I live nowhere near Wall Street—my husband and I actually used to operate a gift shop in a quaint little town called Asheville, North Carolina.
Our gift store was successful, and we always envisioned it as our retirement plan… until one day, disaster struck.
A heavy storm hit our area, and our shop was completely flooded—everything lost, and we had no flood insurance. We were in trouble.
So while I began looking for new ways to make money—a friend introduced me to options trading. Somehow, it just made sense to me, and I got really into it.
Actually, more than that… I became obsessed!
I started reading books, watching financial news, taking courses… Most surprising of all, I got really good. I was beginning to make more money trading than we had ever made in our gift store, so I decided to pursue it full time.
In 2009, I wrote Options Trading in Your Spare Time after successfully trading options for approximately 7 years. I LOVED that my book helped so many people achieve financial independence through trading, just like I had.
In 2010, I created something called the P3 System, a strategy that zeroed in on a chart pattern that pinpointed when a stock was ready to significantly pop up in value.
So while I searched for this guaranteed trading pattern, looking through 1000’s of stocks for the newsletter that accompanies the P3, I had one of those “duh!” forehead slapping moments.
Why? Because I couldn’t believe I missed seeing something so obvious—something that was right under my nose since I began trading 7 years ago.
My Accidental Discovery…
Let me explain. Back then in my beginning option trading studies, I learned about three trading vehicles.
I have taught hundreds of traders about these three instruments to trade:
2) Indexes, and...
3) ETF or Exchange Traded Funds.
Stocks are obvious; Apple Inc. (AAPL), Google, Pfizer and thousands of others fall into this category. This is where I focused most of my attention during those early trading years.
Indexes are usually funds based on something larger. An example would be the S&P 100 Index (OEX) which is based on only 100 of the top S&P stocks or Volatility Index (VIX) which is a summary Index of the S&P 500.
ETFs, on the other hand, are a basket of stocks that often have a theme or connection. A medical ETF might incorporate stocks from cancer research, medical supply and billing, hospitals, nursing and hospice care companies. Other ETFs might be sector or industry related.
The first ETFs I learned about in those early years were the SPY, DIA, and QQQs. The QQQs is a type of ETF that is essentially a collection of stocks based on a major indice, the NASDAQ.
Embarrassingly, I’d see the scrawl of the QQQs run across the TV screen as I watched the tickers and think, okay, so the QQQs closed up .06 cents for the day. So what! A volatile stock like Apple offers daily moves up or down that can range anywhere from $1‐10... with huge profit potential.
And so for 7 years, I traded options on those stocks almost exclusively. Then one day as I was backtesting the P3 System squeeze pattern on stocks and ETFs in different time frames, I made a huge yet accidental discovery…
What I discovered in that moment was that the QQQs have a combination of special elements that make it both lucrative and steadier than most other forms of options trading! I appreciate your time and as always, I wish you the best,
In 2004 when Hurricane Frances and Ivan brought a deluge of rain down to flood our family's gift shop, I had no idea the events would help me to redefine myself. At age 54, I started on a journey that changed my life and our family's financial circumstance.
During the time that the shop was drying out, I took the money that had been set aside for the electric bill (when the electricity was finally turned back on) and I paid for short series of option trading classes. I was bit by the bug and knew right away that option trading was a good fit for me.
It didn't take long for me to discover that Wall Street was an elite "boys" club where a woman and common everyday trader was not allowed access or taken seriously when it came to trading. Books and trading materials were written to intentional make the information seem like a foreign language that only a few with financial college degrees could hope to understand.
I spent a couple years decoding the information; stripping away the wheat from the chaff; discovering the important trading nuggets and tossing out the information that was intended to confuse.
There came a point when I finally was winning more trades than I was losing and I knew that I could teach others to use option trading as a way to achieve financial independence. If it could so drastically change my life, it could change others.
My first intention was to help other women take part in this exclusive area of trading that was dominated by men. I wrote Option Trading in Your Spare Time: A Guide to Financial Independence for Women.
It wasn't long before I found that despite the bright pink cover that hard working men who were "men enough" to carry around a pink book and they wanted to achieve financial independence, too.
From then on, my personal goal and teaching efforts were directed to the everyday person who needed to change their financial circumstances.
I heard from many Pink book readers who asked for more trade information about a pattern called the Squeeze. In the Pink book I mentioned that it was a "guaranteed" trade pattern that showed when an equity was going to move up in price.
Guaranteed - hmm - that word drew a lot of attention. Profit Probability Potential was possible by a trader who could visibly see when an equity would head up. This squeeze pattern jumped out at me, not because I was an expert chartist, but because I was an artist. For 25 years in our gift shop, we sold my paintings and realistic decoy duck and bird carvings that my husband and I created. My brain was wired for patterns and design.
This is another aspect that set me apart from Wall Street type of traders. So I wrote the P3 System. The book concentrated on the squeeze pattern and how to trade it. The book covers pattern details, including specific entry and exit alerts and signals.
For years traders asked me about a pattern that would show expected bearish movement of an equity. They wanted a pattern that was as clear and easy to follow as the P3 squeeze, but a pattern that could be used to buy puts and short equities. Finding this pattern was as elusive as a heat lightning playing among July clouds. Finally in late 2013, I discovered what I had spent 3 years searching for and what traders were requesting. The P3 ½ pattern is as easy to spot as the P3 Squeeze pattern, but shows when an equity is getting ready to drop and not just slip down a little, but when it is ready to fall off a cliff. This short pattern gives traders the opportunity to purchase puts or enter a short trade and then watch it flow through the pattern stages just like the P3 squeeze pattern. These stages indicate: entry, stop, second entry opportunity, when you can relax, and exit. With the addition of this pattern, you will be able to ride an equity up as the P3 squeeze pattern plays out and then know exactly when it is going to rollover for the next big price drop. Short patterns have to be caught quickly because downward movement gathers momentum that escalates its speed. You want to know with certainty when to enter before the downward momentum starts, not try and catch the falling knife once it tumbles over the edge.
One day all the pieces fell together and the T3 pattern was born. So now traders had a system to trade both side of the market.
When Weekly Option expirations were introduced to the trading community there was a great deal of excitement. My readers asked for a simple strategy, based on basic trading principles to trade this new trading vehicle. They wanted a strategy that was easy to utilize that would help eliminate hesitation brought on by too many indicators to consider when it was important to be able to enter and exit quickly.
The Wealth Building book filled that need. The strategy is based on trend line breakout, breakdown and support and resistance as well as pivot points. The chart set-up clearly shows these entry and exit areas. There is a weekly newsletter that lists stocks that a likely to have a large upcoming move.
It didn't take long for traders who were enjoying all the benefits and leverage of weekly option expirations in the Wealth Building strategy to ask for a way to apply the P3 squeeze pattern to intraday charts so they purchase weekly expirations.
At this time, I discovered a new short trade pattern. It used the same indicators as the long squeeze pattern. The Price Surge System book covers both the long and short patterns. After finding and trading the squeeze pattern for several years, I discovered that every squeeze goes through 7 stages. These stages are covered in great detail, so that a trader can look at a chart and know exactly where the pattern is in its unfolding process.
This knowledge allows a trader to consider a second entry point and also areas where he can hold a trade, knowing that the equity is likely to recover quickly from a quick pullback. This keeps a trader in a trade that he might otherwise be shaken out of, only to have the price recover within a candle or two.
More and more everyday people want to learn how to change their finances. Stress-Free Wealth Building takes a trader who is totally unfamiliar with the stock market and takes them through the basics. It builds layer upon layer until they have a good grasp of not only the financial aspects of the market, but they also understand chart indicators, chart reading, chart patterns, option chains and several trading strategies.
This book builds an option trader from the ground up, covering all the needed information so they have a good grasp of option techniques. A trader can virtual trade and practice until they are ready to commit real money.
I often hear traders say that among the thousands of stocks and equities available to trade how do you select the ones to trade. Merit Paycheck focuses on just one equity: the QQQs. The patterns covered in the book apply to a variety of time frames so that there is always a trade on just this one equity.
The QQQ traded in a number of different time frames become a personal ATM where daily/weekly withdrawals can be made based on quick profits on low investment trades. This strategy is designed for a trader with a small account but can be traded by traders with more substantial funds to invest.
It is easy to feel overwhelmed if you allow yourself to think of the stock market as an abstract and baffling concept, we found it helpful to think of the market as a living being. Instead of thinking of it as being comprised of mathematical equations, it’s made up of companies (including their stock and its products or services, employees and associates) that move around in groups. As a living entity, the market: inhales, or expands, and exhales, or contracts, and at times it holds its breath.