Every now and then, a seemingly perfect ‘camouflage’ set-up will produce a losing trade. When this happens, as occurred in December Gold during this session, don’t despair or swear off Hidden Pivots. Instead, you should take the failure of the trade to pan out as a sign that your trading vehicle is about to head in the opposite direction. The best way to capitalize on this is to jump on the very first camouflage ‘trigger’ headed the other way. December Gold misbehaved in exactly this way.

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Previous Wednesday Recorded Tutorial

Options Deck Is Stacked Heavily Against You

By Brian Catalucci on September 13, 2013

Using puts and calls to play directional hunches is akin to using numbers cribbed from Chinese fortune cookies to play the lottery. In either case, your chances of coming out ahead are slim to none. For a look at how badly the deck is stacked against you, check out the anatomy of an option trade in which our primary goal was to keep risk and reward in a 1:3 relationship.