Sunteți pe pagina 1din 33

FAST GROWTH

FORMULA
How I Safely Grew a Small
Account 3x in 60 Days

By John F. Carter
CEO & Founder of Simpler Trading®

www.SimplerTrading.com | Support@SimplerTrading.com | 512-266-8659


Page | 1
Congratulations! You made a wise decision by requesting this report.

My name is John Carter. I’m very passionate about sharing the successful strategies that I’ve refined
over the last 30 years.

You’re about to discover the rapid account growth strategy that TRIPLED a tiny 6k account to over 20k
in only two months.

Click HERE if you’d prefer to watch my ‘on demand’ Small Account Secrets video training.

Page | 2
Introduction: Why should you listen to me?
I hate bios so I’m gonna introduce myself as fast as possible in case you’ve never heard of me.

I grew up in a military family, my great-grandfather was


in World War I, grandfather was in World War II, and my
father was in Vietnam. This is me with all of them.

And I never enrolled in the military, but I ended up


studying military history in college, and I appreciated
the discipline.

I wrote my first best-selling book on trading in 2005


and recently came out with a Third Edition.

Mastering the Trade, Third Edition: Proven Techniques for Profiting from
Intraday and Swing Trading Setups

Investing is my life-long passion and area of expertise. In 2005, McGraw Hill


asked me to to write a book, Mastering the Trade, which details my trading
strategies in the commodities and options markets. A second edition came
out in 2012.

I have done the speaker and TV circuits. This was a talk in China, this was a talk in Prague, I’ve done a
lot of CNBC and that stuff, here’s a book signing in China. And all that was fun while it lasted, but I had
these things called kids.

Page | 3
And then I did this crazy thing in 2008.
I thought the world was coming to
an end and I bought 1,500 pounds of
silver between $7 and $10 an ounce.

I ended up selling it for $35 an ounce,


but it took me three days to pack it up.

Here you can see a check for


$324,000, a check for $326,000,
and then a $300 check. I don’t know
why they broke it up like that, but
that crazy ‘trade’ turned into a profit.
Though it was a little scary driving
around with all that silver.

Because of my trading, I’ve had the


opportunity to do some cool things.
For example, this is me with Sir
Richard Branson out on Necker Island.

And I also do some charity work with


him as well. He’s got these things
call airlines, so I actually do some oil
hedging for him, too. So that’s been
fun.

Page | 4
Then what happened is at some point I started having kids and now I’m like, “You know what? I just
wanna spend time with my kids.”

Trading has made that possible, too. Last year we spent four weeks in Africa.

And we’re able to do some mission and charity work there, too.

As you can see, I love trading. I love waking up every day and the market’s different. And I love the
financial freedom that trading can provide.

Page | 5
In fact, trading made it possible for me to escape corporate America. That’s a big reason why I love
helping other people escape corporate America, too.

As you may have heard, I’ve done a couple of big trades. This is a screenshot of the first time I ever did
a million dollar trade in one day (on Tesla).

These days my main focus is in


creating a consistent income, but it’s
always great when once in a while
everything comes together for a
“home run”.

Of course, that’s a ‘home run’ set-up


I still look for today. After all, I turned
that Tesla profit into a 200-acre
ranch in the Texas Hill Country just
outside Austin.

Page | 6
So anyway, I just wanted to show you a little bit of proof to show that when it comes to trading, this is
not my first rodeo. In fact, I’ve been doing this for about 30 years. And what’s really, really interesting
is that my years of trading large accounts have given me insights into better ways to trade a small
account. As you read this report, just know this isn’t something where it’s like, “Oh, wow, I found this
new way to trade a small account.”

Of course, like most, I started trading with a small account. But that was decades ago. For a long time,
I’ve been trading big accounts. Then in late in 2018 market volatility caught many by surprise. A lot
of Simpler Trading members asked, “John, can you at least trade a small account?” So I accepted the
challenge, and what fascinated me is that I’m now able to apply strategies I learned from trading a big
account and do things I never even knew were possible.

That’s exactly what you’re going to learn in this report.

For example, while trading ‘signals’ or ‘set ups’ are important, I’ve discovered that it’s the overall
process and attitude and workflow that makes all of the difference. What I’m about to share is the kind
of stuff I taught back when I did one-on-one mentorships where people would pay 10 grand to trade
with me for three days.

Pay close attention to what you’re about to learn because if you can figure out how to grow a small
account, it can bring you freedom and confidence faster than anything else.

What if you have a large account? This strategy still applies. Because if you can’t figure out how to
grow a small account, guess what? A bigger account is just a chance to lose more money. That ain’t
gonna help you.

The truth is if you don’t know how the markets really work there aren’t many ways to lose money faster
than trading. The market is designed to take the money of the unaware. If you don’t have an ‘edge’,
you’re gonna be fresh meat for Wall Street’s hyenas.

Why do most traders struggle?


Before we dive into Small Account strategy, let’s talk about what blocks most traders from consistent
profits.

The markets are a completely random mechanism, but as human beings, we wanna try to extract
certainty anyway. That always makes it a weird kind of a struggle. The good news is, if you can
overcome that, and learn how the markets really work, consistent profits become possible. In my
experience, luck has nothing to do with long term success in the markets.

Page | 7
What I’ve found is that for every one person that finds a groove and makes it work, there are 10 who
struggle. And the ones struggling are usually working much harder than the ones who are consistent.
So what actually creates consistency? Is it learnable? And what are the things that can help grow a
small account quickly?

I think everyone would agree that the financial markets are the number one place to create extra
income, and even build wealth, without incurring a lot of overhead (or having your money tied up in
illiquid assets). You can put your money into real estate, but it may be tied up for a while. Or into other
business ventures. And the odds are that money gets flushed down into the toilet. But with trading,
your funds are liquid. You can get out and that gives you a lot of control. Still, it’s a tough situation
because you have so much flexibility, a lot of times human beings just kinda get in their own way
without even knowing it.

I learned this the hard way when I was starting out and struggling. I just knew if I could just crack that
code to growing a small account, essentially the world would be my oyster, right? But on the other
hand, what I figured out instead was cracking the code was pretty darn tough. So the idea of making
the markets work for you becomes even tougher when you throw in things like what’s Fed Chairman
Powell gonna say today? What’s Trump gonna Tweet today? What about the algos? The black box
systems? When you throw all that into the mix, does that make it harder or easier?

Well, the truth is what works today may not work tomorrow (depending on whether you have a real
‘edge’ or not). That makes trading hard. And it makes it even seem crazy, like, “Why am I doing this?
Why am I subjecting myself to this uncertainty? Why am I subjecting myself to this pain?”

If this is ringing true for you, I just wanna let you know this is a journey that I’ve been down, too. I’ve
been doing this for a long time and one of the most consistent things about the market is no matter
when you entered, whether it was 30 years ago or yesterday, the markets react in certain ways that are
against human nature. If you fight that, it makes this really, really tough. You’ve got to learn about that
and overcome it. That’s what my Small Account strategy is designed to do.

In fact, I struggled for eight years to get consistent. Through college, through my first job out of
college, and I almost threw in the towel many, many times. But the game forever changed for me once
I learned what really drives the markets and I combined that with a specific methodology for small
accounts. Now you can see why I’m so excited you got your hands on this report.

If you learn how to do this, I believe you can grow a small account into a big account. And when you
have a big account, you can trade more conservatively and generate income. Perhaps 5% a month or
even 10% a month. And maybe that’s when you quit your job and do this full time. The challenge is that
today the markets are harder than when I started.

Page | 8
Why? Because there are so many computer trading algorithms involved. The good news is, if you
know what the computers are looking for, it can actually be a lot easier than it was 20 years ago. What
you need to understand is that what I’m sharing with you is not theoretical. I’m not talking about what
worked last year. I’m talking about what’s working in 2019. This is the stuff I’m doing now to trade my
own money.

That said, the hopes and the dreams of a small account are much different than the hopes and dreams
of a large account. Your hopes and dreams for a small account are pretty simple. It’s like, “Okay, I’m
trading a 10K account. Man, if I could get this to 200K, then if I could generate 10K a month in income
off of that,” I mean, you can live off of that, right?

Yet in order to create a consistent, comfortable income, you’ve got to grow your capital into that larger
account. And so the biggest question I’m getting from people is, “Look, just help. Help me. Help me,
please. I’m struggling, I’ve been trading a $20,000 account or a $10,000 or a $5000 account. And yeah,
I’ve got some winners but it’s... Man, this market is grinding me down. It’s getting frustrating and I think
I wanna throw in the towel.”

Here’s an email I got toward the end of 2018:

“Hi, John. I’ve been a subscriber of yours for a few years and I’ve got a small account,
and I have a request for you. During the years that I’ve been a gold subscriber I’ve
never been able to show a profit in my account. And the problem is, I cannot take
your high cost trades.”

Page | 9
What does he mean by “high cost trade”? That refers to when we buy an option on a high priced stock
like Amazon in our trading room. The option is $28 a share. There are 100 shares in an option. So that’s
$2,800 per contract. Now, $28 for an option is a lot cheaper than buying a single share of stock for
$1700. Even so, if you’ve got a 5K account you can’t really do that trade, right?

That means traders with small accounts have to pass on probably three-quarters of the trades I’m
doing in our Options Gold trading room. I didn’t like that. It gnawed at me. Until one day during the
2018 holiday break, I had an epiphany. “Look, if my goal is to help people, then I’m actually doing a
disservice if I’m only trading a half million dollar account when a lot of our members can’t even follow
the trades, right?”

That’s when I decided to take the challenge. I set up a new small account. This is a statement from TD
Ameritrade with the starting balance...

This statement is from January 1, 2019, to January 31st. We started with $5937.62. And we ended the
month at $11,935. That’s a rapid return of 101%. And you can see at the end of the month, I had 62.5%
long options, 32.5% short options, and 4% cash.

Now, one of the secrets to doing this is you rotate out where you’re about 95% invested, 50% invested,
25% invested, and sometimes flat, depending on the time of the month. Why does that matter? The
time of the month ebbs and flows in terms of money flow, and if you understand that, you can time
your trading exposure.

Page | 10
Here’s a screenshot as of February 18th:

By February 18th, the account’s gone from $11,900 to $16,800. That means we’re up another 41%. And
then if we go to February 28th, you can see it’s at $19,860.

So ending February at just under $20,000 (that’s a little bit more than a triple).

Page | 11
What’s important to notice is that the market was a little sloppy in that period. The market sold off and
you can see one day I was only up $103. My Chipotle and John Deere positions didn’t do so hot that
day. However, I had some puts on the S&P that were doing fine, plus I had some calls on the VIX. Part
of my Small Account strategy is there are specific times when you wanna hedge your portfolio.

And so, part of the secret to this is knowing how to structure your portfolio to weather any market
condition.

The first thing I wanna implore on you is that your only job as a trader is to create an equity curve that
goes from the lower left of your screen to the upper right, okay? That’s it.

Page | 12
This is a graph of my account with normal fluctuations. You’re gonna get growth and then have a
pullback. But I structure my portfolio to make sure the pull back stays at about 30% from peak to
trough. My rule is simple. If my account dips 30% from the peak, I just go flat. I don’t ask questions.
That eliminates all the psychological angst that comes from taking losses. This is about managing your
account in such a way that you’re not exposed to big losses.

You see, it doesn’t matter if one of your positions isn’t working. What matters is what your balance
looks like. If you go flat, which means sell your positions and go home 100% cash, then you can and
wake up to start over. It’s amazing because it’s a clean slate. And if there’s a position that you got out
of that you still like, guess what? You can get right back in. Re-entry is only a commission away. This is
about managing your account balance. It’s way different than, “Oh no, I hope my trade works out.”

Key Takeaway: To grow a small account quickly, learn what


really drives market movement
The goal is to understand the methodologies that must be utilized to grow a small account quickly.
Without these, I believe it’s basically hopeless. And of course, these techniques can also be utilized
on large accounts within liquidity constraints. Believe it or not, there are advantages to using small
accounts because there are some trades that you can do that nobody else can. That’s a plus.

Page | 13
You can use this knowledge on small accounts starting tomorrow. If you tune in to what I’m about
to show you here, you should get some ‘aha’ moments because the way you think the markets work
according to the financial press and the way the markets actually work have nothing in common.

Here’s an example. Do you remember Zion Williamson? He’s a star player at Duke and one of the best
players in college basketball. He was injured after his Nike shoe ripped apart during a game while 70
million people watched on T.V.

The headlines the next day said, “Nike stock market value plunges by 1.1 billion.” And here’s a guy on
Twitter saying, “You gotta short Nike tomorrow.”

However, the next day Nike’s at $84 after all the bad PR. Well, this is where you learn how the markets
really work.

Page | 14
This huge red line on the NIKE chart is the monthly POC, which is the “Point of Control.” All the hedge
funds are doing is looking for liquidity. When Nike gapped down, and as you can see right here, it
rallied back to its monthly point of control. That’s how the markets really work.

The news actually does not matter as much as you think. Instead, you’ve got to know where the
liquidity is.

Page | 15
Key Takeaway: Do yourself a huge favor, spend your time
watching liquidity instead of news headlines

Now, here’s a great quote by the legendary


hedge fund manager, Stanley Druckenmiller.
This is very important. Druckenmiller added
that the second thing he learned from his
early mentor is that earnings do not move the
overall market.

Of course, if you’re watching Bloomberg,


if you’re watching Fox Business, if you’re
watching CNBC, it’s always earnings,
earnings, earnings. But that’s irrelevant. It is
the Federal Reserve Board that matters. You
gotta know what the Fed’s doing. Focus on
the central banks and focus on the movement
of liquidity. That is all that matters. That’s what
drives the markets. If you understand that,
you’re gonna save a lot of time because you
can stop watching the news.

The best traders are incredibly versatile, they


can be short-biased but still capable of going long without hesitation. Hesitation will rob you. There
is no second guessing. If something is changing or going against you, take your licks, get out, and
switch. That’s the beauty of trading. It doesn’t matter if it’s going up or down. You just gotta be able to
recognize where the liquidity is.

Key Takeaway: If you focus on key setups based on liquidity, that fits your personality and you master
them, then you can be profitable in any market condition.

You don’t have to get too worried about the economy if you develop a skill in trading. You can trade in
almost any situation. It doesn’t matter if you’ve got inflation or deflation or stagflation, or if it’s a bubble,
or if it’s a depression. It’s a skill, and with that skill, you can earn a living.

Remember, many stocks move based on algorithms. I have friends here in Austin, in Chicago, in New
York, who make a lot of money because they have trades based purely on computers. And I’ll tell you
this, you cannot beat the computers head on.

Page | 16
If you’re day trading, you up against $5 million computers. If you’re making money, that’s great, but if
you’re losing money and you’re frustrated, stop, Because you’re trading against artificial intelligence.
And A.I. doesn’t get tired. Chipotles is a good example:

It’s a $600 stock. Now, in my big account, I could buy some of these 585 call options at $25.40. One
option is $2,540. But if you have a $5,000 account you cannot do that. You cannot bet 50% of your
account on one trade. But that’s okay. And if you’re newer to options, don’t get intimidated because
this is super easy. It’s something I can show people how to do in 10 minutes, but all this is doing is just
selling... I don’t like to do naked options, so you can do something that’s called a spread. Basically, it’s
like, “Okay, I’m gonna sell this for $4.25, and I’d like to buy it back at like a dollar.”

Page | 17
And remember, if you’ve got an account that’s smaller than $25,000, you can’t really do day trades. So
none of the trades I’m doing are day trades. I’m typically looking to hold at least overnight. Now, I do
buy calls and buy puts and stuff like that, too, but I just wanted to show you that just because a stock
is a $600 stock doesn’t mean you can’t trade it in a small account if you know how to structure it, but
also you wanna make sure you’ve got a signal that’s gonna be accurate.

Next, if you structure trades correctly, the moves against you do not have to be devastating. Case in
point, this is Amazon. I am long Amazon here.

That’s a bullish position on Amazon. I’m hoping the stock goes up. Instead, here AMZN is down 64
freaking dollars. Some might say, “That’s the end of the world. I’m getting destroyed.” But as you can
see, I’m only down $57.50. So if you learn where the liquidity is, and next you learn how to structure
your trades so that if it goes against you, it’s not a big deal. And if it does go in your direction, it works

Page | 18
even better. That’s another key of this with small accounts. You cannot afford to take big losses. You
can’t afford to sit there and go, “Oh no, Amazon gapped down $64 and I’m dead.” That’s something that
if you structure your portfolio correctly, that you should never ever have to say in your life.

Another way to do this, and again, a little trick, is that if you’re in a trade and it’s a disaster, you can
actually structure it. This is a little trade in NBEV, $7 stock, and ideally, the stock would have gone to
$8 and I’d have made $500, but for some reason, the SEC came out and investigated.

I structured this trade in a way where if it went to zero, I’d still make $100.

So the nice thing with options is you can do simple strategies where there’s gonna be times when it
just doesn’t work. But if you bought the stock and it went to zero, you’re screwed. But in this case, you
actually still make some money just by learning a couple of tricks on how to structure your trades.

Next, rotate your exposure depending on the time of the month. You never, ever, ever wanna be 100%
invested all the time with this methodology. Towards the beginning of the month, you wanna be more
aggressive. Towards the middle of the month, you want to slow it down. The third week of the month you
wanna really, really slow it down, and then towards the end of the month, start ramping it back up again.
But depending on the dates, we alternate between being 90%, 50%, 25% invested, and sometimes in
cash. In this case right here, you can see I’m about 50% cash, which means I’m 50% invested.

Page | 19
Also, keep in mind when you’re trading, you’re not gonna get the perfect entry. You’re just not. It’s
very, very difficult to get the perfect entry. So I start off with the entry at $3.74, I pick up another one at
$2. And then I pick up this spread at 96 cents ($96).

And ultimately, you can see it’s profitable. But I’m not sitting there trying to get the perfect entry so
you gotta work around that.

Page | 20
Why Trade Options?

Options are the best way I’ve found to grow a small account quickly. They’re better than stocks, better
than futures, better than Forex, better than crypto. I trade all of those, I have nothing against futures. I
have nothing against Forex, I have nothing against crypto. I’m just saying if you’ve got $5,000 and you
wanna try to grow it to $50,000, options are your best methodical bet.

With crypto, frankly, if you time it right and you get lucky, great. When Bitcoin was at $200, I bought
100 Bitcoin and forgot about it until it got to $15,000. I’m like, “Oh my God, that’s a bubble. Let me get
out.” I didn’t sell it at the top but made a lot of money just on those. Is that going to happen again? I
don’t know, I’m keeping an eye on it, but it doesn’t matter what’s going on, you can always grind out
pretty solid returns in the options market.

Why? Well, there’s fixed risk. If you can structure trade so if it doesn’t work, it’s not a big deal.

There’s asset class flexibility. Believe it or not, sometimes the stock market goes dormant, like in 2004-
2005 the stock market did absolutely nothing. But if you’re trading options, you could trade options
on currency ETFs, you could trade options on gold ETFs because the volatility went there. And that’s
another part of this is that volatility rotates, volatility rotates. At some point, the stock market is gonna
get really quiet again, and then the volatility may go from stocks to currencies.

Okay, great, well guess what? There’s tons of currency ETFs that you can also trade options on. There’s
a lot of flexibility there. So again, I like it, I trade everything, but for this specific opportunity, I’m really
appreciating options. They’re easy to understand, they’re easy to use, and they do not require being in
front of a computer all day.

Again, none of these setups are day trades. If you’re working full-time, that’s fine. The strategies
discussed offer extremely limited risk while offering great upside potential, and it’s done in such a way
as to eliminate negative surprises, which is the best way to grow an account quickly and consistently.

Alright, so the next concept here is that price targets are not as important as NLV management.

Okay, so what is NLV? NLV is your net liquidating value. And all that is is that if you sold all your
positions, how much cash would you have in your account? For example, if I’m in a trade in ROKU, it’s
much less important that ROKU goes to a specific price target.

Page | 21
It’s like, “Wow, I really think it’s gonna go to $48.” It doesn’t matter if it’s going up and it
becomes a certain percent of your NLV. This is a little complicated topic, but I did a class
where I put together a spreadsheet so you can learn how to know when your position
represents a specific percentage of your account, you just sell it. The whole thing about price
targets and stops, it’s actually a distraction many times when if your main goal is to grow an
account. Another example is this is something like this trade in DATA.

Page | 22
Now, DATA, this is a position that I did when the account was at about $10,000, so I could only do one
contract. But at this point, my rule of thumb here was that if I had a position that got to be over 15% of
my account value, I had to sell it. So here, DATA hit $18 and it got to be over 15% of my account value.
And even though I saw there was more upside potential, I only had one contract, and I just had to sell
it. That’s fine. I’ll take that $638.

As you can see, this is a different way to trade. This is not about hoping for price hitting the best target.
Instead, you are actively managing your account because you wanna grow that P&L curve. This kind of
trading is different than, “Oh, I’ve gotta stop and I’ve got a target and I’ve got a risk-reward ratio.”

This is also about pruning.

If you’re familiar with professional rose growers, not that I’m a rose grower, but I’ve got a garden, and
they spend all their time pruning in order to create the best roses.

What does pruning mean? To cut back, trim, and thin out in order to allow for the best growth. To
reduce the extent of something by removing the superfluous, or unwanted parts. To target removal
of diseased, damaged, dead, or non-productive, structurally unsound, or otherwise unwanted tissue
from crops and landscape plants.

In your portfolio, that means positions that are crap. Whereas before you may have seen a bad
position that wasn’t working well, and you’d worry about it, and you have all this anxiety about if you
were worthy as a human being, “Oh my gosh, I’m gonna have another loss,” that goes out the window,
because now you’re a gardener, and you’re gonna actively prune that stuff, and you’re gonna take
those bad positions and you’re gonna get rid of them. You’re gonna get rid of them with a vengeance
because that’s how you grow this account. And you’re not gonna feel bad about it, you’re gonna feel
good about it.

Reasons to prune are for improving or sustaining health. So it’s a different way to look at this. Now,
does that mean you’re gonna have any losses? Guess what? Yes. This is a snapshot of the losses I’ve
had this year.

Page | 23
I know everybody likes to, “Oh, look at all my winners.” I’ve had plenty of losses this year, yet I’ve still
tripled my account.

So what are some of the keys to this strategy? One, the losses are contained. You’ll notice I don’t have
any big losses, I don’t have any losses representing some huge percentage of my account. Now, some
of these losses are hedges. Believe it or not, you don’t want your hedges to work, your hedges are
there in case the market pukes. There are times when you wanna put on hedges so that you’re not
caught unawares, but if they don’t work, that’s fine.

The biggest lie you’re ever gonna hear out there is someone saying, “Oh, I got a 98% win rate.”

Well, guess what? You want a formula for a 98% win rate? Here you go. If you’re trading say the S&P
futures, every time you trade, have a one tick target, and then have a 100 tick stop. Your win rate is
gonna be 99%. But that one percent of the time that you lose, you lose everything.

Win ratios are complete BS. Success is about how much you make when you win versus how much
you lose when you don’t win. And the ratio actually is not as critical as you might think it is. You gotta
get over that from a psychological perspective.

Let’s see here. The other thing is I like to structure 15% of my trades as low-risk lottos. What does this
mean? You can see here that I bought GOOGL for 28 cents.

Page | 24
So that means if this trade goes to zero, I lose 280 bucks. That’s an acceptable loss.

This trade had the potential to make $4,720. Now, in this case, my actual profit was $300. I bought this
one for 28 cents, and I sold it for 60 cents. That’s nice, I got a little over a double on that one, and that
works.

And that’s what you end up getting most of the time, but what’s nice about this is if you’re wrong, it’s
not a big deal, and once in a while you hit the lotto. Guess what? So far this year, I have not hit the
lotto. I have yet to buy one this year for 28 cents and selling at like $4, which is frankly unusual. If I had
one of those a quarter, it’ll make my quarter, but I don’t need them, and that’s the key. If it happens,
great, but I don’t need them to have the big account growth. It’s a bonus, it’s that cherry on top.

Page | 25
So why are options amazing for small accounts? You’ve gotta be creative to make small accounts
work. With ETFs, you get low implied volatility and cheap prices for rotational directional moves. With
earnings, you get historical statistics when playing pre and post-earnings moves with limited risk and
consistent upside. And basically with technicals, what I call your moving averages and stuff like that,
you get repeatable strategies that you can trade and make money with month after month.

So let’s go ahead and look at some examples.

One of my favorite trades to do is


this rotation trade in the spiders.
These are opportunities to buy
really cheap options and flip
them out. So on this one, these
were call options. When the
market took a little bit of a bath,
we bought them at 34 cents and
were able to flip them out at 85
cents for a 150% gain after three
days. Nice bread and butter trade.
This is why I did this one right
when this was a $5,000 account,
so my position size was set up
accordingly. Now I’m doing these
with bigger size. This is one on
Roku.

Key here is don’t be greedy. When


you get into the move, and you
get your low-hanging fruit target,
take the money and move on to
the next trade.

For this trade, we got out for a


nearly 100% return, $1,687. Now,
if you’re looking at this, the target
on this, and I think eventually
this thing actually went up much
higher, but who cares? It doesn’t
matter, you’re not trying to win

Page | 26
an Oscar or win an award for catching the entire move. Typically in every move like this, there’s a high
probability sweet spot move. You go in, you grab that, and you move on, and you go to the next sweet
spot move.

That’s how you do this. Because sometimes, you can hold on, hold on, hold on, and then you get
whacked by a downgrade. Catch that sweet spot and then get the hell out of there and move on. Don’t
go for those extended targets, go for the easy targets.

Now, I like to use specific levels that show where those easy targets are. And you can see this is Roku,
it’s slamming into this one average true range move, and it just stops dead in its tracks. Or I’ll look at
something like the Weekly Rolling Pivots, again a very easy tool to use that not a lot of people know
about. When it gets there, it’s gonna stop, it’s gonna pause. That’s gonna stop in its tracks. Why?
Because a lot of algorithms are using it. So that’s the kind of stuff where you just get out of there.

Page | 27
All I’m using are basic indicators that are available on your platform. But what I like to do is kind of
bring them all into a dashboard. For example, is the ADX over 25? Yes. Is the Average True Range at
least 2% of the stock price? Yes. Is the Beta over one? Yes. Okay, so if it meets those criteria, I’m gonna
do it.

And then where is it in relation to its 60-day channel, and are the moving averages stacked positive,
and what’s the implied volatility? So this is all something I constructed so I could see all this at a
glance, and it helps me make those decisions. Now, every once in a while something’s gonna happen
like this.

Page | 28
Here we bought a call on Tilray for $5 and we sold it for $27, and that was a five-bagger. But guess
what? That’s very rare. And that’s the only five-bagger. All my other good trades have been doubles.

That was a five-bagger. When it happens, it’s the cherry on top. You don’t need those, but they’re possible.

The other thing is that you want your portfolio less than 30% correlated to the S&P 500. Why?
You don’t wanna wake up and say, “Oh my gosh, the futures are down 20 points this morning, I’m
screwed.” That’s death.

That means you are putting your financial future into the hands of a random tweet. You’re putting
your financial future into the hands of Bloomberg, or of an upgrade or downgrade, and that’s
ridiculous, that’s insane. You structure your portfolio in a way that it doesn’t matter. In this case,
on this particular day, I think the S&Ps were down like 10 points, but you can see here that my
portfolio was pretty balanced. You do not want your entire portfolio doing well on any given day,
that means you have a very poorly-structured portfolio.

Page | 29
If you get a really big profit in a position, it is not a day for high-fiving, it is a day for selling. On this
particular day, ZS had a really nice spike. We were all excited about it. It was up $1,200 in a day like
on a four-lot. This is not something that you run around and start texting your grandma or giving high-
fives to your spouse. Get out. The joke is like if you go into the Amityville Horror House, and you’re
walking in with your family and you hear something that says, “Get out!” Well, listen, don’t go pack up
and stay there, get out. And it’s the same thing with something like this. Big days are for getting out,
not for high-fiving, not for pitching your tent and seeing what’s gonna happen next.

So moral of the story is you do not wanna wake up miserable or excited by the S&P futures, and that’s
probably the biggest mistake I see people make. You structure your portfolio in such a way... Yeah,
don’t get me wrong, if the market’s bullish, you wanna take advantage of that, but you wanna structure
your portfolio in a way that if the market gaps down, it’s not the end of the world, right? That’s the
whole key to this.

Page | 30
Remember, consistency is key. And in order to consistently make money, a trader has to learn how
to create steady winners off of their trading account. They’ve got to avoid the sucker bets that most
traders unknowingly take and then lose money on. You gotta know when to rotate out of your current
bets and into new ones, and by the way, it’s gonna be sooner than you think it is, and you need to
manage your net liquidating value, which is your account balance. That’s gonna drive most of your
decisions. That is the key. Most traders are tricked by the markets and financial press to get into trades,
that shouldn’t be trades, that set them up to lose from the moment they enter a position.

So if you like what I’ve shared so far, there are many simple ways to stack the odds in your favor,
especially, especially if you’re trading a small account. However, there’s only so much I can cover in a
report.

I cover these strategies in detail, as well as the seven technical strategies I have narrowed down as
my favorite small account setups, and the scans that I use to find them, in my Small Account Secrets
course.

This course is the culmination of 30 years of trading knowledge. I put it into a package that people can
readily digest and understand. You don’t need to go through 30 years of trading and a lot of that pain
and suffering to finally hone down a system that can work like this.

This is essentially the culmination of my life’s work geared towards helping out people either who are
starting out and just don’t have a lot of knowledge about the markets. This class is gonna strip away a
lot of the stuff that doesn’t make sense and force you to focus only on the stuff that matters.

Most of the stuff out there about trading options is nonsense. And a big part of that is forcing a
trader to understand that there is only one area in the market, one set of conditions that has to come
together to make sense to do an entry. Otherwise, almost all of your entries into a trade are not gonna
work.

What are some of the things you’re gonna get? All these workspaces that I’ve constructed, they’re
included. Now, these aren’t new indicators or anything like that. They’re already included in most
trading platforms. I’ve just configured these tools in a way that I find it easy to use, and I’ve narrowed
down the most important steps to follow.

For example, I’ve created simple scans on Thinkorswim that I used to find some of these trades. You
get those scans, too.

You might be asking, “Is this strategy good for newer traders?” I think these are perfect strategies

Page | 31
for newer traders with small accounts who
are looking to grow them quickly. The option
strategies are simple. There’s no naked selling
or complicated strategies or any of that stuff.
The option strategies I use have a fixed limited
amount of risk of your choosing with no
surprises… And you don’t need to know much of
or anything about options, because we’ll show
you how the options work. Plus, my approach is
really simple. You don’t need to know Greeks,
you don’t need to know Vega or any of that stuff.
If you do, that’s great, that’s not gonna hurt you,
but you don’t need it to do this.

The goal of this strategy is to keep the money


you make. Understand the specific small
account money management principles and
tips that allow you to keep the money you
make. I can’t tell you how many times I talk to
people, and I’ve heard this sob story so many times, is that, “Man, I had $10,000 and I ran it up to 30k,
and now I’m back at $4,000!”

Listen, that’s not necessary. In the class, I show you specific strategies designed to help you keep
what you make. Now, some of its psychological. But it’s also just learning how to manage your
account. I mean, the markets are set up to kind of lull you into complacency then rip your face off, and
there are ways to avoid that.

Part of this is just don’t blow up your account. You want to maximize the benefits of trading options,
even on accounts smaller than $25,000, and then learn how to keep what you make.

This class is for anyone that’s in that frame of mind of going like, “You know what, I’ve got a small
account and I wanna grow it into a big account.”

In the Small Account Secrets class, you get the complete video training on my strategy. You get
everything that I used to triple my account in 60 days.

And if you are newer to options, I understand that for a lot of people options seem scary. But that’s
only because they don’t understand them. However, once you understand options, they’re the most
amazing trading instrument that you can do to create wealth or to create income in your account.

Page | 32
They’re much more flexible than stocks and there are ways that you can set them up where they
are much less risky than stocks. And I know that that oftentimes is not something that you hear as it
relates to options, but it’s simply because people don’t understand options, trade them incorrectly,
and they set themselves up to fail.

That’s why I’m including my popular Options 101 class access with Small Account Secrets, too. This
gives you that practical, boots on the ground, how to use options with my strategies.

Small Account Secrets is the kind of information that can change your life in terms of trading.

Even if you’ve been trading a long time, this stuff that I’ve shown people, for people who have been
trading five or 10 years and they’re just like, “Oh my gosh, I wish I knew this when I started out.”

With a class like this, you’re able to get access to my experience, all the stuff that’s risen to the top and
worked time after time after time over the past 25+ years, simplified into a package like this so you can
learn how to do it on your own.

I’m super, super excited to teach you this strategy. You can Go HERE to watch an in-depth demo of
my Small Account Strategy.

And if you have questions, go ahead and call, 512-266-8659 in Austin, Texas.

Thank you for checking out this report.

I hope you found it helpful.

Good Trading,

John F. Carter
Founder
Simpler Trading, LLC

Page | 33

S-ar putea să vă placă și