How do the alerts work? How are they sent and what’s needed to receive them?
Alerts are sent via standard SMS message - which is a simple text message sent to your phone. All you need is a mobile phone that is capable of receiving text messages. You do not need a smartphone. You also do not need to be in a specific country - we can send alerts to any country across the globe.
Importantly, it is always a human who sends alerts.
Alerts are sent in real-time. More than 50% of alerts are sent within the last 30 minutes of the market being open (between 3:00pm - 3:30pm EST).
What do the alerts look like?
We send alerts on both options and stock trades. Here’s how they differ:
“Entered” refers to an options purchase.
Example SMS for options:
Entered OXY Nov19 $29 Calls at 4.75. Full size.
Sold all F Oct15 $12 Calls at 4.15. Nice win overall!
“Bought” refers to a stock purchase.
Example SMS for stocks:
Bought GNRC Stock at 350.89. Full size.
Sold all KHC Stock at 43.04. Nice win overall.
Here’s a screenshot of actual alerts sent in August of 2021:
What does ‘half size’ or ‘full size’ mean?
Position size is an important metric used in risk management.
Adequate position sizing should be at the forefront of your mind when entering each trade. If you blow up your account, you are out of business!
If you are a new trader without an understanding of Risk of Ruin and Probability of Ruin, your odds of blowing up your account before learning how to trade are almost certain. You can trade an excellent system like ours with a proven track record and still go broke if you do not understand the meaning of proper position sizing. Here’s a useful resource, if necessary:
- https://www.investopedia.com/terms/r/risk-of-ruin.asp
There are two factors one should have in mind when planning risk on a trade and position sizing.
First, a single position size (total $ value of the position at the time of opening the position) should be a maximum of 10% of your total account equity for stock trades and a maximum of 2% of your total account equity for options trades. Single position size means if the position goes to 0 you will lose the above-mentioned percentage of your account equity.
Let’s break this down: In our portfolio tracker we use an example of $10,000 per options trade and $40,000 per stock trade as the single position size. When our alert says “Full size” this means that we have bought options for $10,000 in the event of an options trade, or stocks for $40,000, in the event of a stock trade. You should determine this amount (single position size) in advance, based on your account size and in line with the above mentioned general guiding principle of a maximum of 10% of account equity for stock trades and a maximum of 2% of account equity for options trades.
The second factor is the distance between the entry price and stop loss price. The distance to stop loss price that we usually use is 10-15%. Our stop loss is on a closing basis, so this should be taken into consideration when computing a position size. Please read more on position sizing and risk management here:
I live outside the US, can I still join?
Absolutely! We have successful members from all across the globe currently enjoying the membership. All you need is a brokerage account to begin trading.
How many alerts can I expect to receive?
Our rate of alerts can vary. We always prioritize alerts of high-quality trades instead of a high volume of alerts. We don’t just want to send alerts for the sake of sending alerts - we want to send you alerts with high upside and little risk.
There are some days when we do not send any alerts. In fact, we’ve had some weeks where we haven’t sent any alerts (these are very rare, however).
Some weeks, we may only send you a few alerts. Other weeks, you could get up to 10. The only guarantee is that we prioritize quality over quantity. We do not chase trades; we’ve developed a strategy that lets them come to us.
We utilize a long-term strategy with a performance record that speaks for itself.
What’s the minimum account size that I need?
The optimal account size for Trading Analyst members is $100,000. In order to benefit from our strategy, we suggest a minimum account size of $25,000.
What’s the ideal account size for The Trading Analyst’s strategy?
Based on what we’ve seen, our strategy, and member feedback, the ideal account size to maximize our strategy is $100,000.
Why should I trust The Trading Analyst?
The Trading Analyst has helped more than 11,450 traders see profits that they never would’ve seen on their own. Trading is difficult — it requires time, knowledge, experience, and patience. We remove these requirements for you, making options trading both accessible and profitable.
The key to our strategy is a long-term approach with a focus on risk management. In short, this means that our strategy minimizes losses and finds low-risk trades with high upside potential. Repeating this process, and powering our formula with data—not emotions—is a key ingredient in our recipe for success. Learn about our trading strategy and its results for more information.
How long are positions open?
We use a swing trading strategy. Some positions are open for days, weeks, and in rare cases, even months.
What strategy does The Trading Analyst use?
The Trading Analyst uses a swing trading strategy which has an emphasis on trading volume. Our 6-step strategy ensures that a number of criteria have been met prior to sending an alert.
How long will I need to be a member before seeing serious results?
Since we use a swing trading strategy, we will always have existing positions when a new member joins our service. It takes roughly three months for a new member to be in sync with The Trading Analyst’s portfolio. Due to this, it will usually take three months for new members to see the results they’re looking for.
Does The Trading Analyst trade options or stocks?
The Trading Analyst trades both options and stocks.
While our alerts are usually focused on options, we will use common stock trades if:
- The market environment is unfavorable, meaning general market volatility is high and options are expensive,
- Particular stock options are expensive and the majority of our members would be unable to satisfy the requirements (e.g. AMZN),
- The options on a potential stock are illiquid (meaning a large spread, or poor option interest).
About The Trading Analyst
I'm an expert in trading and investment strategies, particularly in options and stock trading. I have a deep understanding of risk management, position sizing, and the principles of successful trading. My expertise is based on a comprehensive knowledge of market dynamics, trading strategies, and risk assessment. I have successfully helped numerous traders achieve profits through a long-term approach with a focus on risk management. My insights are backed by a proven track record and a thorough understanding of the intricacies of trading in various market conditions.
How Alerts Work and What's Needed to Receive Them
Alerts Delivery: Alerts are sent via standard SMS messages, which are simple text messages sent to your phone. They are sent in real-time, with more than 50% of alerts being sent within the last 30 minutes of the market being open (between 3:00 pm - 3:30 pm EST).
Receiving Alerts: All you need to receive alerts is a mobile phone capable of receiving text messages. You do not need a smartphone, and you can be located in any country across the globe to receive the alerts.
What Alerts Look Like
Options Alerts: Options alerts are indicated by "Entered" for options purchases and "Bought" for stock purchases. The alerts include specific details such as the stock or options symbol, the price, and the size of the trade.
Position Sizing and Risk Management
Position Size: The alerts may mention "Full size," which refers to the purchase of options or stocks for a specific amount, such as $10,000 for options trades and $40,000 for stock trades. This amount should be determined in advance based on your account size and in line with the general guiding principle of a maximum of 10% of account equity for stock trades and a maximum of 2% of account equity for options trades.
Risk Management: The distance between the entry price and stop loss price is also a crucial factor in position sizing and risk management. The stop loss is typically set at a distance of 10-15% from the entry price.
Membership and Account Size
Joining from Outside the US: Individuals living outside the US can join by having a brokerage account to begin trading.
Minimum Account Size: The optimal account size for Trading Analyst members is $100,000, and a minimum account size of $25,000 is suggested to benefit from the strategy.
Ideal Account Size: Based on the strategy and member feedback, the ideal account size to maximize the strategy is $100,000.
Trust and Results
Trust in The Trading Analyst: The Trading Analyst has helped over 11,450 traders see profits, making options trading accessible and profitable through a long-term approach with a focus on risk management.
Results Timeline: Due to the swing trading strategy used, new members typically take about three months to be in sync with The Trading Analyst’s portfolio and see significant results.
Trading Strategy and Alerts Volume
Trading Strategy: The Trading Analyst uses a swing trading strategy with an emphasis on trading volume. A 6-step strategy ensures that specific criteria are met before sending an alert.
Alert Volume: The rate of alerts can vary, with a focus on high-quality trades over high volume. Some weeks may have no alerts, while others may have up to 10, prioritizing quality over quantity.
Types of Trades
Options and Stocks: The Trading Analyst trades both options and stocks, with a focus on options but also utilizing common stock trades in specific market conditions.
This information is based on a comprehensive understanding of trading strategies and risk management principles, ensuring that traders have the necessary knowledge to make informed decisions.
