Ten reasons to day-trade with mentors in a virtual room highlight why now is a good time to use short-term options to dodge the growing risk of wars, stubborn inflation and slowing economic growth.
The 10 reasons to day-trade with mentors in a virtual Trading Room advisory service show why participants have a high probability of success. The limited time required to profit through the DayTradeSPY Trading Room is enticing for people who do not want to day-trade non-stop, said Hugh Grossman, founder and senior partner of the DayTradeSPY Trading Room, Pick of the Day, Signal and the Ultimate Training Workshop.
The Trading Room advisory service offers an alternative to market volatility from long-term equity investing. As geopolitical risk rises amid Russia’s unrelenting invasion of Ukraine and the Middle East conflict’s escalation after the murderous Oct. 7 attack of Israeli villages by Hamas militants who invaded from neighboring Gaza, the short-term nature of option trading is gaining increased interest, Grossman told me.
The DayTradeSpy Trading Room bases its recommendations on the SPDR S&P 500 ETF Trust (SPY), a highly liquid and diversified exchange-traded fund (ETF) that follows the top 500 stocks in America. The fund is familiar to many investors due to its huge volume, and is resistant to market manipulation, Grossman said.
Hugh Grossman leads DayTradeSpy Signal, Trading Room, Pick of the Day and Ultimate Training Workshop.
“Our daily Trading Room discusses our various strategies, analyzes the markets and engages in trades,” Grossman continued. “A reporter once asked Wayne Gretzky, the greatest hockey player of all time, bar none, ‘How are you so good? Just what is it that you do?’ His reply was simple: ‘I skate to where the puck is going to go, not where it is.’
“We take a page from the Wayne Gretzky playbook and apply it to the stock market. By examining the various inputs, we derive a fairly accurate prediction as to where SPY price is headed. We assess fundamentals, such as impactful news items destined to influence interest rates. Then we check key support and resistance levels on various time frames. Lastly, we draw out chart patterns.”
10 Reasons to Day-Trade with Mentors: 1. High Success Rate
The Trading Room has a high success rate, said Grossman, a seasoned options trader and trainer who founded that service along with DayTradeSpy Signal, the Ultimate Training Workshop and the Trading Room. After years of trading, Grossman said he learned the market usually will deliver on a directional trade based on its breakout beyond a support or resistance level on a five-minute chart. Once the SPY fund closes outside of either of those levels, there is a high probability that the goal of a 6% gain can be reached fairly fast, he added.
“In our live Trading Room, one of our early tasks is to establish those short-term support and resistance lines,” Grossman said. “Then, as SPY trading opens, we watch price action, triggering a trade when the price closes outside that tight range. We immediately put it up for sale for a 6% profit target.”
10 Reasons to Day-Trade with Mentors: 2. Follow the Leaders
The Trading Room is day-trading SPY options program designed for people who are willing to follow their seasoned sherpas in pursuit of a pinnacle of profitability.
“My cohort, Ahren Stephens, and I do the heavy lifting every morning as we analyze markets, Grossman said. “We examine the underlying fundamentals, combined with deep dive technical analysis, to present to subscribers.”
The duo give guidance to the subscribers about when to buy a particular SPY option, as well as directions on how to exit it. SPY fund not only tracks the top 500 U.S. stocks but offers a high probability option trade opportunity at the market’s open, Grossman said.
Ahren Stephens co-heads Pick of the Day and the Trading Room.
Since Grossman and Stephens take different approaches to trading options, they have two ways of verifying whatever trend one of them identifies also is a proverbial friend to the other.
“When our indicators unite, our trades ignite,” Grossman told me.
The verification of a trend is “paramount” to achieve a “very high degree of success” in trading, Grossman said. When both he and Stephens agree on market direction and strength, the wise traders who follow their guidance generally enjoy successful execution, Grossman added.
10 Reasons to Day-Trade with Mentors: 3. Quick Profit Potential
The Trading Room is intended to help subscribers place their own SPY option trades with access to experienced market shepherds, Grossman said. On most days, Trading Room subscribers can complete a trade profitably, he added.
“The idea is that markets go up and they go down; our objective is to determine the highest propensity of movement on the stock that day,” Grossman continued.
Rather than buy and hold a stock or a fund, the Trading Room is designed to help subscribers produce quick profits.
10 Reasons to Day-Trade with Mentors: 4. ‘Follow the Yellow Brick Road’
“The Yellow Brick Road is a projection of our thoughts of the possible path of price,” Stephens said.
While no indicator is 100% predictive, Grossman said his “Yellow Brick Road” is the next best thing.
“When we install this predictive price path, it’s uncanny how the price follows along,” Grossman commented. “You won’t find this anywhere on your platform.”
The Trading Room teaches subscribers how to use this key indicator, Grossman said.
10 Reasons to Day-Trade with Mentors: 5. Candle Power
Candles measure price action within a specific time frame. In a five-minute chart, each candle represents five minutes of time. If a candle is pushing down, wait for the turnaround to obtain a better price, Grossman advised. Plus, always use limit orders to curb any potential losses, he added.
On a green candle, the price entered at that point in time at the bottom of the body, bounced up and down to the top and bottom of the wick, or the tail, then exited the five-minute segment at the top of the body, Grossman said. For a red candle, the reverse is true, with the price entering at the top of the body, then exiting at the bottom of the body, Grossman continued.
“We can determine much information from this price action,” Grossman said. “This is very common with traders and is watched profusely.”
10 Reasons to Day-Trade with Mentors: 6. Greed Is Bad
“Immediately upon your purchase, put it [the SPY option] up for sale with a 6% gain,” Grossman said. “We use 6% as a standard by which to measure success, a target that most, even novice traders should be able to achieve. More experienced traders, especially those in our morning Trading Room, tend to cash out with greater profits simply by paying attention.”
Many traders reap double-digit-percentage gains on these picks, Grossman said. Upon entering a sell order, Grossman told me he prefers to use “Good till Canceled” limit orders.
In comparison, the Pick of the Day usually delivers a modest profit fairly quickly, often within the first few minutes. As an example, on April 22, the Pick of the Day was the SPY $498 puts, expiring Friday, April 26. The average buy price within the first two minutes was $3.96.
“Add 6% to that for a sell price of $4.20, and the market hit our target by 9:35 a.m., a mere four minutes later,” Grossman said. “Where else can you earn 6% in four minutes?”
In the unlikely event the option does not sell the same day, they are designed to be held overnight, if needed.
10 Reasons to Day-Trade with Mentors: 7. Limit Losses
“By picking options with further-out expiration dates, we experience relatively lower theta loss,” Grossman continued. “If, for some reason, the sell order fails to deliver within a couple days, the trader may wish to look at its viability, consider whether the stock will come back organically, whether a repair is in order or if it is best to simply let it loose. This does not happen very often.”
But, as with all programs, a loss does happen from time to time. Traders need to be able to able to accept that not every SPY option trade will end in a profit, Grossman said.
The Trading Room has produced a success rate of about 92% so far with year, with 13 losers among 160 trades. The performance is roughly the same as the DayTradeSPY Pick of the Day advisory service.
“On an annual basis, the Pick of the Day is about a 92% success rate, which is considered excellent in this industry,” Grossman explained. “As with all programs, the trader must exercise good money management techniques, including only trading with funds they can afford to lose. As you know, there are never any guarantees.”
When following other investment gurus in his early years of trading, Grossman said many would claim success if the stock went up even a couple cents.
“In my reckoning, that would have been a dismal loss as I would never have sold it for a couple cent gain,” Grossman said. “It’s just not realistic.”
10 Reasons to Day-Trade with Mentors: 8. 40-plus Years of Experience
“Ahren and I use our combined 40-plus years of experience to analyze the markets for you. By trading options on the S&P 500, SPY, we have the most diverse, voluminous and liquid stock that tracks the top 500 stocks in the U.S.”
SPY moves in sync with the economy, Grossman continued. With options, not much of a move is needed on the underlying stock or fund to earn a respectable daily income, he added.
As an example, the Pick of the Day trade on April 25th featured SPY $500 puts due to expire next Friday, May 3rd. The puts were purchased at 9:31 a.m. ET for $5.17. An immediate sell order for a 6% gain allowed the price to rise to $5.49 by 9:34 am.
“Three minutes is all it took to make 6%,” Grossman said. “Many of our traders hold out for greater gains.”
10 Reasons to Day-Trade with Mentors: 9. Profit from ‘Amateur Hour’
The early period of trading each morning is often called “amateur hour,” as if it is something to avoid or to loathe, Grossman counseled.
“Our experience has been that huge amounts of money can be made in that ‘amateur hour,’ thank you,” Grossman said.
On Thursday, April 25, the $500 put options rose to a high of $6.19 by 10:03 a.m. ET, almost a 20% gain, Grossman said.
“Our approach does not expect you to ring in 20% gains on a regular basis, although there are participants who do earn double-digit percentage daily gains,” Grossman said. “But would you not be happy with 6%? Give the broker a point for his troubles and you still walk away with 5%. Do that once a day and you can double your money in a month.”
10 Reasons to Day-Trade with Mentors: 10. Make Money in Just Minutes or Hours
Whether someone uses the Trading Room or Pick of the Day as a full-time endeavor or a part time pursuit, picture spending a few minutes investing modestly every morning to score a winning trade, Grossman continued.
“Start small and work your way up over time,” Grossman advised. “If you work smart, you don’t have to work hard.”
To be clear, Grossman said all trades have risk and no system will be successful every time.
“However, we teach you how to manage those positions to minimize risk and subsequent losses,” Grossman said. “Set it and forget it. If it got any easier, we would be doing the trades for you.”
A trader can spend many hours analyzing, forecasting, researching and determining a particular trade every day,” Grossman said. “Do you go short or long term? Swing or day trade? Options, futures, equities or any of the myriad of other instruments to trade? How do you enter? How do you exit? Would you be happy with a 5% gain or reaching for the sky? How risk tolerant are you? How much are you willing to invest, looking for a reasonable income? These are but a few of the many questions rolling through a trader’s mind as they ponder.”
“Many traders work the markets part time, still tethered to their career jobs,” Grossman said. “Admittedly, it takes real gumption to leave the security of a corporate position, complete with benefits, stature and virtually guaranteed income.”
The advantages of a steady, full-time job offer a measure of security, Grossman acknowledged.
Economic Outlook Assessed
The Wall Street Journal recently published economist Mark Skousen’s report on gross output (GO), entitled, “Slow GO May Mean a Recession Soon.” It was the fourth time in the past 10 years that the Wall Street Journal editors have published Skousen’s reports on GO.
In this report, Skousen, leader of the Forecasts & Strategies investment newsletter, noted that GO rose by a tepid 2.4% in real terms last year. In the fourth quarter 2023, real business spending fell 0.3%.
Government and consumer spending continue to rise, but business – a leading indicator – is trending downward, according to the data.
Ben Franklin scion Mark Skousen, who heads Forecasts & Strategies, talks to Paul Dykewicz.
U.S. Secretary of State Expresses Hope Hamas Will Accept Israel’s ‘Extraordinarily Generous Offer’
U.S. Secretary of State Anthony Blinken expressed hope this week that Hamas would accept an “extraordinarily generous offer” from Israel that could lead to a release of some hostages and a suspension of fighting in the current war. Hamas has not accepted the proposal so far.
President Joe Biden signed bipartisan legislation on Wednesday, April 24, after it passed both the House and the Senate to provide an additional $95 billion in aid for Ukraine, Israel and Taiwan, ending months of delays to approve the funding. The package included a measure requiring popular app called TikTok be sold by its Chinese parent company, ByteDance, or face a potential ban.
Meanwhile, the Middle East conflict keeps escalating, while Russia wages unrelenting war against civilians in Ukraine. In addition, the market has pulled back as Federal Reserve members delay plans to cut interest rates, Grossman said.
“One would think positive bank earnings would prop up markets, but then SPY hits a major Fibonacci resistance level, falls over the edge, motivating other investors to bail out like rats jumping off a sinking ship, all while a former president takes the stand on hush money paid to a stripper… all before lunch,” Grossman said. “You can’t make this up.”
The 10 reasons to day-trade with mentors in the DayTradeSpy Trading Room and Pick of the Day provide shelter from rising geopolitical risk and dimming economic reports. The people who trade options in SPY with mentors have an alternative to the vagaries of traditional stock investing, Grossman said.
Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Special Sale! Paul is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The uplifting book is great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for reduced pricing on multiple-book purchases.
