tradeCYCLE™
The disciplined, easy-to-use approach to Proactive Investing You want to take control of your financial destiny. You know you should be proactive. You have taken steps; maybe you even have a few pieces of the puzzle in place. But you have yet to find the success that you are looking for and you aren't as comfortable with what you are doing as you would like.
Successful trading and investing require discipline and a repeatable process that you follow every time you place a trade. Our approach goes like this: Do your homework. Find a strategy. Craft a strategy. Analyze and test your strategy. Execute. Plan your exit. Adjust as necessary.
Our name for a holistic, proactive way of approaching the entire investment process is tradeCYCLE.
Most traders do some of these things. The successful ones do them all, for every trade. And you need the discipline—and the tools—to follow through on each of these steps. optionMONSTER helps investors with homework and strategies, by means of news analysis, market intelligence, trading subscription products, and education tips. (Our sister company tradeMONSTER, meanwhile, provides cutting-edge technology to execute your plans in real time.)
tradeCYCLE is not something we're selling: It's a mindset. Regardless whether it's precisely right for you, we encourage you to evaluate our approach to successful investing. Dive into the details of each phase by making use of our widget (to the left). We hope it will spur a more disciplined and profitable approach to your financial future.
Successful trading and investing require discipline and a repeatable process that you follow every time you place a trade. Our approach goes like this: Do your homework. Find a strategy. Craft a strategy. Analyze and test your strategy. Execute. Plan your exit. Adjust as necessary.
Our name for a holistic, proactive way of approaching the entire investment process is tradeCYCLE.
Most traders do some of these things. The successful ones do them all, for every trade. And you need the discipline—and the tools—to follow through on each of these steps. optionMONSTER helps investors with homework and strategies, by means of news analysis, market intelligence, trading subscription products, and education tips. (Our sister company tradeMONSTER, meanwhile, provides cutting-edge technology to execute your plans in real time.)
tradeCYCLE is not something we're selling: It's a mindset. Regardless whether it's precisely right for you, we encourage you to evaluate our approach to successful investing. Dive into the details of each phase by making use of our widget (to the left). We hope it will spur a more disciplined and profitable approach to your financial future.
Do Your Homework
To beat the markets you must have an edge, and that edge only comes with diligent research. This might include technical analysis in charts or research on fundamentals such as earnings reports and revenue forecasts. And, if you are trading options, it should include volatility analysis. You might also wish to follow newsletters or trusted advisers.
Related optionMONSTER news:
'Fast Money': Split on the future
rimm fcx clf aa hgsi gs cve cvx cov btu
As the markets end a strong month with a lackluster final session, the CNBC panel disagrees over the near-term direction of trading.
Bullish pattern active on Goldman chart
gs xlf
The bullish "pennant" formation became active yesterday when the bank's stock broke above the top of the pattern.
Futures decline after GDP release
wfr mrk agn l hum vrsn vmc
The GDP number came in at 2.4 percent, slightly below the consensus estimate of 2.5 percent. Asian markets were weaker overnight, with Europe following that trend.
Cramer: Circuit breakers miss problem
csco c dbd wpo
We have not yet come up with a regimen that deals with the actual problem: a system where no one has responsibility for their bids and offers.
Index levels remains stuck in neutral
ndx qqqq spx spy ^rut iwm
The net effect of yesterday's trading was to end, at least for the Nasdaq 100 and the S&P 500, pretty much at dead center of the session's range.
GDP dominates economic calendar
xly
Also on the docket are the Employment Cost Index, the Chicago Purchasing Managers Index, and the Reuters/University of Michigan Consumer Sentiment Index.
'Fast Money': A confusing session
bdx cl k omc wpp ge cbs dis lll aapl
At the end of a confounding trading day, the CNBC panel suggests staying clear of the market because it's "too confusing right now."
Indexes approach support, rebound
ndx spx ^dji
The major indexes were pressed to support earlier today before bouncing back. Of the three, the Nasdaq 100 is the standout on the downside.
Agriculture ETF triggers bullish pattern
dba
The PowerShares DB Agriculture Fund has been moving up since the end of May and has triggered a bullish "pennant" formation.
rimm fcx clf aa hgsi gs cve cvx cov btu
As the markets end a strong month with a lackluster final session, the CNBC panel disagrees over the near-term direction of trading.
Bullish pattern active on Goldman chart
gs xlf
The bullish "pennant" formation became active yesterday when the bank's stock broke above the top of the pattern.
Futures decline after GDP release
wfr mrk agn l hum vrsn vmc
The GDP number came in at 2.4 percent, slightly below the consensus estimate of 2.5 percent. Asian markets were weaker overnight, with Europe following that trend.
Cramer: Circuit breakers miss problem
csco c dbd wpo
We have not yet come up with a regimen that deals with the actual problem: a system where no one has responsibility for their bids and offers.
Index levels remains stuck in neutral
ndx qqqq spx spy ^rut iwm
The net effect of yesterday's trading was to end, at least for the Nasdaq 100 and the S&P 500, pretty much at dead center of the session's range.
GDP dominates economic calendar
xly
Also on the docket are the Employment Cost Index, the Chicago Purchasing Managers Index, and the Reuters/University of Michigan Consumer Sentiment Index.
'Fast Money': A confusing session
bdx cl k omc wpp ge cbs dis lll aapl
At the end of a confounding trading day, the CNBC panel suggests staying clear of the market because it's "too confusing right now."
Indexes approach support, rebound
ndx spx ^dji
The major indexes were pressed to support earlier today before bouncing back. Of the three, the Nasdaq 100 is the standout on the downside.
Agriculture ETF triggers bullish pattern
dba
The PowerShares DB Agriculture Fund has been moving up since the end of May and has triggered a bullish "pennant" formation.
Related tradeMONSTER tools: Research Tools
Find/Craft a Strategy
Once you have done your homework and formulated your outlook—whether it is a direction, a price target, or just a range—you need to decide on the proper strategy. The last thing you want is to be right with your forecast but use the wrong strategy and end up losing money. The more complex your strategy, the harder this can be. The ability to enter a spread, or even an iron condor, as one trade with one price simplifies the process and can eliminate errors. Having the greeks and streaming quotes on spreads might seem like a luxury until you use them and wonder how you ever traded any other way.
Related optionMONSTER news:
Higher volatility seen for energy ETF
xle
The volatility of a key energy fund has fallen sharply as shares have risen, but one trader is betting that the rate will climb again in the next few weeks.
Trader sees top in Questcor Pharma
qcor
Heavy selling of September calls pushed total option volume in the high-flying drug maker to 13 times greater than average.
Pactiv put seller feels the pain
ptv
The trader apparently was trying to follow a common pattern of selling options before the release of earnings in a bid to capture income from rich premiums.
Large bullish bet on Ultra Petroleum
upl
A large trader turned bullish on the oil and gas company late yesterday, buying calls in heavy volume ahead of its earnings report this morning.
Bearish strategy on regional banks
kre
One investor is positioning for a drop in the sector using the SPDR KBW Regional Banking exchange-traded fund.
Trader thinks Siderurgica will hold
sid eem
The Brazilian steelmaker found support at its 50-day moving average last week and is now fighting its way above its 200-day average.
Trader gives Moody's a bullish rating
mco
Shares of the credit-rating agency popped on a strong earnings report today, and one bull is placing a cheap bet on further gains.
Bears circle ProLogis as stock falls
pld
The owner of warehouses and industrial space had rallied more than 20 percent off its lows earlier in the month before rolling over in the last three sessions.
Manulife attracts heavy put buying
mfc
The activity pushed total option volume to 13 times greater than average for the provider of products such as pensions and life insurance.
Bearish trade on consumer staples
xlp cl k
Colgate-Palmolive and Kellogg reported weak earnings today, prompting one investor to bet against the entire sector.
Bears think Intuit is ready to write off
intu hrb jtx
The tax software company has rallied to its highest price since the days of the dot-com bubble, and now the bears are looking for a correction.
Trader sees Windstream hitting a top
win
The telecom and Internet service slammed into resistance at a key level this week, and one investor thinks it has no more room to run.
Range-bound trade in real estate ETF
iyr
The IYR exchange-traded fund is back near its recent highs, and option traders are looking for it to stay in that range.
Call buyers bet Japan ETF will bounce
ewj tm hmc mtu
Japanese equities are trying to rebound from a springtime selloff, and now the bulls are ready to charge with heavy call buying.
xle
The volatility of a key energy fund has fallen sharply as shares have risen, but one trader is betting that the rate will climb again in the next few weeks.
Trader sees top in Questcor Pharma
qcor
Heavy selling of September calls pushed total option volume in the high-flying drug maker to 13 times greater than average.
Pactiv put seller feels the pain
ptv
The trader apparently was trying to follow a common pattern of selling options before the release of earnings in a bid to capture income from rich premiums.
Large bullish bet on Ultra Petroleum
upl
A large trader turned bullish on the oil and gas company late yesterday, buying calls in heavy volume ahead of its earnings report this morning.
Bearish strategy on regional banks
kre
One investor is positioning for a drop in the sector using the SPDR KBW Regional Banking exchange-traded fund.
Trader thinks Siderurgica will hold
sid eem
The Brazilian steelmaker found support at its 50-day moving average last week and is now fighting its way above its 200-day average.
Trader gives Moody's a bullish rating
mco
Shares of the credit-rating agency popped on a strong earnings report today, and one bull is placing a cheap bet on further gains.
Bears circle ProLogis as stock falls
pld
The owner of warehouses and industrial space had rallied more than 20 percent off its lows earlier in the month before rolling over in the last three sessions.
Manulife attracts heavy put buying
mfc
The activity pushed total option volume to 13 times greater than average for the provider of products such as pensions and life insurance.
Bearish trade on consumer staples
xlp cl k
Colgate-Palmolive and Kellogg reported weak earnings today, prompting one investor to bet against the entire sector.
Bears think Intuit is ready to write off
intu hrb jtx
The tax software company has rallied to its highest price since the days of the dot-com bubble, and now the bears are looking for a correction.
Trader sees Windstream hitting a top
win
The telecom and Internet service slammed into resistance at a key level this week, and one investor thinks it has no more room to run.
Range-bound trade in real estate ETF
iyr
The IYR exchange-traded fund is back near its recent highs, and option traders are looking for it to stay in that range.
Call buyers bet Japan ETF will bounce
ewj tm hmc mtu
Japanese equities are trying to rebound from a springtime selloff, and now the bulls are ready to charge with heavy call buying.
Related tradeMONSTER tools: strategySEEK™, spreadMAKER™
Test the Strategy
Testing your strategy is something that can come into play at several stages in the process, but especially before you place the trade. It is not only useful but vital to see how your strategy wins and loses before you pull the trigger. Traders using complex options positions should have a visual representation of their P&L and know the probabilities the strategy under consideration.
Related optionMONSTER news:
Related tradeMONSTER tools: tradeLAB™
Execute the Trade
Executing can be as easy as hitting the "buy" button—and, at some brokerages, that is all you can do—but sometimes it shouldn't be that easy. Having an arsenal of order types and automated options allows you to get exactly what you want. You may never use an OCO ("one cancels other") order or trade in extended hours, but it is nice to have the ability to do so. And sometimes it can mean the difference between profit and loss.
Related optionMONSTER news:
Volatility lesson from LeBron James
msg
Buying straddles or strangles can be an excellent strategy, but it is imperative to understand the volatility expectations--both yours and those of other traders.
Two ways to use risk-reversal trades
cat wynn
Using spreads in so-called risk-reversal trades is increasingly popular, both evidenced by their use in institutional circles. Here are two examples.
msg
Buying straddles or strangles can be an excellent strategy, but it is imperative to understand the volatility expectations--both yours and those of other traders.
Two ways to use risk-reversal trades
cat wynn
Using spreads in so-called risk-reversal trades is increasingly popular, both evidenced by their use in institutional circles. Here are two examples.
Related tradeMONSTER tools: OMSuite
Plan Your Exit
The argument can be made that your exit is even more important than your entry. Unfortunately, however, this is another juncture where many investors fall down: Too many traders fail to plan their exit, and those who do often have only half of the equation. They may have a stop in place, for example, but they don't take into account what their exit will be if they have gains. Putting in a bracket order as soon as you place your trade is the easiest way to have a real exit plan for the upside and downside—but it's not the only way.
Related optionMONSTER news:
Trader sees top in Questcor Pharma
qcor
Heavy selling of September calls pushed total option volume in the high-flying drug maker to 13 times greater than average.
Traders bet against recovery in retail
xrt
The XRT exchange-traded fund has had a tough time of late, and option traders so far today don't see a recovery in the near future.
Bears circle ProLogis as stock falls
pld
The owner of warehouses and industrial space had rallied more than 20 percent off its lows earlier in the month before rolling over in the last three sessions.
qcor
Heavy selling of September calls pushed total option volume in the high-flying drug maker to 13 times greater than average.
Traders bet against recovery in retail
xrt
The XRT exchange-traded fund has had a tough time of late, and option traders so far today don't see a recovery in the near future.
Bears circle ProLogis as stock falls
pld
The owner of warehouses and industrial space had rallied more than 20 percent off its lows earlier in the month before rolling over in the last three sessions.
Related tradeMONSTER tools: Exit Plan™
Adjust as Needed
Many trades are not of the "set it and forget it" variety. Quite the opposite, they require monitoring and at times adjusting. This is the last step of the process, but it is the one that lets you repair losing positions, lock in gains, or take profits by rolling a position up or out. There are times when a repair strategy makes sense, or maybe it is time to put a collar on a stock that has had a tremendous run. And maybe your calls are so far in the money that it is time to take some profits and roll up to a higher strike.
Related optionMONSTER news:
Position extended in Green Mountain
gmcr
The coffee company has been in a monster uptrend, and one investor apparently thinks that it's going to keep running.
Trader sees Windstream hitting a top
win
The telecom and Internet service slammed into resistance at a key level this week, and one investor thinks it has no more room to run.
gmcr
The coffee company has been in a monster uptrend, and one investor apparently thinks that it's going to keep running.
Trader sees Windstream hitting a top
win
The telecom and Internet service slammed into resistance at a key level this week, and one investor thinks it has no more room to run.
Related tradeMONSTER tools: adjustTRADE™
