Day 2: From Theory to Practice

To Do List

A. Read these 3 Articles:

1. Theory to Practice - I think it's always important to see the end result in order to visualize the journey. This article shows you a real trade idea done by using the exact technique I am showing you this week. Not any one part of the idea is complicated. I simply take several elements and piece it together to create a story that makes sense. For a library of these types of trades, get The Winning Picks Book. LEARN MORE HERE
2. Reading Flow - This is a learned skill that helps you uncover the trades we want to end up on our Watchlist. Take your time with each part. You will get better at it with practice.
3. Historical Data - Part of the process is to figure out the complete story being told by the options. Historical data helps you complete that story. You are reading the flow the same way, just doing it in the past to help you understand how it all relates.

B. Repeat yesterday's routine.  (DAY 1)
Once you find a few options trades to look at on the Home Page and then get to the Stock page, start looking at other flow in the name on that day. See if you can make any connections. Dig in and ask yourself:

• Are there other big trades in the name today? 
• Are there any large spreads?  
• Was there any significant volume in any of these other trades in the past?
• When were they?
• And then, what happened on that date?

Don't forget to add a few trades to the Options Watchlist. How did yesterday's trades perform? Any big winners?