12 Incentives to Day-Trade for Income with Guides

12 incentives to day-trade for income with guides in a virtual room highlight the use of short-term options to duck threats from wars, persistent inflation and economic slowing.

The 12 incentives to day-trade for income with guides in a virtual Trading Room advisory service show are affirmed by high success rates of more than 80-90%. The limited time required to profit through the DayTradeSPY Trading Room may entice people who do not want to day-trade non-stop, said Hugh Grossman, founder and senior partner of the DayTradeSPY Trading Room, Pick of the Day, Signal and the Ultimate Training Workshop.

The Trading Room advisory service offers a way to avert the market volatility of long-term equity investing. As geopolitical risk rises amid Russia’s unrelenting invasion of Ukraine and the Middle East conflict’s escalation after the murderous Oct. 7 attack of Israeli civilians by Hamas militants who invaded the sovereign nation from neighboring Gaza, the short-term nature of option trading is gaining increased interest, Grossman told me.

The DayTradeSpy Trading Room bases its recommendations on the SPDR S&P 500 ETF Trust (SPY), a highly liquid and diversified exchange-traded fund (ETF) that follows the top 500 stocks in America. The fund is known by many investors due to its huge volume, and its resilience to market manipulation, Grossman said.

Hugh Grossman leads Trading Room, DayTradeSpy Signal, Pick of the Day and Ultimate Training Workshop.

“Our daily Trading Room discusses our various strategies, analyzes the markets and engages in trades,” Grossman continued. “A reporter once asked Wayne Gretzky, the greatest hockey player of all time, bar none, ‘How are you so good? Just what is it that you do?’ His reply was simple: ‘I skate to where the puck is going to go, not where it is.’

“We take a page from the Wayne Gretzky playbook and apply it to the stock market. By examining the various inputs, we derive a fairly accurate prediction as to where SPY price is headed. We assess fundamentals, such as impactful news items destined to influence interest rates. Then we check key support and resistance levels on various time frames. Lastly, we draw out chart patterns.”

12 Incentives to Day-Trade for Income: 1. Upward of 80-90% Success Rate

The Trading Room has a high success rate upward of 80-90%, said Grossman, a seasoned options trader and trainer who founded the service along with DayTradeSpy Signal, the Ultimate Training Workshop and Pick of the Day. With the benefit of years of trading, Grossman said he learned the market usually delivers on a directional trade based on its breakout beyond a support or resistance level on a five-minute chart. Once the SPY fund closes outside of either of those levels, there is a high probability that the goal of a 6% gain can be reached fairly fast, he added.

“In our live Trading Room, one of our early tasks is to establish those short-term support and resistance lines,” Grossman said. “Then, as SPY trading opens, we watch price action, triggering a trade when the price closes outside that tight range. We immediately put it up for sale for a 6% profit target.”

12 Incentives to Day-Trade for Income: 2. Go with Guides

The Trading Room is day-trading SPY options program designed for people who are willing to take advice from guides in pursuit of profitability.

“My cohort, Ahren Stephens, and I do the heavy lifting every morning as we analyze markets,” Grossman said. “We examine the underlying fundamentals, combined with deep dive technical analysis, to present to subscribers.”

The duo guide subscribers about when to buy a particular SPY option, as well as directions on how to exit it. The SPY fund not only tracks the top 500 U.S. stocks but offers a high probability option trade at the market’s open, Grossman said.

Ahren Stephens co-heads the Trading Room and Pick of the Day.

Since Grossman and Stephens take different approaches to trading options, they have two ways of verifying whatever trend the other identifies.

“When our indicators unite, our trades ignite,” Grossman quipped.

The verification of a trend is “paramount” to achieve a “very high degree of success” in trading, Grossman said. When both he and Stephens agree on market direction and strength, the wise traders who follow their guidance generally enjoy successful execution, Grossman added.

12 Incentives to Day-Trade for Income: 3. Quick Profits

The Trading Room is intended to help subscribers place their own SPY option trades with access to experienced market sherpas, Grossman said. On most days, Trading Room subscribers can book a gain, he added.

“The idea is that markets go up and they go down; our objective is to determine the highest propensity of movement on the stock that day,” Grossman continued.

Rather than buy and hold a stock or a fund, the Trading Room is designed to help subscribers profit fast.

12 Incentives to Day-Trade for Income: 4. ‘Follow the Yellow Brick Road’

“The Yellow Brick Road is a projection of our thoughts of the possible path of price,” Stephens said.

While no indicator is 100% predictive, Grossman said his “Yellow Brick Road” is the next best thing.

“When we install this predictive price path, it’s uncanny how the price follows along,” Grossman commented. “You won’t find this anywhere on your platform.”

The Trading Room teaches subscribers how to use this key indicator, Grossman said.

12 Incentives to Day-Trade for Income: 5. Candle Confirmation

Candles measure price action within a specific time frame. In a five-minute chart, each candle represents five minutes of time. If a candle is pushing down, wait for the turnaround to obtain a better price, Grossman advised. Plus, always use limit orders to cap potential losses, he added.

On a green candle, the price entered at that point in time at the bottom of the body, bounced up and down to the top and bottom of the wick, or the tail, then exited the five-minute segment at the top of the body, Grossman said. For a red candle, the reverse is true, with the price entering at the top of the body, then exiting at the bottom, Grossman added.

“We can determine much information from this price action,” Grossman said. “This is very common with traders and is watched profusely.”

12 Incentives to Day-Trade for Income: 6. Avoid Greed

“Immediately upon your purchase, put it [the SPY option] up for sale with a 6% gain,” Grossman said. “We use 6% as a standard by which to measure success, a target that most, even novice traders should be able to achieve. More experienced traders, especially those in our morning Trading Room, tend to cash out with greater profits simply by paying attention.”

Many traders reap double-digit-percentage gains on these picks, Grossman said. Another Grossman tip is to use “Good till Canceled” limit orders.

In comparison, the Pick of the Day usually delivers a modest profit fairly quickly, often within the first few minutes. On April 22, the Pick of the Day was the SPY $498 puts, expiring Friday, April 26. The average buy price within the first two minutes was $3.96.

“Add 6% to that for a sell price of $4.20, and the market hit our target by 9:35 a.m., a mere four minutes later,” Grossman said. “Where else can you earn 6% in four minutes?”

In the unlikely event the option does not sell the same day, they are designed to be held overnight, if needed.

12 Incentives to Day-Trade for Income: 7. Limit Losses

“By picking options with further-out expiration dates, we experience relatively lower theta loss,” Grossman continued. “If, for some reason, the sell order fails to deliver within a couple days, the trader may wish to look at its viability, consider whether the stock will come back organically, whether a repair is in order or if it is best to simply let it loose. This does not happen very often.”

But, as with all programs, a loss does happen from time to time. Traders need to be able to able to accept that not every SPY option trade will end in a profit, Grossman said.

The Trading Room has produced a success rate of about 92% so far with year, with 13 losers among 160 trades. The performance is roughly the same as the DayTradeSPY Pick of the Day advisory service.

“On an annual basis, the Pick of the Day is about a 92% success rate, which is considered excellent in this industry,” Grossman explained. “As with all programs, the trader must exercise good money management techniques, including only trading with funds they can afford to lose. As you know, there are never any guarantees.”

When following other investment gurus in his early years of trading, Grossman said many would claim success if the stock went up even a couple cents.

“In my reckoning, that would have been a dismal loss as I would never have sold it for a couple cent gain,” Grossman said. “It’s just not realistic.”

12 Incentives to Day-Trade for Income: 8. More than Four Decades of Experience

Stephens and Grossman combine to offer more than 40-plus years of experience in analyzing the markets. By trading options on the S&P 500 through SPY, Trading Room subscribers have a diverse, voluminous and liquid fund to use to track the top 500 stocks in the United States, Grossman said.

SPY moves in sync with the economy, Grossman continued. With options, not much of a move is needed on the underlying stock or fund to earn a respectable daily income, he added.

As an example, the Pick of the Day trade on April 25^th featured SPY $500 puts due to expire next Friday, May 3^rd. The puts were purchased at 9:31 a.m. ET for $5.17. An immediate sell order for a 6% gain allowed the price to rise to $5.49 by 9:34 am.

“Three minutes is all it took to make 6%,” Grossman said. “Many of our traders hold out for greater gains.”

12 Incentives to Day-Trade for Income: 9. ‘Amateur Hour’ Opportunity

The early trading each morning is often described as “amateur hour,” but it is nothing to avoid or to loathe, Grossman counseled.

“Our experience has been that huge amounts of money can be made in that ‘amateur hour,’ thank you,” Grossman said.

On Thursday, April 25, the $500 put options rose to a high of $6.19 by 10:03 a.m. ET, almost a 20% gain, Grossman said.

“Our approach does not expect you to ring in 20% gains on a regular basis, although there are participants who do earn double-digit percentage daily gains,” Grossman said. “But would you not be happy with 6%? Give the broker a point for his troubles and you still walk away with 5%. Do that once a day and you can double your money in a month.”

12 Incentives to Day-Trade for Income: 10. Make Money in Minutes

Whether someone uses the Trading Room or Pick of the Day as a full-time endeavor or a part time pursuit, picture spending a few minutes investing modestly every morning to score a winning trade, Grossman continued.

“Start small and work your way up over time,” Grossman advised. “If you work smart, you don’t have to work hard.”

To be clear, Grossman said all trades have risk and no system will be successful every time.

“However, we teach you how to manage those positions to minimize risk and subsequent losses,” Grossman said. “Set it and forget it. If it got any easier, we would be doing the trades for you.

“A trader can spend many hours analyzing, forecasting, researching and determining a particular trade every day. Do you go short or long term? Swing or day trade? Options, futures, equities or any of the myriad of other instruments to trade? How do you enter? How do you exit? Would you be happy with a 5% gain or reaching for the sky? How risk tolerant are you? How much are you willing to invest, looking for a reasonable income? These are but a few of the many questions rolling through a trader’s mind as they ponder.”

Many traders also stay tethered to their career jobs, Grossman said.

“Admittedly, it takes real gumption to leave the security of a corporate position, complete with benefits, stature and virtually guaranteed income,” Grossman said.

The advantages of a steady, full-time job understandably offer a measure of security, Grossman acknowledged.

12 Incentives to Day-Trade for Income: 11. ‘Sex Appeal’ of Participants

“Trading is sexy,” Grossman said. “In an upcoming article, I will explain how one of my members, who I shall call Lester – name changed to protect his guilt – was an IRS auditor. Lester was a gentle soul, funny and intelligent. But, he was also single in search of a suitable mate. In our many chats, he mentioned how he was never a hit with the opposite sex but would attend the local Chamber of Commerce After 5 Meetups to socialize and hopefully meet a special lady.

“Lester took our course and actively partook in our Trading Room, becoming very proficient in trading. But he never considered himself a trader. In the After 5 socials, he would mingle with a glass of merlot in hand when someone would approach him and start talking. When asked what he did for a living, he would mention that he’s an IRS auditor. Unfortunately, the women would quickly scatter like rats off a sinking ship.

“I convinced him that the IRS is the enemy and to say he’s now an options trader instead and see what happens. Low and behold, at the next After 5 Meetup, as soon as people discovered Lester was a trader, the women ran to pull their friends into the conversation to hear more. He quickly became a hit at these socials. Not sure he got any dates out of it but he certainly enjoyed the newfound attention.”

12 Incentives to Day-Trade for Income: 12. Instills Confidence

“Our Trading Room sessions develop your confidence,” Grossman continued. “Another client, Lisa, explained how she learned how to negotiate effectively.”

She learned how to stay firm to her price objective, Grossman said. Although she desperately wanted a new car, a salesman did not meet her price, so she stood up and walked out of the showroom, he added.

“It wasn’t a minute later when he ran after her and sharpened his pencil to give her the deal she wanted,” Grossman said. “Lisa told me she was always shy and never could have done that before spending time with us, ultimately building her confidence.”

The spinoff benefits from the Trading Room are many, Grossman continued.

“Emotions such as patience and discipline are like muscles,” Grossman said. “The more you flex them, the easier it gets. And when you achieve that level of confidence, you become more attractive, assertive to get what you want and generally live a more fulfilling life, no longer at the behest of everyone else.”

Economic Outlook Dims

For the fourth time in the past 10 years, The Wall Street Journal recently published economist Mark Skousen’s report on gross output (GO). Its title, “Slow GO May Mean a Recession Soon,” issued a warning about a weakening economy.

In this report, Skousen, who heads the Forecasts & Strategies investment newsletter, noted that GO rose by a tepid 2.4% in real terms last year. In the fourth quarter 2023, real business spending fell 0.3%.

Government and consumer spending continue to rise, but business – a leading indicator – is trending downward, according to the data.

Ben Franklin scion Mark Skousen, who heads Forecasts & Strategies, talks to Paul Dykewicz.

The Federal Open Market Committee (FOMC) chose this week to keep interest rates steady amid continuing inflation above its desired 2% level, Grossman said.

“One would think positive bank earnings would prop up markets, but then SPY hits a major Fibonacci resistance level, falls over the edge, motivating other investors to bail out like rats jumping off a sinking ship, all while a former president takes the stand on hush money paid to a stripper… all before lunch,” Grossman said.

France’s President Says He Would Let His Troops Fight for Ukraine Under Two Conditions

France’s President Emmanuel Macron this week that he would consider sending French troops to Ukraine under two conditions. First, the Russians who are invading Ukraine would need to break through the front lines. Second, the Ukrainian government must make a direct request, which has not occurred thus far, he added.

The risk of not assisting with troops is that if Russia defeated Ukraine, it then probably would attack another European country, Macron warned.

President Joe Biden signed bipartisan legislation on Wednesday, April 24, after it passed both the House and the Senate to provide an additional $95 billion in aid for Ukraine, Israel and Taiwan, ending months of delays to approve the funding. The package included a measure requiring popular app called TikTok be sold by its Chinese parent company, ByteDance, or face a potential ban.

Middle East Conflict Continues Amid Negotiations

In the Middle East, attempts to restore peace diplomatically have failed thus far. U.S. Secretary of State Anthony Blinken expressed hope that Hamas would accept an “extraordinarily generous offer” from Israel in an effort to secure the release of some hostages and a suspension of fighting in the current war. Hamas rebuffed the offer but agreed to send a delegation to Egypt on Saturday, May 4, to continue negotiations for a cease-fire with Israel.

An estimated 1,200 people were killed during the Oct. 7 attack by Hamas against Israeli civilians in many villages near the border of Gaza. More than 360 of those killed were attending a music festival. News reports indicate about 130 hostages from the more than 250 kidnapped by Hamas during its unprecedented attack remain missing. At least 34 of them are presumed dead, while the remainder have been released or rescued by Israeli Defense Forces (IDFs).

The Hamas-operated health ministry in Gaza has estimated that more than 34,600 people have been killed in the subsequent Israeli offensive since the Oct. 7 attack.

The 12 incentives to day-trade with guides in the DayTradeSpy Trading Room and Pick of the Day provide shelter from rising geopolitical risk, high inflation and a waning economy. Income investors who trade options in SPY with guides have a viable alternative to the traditional stock investing, Grossman said.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Special Sale! Paul is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The uplifting book is great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for reduced pricing on multiple-book purchases.