Seven Tips to Day-Trade with a Signal

Seven tips to day-trade with a signal can put people on a profitable path if they are prepared to pursue it.

An advisory service called DayTradeSpy Signal uses indicators to provide its subscribers with three-to-five trade recommendations each week, said Hugh Grossman, a seasoned options trader and trainer who founded DayTradeSpy Signal, the Ultimate Training Workshop, the DayTradeSpy Trading Room and the Pick of the Day advisory services. Grossman’s advice is to “take control” and trade options on the SPR S&P 500 ETF Trust (NYSE ARCA SPY: SPY) by following the instructions of seasoned guides.

The fund tracks the top 500 stocks in America. Three key advantages of SPY are that it is diverse, liquid and affordable, Grossman said.

Seven Tips to Day-trade with a Signal: 1. Limit Time Commitment

The DayTradeSpy Signal advisory service is designed for busy people who have money to invest but little time to do so. Subscribers can use the service even if they have a full-time job, Grossman said.

“So, you’re still working for the man, trying to pull out of the nine-to-five grind and looking to get into the stock market?” Grossman asked rhetorically. “You hear of the many opportunities, but not sure how to go about getting started? You have no idea how much to invest or where and when to sell? You wonder why all these good things happen to someone else, and why not you?”

For those who relate to those feelings, Grossman said he created the DayTradeSpy Signal advisory service. Subscribers are informed either by a text to their cellphones or an email with a trade recommendation that generally occurs in the morning.

When the signal arrives, subscribers are advised to purchase the recommended SPY option within the next two minutes. Recommendations typically average three to five per week.

“Check back at the market close to chalk up your gains or sell it at the market price,” Grossman said. “If it got any easier, we would be placing the trades for you.”

Seven Tips to Day-trade with a Signal: 2. Seek 5% Gain Per Trade

Grossman suggests that subscribers seek a 5% gain per trade. But certain subscribers who have time to watch their trades during the day may aim for heightened returns.

“However, we realize not everyone has that luxury of being able to watch the prices all day, so we recommend 5% as a standard by which to measure success,” Grossman said. “This way, the most basic, novice neophyte into the trading world can make money using this relatively simple methodology.”

If a trade has not triggered a 5% profit by the end of the day, sell if for the market price at the close, Grossman said. The SPY option should never go to zero, since there is ample time left before it expires, he added.

For people who pay attention to the market’s moves, as many DayTradeSpy Signal subscribers do, they can earn much more than the suggested profit target, Grossman said. Some subscribers collect double-digit-percentage gains, he added.

Among 17 Signal Trades in March 2024, 16 Produced Profits

In March 2024 alone, DayTradeSpy Signal racked up 16 profitable trades among its total of 17, attaining a 94.12% success rate. Despite regretting the “one trade that got away” in March, Grossman said he always tries to learn from each loss.

Source: Hugh Grossman

Seven Tips to Day-trade with a Signal: 3. 85.7% Profitable Trades

Since the DayTradeSpy Signal launched in November 2023, the option trading advisory service has turned profits in 72 of its 84 trade recommendations, or an 85.7% success rate as of May 7.

The way it works is simple, Grossman said. Once notified to make a trade, buy the suggested option, using a limit order for the ask price, and try to do so within two minutes, he added.

“As soon as you buy it, immediately put it up for sale for a 5% gain,” Grossman said.

In the case of the only losing trade in March 2024, the option did not reach the 5% profit goal by the end of the day. To adhere to the DayTradeSpy Signal strategy of closing each trade before day’s end, the order to sell the position at the market price led to a loss of about 15%.

Almost all the trades recommended in DayTradeSpy Signal involve options of the SPDR S&P 500 ETF Trust (SPY), the largest and first U.S.-listed exchange-traded fund (ETF).

Seven Tips to Day-Trade with a Signal: 4. ‘Excellent Strategy’

Statistically, DayTradeSpy Signal has proven to be an “excellent strategy,” Grossman said. The advisory service’s three to five trades per week are driven by algorithms, he added.

The use of algorithms takes the guess work out of the recommendations, Grossman said. The DayTradeSpy Signall is managed by Grossman and his team, based on a “complex formula” designed to facilitate trading without needing to monitor markets all day, he continued.

“Let the market work its magic,” Grossman said. “Our success rate is over 85% winners, considered excellent in this industry ripe with empty promises, charlatans and expensive programs that get you nowhere.”

Seven Tips to Day-Trade with a Signal: 5. Use Expert Analysis

This strategy is “ideal” for those unable or unwilling to do the analysis themselves, Grossman continued.

“Many of our busy subscribers like this program, as it provides the work for them; they just have to follow through,” Grossman said.

Even though DayTradeSpy Signal has an 85%-plus success rate thus far, Grossman mentioned that options trading is risky and does require a certain amount of analysis. But the analysis is provided by his team with the price of a subscription, Grossman added.

Seven Tips to Day-Trade with a Signal: 6. Proven Formula

DayTradeSpy Signal advises its subscribers whether to pursue each trade, the market direction and strength, which option to trade and how to trade it. The DayTradeSpy Signal does the “heavy lifting” for its subscribers, Grossman said. Simply buy the recommended option, put it up for sale and come back later to reap their rewards or cut bait, he added.

The sole loss in March was sold at the end of the day, according to the trading service’s system, Grossman said. The ‘algorithm “kicked in” but just couldn’t reach the targeted price. That final day, SPY took a ride to the upside at about 2:45 p.m., only to collapse just minutes from the end of trading, but just not enough to take profit on the puts.

“Some days, you’re the dog,” Grossman said. “Other days, you’re the hydrant.”

Hugh Grossman leads DayTradeSpy Signal, Trading Room and Ultimate Training Workshop.

Seven Tips to Day-Trade with a Signal: 7. Protection from Crises

Short-term trades of just minutes or hours in a single day limit the fallout from crises like wars and natural disasters. Long-term investors face those perils, but day-traders are insulated from the worst effects of those calamities.

J. P. Morgan Chase Chairman and Chief Executive Officer Jamie Dimon recently warned that “significant challenges” across the globe in 2023 are carrying over into 2024 and could worsen. In a J. P. Morgan shareholders’ letter, Dimon wrote that the terrible ongoing war and violence in the Middle East and Ukraine, mounting terrorist activity and growing geopolitical tensions, especially with China, pose threats to investors.

“Almost all nations felt the effects last year of global economic uncertainty, including higher energy and food prices, inflation rates and volatile markets,” Dimon wrote. “While all these events and associated instability have serious ramifications on our company, colleagues, clients and countries where we do business, their consequences on the world at large — with the extreme suffering of the Ukrainian people, escalating tragedy in the Middle East and the potential restructuring of the global order — are far more important.”

Jamie Dimon, chairman and CEO of JP Morgan Chase.

America’s Global Leadership Role Under Threat, JP Morgan Chase CEO Cautions

 “America’s global leadership role is being challenged outside by other nations and inside by our polarized electorate,” Dimon wrote in his letter to JP Morgan Chase’s shareholders. “We need to find ways to put aside our differences and work in partnership with other Western nations in the name of democracy. During this time of great crises, uniting to protect our essential freedoms, including free enterprise, is paramount.”

America, “conceived in liberty and dedicated to the proposition that all men are created equal,” serves as a shining beacon of hope to citizens around the world, Dimon wrote. JPMorgan Chase, a company that historically has worked across borders and boundaries, will do its part to ensure that the global economy is safe and secure, he continued.

Despite an “unsettling landscape,” including last year’s regional bank turmoil, the U.S. economy remains resilient, with consumers still spending, and the markets expecting a soft landing, Dimon wrote. However, the economy is fueled by large amounts of government deficit spending and past stimulus, he added.

“There is also a growing need for increased spending as we continue transitioning to a greener economy, restructuring global supply chains, boosting military expenditure and battling rising health care costs,” Dimon wrote. “This may lead to stickier inflation and higher rates than markets expect. Furthermore, there are downside risks to watch. Quantitative tightening is draining more than $900 billion in liquidity from the system annually — and we have never truly experienced the full effect of quantitative tightening on this scale.”

The “ongoing wars” in Ukraine and the Middle East have the potential to disrupt energy and food markets, migration, military and economic relationships, in addition to their “dreadful human cost,” Dimon wrote. These significant and somewhat unprecedented forces warrant caution, he added.

Is Solar Eclipse Prelude to Dimming Economy?

The eclipse of the sun that occurred above much of the United States on Monday, April 8, may be symbolic of a gradual dimming of the economy later this year, wrote Mark Skousen, PhD, who heads the Forecasts & Strategies investment newsletter.

The U.S. Bureau of Economic Analysis (BEA) recently released its third estimate of real gross domestic product (GDP) growth at a 3.4% annual rate for the final quarter of 2023, as well as 2.5% for the full year. But BEA also reported gross output (GO), which is a much broader measure of total economic activity, including the all-important supply chain, which showed an economic slowdown, said Skousen, who also is a Presidential Fellow in economics at Chapman University.

Mark Skousen, head of Forecasts & Strategies, meets with Paul Dykewicz.

“Real GO was a full percentage point below gross domestic product in the fourth quarter, 2.4%,” Skousen reported.

“Worse, business-to-business spending actually fell slightly, by 0.3%… and has been virtually flat since the start of 2022, as this chart shows,” Skousen wrote.

“GO and business spending are leading indicators, suggesting a slowdown and perhaps even a recession in 2024,” Skousen cautioned. Click here to read Skousen’s op-ed about GO and the risk of a recession in the April 4 edition of the Wall Street Journal.

Geopolitical Risk Rises With Death of Aid Workers and Gaza Civilians

Israel’s efforts to find and destroy an extensive tunnel system in neighboring Gaza that has been used to stockpile weapons, as well as hide the Hamas leaders and militants who were responsible for the Oct. 7 attack that killed an estimated 1,200 people and took 240 hostages, have caused a heavy loss of life. The Gaza Ministry of Health estimates that a total of 34,789 Hamas fighters and civilians have lost their lives there since the war began Oct. 7. Those civilians include aid workers, such as seven World Central Kitchen providers of food who perished when the three vehicles that they were using were fired upon by Israel Defense Forces (IDFs) who reportedly mistook them for hostile militants.

Chef José Andrés, World Central Kitchen’s leader, called for an independent investigation and said the three-vehicle convoy was clearly marked with a sign of his charity, which reported its planned movements to the IDF in advance. The IDF announced that two senior officers were dismissed as a result of its probe of the incident.

U.S. President Joe Biden spoke by phone with Israel’s Prime Minister Benjamin Netanyahu to warn that future U.S. assistance to Israel will depend on how humanitarian interests are addressed in Gaza moving forward. However, Netanyahu is responsible for protecting his citizens from continuing attacks, obtaining the freedom of its hostages and eliminating the threat from Hamas. Hundreds of IDF soldiers have lost their lives since entering Gaza to carry out their military mission in response to the Oct. 7 raid of Israeli communities near its border with Gaza.

In another international hot spot, Russia’s military forces keep advancing in eastern Ukraine. Long-term shortages of artillery shells and other arms have stymied Ukraine’s efforts to fend of Russia’s unrelenting attacks as the U.S. Congress needed time to reach a bi-partisan agreement to provide foreign aid.

The use of SPY options in the DayTradeSpy Signal advisory service offers an alternative to traditional stock investing. The alternative strategy may gain interest, if the risk of recession rises and geopolitical risk worsens.

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.