asset. Therefore the goal is to maximize intrinsic value and minimize time value when you purchase an option.

Goal is to Maximize Intrinsic Value and Minimize Time Value

In this video you will learn a simple method for selecting a strike price that allows you to maximize intrinsic value and minimize time value when you purchase an option.

For more information, please visit www.tradewins.com

FUTURES. STOCKS, FOREX AND OPTIONS TRADING INVOLVES HIGH RISKS WITH THE POTENTIAL FOR SUBSTANTIAL LOSSES.

PLEASE READ. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. THERE IS A SUBSTANTIAL RISK OF LOSS TRADING STOCKS AND OPTIONS WITH OR WITHOUT THIS OR ANY OTHER ADVERTISED PRODUCT, SERVICE OR SYSTEM. ALSO, HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

Option Cycle Strategy

By: Chuck Hughes

Trading options can seem overwhelming to many investors as there are so many options to choose from. For example, if you want to trade options on Apple stock today there are currently 396 different options available for Apple. How does an investor effectively select an option with good profit potential among 396 choices?

Learn how the Option Cycle Strategy can help you select options with the best profit potential through the use of historical price data.

For more information, please visit www.tradewins.com

This Year’s Best Profit Opportunity

A little noticed recent accounting change will dramatically lower the P/E Ratio for Apple stock this year providing investors with this year’s best profit opportunity. Since 2003 Apple stock has traded at an average P/E Ratio of 32 (trailing 12-month). Based on the recent accounting rule changes Apple is expected to earn $12 per share this year. If Apple trades at its recent historical P/E Ratio of 32 the price of Apple stock will rise from its current price of 206 to 384 this year providing an 86% return.

Now is the time to establish positions in Apple ahead of the earnings increase. Learn how to take advantage of this rare price anomaly.

For more information, please visit www.tradewins.com

A Great Trading Strategy for 2010

By: Chuck Hughes

Many global commodity, energy and equities markets have recently experienced 50%+ price moves. After periods of extreme volatility the market volatility usually declines sharply as price moves revert to the long term mean or average.

For example, the S&P 500 Index experienced a 50% decline during the severe 2000 – 2003 bear market. The S&P 500 Index bottomed out on March 11th 2003 and finished 2003 with a positive 26.3% return. Volatility decreased sharply after 2003 as the S&P 500 Index price moves reverted to the historical mean. In 2004 the S&P 500 Index advanced 9.0% and in 2005 the index advanced 3.0%.

We are following a similar pattern in 2009. After a 56% price decline, the S&P 500 Index  bottomed on March 9th 2009 and advanced 23.4% in 2009. If the S&P 500 Index follows a similar price pattern to the 2003 - 2005 period, the volatility should decrease in 2010 and 2011 with below average price moves as the index reverts to the mean.

 

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Global PowerTrend System with Chuck Hughes

Sneak peek at Chuck Hughes' video: Global PowerTrend System

Global Profit Opportunities, Chuck Hughes

Many international stock markets currently offer better profit opportunities than the US stock market. Many foreign economies such as China and Brazil are growing at a much faster rate than the US economy and as a result foreign corporate profits are growing at a much faster rate. The infrastructure build out in developing countries is leading to strong demand for energy, basic materials, bank financing and wireless communications resulting in healthy corporate profits and price gains for many foreign stocks.

Learn how to take advantage of these global profit opportunities by investing in the Emerging Market ETF.

*courtesy of chuckhughes.com

Short Trades Reduce Risk and Increase Profit Opportunities

by Chuck Hughes

We don’t often think of short trades as a way of reducing portfolio risk. Normally short trades are considered high risk but in this video we are going to demonstrate that short trades not only reduce portfolio risk but can also dramatically increase the profit potential of your trading portfolio.

Trend Trading with the MACD and Chuck Hughes

Moving Average Convergence/Divergence or MACD is a powerful trend indicator that allows us to identify the short term price trend of a market. MACD acts more as a leading indicator than moving averages and can be very accurate in predicting price reversals. Learn how MACD helped produce $409,784.48 in real time profits recently with no losing trades.

Chuck Hughes' Dividend Strategy For Big Income

The cash dividend strategy generates cash income from the sale of covered options. Most traders are not familiar with the concept of selling option premium to generate cash income. Selling covered options can realistically produce a 20 to 30% or higher cash dividend that is credited to your brokerage account when an option is sold.

The cash dividend strategy produced $221,407.53 in cash dividends in actual trading this month and over 4 million dollars in cash dividends over the past two years.

Global PowerTrend Trading with Chuck Hughes

Chuck Hughes offers his highly profitable Global PowerTrend System, or GPS, a trend following system that covers global currencies, commodities, and equities.

The Summation Index as a Timing Tool

Thank you Chuck Hughes for another great video. In this one, Chuck talks about how the Summation Index is a very useful timing tool. When the market gets overbought and the Summation Index starts trending down, he starts selling his stocks and call option positions and starts initiating bearish positions on stocks in price downtrends.