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Theory
No portion of this manual may be copied or reproduced in any form without written permission.
For more information contact: NaturalWaveTT@Gmail.com
Natural Wave Trading Theory 2
DISCLAIMER:
The opinions expressed herein are based on our judgment and our experience of
commodities, futures and options. We do not guarantee that profits will be
achieved, or that any losses will be incurred. These opinions should not be
construed as an offer to buy or sell commodities. Commodities and futures
trading involves risk and is not necessarily appropriate for all investors. Past
performance is not necessarily indicative of future results. Consult commodities
professionals before placing real trades.
Natural Wave Trading Theory 3
THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER
SIGNIFICANT ASPECTS OF THE COMMODITY MARKETS. YOU SHOULD
THEREFORE CAREFULLY STUDY ADVISOR’S DISCLOSURE DOCUMENT AND
COMMODITY TRADING BEFORE YOU TRADE INCLUDING THE DESCRIPTION
OF THE PRINCIPAL RISK FACTORS OF SUCH INVESTMENT.
Natural Wave Trading Theory 4
CONTENTS
INTRODUCTION ……………………………… 6
INTRODUCTION
(1)
But it wasn’t until the 20thcentury, especially the second half, when
trading became available to anybody who wanted to turn a profit
from the “price” fluctuation. The idea was old –buy low and sell high-
but because of the regulated nature of exchanges it gained a new
foundation. The rules were known now and information was available
not only to the “chosen ones” but also to an ordinary person, such as
you or me. It became possible for a small investor to compete in the
“ultimate game”, wherein fortunes could be instantaneously
generated and lost within minutes.
(2)
How do I know that you are frustrated with your progress in trading
commodities, futures and options, and that you’re maybe looking for
an ultimate business? Well, you probably wouldn’t be reading this
otherwise.
(3)
I think I know what you are thinking now (about the Natural Wave
Trading Theory manual): Is he cutting the branch he’s sitting on?
Or to put it differently: What sets the Natural Wave Trading Theory
manual apart from the previously mentioned author who wrote “My
Course”?
1. GETTING STARTED
(1)
But let’s get started at the beginning. What is the most likely
scenario to occur when you first begin pondering the idea of trading in
commodities, futures and options markets? In all likelihood, you are
going to search the World Wide Web and the Internet for any
information that is related to trading.
There are also some major data providers – like Future Source
(www.futuresource.com), or Quote.com for example – that can
provide you with free comments on different markets in conjunction
with free quotes and charts.
The reason I’m even mentioning this is because, yet not so long
ago, there were some brokerages that used to charge as much as
$340 a year for the same information that you could get for free on
dozens of sites.
Natural Wave Trading Theory 11
(2)
The next step is to find your own broker or Account Executive (if
you prefer this expression).
You may ask: Do I really need a broker, if I can place orders on-line,
directly with the exchange? Well, you’ve got a valid point here.
However, let me explain the importance of having your own broker in
the process of trading.
Let’s assume that you are placing an order on-line. You press the
“Enter” button and … nothing happens. Your screen is frozen. You
are trying to “Escape”, but you are stuck. The perspiration droplets
are forming on your forehead. And to add even more drama to this
burgeoning nightmare, the market in which you are trying to place the
order, is going to close in just five minutes…
What are you going to do?
Call 911?
No. You are going to call your broker, even though you may not
have very close rapport (and you don’t have to) with him/her.
The important thing here is that you have “somebody” to call when
you need help. This is why it is so important that you find a broker
and a brokerage house that you feel comfortable with for whatever
reason.
Even though you might be trading on-line, you still need a
brokerage through which your orders are being placed.
…….Of course, if you buy a seat on the exchange for a few hundred
thousand dollars, you don’t need any brokerage house.
When you have a broker, you may decide that you prefer to place
your orders through him/her, as opposed to on-line. For if you are
not a very seasoned trader you might be trying to place a bad order
(wrong price, wrong contract month, etc.), and if your broker is any
good he/she can catch it, and by doing so help you to prevent a
costly error.
When you choose a broker, it doesn’t mean that you have to listen
to his so-called “recommendations”. You can simply say that you
prefer he keeps his recommendations to himself. Most brokers are
professionals and will appreciate your directness.
(3)
Well, if you really know what you are doing you can go with a
discount broker. You can find places that will charge you only $ 15 to
$ 20 per round turn commission. (Or even $5-10, if you trade
electronically).
On the other hand, if you are not 100% “confident” choose a full
service broker. This way you probably won’t “get lost in the shuffle”
and you would get full attention when you need it.
Some years ago there was a big gap between these two types of
services (full and discount). But in today’s trading environment you
can locate many professional full service brokers that will charge you
only $ 30 to $ 50 per round turn commission.
Also you may need somebody to bounce your trading ideas off of,
and in this scenario a full service broker could come very handy. Do
you really think that most of the discount brokers would give you the
time of day?
I’m not suggesting you obtain a full service broker so you can
have a friend (although I’ve seen this happening as well). I’m just
proposing that you find “your broker”, who is somebody with the
possible potential to become a vital part of “your team”- - - somebody
who can help you and somebody that you feel comfortable with. You
can also ask your friends if they’ve come across a friendly,
knowledgeable and professional broker. I’m sure that many of your
friends and colleagues have dealt with some more or less
“interesting” account executives, and probably they would be more
than happy to refer them to you.
Natural Wave Trading Theory 13
(4)
Next thing you need is risk capital, which is the same as trading
capital. (The “risk capital” simply means that you can lose it without
any financial distress and that your life style will continue as before).
How much do you need to start your trading account? Well, let me
ask you this: how much do you have?
Your chances of success are greater if you have twenty or thirty
thousand US$ as an initial trading stake. The reason for this is so
you’ll have enough cushions to sustain an adverse price action, and
still remain in the game. On the other hand, if you are very lucky, you
could possibly become a very successful trader while starting only
with $ 2000.
I do recommend starting the account with whatever you can
afford (to lose). Make sure that you don’t borrow any money for this
purpose though. You don’t really want to have an extra “debt” stress
on your mind. This situation (the need to return the borrowed money)
could be compelling you to trade, making you see an “opportunity”
where none really exists.
The other end of the spectrum: even if you could start your
account with millions of dollars, start with only $100,000 (even if you
were a so-called “experienced” trader in the stock market, for
example). It is very easy to get carried away by your own or your
broker’s imagination. You may end-up taking too many positions even
for your account size (over-leveraging), which could have quite tragic
results for you.
There is nothing wrong with adding more money to your account
later on, when you’re thinking straight and with a cool head. After a
test drive, you can take the plunge with more capital, when you feel
more comfortable with your initial progress.
But no matter how much money you initiate your account with,
remember at least one thing (even if you forget all others) that this
money must be only risk capital (money that you can afford to lose –
which does not mean that you want to or have to lose). You don’t
want any loss to affect your life style or cause you any undue
financial distress.
Natural Wave Trading Theory 14
Also from the psychological point of view, if you trade with money
that you cannot afford to lose, you are destined to do a lot of “bench
sitting”, while genuine trading opportunities are passing you by…
Natural Wave Trading Theory 15
It is also true that the same leverage that could potentially lead
you to significant returns could also become the source of your
nightmares. A lot of fortunes have been lost because of this kind of
leverage. In other words, as a trader you constantly walk the thin line
between risk and reward.
If you are an experienced trader you can skip this and next
chapter and go to the “heart of the Natural Wave Trading
Theory”. On a second thought, you could come along for a ride.
Maybe you could learn something new…
So, what’s a big deal about the leverage anyway? Well, let’s take
a closer look.
X
5,000---bushels
_____________________________________
Other words, if you expected that corn prices will go up, and if
commodities exchanges didn’t exist, you would have to come up with
$ 10,550 in Cash (!) in order to purchase 5,000 bushels of Corn (and
if you of course had the room to store it). Theoretically speaking you
could hold on to it forever. And even if Corn price declined to ZERO,
you could wait for as long (providing that the corn is not going to
spoil) as necessary for the prices to recover, and go up again to 211
or beyond. Just remember though that through the whole “waiting
period” you would be tying up the entire $ 10,550, and you would
worry if Corn can be preserved in good enough conditions for the
future resell to somebody else. And of course later on you would
have to convince the buyer to buy from you the “old crop” as opposed
Natural Wave Trading Theory 17
to the “new crop” that is readily available (most likely) from another
seller.
Let’s continue our Corn Story with an assumption that Corn prices
eventually recovered after…let’s say… 1 year later, and went to 241.
At that point you’ve decided that it was time to get rid of your Corn,
and you were lucky enough to sell the whole 5,000 bushels at 241…
So… a quick calculation, and you realize that you made $ 1,500
profit [$ 2.41- $ 2.11 = $ 0.30, times 5,000 bushels = $ 1,500].
“Not bad”, you say. I say: it is only 14 % return, for this much
headache for the whole year (!).
No, I’m not. In order for you to trade on the Exchange one contract
(5,000 bushels) of Corn you need only $ 675 an initial margin (this
amount could vary, pending CBOT’s decision, but over the years it
remained within a few hundred dollars range). This $ 675 is nothing
more than a good faith deposit, which means that if you make
money on your trade, this $ 675 will return back to you on top of the
profit you had made.
If market went from 211 to 241 and you got out of your
long position -you were “riding” the market- you would be
paid $ 1,500 profit. Your original $ 675 deposit is called: Initial Margin
Try to imagine than how much Corn you could control with $
10,550:
Natural Wave Trading Theory 18
Example:
Let’s assume that you opened your trading account with $ 5,000.
You are looking at the Corn Daily Chart that looks something like this:
(I’m not going to spend much time here to analyze the chart
formations. Later on, it will become more apparent: why (?). If you are
“hungry” for more information on the commodities markets, please
refer to a classic by John J. Murphy: “The Technical Analysis of the
Futures Markets”. It is well written and could be understood even by
the novice trader, and it gives very comprehensive overview of
different chart formations.)
You are expecting that Corn prices will go up. They do go up and
you:
5. $ 2,975 (?)
6. Not quite. You have to subtract the commission cost. If your
Round Turn commission is $ 50, you will be paying a half of it
($ 25) to initiate this trade- $ 25 x 3 (contracts)=$ 75.
7. So you have left not $ 2,975 but $ 2,900. (Don’t
confuse this amount with your account balance, which would be
about $ 4,925).
8. Next day Corn market goes to 234, but you decide to remain in
your position overnight. What would be your account balance after
market closed at 234?
So now you tell all your friends how much money you are making,
and how easy it is to trade commodities…
Natural Wave Trading Theory 21
But what you are forgetting is that you are still in the market and
you still holding on to your original position, and that money is not
yours until your close your position.
Limit move means that the market cannot move more than the
specified distance. In Corn this distance is -let’s say- $ 600 or 12
cents (unless exchange changed that amount to 20 or 30 cents, due
to increased Corn market volatility). In some other markets this limit
will be different. Yet some other markets don’t have any limit.
So from 234, Corn goes down (through your stop loss @ 229):
During those three trading sessions you were not able to exit your
position, because there was no active trading going on in the Corn
Pit.
negative or “upside down” (you lose more than you started your
account with).
Luckily for you, your prayers are answered, and on the Forth Day
the Corn market opens @ 196.
Your stop loss of 229 is triggered then, and it becomes a market
order. You are stopped out @ 196.
234-196=38,
38 x 3 (contracts)=114,
114 x $ 50 (point value in Corn)= $ 5,700.
When Corn was @ 234, your account balance was $ 6,425. And a
few days later when you “got out” of the market, you balance is:
Chances are that after this “roller coaster” ride in the Corn market,
you will call your broker and close your account.
Don’t praise the day before the sunset, or putting it differently, don’t
spend your money, while still in the trade.
Knowing this is worth money. For if you are going to treat trading
as business, you need to take advantage of everything that could
increase your odds of success.
*
Natural Wave Trading Theory 24
This is where the Natural Wave Trading Theory will come handy.
Or:
• Initial Margin
• Maintenance Margin
• Margin Call (!)
Margin Call (!) And if you wanted to maintain your position as it is,
you would need to deposit to your account the difference between the
current account balance and the initial margin requirement - $ 275
(675-$ 400).
When you are on the “margin call”, you have to bring you account
balance back into black, which is “at” or “above” the initial margin
requirement. If you fail to do so (as soon as possible, usually 24
hours), you would have to close your position.
Let’s illustrate this “selling something you don’t own” with yet
another example:
To simplify the above situation I would say that the fear of risk –
the uncertainty about the amount of capital you could lose on a trade
– could reduce dramatically your potential as a trader.
What is an option?
(When you trade options you’re trading those rights, not the future
market.)
Let’s say December Corn is trading at 221. You are expecting that
Dec. Corn is going to move “up” to 260 by the end of November. And
since it is only July now you have about 4 months before December
Corn options expire.
250 Call
240 Call
230 Call
220 Call
210 Call etc.
By the same token you could buy some Put options if you were
expecting that prices would move down:
Natural Wave Trading Theory 32
220 Put
210 Put
200 Put
190 Put
180 Put etc.
☺ Intrinsic value.
☺ Time to expiration.
☺ Volatility.
On the other hand, options give you great comfort in case of the
future market moving dramatically in the other direction than you
expected. In those moments you’re very glad that your total risk on
the trade was the premium cost and commission paid for such option.
As for you, possibly you ran out of money and had to exit your
future trade…
Can I make any money on the option if the future market never
exceeds my strike price? (Can I make any money on an option if it
never becomes significantly in-the-money?)
Yes, you can. Just remember that the money is not yours yet, if
you didn’t liquidate your option. Your option is a “wasted asset” (like
the new car you just bought). It means that even if the option, which
you bought for $600, becomes worth $ 3,500, you can’t use its profit
for any other trade, until you offset (exit) it.
3,500
- 400
- 50
=3,050 ($)
Most likely what’s going to happen, more often than not, in your
trading career is this:
You purchased 250 Call option in Dec. Corn, when the future
market was at 219. You paid for the option 8 cents or $ 400. Over a
period of two months prices on Corn went up to 247 (notice that the
prices don’t reach your strike price yet). And now because the future
market is so close to your strike price, the value of your option could
be then around 13 cents, or $ 650.
At this point you could liquidate your option, and put $650 back to
your account. And your profit then would be $ 200.
Natural Wave Trading Theory 36
650
-400 (premium you paid)
-50 (commission)
=200 ($)
If you bought 1 December Corn future contract at 219, and got out
at 247, your profit would have been $ 1,400 (28 x $ 50) - $ 50
(comm.)= $ 1,350.
Example:
Also when you exercise an option you are giving up the original
premium for which you paid so dearly. This is a very important issue
when it comes down to exercising options that have a lot of time to
expiration. For if you have 250 Call in March Corn, and it does not
expire for six months, it wouldn’t make any sense for you to exercise
this option if the future market for March was trading at 255. Chances
are that your option would be worth around 20 cents or $ 1,000. And
if you had exercised it at this moment you would be gaining only 5
cents or $ 250 (255-250=5, 5 x $ 50), and your entire $ 1,000 value
(which contains also your originally purchased premium) would
vanish, leaving you only with $ 250. So it would be better for you to
liquidate this option in this case.
Well, it depends…
Keep in mind though that the reality of trading is much richer than
any theoretical analysis or description of it. This is why you should
learn how to be flexible in your trading. Oftentimes market conditions
and circumstances could appear “identical” to what you’ve already
experienced or read about. But remember that every market situation
is unique in its own way (even if it appears as something that you
already know), and it can surprise you at any moment.
Example:
Let’s say that you’re expecting Corn to go UP. You are buying 1
December Corn contract at 219.
On your trade you are tying up $ 675 (or more if the official
exchange established requirement is higher) for the initial margin,
plus you have virtually “unlimited risk” (actually in this case your risk
is $10,950, if Corn went down to ZERO), if Corn went down limit for
many days.
Natural Wave Trading Theory 39
And 6 weeks later December Corn is trading at 350. You and John
Doe decide to exit your respective positions. Who is going to make
more money?
So, in the above case John Doe made $ 2,800 more than you did,
and his risk was limited. (Of course the situation would be different if
Corn went UP only to 255 when you and John decided to close your
positions…but that’s the different story).
For the following reasons: (1) having the “profit” money available
instantaneously for additional trades,
(2) in most cases better liquidity than in options, and…
Although you and John expect that prices will move “very high”, it
isn’t guaranteed. And what could have very well happened is that
December Corn didn’t go beyond the 240 price level, before the
option’s expiration. At this point 250 Calls would be worth “ZERO”.
And if John got out of his long Corn position in future contract, at
the same time that your options expired, he would’ve made profit of $
1,000.
Natural Wave Trading Theory 40
Over the years I’ve realized that one of the major reasons why
traders (most of them at least) lose are:
Although these are not the only reasons, I believe that they’re
most significant. Looking closely at all of them, we realize that they
are different aspects of the same thing – the trading experience. We
realize that they all are connected, and that one is affecting another.
“Is it possible to forge futures and options into one trading style
that would combine best features of both “worlds”?
You could use futures and options together in the variety of ways.
The Natural Wave TT is exploring some of those ways.
The Natural Wave Trading Theory isn’t a “trading system”
though. It is rather a “paradigm of thinking”, a paradigm in which
“flexibility” plays an important part.
We believe that if you develop your own style how to think like a
trader –where controlling your risk exposure is one of your primary
objectives- you’ll be able to enjoy all those “perks” that come with
“success”:
• Peace of mind
• Independence
• Extra time on your hands
• “Freedom of space”
Natural Wave Trading Theory 44
WEEKLY CHART gives you weekly price range. One vertical bar
represents one week’s price action. Top of the bar gives you “high”
for the week while bottom of the bar gives you “low” of the week.
So when you compare all of those charts, you will realize that
“objectively speaking” being at “190”, Corn is traded very low
Natural Wave Trading Theory 46
Example 1:
You go long 1 December Corn from 205, and instead of the “stop
loss” you buy December Corn 200 Put option, for 9 cents or $ 450
(please be advise that the cost of the premium will vary in different
market conditions).
Example 2:
How would your $ 1000 account look like if you used this method,
and if Corn dropped 20 cents or $ 1,000 against your futures
position?
a) You could liquidate your 200 Put, and close your long
Corn contract, by selling it. After that your account
balance would be about $ 200.
Total = $ 1,200
Minus $ 1,000 (205 – 185)
Since the market can move both ways, it can also work in your
favor, so there is no need to always expect the worst.
You are long 1 December Corn from 205, and you have 200 Put
as the hedge, for which you spent $500.
Then, over the next two weeks Corn goes to 250. And if you were
to close/exit your futures contract you would’ve made $2,250.
“Wow…” you say.
But don’t forget that you have also spent money on your 200 Put.
So, your actual net profit would be:
$ 2,250
- $ 500 (option cost)
- $ 50 (round turn commission on the future contract)
= $ 1,700
You’ve made a “cool” $1,700 with very limited risk. And this is only
on one contract. Try to imagine how much trading power you have
with this type of trading when you can have very limited risk and
virtually “unlimited profit potential”.
Natural Wave Trading Theory 50
Have you had just 10 contracts your profit potential would have
been $17,000; on 100 contracts, it would have been $170,000.
(You still have 1, 200 Put option left. You bought it---you
own it. It isn’t worth much after Corn rallied to 250,
maybe ½ cent or $ 25, or maybe not even that. By
liquidating it now, you are not going to accomplish much.
It is a better choice to just keep it –if you still have one or
two months left until its expiration- in case the Corn
market declined sharply. In such case what could very
well happen is that your option might become worth a few
hundred dollars again. Since you’re already out of your
futures contract, this appreciation could be an extra (“gift”)
profit that you didn’t expect. At this point your original
$1,700 profit, which you had already taken, can grow
much more, thanks to this “forgotten” option, which was
already discarded as the loss.)
What would be your account balance now, after you exited your
long futures contract at 250, and after assuming that the remaining
200 Put is worth ZERO?
$ 1,700
+$ 450 (“cash” that left on your $1000 account after
$ 500 cost on 200 Put, and after paying $ 50
Round Turn commission on futures contract)
=$ 2,150 (your new account balance)
Example 4:
You’re going long 1 December Corn contract “at the market” (first
available price after your order hits the trading pit on the exchange).
Your fill price is 205.
At the same time you are buying:
• 1 200 Put for Dec. Corn.
• 1 190 Put
• 1 180 Put
Also you’re placing following “open orders” (check with your broker
if you’re not sure how they work):
• to Buy 1 Dec. Corn (future contract) @ 190 or lower,
• to Buy 1 Dec. Corn (future contract) @ 180 or lower.
If the futures market never comes down to 190 and starts going
UP, in order for you to break even, 1 Corn contract, which you bought
at 205, would have to go UP enough to cover the cost on 200 Put,
190 and a 180 Put. So, if you spent $ 800 on your options, Corn
would have to go to about 221 before you break even on this whole
trade, assuming that you let your options expire worthless.
By the same token, if Corn declined to 179, or so, you would be a
proud owner of 3 December Corn contracts with an average price
of “about” 191 ¾.
Natural Wave Trading Theory 52
What actually happened, if Corn declined, is not only that you got
filled on your future contracts opened orders (Buy at 190, Buy at
180), but at the same time your 200 Put, 190 Put and 180 Put
appreciated quite significantly. So even though you are loosing on the
futures side of this trade, the options “absorb” some of this loss.
These options also give you the confidence of knowing what is your
total risk exposure.
Sure, your account statement would show that you are losing
about $ 1,700, when Dec. Corn is trading at around 180. But it would
also show that the value of your Put options increased. And although
“options” are “wasted assets”, you most likely could liquidate or
exercise them, if you need to (and then they are “no longer wasted in
their entirety”).
Other words if Dec. Corn instead of going UP ended up declining
to 155, you probably would be on a “margin call”, because your loss
on 3 Corn contracts will be about $5,500, which is more than your
initial starting capital of $5,000.
At the same time the values of your 3 Puts increased, and their
combined market value would be approximately $5,250.
So, if you don’t want to add any more money to your account
when Corn futures is trading at 155, you simply would exercise your
200 Put option. And with doing so about $2,250 would be released to
your accout, and you still will be in the market with 2 remaining
futures contracts, 190 Put, and 180 Put… And if you believe that
Corn has still plenty of potential on the upside stay with your trade.
Otherwise, close your position altogether and get ready for the next
one.
What could also happen is that Corn never dropps below 179, and
bounces back to 205. At this point you would be making about $2,000
on your 3 contracts (your average price is 191 ¾). Have you had only
1 contract you would be about “breaking even” on your futures
contract.
hedged with options). You may end up with the greater loss than your
account’s initial balance.
But let’s get back to the scenario in which Corn never dropps
below 179.
Let’s assume that Corn (bouncing off 179 level) ended up making
the sharp rally and you find yourself at the price of December Corn @
271 ¾ . Also now you find yourself in a situation that seems also very
uncomfortable, almost as much as the “losing situation”.
It’s almost hard to believe this, isn’t it? And if scenarios such as
just described above don’t happen every day, you as a trader want to
be ready to take adventage of them when they do happen. The
Natural Wave TT could possibly help you with catching a major
“move in the market”. The Natural Wave TT can’t make a decision
for you though. You have to do your homework, get comfortable with
Natural Wave Trading Theory 54
the markets you trade, and then use the “Natural Wave Trading
Theory” to possibly increase your chance of success.
Example 5:
You can use this strategy when you want to create “solid hedge”.
In this case your Put options are at the money, any time you buy
them. They cost you more, but also your hedge seems to be more
effective -if the future market didn’t go up soon, didn’t go in the
direction of your futures contracts.
In this case you could start to liquidate or exercise Puts with
higher strike prices, one at a time, if you were running out of money
for initial margin, to support your futures side of the trade.
Natural Wave Trading Theory 55
Example 6:
Let’s say that December Corn is traded at 282. You’re buying 260
Put, and 300 Call.
If futures Corn goes down to (let’s say) 262, you’ll buy 1
December Corn futures contract. And if from there Corn goes up to
about 296, you will be getting out of your long Corn –taking profit- and
initiating sell of 1 December Corn, which will be your new “short
position”.
In the described situation you are not using any stop losses, but
rather taking advantage of your 260 Put, and 300 Call, which you
probably purchased for cheap (originally when Corn was at 282) and
using them as protective hedges.
You were setting up your “pieces” strategically in anticipation of a
certain development in Corn. You were building up your position, as
your reaction to the Corn market development. “Your reaction” was
a result of seeing the Corn market from the perspective of several
years. You had determined that Corn most likely was going to trade
within 260-300 range. And when Corn was at 282 the price of 260 Put
was cheaper than it would be when Corn was at 262. Or by the same
token, 300 Call was cheaper when Corn was at 282, than it would be
when Corn prices reached 296 levels.
5. NEW BEGINNING
“Natural Wave Trading Theory” may help you gain more control
over your trading destiny. By using options as hedging tool, you
could stop being “a market victim” and you wouldn’t need to worry
about your “risk exposure” all the time. That should free your mind to
be active in other areas of life. And along the way, if you develop your
own method, you mind be making more money than you thought was
possible, with a minimal effort on your part.
But even with the NWTT you’ll have to do your homework, and
find your own style of being a trader.
With the Natural Wave Trading Theory though, you’ll have the
luxury of “controlling” your trading environment to a great extent.
Ultimately, the decisions you are going to make about trading should
become less emotional and more rational.
- Jack Sroka