Dipping Into the Monument Traders Alliance Mailbag
Let’s once again take a step back from a standard Trade of the Day issue – and dip into the Monument Traders Alliance mailbag. Here I’ll address some of the questions your fellow members have been asking.
Let’s get started…
Can you explain paying $0.10 to $0.15 above the entry price?
While we don’t advocate chasing prices, we also don’t want you to miss out on a profitable trade. So as a general rule, feel free to pay $0.10 to $0.15 above our listed buy prices in The War Room, just to ensure that you’ll be able to enter the trade. That way, you don’t allow a dime to prevent you from participating in a strong gain. If prices are higher than the $0.10 to $0.15 buffer zone, then you have to let it go. You missed it. But there will be many others.
What is a sniper sell?
A “sniper sell” is a term we coined to represent our automatic, no-questions-asked sell price. For example, we may recommend an option for $2 and set a sniper sell at $4. In this example, let’s say that around lunchtime, news is released that pushes the option up to $4, but you don’t see an alert advising you to sell. In this case, do not wait. With the sniper sell already in place, you know to take your profits and sell. Overall, this move is a safeguard that works in your favor to maximize your profits on any quick moves.
What level trading account is needed to execute trades?
We mostly buy and sell call options and put options, and a Level 2 brokerage account meets the trading requirements.
What is the minimum starting capital to trade in The War Room?
Each individual trader has a different risk profile – so we do not (and cannot) comment on starting capital. In that spirit, we do not impose any minimums. However, most online brokerages require a minimum deposit of $500. Margin accounts typically require a minimum deposit of $2,000 and impose requirements. Please consult your broker for specific guidelines.
How is risk properly managed?
Trading securities (especially options) carries risk. To limit risk, we will typically provide suggested stop limits or hedges. The decision to strictly follow, loosely follow or not follow these protective stops is entirely up to you.
Should I use a protective sell stop?
Protective sell stops are intended for traders who want to strictly limit risk. Other traders who are more speculative in nature typically don’t place stops at all. Knowing that everyone’s risk profile differs, we attempt to maximize our trading guidance for the entire spectrum of traders. For example, if we still like a particular position even after a stop is triggered, we’ll continue to follow and update the play. In a case like this, you can either hold along with us or adhere to the original sell stop. It all depends on the type of trader you are.
No matter whether you adhere to the stops or not, we’ll always tell you when we’re officially closing a trade. So the decision about how to adhere to the sell stop is yours to make.
Is autotrading available?
The War Room does not engage in automated trading, and we prefer if you traded your own account. You may choose to autotrade at your sole discretion, and we do not prevent it. However, you would need to communicate open and closing trades with your broker. For the privacy and exclusivity of other War Room members, we will not grant your broker (or any other non-member) access to The War Room trading site.
How do I get The War Room?
For more information on The War Room and how you could receive live trading recommendations from me and Karim every day the stock market is open, click here!