I want to take some time to address some common questions from subscribers over that last few weeks.

1st- I am strongly against chat rooms as I feel they are NOISE and a distraction to those traders who are trying learn and understand my trading methodology. I appreciate those who like to chat with others about their trades, but I do not feel it is constructive with FCPS

2nd- I try to post my personal trades on twitter during the available time I have each day. Please understand that I am dedicating much of my time to the service with research, charting, debriefs, posting, answering questions and consulting. If I can not post my trade real time, I avoid posting it. Posting after the fact is not valuable to anyone, this is why I spend so much time researching the charts to prepare you for the entries. I have said this many times, but if you are just focusing on my personal trades you are missing the true benefits of the service

3rd- I enter all my trades manually with no automated executions. If there is a wide spread on the options, I will often try to split the difference more aimed at the offer (.i.e.- April 500 calls bid 9.50 offer 9.80, I will place limit order 9.70 first, before I pay up to the offer)

Many subscribers have told me that Interactive Brokers offers options that will execute off the underlying equity price. I use Think or Swim and am very comfortable with their trading platform.

4th- There should be no concerns that FCPS subscribers will drive up a specific stock or option price to be unable to capitalize on the moves. 99% of the subscribers are retail traders which can not move a market.

5th- I do not “rate” my charts for a reason. You should allocate all trades with similar risk and not base them on a ranking system. That is how you swing and miss big! Unfortunately, I do not know which stocks will outperform, as nobody can predict the market. My trading methodology tries to put the odds back in your favor with higher probability price structure patterns, using defined risk management.

6th- There should be no concerns about FCPS becoming “too big”. I have reached my target number of subscribers and am now only looking to maintain. In this industry, there is great turnover and it is near impossible to please everyone. It is inevitable that my number of subscribers will fluctuate throughout the year, with many newbies not understanding risk management. If you are too aggressive with your trading you will eventually losing everything. If you are struggling with keeping trades on because you are nervous, then reduce your trading size.

7th-A few of you are struggling with remember stocks that are still setups (opportunities that have not engaged yet). I will now provide an updated spreadsheet for you (attachment enclosed), which list the stocks with their engaged prices. I do not list targets because these can often limit your upside potential…… (i.e. – FAS & GOOG both exceed my mental targets but they kept paying us weeks 1 -6)

2 thoughts on “Common Qs”

  1. Hi David,

    Just subscribed. You explain an ideal profit target is 1.5x your stop loss amount. For example, your current MNST trade idea is entry at 97.10 and stop loss at 92.14 = 4.96. So can we say the profit target can be 104.54 (4.96 x 1.5)? thank you!

  2. We (FCPS) do not use profit targets, as they limit your upside. FCPS uses the scaling method and we ride our winners with runners (infinitely). In addition, when stocks reconfirm price strength, we ADD to them. Adding to you winners is very critical.

    Thank you for the question.

    FCPS

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