main

Stock & Options Trading

The CPT Way of Trading; Taking Advantage of the Larger Moves in the Market

March 17, 2016 — by Troy Noonan0

With the Counter Punch way of trading, we learn how to spend minimal time daytrading a variety of different markets. What you may not be aware of is that CPT is a very effective swingtrade and longer term position trade strategy as well.

With the Counter Punch way of trading, we learn how to spend minimal time daytrading a variety of different markets.  What you may not be aware of is that CPT is a very effective swingtrade and longer term position trade strategy as well.  Best of all, you really don’t have to learn anything new.  We use the same way of trading.  In this chart example, I chose a chart that is close to all of us because it effects us all each and every day — the cost of oil.  We daytrade crude oil futures every day.  But you can take advantage of this great trading volatile market with ETFs and simple swingtrading.

The USO is an ETF of US Oil Stocks.  It trades millions of shares per day.  It is a very low cost stock at this point, currently in the $10 per share range.  When the cost of oil was undergoing its recent historic drop in price, it would have been easy to trade it to the downside, with limited and controlled risk, clear and precise trades right on the chart, simply by buying slightly in the money, quality put options.  No fancy option spreads necessary. Nothing difficult to learn.  All trades fully planned in advance with clear rules to follow, etc.  The CPT way of trading, in other words.

Now that it seems that oil may have put in a bottom, or is somewhere in the bottoming process, we can see nice long trades emerging.  Again, nothing new to learn. Same way of trading, etc.

Check out the recent long trade.  You can clearly see the entry, targets, stop, and the way the trade is managed as the price progresses in our direction.  This trade could be any trade on any chart.  It looks and behaves the exact same way.  In fact, all I did was copy another chart and change the symbol.  CPT is dynamic, adjusting to the chart and market conditions.  Check it out.

031716_USO

Of course this in just one example, but it is a model of a great way of trading that can be applied to just about any chart that is worth your time and effort.  Change the symbol to the Crude Oil futures daytrade chart, or the Dow eMini, or any number of forex charts and it would look the same, behave the same and trade the same.  It’s the CPT way of trading and it is highly effective and dependable.

Stay tuned for our next Counter Punch Trader Release, coming soon!

www.NetPicks.com

 

Leave a Reply

Your email address will not be published. Required fields are marked *