Posted on March 26th, 2009 by
Mojo
I’ve been trading futures (mostly unsuccessfully) for the past two years. I’ve experimented with, purchased, and looked through more than 15 different systems. What continues to attact me is the very clear cut and simplified methods of making money. Don’t get me wrong, its not easy to do, it just has a lot fewer moving parts than option trading.
My wife (Mrs. Mojo) and I have been working on a system that seems to fit both of our personalities and time available. I recently installed a paper trading version of the Inifinity Futures trading platform (very good company and Patrick rocks!) on her computer and tested it out. I was trading the Mini Dow (YM) and managed to capture a profit of a little over $56,000 in 2 hours. Here’s the setup:
Nice clean technical setup. By hopping out to a larger timeframe I was even able to get a good piece of the late afternoon reversal.
Mojo
Popularity: 24% [?]
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Posted on March 23rd, 2009 by
Mojo
We had a HUGE open and great momentum to the upside. RUT is sitting right below the high end resistance. Take a look at this 10 min chart (1:20pm ET):
The blue square is our reversal zone from last week. So the question is <drum roll please> “Will RUT stall or will it break through?”
I’m still thinking we are going to reverse. I think the good news has run its course for the day / weekend.
Only time will tell!!! 
Mojo
Popularity: 18% [?]
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Posted on March 23rd, 2009 by
Mojo
FCX (and several metals) is on a slow rise. Volatilities are low (relatively to the last six months), movement is fairly contained. If we do move suddenly then our double calendar (calls at the top, puts at the bottom) should do well. Take a look at this graph:
Here’s how I’m constructing the position. Notice, even if we stay right here we will still make $47 / $270 = 17% max profit per contract.
Be prepared to add another calendar position should this move suddenly. Have a good week!
Mojo
Popularity: 18% [?]
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Posted on March 20th, 2009 by
Mojo
Here we are at the end of expiration week (which was typically bullish) and we still haven’t been able to escape the reversal zone. All three indices are hanging right on or in the zone (between 50% and 61.8% retracement). Will the market gather the strength to break north today?
I’m guessing (and yes I’m guessing) no. Sound the klaxon!
Mojo
Popularity: 18% [?]
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Posted on March 18th, 2009 by
Mojo
We’ve either hit or will hit today the near term ‘reversal zone’ on the SPX, Dow Jones, and RUT. This is a fibonacci pattern that defines the zone as above 50% and below 61.8%. This increases the possibility of a reversal. Take a look at these three charts:
Be prepared for a reversal in the next couple of days. (This could be a good time to sell some OTM BRCS!)
Also, we are going to be starting our first Basic Options 101 class this evening. If you would like to be a student or would like to help with coursework / coach please send me an email. I spent about 8 hours yesterday going through my emails so if you didn’t hear back from me please contact me again.
All the best,
Mojo
Popularity: 18% [?]
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Posted on March 12th, 2009 by
Mojo
I was completely blown away by the number of eager students and helpful teachers that came pouring out the woodwork. We had a short working session Wed night to go over some of the basic beliefs of the course and I think some really innovative and cool ideas came up. For instance:
- We are going to teach this course without charts or any technical analysis. Our focus will be on learning the basic mechanics, then the greeks, and then fixing trades gone bad. Once those are mastered, we will go into trade entries, strategies and management. We believe that there is too much emphasis on TA and charting and not enough on trade management.
- By not having any commerical motive we are able to simply focus on what works and not have to worry about up selling.
- We are hoping to develop a buddy system and have input from many already experienced and successful traders.
- We are going to focus from day one on treating option trading a serious business!
This course will be created by the community for all of us to enjoy! More and more details will come so stay tuned. If you are interested (and I haven’t already contacted you) in being a student or would like to help out please send me an email with either ‘Student’ or ‘Trader’ in the subject line. I’m about two hundred emails behind right now and I’m heading out the door to go snowboarding with the Boy Scouts for the weekend so please don’t take my silence as anything more than my overwhelm.
Have a great weekend!
Mojo
Popularity: 20% [?]
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Posted on March 11th, 2009 by
Mojo
There is a great book by Jim Collins entitled “Good to Great” where he talks a lot of the difference between good organizations and great ones. One of his ideas is to have a huge, larger than life goal for the entire organization. Something outrageous without being braggadocios that inspires and drives everyone. He calls this his BHAG (Big Harry Audacious Goal).
I’m most proud of InsaneMoney and the community that we have created together. I spent a lot of time over the last few months thinking about our future and I came up with our BHAG. Our BHAG is to create and support a community of no less than 1,000 Option Traders producing full-time income. This means that we will teach new folks, bring middle folks out of their doldrums, and attract the very best folks.
As such, for the next 90 days we are going to highjack our weekly team meetings and produce and teach a basic options course. Tonight (Wednesday, March 11th) will be our first night and we are going to lay out the curriculum and (hopefully) begin teaching. These courses will be taught over a 12 week webinar (webex) commencing at 7pm ET. They will be recorded and interaction is encourage.
Send me an email if you are interested in helping, attending, or teaching.
Mojo
Tonight night (Wednesday, March 11th) we are going to begin a new series of classes focused on teaching options from start to finish. This first course will run for the next 90 days (12 weeks) and will form the basis of option foundation. Particular attention will be paid to customization this material for folks that are trading part-time but looking for full-time income.
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