Target Consistent Gains In Wild Stock Market


Simpler Trading Team

Nov 20th 2020  .  3 min read

Is there still opportunity in the wild volatility of this market?.

Successful trading today isn’t as easy as “buy the dip” and wait. Opportunities may not be right in front of you on the computer screen and trades may not be so simple to execute.

Every trader faces a point of decision about expanding their possibilities to the next level of trading.

This week’s “Friday Feature” provides insight into a stalwart strategy among Simpler’s traders.

At Simpler Trading, there is nothing more valuable than supporting our people – even in volatile markets.

This week’s highlight of the newsletter features training designed to reveal serious money in the market… using a popular tool.

Trade small or stack the setup, either way this options strategy can lead to short-term cash flow.

Anytime you’re chatting in the trading room with our team, you’ll regularly hear about the “butterfly” or “butterfly spread.” This is a fitting tool in a choppy market that hasn’t given way to strong directional momentum.

Butterfly setups are intended to reduce risk and minimize loss while targeting profit in a set range. In a baseball analogy, the goal is a profitable win – a single or a double – but not a homerun.

What makes this setup attractive in trading options is that traders applying butterflies with experience and skill can develop consistent cash flow.

Butterflies target options to finish at expiration near the starting price and is not a “big win” play. Risk is limited along with profit potential.

This combination of minimized risk and steady profit potential is a welcome prospect in this  market with choppy direction.

Using butterflies strategically, traders can develop a style and plan that creates more consistent success on a regular basis. This is at the heart of “Bulletproof Butterflies,” a course from Simpler Trading.

“Bulletproof Butterflies” is the foundational strategy of one of our senior traders who has been trading for 30 years. The goal is to set the trade, let it work, and then come back a short time later and take the gains.

When you’re searching for certainty in an uncertain market, consider butterflies to take your trading to a new level. The strategy may seem more complicated, but when there is a veteran trader with proven success at the helm the possibilities can open up even in a volatile market.

Imagine how one trade a week consistently adding hundreds of dollars to a trading account would affect the annual bottom line.

We Saw: Another day of grind and chop in the market – 

  • Treasury, Fed muddying up the waters?
  • Pandemic pressures weighing on earnings reports
  • Congress still bickering over stimulus action

We’re Watching: Technology sector, key tickers for a run –

  • How best to take profits now in active trades
  • Specific tickers with momentum, direction
  • Setups in: NFLX, PYPL, PTON, ROKU