Q&A - New Money Beats The Choppy Market
If you're new to the New Money Club or have any questions about how to allocate positions or how to execute trades, watch this video first.
Dear New Money Club Trader,
On Monday, the broad market opened deep in the red. But buyers stepped in and markets powered higher off the lows.
This Friday is the expiration of the June monthly options. Oftentimes, we see prices drift higher during monthly options expiration week.
That’s because positions that are about to expire need to be closed or rolled further out in time. This market activity keeps prices flat. Sometimes they even push higher.
While some traders are scrambling to close their positions before they expire worthless, we’ve locked in several winners. In fact, we’ve closed 5 out of 6 trades as double-digit gainers!
And we’re only getting started!
New Money continues to flow and the markets continue to buzz. There’s been no better time to be active in the market than now. And we’ll continue to play this action to our benefit.
Your Questions, Answered!
The mailbag is full, so let’s get to your most pressing questions:
Joshua,
I am frustrated because by the time I receive the trades they are above the limit price. When I try the following day again sometimes I get in, but usually not. I have missed the last two trades! Please advise on how to solve this. ~ Barbara
Hi Barbara,
I can understand the frustration — I’ve dealt with it over the last 15 years in the market. If you’re not filled at the price you entered on a day order, then that order is canceled at market close. If you enter “good till canceled,” it keeps that order open until it’s filled or canceled.
I don’t suggest leaving orders open or using “good till canceled” when trying to get into option trades.Once you’re filled on a trade, and you want to enter a GTC sell order with price limits, you can.
Markets move — and you don’t want any open orders that you forgot about to get filled.
If you still want to make the trade, you can cancel the order, then replace it with a new limit price. Your goal should always be to get a better fill price than what is listed on the buy alert.
If the price of the option goes over our buy-up-to price, you can increase the price or wait until the next trade.
And know that we always aim to accurately reflect the price at which New Money Club investors are getting their fills in our official prices.
I send you a new trade every week Monday, typically in the morning. If you missed out, there’s more opportunity just around the corner.
. . .
Let’s jump into the next question in the queue:
Can big banks hide their options plays? ~ Micheal R.
Hey Michael,
No. That’s the great thing about options. Options don’t lie!
We never know why a trader is making a bet. We do know that when a trader puts a lot of money on the line, they believe prices are going to move in their favor.
That’s the bread and butter of our New Money system.
. . .
Here’s the next question:
I am at a loss when it comes to the jargon associated with trading and stocks, options, etc. I am still navigating my broker account and I’m having difficulty locating when to buy, let alone sell.
You have honored your word by stating you would give us a step-by-step tutorial, but these “simple” instructions are losing me. ~ Robby D.
Hey there Robby,
Starting anything new is going to be tough, and that’s exactly why we’re here to help you shorten that learning curve. If you’re like most, you might be overthinking.
All the jargon will take time. Patience and persistence are key. And we’ll continue to provide material to help you along the way. If something specific is confusing you, please write in your question or our support team will be able to help you.
We’re here for you and you will succeed, just stick with it.
. . .
Here’s our last question today:
What is your exit criteria? ~ Bob G.
Hi Bob,
When it comes to exiting a position, we always take profits into strength.
Sometimes we get prices that open much higher and create triple-digit returns. Other times we just get intraday moves higher that we sell into.
I’ll always keep you up to date and send you an alert when it’s time to exit a trade.
. . .
With that said, I look forward to answering more questions next week.
If you want your questions answered next week, make sure you email it in today at questions@newmoneycrew.com.
Talk with you on Friday.
As always, you can track our portfolio here.
To your wealth, freedom and options!
Joshua Belanger
New Money Club
P.S. Don't forget to sign up for SMS Text Alerts if you haven't already. It is on the right-hand side of the members' area.