What is StockSignals?
StockSignals is an independent stock options signal service. Members can easily copy our option trades. We use options, to profit in both directions and for leverage.
What do I get as member of StockSignals?
We scan Wallstreet (Nasdaq, Dow Jones, SP& 500 companies) for new option trades. Our trades have a duration of 1-7 days.
We do between 0 and 3 option trades per month, depending on market conditions.
If we made an option trade, we send you which kind of option trade we have made and our stop loss and price target.
At the end of each trade you receive by e-mail our profit or loss.
How does StockSignals know when to enter and exit a trade?
We look at technical analysis of stock prices and statistics. Histery shows there are price patterns behaving the same way over and over again. When we see a clear pattern again, we open our trade. We do not look at fundamental analysis as the trades have a short duration.
What are the profits or losses on your signals?
In uptrends with stocks profits can go up to 5% per swing trade. On option trades profits can go up to 100% per trade
There will also be trades with losses. We recommend to use good Money Management.
How does the Stop Loss work?
To minimize the losses, we recommend you use our Stop Loss level, which we communicate in every trade. Best is to look at the end of day price, if the price at close meets (or is going to meet) the Stop Loss price, then get out.
How much money do I need to use your service?
I does not matter how big your account is, this service works for small and big accounts.
As a rule of thumb use maximum 10% per trade of your account for this service. For example if you have 20K then use 2K per trade.
Do you guarantee to make profit each trade?
We strongly recommend to set a Stop Loss and Profit Target on each trade. We are an independent information service, not a broker or bank. We don't guarantee a trade will make a profit. Trading is a high risk investment. We can't predict facts like news and politics. Our methodology is to search for 1:2 Risk Reward trades, meaning you risk 1 USD to make a profit of 2 USD. In this way you could make profit with a minimum of 50% winning trades.
What is the pricing to become a member?
Our monthly membership fee is 99 USD. We renew automatically your membership monthly. You can cancel your membership by e-mailing to email@example.com. When you cancel you pay till the end of the current period.
How do I receive the signals?
You receive an e-mail which option trade strategy we have done, you can copy our trades.
What kind of stocks you alert on?
We alert on stocks of big Wallstreet companies listed at NYSE, NASDAQ or Dow Jones. We choose for bigger companies, because options and stocks of big companies are more liquid, so you can buy and sell them more easily with a good bid and ask spread.
Examples : Google, Apple, Microsoft, Netflix, Alibaba, Amazon, Verizon, VISA, Walt Disney, McDonalds, Nike, Morgan Stanley, Starbucks, JP Morgan, Tesla, Paypal, etc
We don't send signals for forex, cryptocurrencies or penny stocks.
How do I trade?
You need to have an account at a bank or broker and allowed to trade on options. Search for a bank or broker in your country. Big brokers for stocks and options in the United States are Ameritrade, Etrade and Interactive Brokers.
Can you explain quickly how to trade options and what your trade means?
The advantage of trading options over stocks is the possibility of higher gain in shorter time and also the possibility to profit when the stockprice goes down.
We signal you which option we have bought.
Example of an option trade : LULU C 18 JAN 2019 135,00 @ 12,50
LULU = Ticker (company Lululemon)
C = Call Option (if you buy a call option, you expect price will go up)
18 JAN 2019 = expiry date, after that date the option has no value, so sell it before this date. We recommend to use average 5 weeks from today when entering a trade due to time decay mostly when arriving at expiry date.
135,00 = Strike Price. In your trading platform you see a lot of strike prices. We recommend to buy at the money options (Actual price is around Strike Price) or slightly in the money options (Current price is a bit above the Strike Price). This is because of high possible reward.
@12,50 = The price (USD) per option. 1 option contract is always 100 options. So your investment is 100 x 12,50 = 1250 USD plus brokerage fees (usually between 1 and 3 USD per contract, so around 2 USD). Option prices change every millisecond during market opening hours and depends on bid and ask prices at this moment. Bid is what people are willing to pay, Ask is what sellers are asking for the option contract. When Bid and Ask meet, then there is a trade.
When you sell your option later for let's say 25 USD per option, then your profit is 25 x 100 = 2500 minus 2 brokerage fees buying minus 2 fee selling minus 1250 investment = 1246 USD profit on an investment of 1250. The stock was up for let's say 5%, but the call option 99%. This is what we mean by leverage.