Options Offer Incredible Potential That Stocks Can Never Give Us’ -- And This Successful Trader Proves It! Dale Whaeatley was a contractor who traveled around the country helping the telephone companies with their excess needs that they could not handle in-house. As with any type of contract work, it was inconsistent. It was difficult for him to budget his money not knowing what his income or expenses would be. Dale went looking for an alternative source of income. He attended the usual Real Estate seminars, but realised he had no real interest in becoming a landlord or managing property. Instead he turned to stocks. Dale had played in the stock market in his 20’s, but didn’t understand it. He decided to educate himself on stock trading. During this process Dale read how options offered limited risk and unlimited potential for gains, a strategy that appealed to him. To learn about when to trade, he read many technical analysis books and spent over $500 a month just for quotes and charts. he also plotted many charts by hand. Years later, he discovered a company called AIQ Systems and bought two of their programs, TradingExpert and OptionExpert. Still, all Dale was doing was spending money with no return to show for it. It was not until he sat down and examined his winning and losing trades, comparing them to the charts and indicators, that he finally began to discover the value in one particular indicator, the MACD, known as the Moving Average Convergence Divergence. He knew that when one line crossed the other it meant to buy or sell, but that did not work well or consistently, both requirements for trading options, since they are wasting assets. By examining divergences in the MACD indicator, however, one could tell when a stock was ready to change direction with a great degree of reliability. He concentrated on perfecting his entry and exit strategy using this indicator, but incorporated various indicator time frames, a process Dale had never seen done before. Soon Dale's returns were improving dramatically. Why did Dale choose options rather trade the stock itself? Options offer incredible potential that stocks can never give us. Plus chart patterns develop clearly enough to see definite direction changes that will produce returns in excess of 1,000 gainers in only a few days! Dale beliieves that you can avoid losing trades with his technique. A losing trade is not the fault of the charts, but rather the trader. It is really just a question of discipline and knowledge coupled with action when the correct pattern appears. If you learn the correct technique and act only when everything is in place, you will always make a profit. Determining which option Dale purchases depends on several factors, such as the stock’s price, how far that is from the strike price, how many days are left until expiration, the cost of the option, and the option’s liquidity. dale almost always buy out-of-the-money options that expire in the near term month if the pattern appears on the daily chart. If it appears on a weekly or monthly time frame, he buys out-of-the-money options that could expire several months away.Dale's selling technique is simple when the momentum turns back against the move using the MACD divergence line, he exits the position. Dale educates others on the technique in his Options Hunter weekly webinar service, information can be found at http://www.aiqsystems.com/optionshunter.htm He began teaching others when some investors asked him to explain his trading style and ever since then he has been talking about his discovery to everyone he meets. Dale has taught people around the world, some that he met on airplanes in the seat next to him and in other casual situations. He enjoys showing people extraordinary possibilities. Dale wishes he had someone to teach him in the beginning how to avoid the pain of investing but, as the saying goes, â€The harder the conflict, the more glorious the triumph. What we achieve too easily, we esteem too lightly.†Dale learned that the separation between rich and poor is because rich people continue to do the things that produced their wealth and poor people continue to do the things that created their poverty. Dale believes it is a choice each of us makes and he wants to help others to make the same choices and to feel empowered in their own lives. There was a time when he worried about everyone â€catching on†if he told them what he did, but after teaching so many people over the years exactly what he does, he is still amazed that only a small number of people actually apply the strategy. Dale has found it has more to do with individuals and their preconceived ideas about returns and investing, along with the fear within themselves that actually prevents them from being successful. People all need to look hard at their beliefs before expecting to become successful options traders, or succeeding with anything in life. Dale'sOptions Hunter service began rather slowly because people came from different backgrounds and experience levels. Some were beginners and others experienced. As time went by, however, those who stayed have found many charts without Dale having to hold their hands. One week, as the market was beginning to change its momentum, many subscribers chimed in with about 15 stocks that all had the correct look and the next week some of the options were jumping over 1,000%. There have been traders in the group buy calls on QLGC, HD, CAL, AIG, MM, VLO and the homebuilders and mortgage related companies (even with all of the bad news out about subprime lending, etc). Information on The Options Hunter Service can be found at http://www.theoptionshunter.com
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