How Marco Made Over $100K On AAPL And BABA Options In Two

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How Marco Made Over $100K On AAPL And BABA Options In Two
MarcoCaseStudy
How Marco Made Over $100K on AAPL
and BABA Options in Two Weeks Using
12 Specific Rules
Disclaimer: This document is intended for educational purposes only. Stock and Options trading has large potential
rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the
stock and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to
Buy/Sell stock or options. No representation is being made that any account will or is likely to achieve profits or losses
similar to those discussed on this web site/video/guide. The past performance of any trading system or methodology is not
necessarily indicative of future results. Please consult your financial advisor before investing in stocks and options.
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Here are Marco’s 13 rules copied directly from his email to me.
Rule #1
Pick companies that are fundamentally
good (I will not trade BBRY just because
it is cheap).
Rule #2
Use the 3 Micah rules (Heiken-ashi,
MACD positive, DEMAs crossing) to
decide when to get in.
(Note: I included the full 7 rules for you below.)
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Rule #3
Always add a conditional stop at
MARKET to get out quickly when the
trade goes against you (LIMIT orders
may NEVER be executed, when stocks
are on free fall).
Rule #4
Manually increase the conditional stop
as the stock goes up.
Rule #5
Trade only very liquid options (high open
interest) so $115 is ok, $112.86 is not.
They get sold much more quickly.
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Rule #6
Put stops 5 cents below even numbers
(116.95 instead of 117). Stocks tend to
“bounce” on the even numbers.
Rule #7
After a big run, cash in EVERYTHING
[which i did TODAY]. With options I can
always’ go back in the next day. Stocks
are held for 3 days.
Rule #8
Buy calls with strike at current stock
price with 4-5 months expiration (I get
April calls now)
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Rule #9
Never use money that is from trade that
has not yet settled (day trade). they will
generate a “real” Regulation-T call (the
ones listed on TOS are mostly bogus, a
bug in TOS)
[see http://research.scottrade.com/knowledgecenter/Public/
education/Article?
docId=4a6477b554ba4533a91ea5835c5aa4e2]
Rule #10
Do not be greedy: it is not possible to
time tops and bottoms, cash in when
you’ve done enough.
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Rule #11
Do not have an “emotional” attachment
to a stock that you are trading.
Rule #12
Keep your capital: you need to be able
to get out and save your capital for the
next trade.
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I’ve expanded the 3 rules Marc mentioned into 7 more detailed
steps.
Step 1. A failure to make a new daily low is the first step in a bullish
reversal.
Notice the red candle above highlighted with the yellow arrow.
Can you see the stock failed to make a new daily low? Also notice
this happened in the past. Look 8 candles back and you will see it
also failed to make a new daily low however the stock ultimately
continued down.
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Step 2. The second step is when the stock forms a reversal candle.
The two most common types of reversal candles are bottoming tail
candles and bullish engulfing candles.
Step 1 and Step 2 are interchangeable and can sometimes occur on
the same day.
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Step 3. First green bar on the heikin ashi chart at the close of the
day. Most of the time its clear what color the heikin ashi candle will
close, however on more volatile days the heikin ashi can flip back and
forth. This signals indecision in the stock.
Step 4. First green bar on the MACD. This often happens when
AAPL’s and GOOG’s momentum to the downside is starting to slow.
This signals a bullish move could be about to start.
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Step 3 and Step 4 are interchangeable and can often occur on the
same day like in the above example.
Step 5. The 5 DEMA crosses above the13 DEMA. This signals a pick
up of momentum and a possible bullish move coming.
Step 6. The 2nd green heikin ashi candle signals more bullish action.
If the 2nd green heikin ashi candle goes above the high of the first
green heikin ashi candle by 15 cents with AAPL and 1 dollar for
GOOG then the bias at this point is bullish.
Step 5 and Step 6 can often occur on the same day as in the
example screen shot above.
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Step 7. The MACD lines flip over and cross to the bulls. This is often
the last thing to happen. This signals longer term bullish action.
AAPL and GOOG both move up and down in these cycles. Most of
the time they show us the above 6 steps before, during and after a
cycle. Most cycles can last 4-8 days on average. Longer cycles can
last 8-12 days, and super cycles can last 12 days -16 days or more.
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Bonus: A longer term way of looking at momentum on 3-6 month
swings is by looking at the 20 and 70 Moving averages and treating
them similar to the DEMA’s crossing above. The 20 crossing the 70 to
the downside is a very bearish signal.
In the chart above I highlighted the 7 times this happened in the last 5
years. Avoiding getting long during these periods ( or hedging) will
save you a bundle.
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Bullish Strategies
Here is a quick list of 8 Bullish Strategies you can use during bullish
pay day cycles. Notice some of the strategies are for neutral to bullish
markets and some of the strategies are for very bullish markets.
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Please reference the Apple Investment Strategy Guide for more
information on these 8 strategies.
Download Free Guide Here —> Apple Investment Strategy Guide
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