Since the market meltdown in 2008 we have only been trading one trade per month using the RUT and IWM indexes. I also have many subscribers who only invest in one trade per month. They do this because they feel all the indexes are related to the total market. By trading only one trade per month they keep their trading fees very low. We chose the RUT and IWM index because it’s not as volatile and does not include the DOW and SPX companies that are in the news all the time.
Also for this kind of investing you must not allocate all
your trading capital to this strategy. This strategy is risky and only a short
term strategy. I would only start investing a small amount of your capital. Once
you build up your options trading account you can buy more contracts. You also
want to paper trade in the beginning if you can. This is why I offer a 60 day
free trial. I want subscribers to practice submitting the trades so they know
how it all works.
