The ONE thing that makes options traders profitable.

I observed long ago that traders tend to move much like a herd of cattle.

Cattle tend to stay in tight bunches for long periods time.  Traders do the same.  Traders tend to buy in concert with each other and sell the same way.  

One of my heroes is a woman named Temple Grandin.  She single-handedly changed the cattle industry. 

Now before I lose you, understanding how the herd moves is the one thing that makes options traders wildly successful.. Watch through the end where I'm going to show you a real world example from last week!

Temple had a severe form of autism and through a series of events in her teens and early 20’s began to relate elements that calmed her autism to herd behavior of cattle.  The same techniques that calmed stressed cattle worked well for autistic people.  She changed the way we handle cattle raised for feed.  Temple is my hero for many reasons - she overcame her disability, she found a voice in a 100% male dominated industry and she never gave up against huge odds.

I was hooked.  Having been raised around cattle I, too, began to study herd movement for fun.  It was fascinating to me.

The reason I mention this is I have taken the study of herd movement and related it to the movement of the stock market.  

Think of cattle.  One cow lifts her head and ambles off and pretty soon the whole herd will look up and start following along.  That’s when it is calm.  A stampede works the same but it more violent in nature.  Instead of ambling along , the herd is running in full bore.  Much like panic selling of traders.

While I do look at indicators and studies for my trading, I am much more apt to watch the herd.  I wait for just one cow to start a movement.  This puts me days and weeks ahead of when an indicator will flash a signal to trade. 

But how does this play out practically? Here's what I saw last week.

Since the beginning of the year, the Market has been going up with occasional small pull backs.  This is how a strong and healthy Market looks.  The small pull backs are called bull flags and should not be alarming to the knowledgeable traders

This last week, however, the old herky jerky movement reared its ugly head again.  This is where I go on alert.  Things may be changing

Now smart and savvy traders know not to panic with knee jerk trades when this happens.  Rather wait they wait see if this is a rollover or merely a resting place.

I actually draw a Line in the Sand and say to myself if the price breaks through that line, start to change your approach and find different styles of trades that may work better.

Spotting these changes early leads to better and smarter trades.

How do you acquire these herd watching skills. If you are new to trading sign up for our Options Trading Crash Course.  You’ll get your feet wet and will begin to understand all the possible ways to look at the Market and what strategies work best in each market condition.

If you have been around trading for a while and want to up your skills, our Options Trading Millionaire Membership has a lot of deep dive education as well as weekly coaching!  Our education is so good that several other sites I was once affiliated with are still using my techniques.  I feel honored but I still think it is better to get your information right from the source

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