The Truth About Trading

You might have heard the saying "Sell in May and go away."

It is an old investing adage that has been around for decades, but does it actually work?

In this blog post, we are going to find out what's best to do.

We will discuss:

1. What is the meaning behind "Sell in May and go away?"
2. Does sell in may and go away work?
3. Should you sell in may and go away?
4. Two reasons not to sell in May and what to do instead.

Recommended Links & Video:
How I Find The Best Trades (3 Steps): https://www.youtube.com/watch?v=VgAWxeDMoes
How To Fly Rescue Missions: https://www.youtube.com/watch?v=OlTD9h_ZNd8
Best Brokerage 2021: https://www.youtube.com/watch?v=kzinSHgX848
Here's How I Trade with Margin: https://www.youtube.com/watch?v=NJBOGJ5JiXs
When To Take Profits On Options: https://www.youtube.com/watch?v=j-iB_hPjbcE&t=0s

Will the stock market crash in May 2021?

Over the past few days, the markets have been plunging.

So THIS is a question that many people are asking:
Will we see a market crash in the next few weeks?
What will happen in the stock market?

In this video, I will talk about exactly THIS:
What is the likelihood of a stock market crash in May 2021?
Do you need to worry?
And how can you prepare for it?

Recommended Videos & Links:
Wheel book: https://www.rockwelltrading.com/the-wheel-options-strategy-book/
Wheel Playlist: https://www.youtube.com/playlist?list=PLBa3sAx-Io2nosgosERUhIZwzvIgD-3Vq
Tradier: https://rockwelltrading.com/broker 
How To Fly Rescue Missions: https://www.youtube.com/watch?v=OlTD9h_ZNd8

You are probably wondering, "options trading vs. stock trading: which is better?" This video will cover the 7 topics that you want to know about options trading and stocks.

We will cover what is the difference between buying stocks and options, which is better (for you), which is more profitable, how much money you need for either, and the risks of both.

Recommended Links & Videos:
Wheel book: https://www.rockwelltrading.com/the-wheel-options-strategy-book/​
Wheel Playlist: https://www.youtube.com/playlist?list=PLBa3sAx-Io2mybLLdWtbjTFqK9-BR5SJb​
Account Updates Playlist: https://www.youtube.com/playlist?list=PLBa3sAx-Io2kQMFb5UaY9mLx8kH7MOye0 

I'm currently trading two strategies:
- Strategy #1 is The PowerX Strategy
- Strategy #2 is The Wheel Strategy

So when is it best to not trade stocks? When is it best to not trade options? When should you not trade at all?

There are days and even sometimes weeks in the markets, where the best thing to do is sit on your hands' (i.e. do absolutely nothing).

On an average day, The PowerX Optimizer (my proprietary trading software) will provide me with around 8 potential trade setups. The beauty of the system is that it takes your ego completely out of the picture.

What do I mean by that? Well, it's simple really. I've paid a team of developers to program my trading plan and money management system into this piece of software I've named the PowerX Optimizer. It doesn't care about news, tweets and it never has days where it's in a good mood or bad ;)

What do I look for in a stock:
- Looking for huge gaps in the stock
- Trendability to both the upside & the downside
- How this stock performed over the past year had I been trading it with the PowerX Strategy.

It simply runs the program quickly and objectively, so I know I'm always getting the same types of setups every time. But here's the thing, there are going to be days when the best thing to do is to sit on your hands.

Today is looking like it may be one of those days...and you know what, that's okay with me. As a trader, you always want to be in the markets because obviously if you're not, you're not making money but it's also to realize you're not losing money either. And this is really the key point because on days where you don't have ANY trade setups that look good, that day you don't put on a trade.

Because if you try and force it, more than likely you're going to lose money. Let me tell you from my experience that is definitely a losing proposition. So in today's episode, we're going to take a look at the broader markets to see what's in store for us this week.

The Options Wheel Strategy Playlist: ​https://www.youtube.com/playlist?list=PLBa3sAx-Io2nosgosERUhIZwzvIgD-3Vq
The PowerX Strategy Playlist:​ https://www.youtube.com/playlist?list=PLBa3sAx-Io2l9ZV4s66J-uNkG6AJvhSPB
Get My Book On The PowerX Strategy: https://www.rockwelltrading.com/free/powerx-strategy-book/

How does earnings season can impact option trading?  Earnings season happens four times a year, and is when corporations reveal their financial results for the previous quarter. 

Results of a company's earnings report can have a major impact on the stock price, and options will often price in the expectations before the event so it's likely that options premiums are more expensive. 

This can impact your trading with implied volatility.

What makes up an options price?

- Implied Volatility: the market's expectation for future volatility. Traders don't know which direction the stock will go, but once a company reports earnings, there is no more uncertainty.

 So why is this important? 

- As an options buyer, higher implied volatility means that you are paying more for your contract & are at risk for a volatility crash.  

How is IV measured?

You compare the implied volatility to the stock's historical volatility for exactly the same time frame.

The IV measures the market expectation for future price action & the historical volatility measures the volatility for a stock that already occurred, and all you have to do to see how the IV compares to the HV. 

For historical volatility, it makes sense to look at it in 10, 20, 30, 40 days increments. 

Why you shouldn't sell options into earnings. 

Earnings plays are hit-and-miss, & sometimes stocks jump dramatically.  

It's best to focus on SRC profits:

- Systematic because I like to trade what I see and not what I think. 

- Repeatable and by trading my plan. 

- Consistency. 

With The Wheel strategy the idea is to get paid while you wait to buy the stock by collecting premium by selling puts. 

Ideally higher IV is good for this and as a rule of thumb, I look for stocks with an IV, of at least 40%. but I don't trade into earnings, no matter if you're buying or selling. 

Earnings are a wildcard and there's just too much uncertainty.  It's always good to know when they report earnings if you have any open positions, whether you're buying stocks or selling stocks so that you're not caught off guard. 

Recommended Videos:

The Wheel Options Strategy Playlist: https://www.youtube.com/playlist?list=PLBa3sAx-Io2nosgosERUhIZwzvIgD-3Vq​

Generating SRC Profits - Here's How I Do It!: https://www.youtube.com/watch?v=FP2x4JULzwU&t=0s​

The PowerX Strategy Playlist: https://www.youtube.com/playlist?list=PLBa3sAx-Io2l9ZV4s66J-uNkG6AJvhSPB​

People often ask me, "How much money do you need to trade options for a living?"

For everyone, the answer to this is different. What are your monthly expenses? How much do you need to cover your housing costs, groceries, recreational expenses, etc.?

What are your profit expectations? What is the ROI you expect to earn with your trading strategy?

These are all questions you must answer first before you can figure out how much money you have to have in your trading account to be able to live off of your profits.

In today's episode of Coffee With Markus, I will show you how to figure all of this out so you can start working on a plan to accomplish these goals, and figure out how much buying power you need to be able to trade options for a living.

Recommended links and videos:
Growth Trading vs Income Trading: https://www.youtube.com/watch?v=7aosZJwQ-kc&t=0s​
Wheel book: https://www.rockwelltrading.com/the-wheel-options-strategy-book/​
Trading With Margin: ​https://www.youtube.com/watch?v=UHy84SOGl4Y&t=0s
PowerX Strategy Book: https://bit.ly/2wMQ7zW​
Theta In Options: ​https://www.youtube.com/watch?v=kSZWxk3qCZI&t=0s
Wheel Playlist: ​https://www.youtube.com/playlist?list=PLBa3sAx-Io2mybLLdWtbjTFqK9-BR5SJb

Trading is fun and every trader is happy when trades are moving in the right direction.

But when a trade goes against you, you will experience a lot of emotions:
Fear, anxiety, regret, doubt, maybe anger, ...

... and these emotions in trading can lead to some bad decisions that could kill your account.

I want to show you how to deal with your emotions and how to control your emotions in trading so that you become a more relaxed trader.

Recommended Links & Videos:
Unrealized vs Realized Profits: Open Profit and Loss Explained: https://youtu.be/fOOi5401UC0​
Wheel book: https://www.rockwelltrading.com/wheel
Rockwell Merchandise: https://store.rockwelltrading.com/​
PowerX Strategy Book: https://bit.ly/2wMQ7zW​
The PowerX Strategy Playlist: https://youtube.com/playlist?list=PLB
PowerX Strategy Book: https://bit.ly/2wMQ7zW​
What Can I do? The Circles of Concern and Influence Article: https://bit.ly/3vas2f4

I want to go over three very specific set things that helped me to become a much better trader.

Full Episode: https://youtu.be/t577IGfooYI
Recommended links & videos:
Generating SRC Profits: https://youtu.be/FP2x4JULzwU
The Wheel Strategy Playlist: https://youtube.com/playlist?list=PLBa3sAx-Io2nosgosERUhIZwzvIgD-3Vq
The PowerX Strategy Playlist: https://youtube.com/playlist?list=PLBa3sAx-Io2l9ZV4s66J-uNkG6AJvhSPB

As most of you know, I'm currently trading two strategies: The PowerX Strategy, and The Wheel Strategy. People often ask me, "How do you find the right trades for these strategies?" I will answer that in today's episode. I have a 3 step system for finding the best trades, every time. It's been working great for me, and I will show you how I found 2 great trades, just this morning.
Full YouTube Episode: https://youtu.be/VgAWxeDMoes
Recommended Links & Videos:
Wheel Playlist: https://www.youtube.com/playlist?list=PLBa3sAx-Io2mybLLdWtbjTFqK9-BR5SJb
The Wheel book: https://www.rockwelltrading.com/wheelbook
Options Trading 101: https://bit.ly/2V7Nf9T
The Wheel vs The PowerX Strategy: https://www.youtube.com/watch?time_continue=3&v=QmLQ60GQJHc&feature=emb_logo
How To Fly Rescue Missions: https://www.youtube.com/watch?v=OlTD9h_ZNd8
Tradier: https://rockwelltrading.com/broker

One of the things that I've learned over the years for goal setting is I don't create a plan of action for everything. Backward Planning: Start with your goal in mind, and work your way to the beginning. Create a detailed step-by-step plan of what to do. Problem: What do you do if something goes wrong?
Full YouTube Episode: https://youtu.be/_LS47X7Ka0U
Recommended Videos & Links:
Last Video/Plan for 2021: https://www.youtube.com/watch?v=_XvnPBSIsYE
Markus’ Plan: https://rockwelltrading.com/myplan
Markus’ Trading Routine: http://www.mytradingroutine.com
My Personal Growth Plan 2021: https://www.rockwelltrading.com/myplan
The Options Wheel Strategy Playlist: https://www.youtube.com/playlist?list=PLBa3sAx-Io2nosgosERUhIZwzvIgD-3Vq
Options 101 Playlist: https://www.youtube.com/playlist?list=PLBa3sAx-Io2m6vWuLNRz4HHUErjO8H6N8
Options Income Trading Strategies: https://youtube.com/playlist?list=PLBa3sAx-Io2mybLLdWtbjTFqK9-BR5SJb
Generating SRC Profits - Here's How To Do It: https://youtu.be/FP2x4JULzwU