Posted February 18, 2021
By Scott Stewart
Part 9: Using Leverage
Welcome back to the Rude Awakening, folks.
Today's Thursday, February the 18th, 2021 and we are in day nine of ten of our asymmetric trading system.
And we're talking about leverage today, the power of using leverage in an appropriate manner.
Let's jump into our brokerage account and take a look at how leverage works. Click here to read the transcript.
Make sure youre keeping up with this series! I promise you will be thrilled to have this new skill in your trading tool chest.
To catch up will take you only 30 minutes. Just go through the videos linked below!
Heres what weve covered so far
Day one, we talked about the problem, which is we don't have an edge or an advantage if we're just simply buying stock or investing money directly into the marketplace.
Day two, we talked about the solution, which is building an asymmetric trading system, where we only risk a dollar for every $3 of potential profit.
Day three, we talked about how to use bracket orders to automate that process.
Day four, we talked about filtering and screening through the 14,000 different opportunities we have in the marketplace every day, how to find those trades out there.
Day five, we talked about how to calculate probability of profit and win-loss ratios and really understand whether or not we do have an edge or an advantage when we go out and place a trade.
Day six, we talked about synthetic covered calls and how that works in our portfolio and what it does for us.
Day seven, we discussed managing the portfolio.
Yesterday, day eight, we dug into investing in BOTH bullish and bearish markets.
Have a great rest of your trading day.
Well talk tomorrow!
Regards,
Scott Stewart
Editor, Rude Awakening