Deion Mitchell Behind the Trades: Deion’s Approach to Options

Claire Kristensen Mastering The Christmas Tree & Balaam’s Ladder Strategies

Magazine

December 2023

PitNews

Dear Friend, As the festive season approaches, we at PitNews Magazine extend our warmest wishes to each of you for a merry Christmas and a joyous holiday season. Your continued subscribership and engagement with our content is a deeply cherished gift. In this special holiday edition, we've prepared a selection of articles that promise to enlighten, educate, and entertain. Our lineup includes: 1. "How I Take Profits: Why Doesn't Anyone Take Money Out?" by Claire Kristensen, delving into the art of realizing profits in trading. 2. "The Intricate World of Technical Analysis" by Aiden Gray, exploring the nuances of chart patterns in financial trading. 3. "Behind the Trades: Deion Mitchell’s Approach to Trading Options" by Deion Mitchell, offering his insights into the dynamic world of options trading. 4. "Mastering The Christmas Tree and Balaam’s Ladder Trading Strategies" by Claire Kristensen and Aiden Gray, presenting two innovative strategies. 5. "The Great YouTube Trader: Don't Get Bamboozled" by Lan Turner, a critical examination of online trading gurus and their tactics. 6. We also have a special treat - a heartwarming poem by our very own poet laureate, Gideon P. Thornfield, whose words capture the essence of the season. Also, don’t miss out on our Christmas crossword puzzle, a delightful holiday challenge. As we celebrate this joyous time, we invite you to share the spirit of PitNews Magazine with friends and loved ones. Your recommendations are invaluable in helping us grow our readership and community. Thank you for being part of our journey this year. Here's to a season filled with warmth, happiness, and successful trading! Best Wishes, Lan H Turner, Editor-in-Chief PitNews Magazine

Editor's Notes: December

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Table of Contents: Your Guide to Mastering the Markets

How I take Profits: Why Doesn’t Anyone Take Money Out? by Claire Kristensen: Page 5 In this article, Claire Kristensen delves into the often overlooked practice of taking profits in trading, challenging the norm of continual reinvestment. She shares her unique strategy, which emphasizes the joy of reaping investment rewards, akin to harvesting the fruits of a well-tended garden.

The World of Technical Analysis: Let’s Dive Into Chart Patterns by Aiden Gray: Page 9 This article by Aiden Gray delves into the complex world of technical analysis in stock trading, focusing on the interpretation of chart patterns like Triangles, Wedges, and Head and Shoulders. Gray explains how these patterns provide insights into market trends and investor behavior, equating the skill of reading them to navigating through the unpredictable world of financial markets.

Deion Mitchell’s Approach to Trading Options by Deion Mitchell: Page 18 Deion Mitchell shares his insights on the versatility and strategic complexity of options trading. He highlights how options allow for tailored strategies suited to any market condition. Mitchell emphasizes the dual nature of options: they can serve as high-risk, high- reward investments or as protective hedges in volatile markets, underscoring their appeal and utility in a trader's portfolio.

Mastering The Christmas Tree and Balaam’s Ladder by Claire Kristensen and Aiden Gray: Page 27 Claire Kristensen and Aiden Gray explore the Christmas Tree and Balaam's Ladder trading strategies in their collaborative article. These methods utilize a hybrid form of dollar cost averaging to strategically navigate market fluctuations: The Christmas Tree for buying in downturns, and Balaam's Ladder for shorting in rising markets, both emphasizing incremental investments over aggressive full-position entries.

The Greatest of All YouTube Traders: Don’t Get Bamboozled by Lan Turner: Page 33 Lan Turner critically examines the rise of YouTube as a platform for trading advice. The article warns of the deceptive practices of some trading "gurus" who create an illusion of infallible success through editing tricks and selective reporting. Mr. Turner emphasizes the importance of discerning genuine trading skills from misleading performances and educates readers on spotting red flags like lack of transparency and inconsistency.

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How I Take Profits: Why Doesn’t Anyone Take Money Out?

By Claire Kristensen When I first dipped my toe into the vast ocean of trading, I was struck by an odd practice among investors: they were constantly feeding the market with fresh funds, yet seldom did they seem to ever withdraw their profits. It was as if they were tending to endless orchards without pausing to taste the fruit. This realization sparked a question in me: wasn't the point of investing to eventually reap the rewards? With fresh eyes and a beginner's curiosity, I was brimming with questions and a keen desire to learn. I quickly noticed how everyone seemed so focused on growing their investments. Yet, few talked about the moment of reward—taking profits. Lan Turner's suggested method of a disciplined, long- term investment strategy—planting $100 weekly for five or more years and then reaping the same

amount weekly for ten, or more—was prudent. But still, I yearned for a quicker return, a more immediate celebration of my efforts. So, I developed a strategy that wasn't just about watching numbers climb but was also about enjoying the returns. For me, I think of my trading account as a garden where I don't just tend to the plants but also enjoy the fruits of my labor. It was a straightforward plan, really: invest wisely, wait patiently, and when the time is right, savor the success. I began with what at the time felt like a significant amount of money—$10,000—planted into the fertile ground of the QQQ, a fund teeming with the tech world's giants.

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I chose a different rhythm, unlike the steadfast 'buy and hold' approach. Every three months, I would wander through my financial garden, basket in hand, ready to gather any growth that had sprung from my investment. If my garden flourished, I joyfully collected the surplus. If not, I would wait, knowing that not every season is bountiful. And here's the crucial part—I go and enjoy it. That's right. OMG, I know, I break the cardinal rule of investing. I spend my profits; I splurge on something I've had my eye on. My approach isn't solely focused on accumulating wealth; it's about relishing the rewards as they come. Much like life, the true pleasure in investing lies within the journey, not just the destination—after all, we can't take it with us in the end. As time passed and my garden remained fruitful, I found myself at a crossroads. So, I adapted. Instead of resetting my garden to its original size each quarter, I began to let it grow, pruning only half the profits and allowing the rest to thrive. This subtle shift meant that my garden slowly expanded, promising more abundant future harvests while still letting me savor the present bounty.

As my confidence in trading grew, I began to think about diversification. Why not start with a foundation of stability but also sprinkle in the excitement of high-potential? Perhaps a mix of individual opportunities, balancing steady performance with the promise of more rapid growth. I started by planting half in the QQQs and the rest in individual high-growth stocks and ETFs. Then, I harvest from only the individual investments, often finding that my diversified crops bring a more plentiful yield than had I relied on the single index fund alone. For me, this journey through the markets has been about more than just accumulating wealth; it's been about finding a balance that honors both the present moment and my future aspirations. It's about recognizing that the harvest is not just an end goal but a vital part of the growth cycle. To those pondering their next step, I say: envision your investment as a garden. Care for it, watch it grow, but most importantly, when the time is ripe, relish the harvest. For me, that timeline is quarterly, Christmas, and birthdays. If we don't take the time to enjoy the fruits of our endeavors, we must ask ourselves what purpose they truly serve. Don’t be a Christmas Scrooge, withdraw some money and go buy something for someone you love. Try it; it feels good.

Lan Turner’s Stock Market Playbook of Strategies

• Gain Discipline and Courage Through Knowledge & Strategy. A 238-page workbook. Your manual to the stocks, futures, and options markets.

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by Aiden Gray As I sit in my home office, surrounded by the tranquil Arizona landscape, I'm reminded daily of the parallels between the vast desert and the world of financial trading. My name is Aiden Gray, and I'm a day trader who's learned to decode the mysteries of the stock market through technical analysis. To me, the charts and graphs of the market are not mere numbers and lines; they are a language of their own. They speak of past market behaviors, offering glimpses into future trends. Each day, as I analyze the patterns formed by price movements and volume, I feel like a navigator charting a course through unpredictable seas.

In technical analysis, chart patterns have become my most trusted guides. These formations, etched on my screen, are more than abstract shapes. They hold profound predictive power, telling stories of potential reversals and continuations in the market. Today, I want to take you through the intricacies of Triangle and Wedge formations. These patterns are not just elements of my trading strategy; they are critical players in the narrative of market dynamics. The Triangle, with its converging lines, often signals a period of consolidation before a breakout. Though similar in form, Wedge patterns speak of a different fate, hinting at imminent reversals.

The Intricate World of Technical Analysis: Let’s Dive Into Chart Patterns

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And then, there's the Head and Shoulders pattern – distinct with its peaks and troughs, often signaling a significant shift in market trends. Join me on this journey as we delve deeper into these patterns. Understanding their nuances is not just about making predictions – it's about aligning our strategies with the rhythm of the markets. Together, we'll uncover the stories these patterns tell and learn how to apply this knowledge in our trading adventures. The Geometry of Market Sentiment: Deciphering Triangle Formations In the realm of technical analysis, Triangle formations are revered as significant predictors of future price movements. These patterns materialize on price charts as the lines of support and resistance converge, creating a triangle-like shape. This convergence signals a period of consolidation - a

battleground where the forces of supply and demand are almost in equilibrium, leading to a suspenseful pause in the trend before a breakout. Ascending Triangle: The Bullish Catalyst • The Ascending Triangle is a distinctly bullish pattern, easily recognizable by its flat top resistance line and an upward-sloping bottom support line. This formation typically unfolds during an uptrend, revealing that despite several attempts, the price cannot surpass a certain resistance level. However, the rising support line indicates increasing buying pressure, suggesting the resistance might eventually give way. • For traders, an Ascending Triangle is a forerunner of potential upward momentum. The repeated failure to break the resistance level may discourage sellers, while buyers gather strength. The culmination of this pattern often leads to a decisive breakout above the resistance, signifying the continuation of the prior uptrend.

control, and the price moves within a tightening range, leading to a vertex. • For market participants, the Symmetrical Triangle is a sign of indecision. Unlike the Ascending and Descending Triangles, it doesn't inherently favor bulls or bears. The breakout direction – upward or downward – is uncertain until it occurs, making it crucial for traders to wait for a clear breakout signal before taking a position. The Telling Slopes of the Market: Unraveling Wedge Formations Wedge formations, often considered cousins of the Triangle patterns, play a pivotal role in technical analysis. While they share a converging boundary feature with triangles, their distinctive characteristic lies in the direction of their sloping lines.

Descending Triangle: The Bearish Precursor • In stark contrast to its bullish counterpart, the Descending Triangle is characterized by a flat bottom support line and a downward-sloping top resistance line. This pattern typically develops during a downtrend, suggesting that the price is repeatedly repelled by a certain resistance level, while the support level holds. • Traders often interpret the Descending Triangle as a prelude to further bearish movement. The inability of the price to break through the resistance level reinforces the dominance of sellers. A bearish breakout usually occurs when the price finally breaches the support level, continuing the existing downtrend. Symmetrical Triangle: The Market's Equilibrium • The Symmetrical Triangle is a more neutral pattern, formed by the convergence of a downward-sloping resistance line and an upward-sloping support line. This pattern reflects a period where neither bulls nor bears have clear

In Wedge formations, both the support and resistance lines move in the same direction, either upwards or downwards, creating a narrowing price range. These formations are key indicators of a potential reversal in the prevailing market trend. Rising Wedge: The Prelude to a Bearish Turnaround • The Rising Wedge is a pattern formed when the support and resistance lines ascend, with the support line climbing at a steeper angle. This pattern typically develops during an uptrend but can occasionally appear in downtrends. The narrowing of the price range indicates that the uptrend is losing momentum, despite the higher price. • In an ongoing uptrend, the rising wedge signals the weakening of the bullish force. The eventual breach below the support line is seen as a confirmation of a bearish reversal. Traders often view this pattern as a warning to prepare for a potential downward shift in the market trend.

Falling Wedge: The Signal of a Bullish Resurgence • The Falling Wedge, conversely, is characterized by both the support and resistance lines sloping downwards, with the resistance line descending more sharply. This formation is commonly seen during downtrends but can also form during uptrends. The contraction of the price range in this pattern suggests that the downtrend is running out of steam. • For traders, the Falling Wedge is a beacon of hope in a bearish market. It indicates that selling pressure is diminishing and a bullish reversal is on the horizon. A breakout above the resistance line often validates this pattern, signaling a shift to an upward market trend. Contrasting with the Head and Shoulders Pattern Deciphering Peaks and Troughs: The Head and Shoulders Perspective While Triangle and Wedge formations offer insights into market consolidation and potential trend reversals, the Head and Shoulders pattern brings a

different dimension to chart pattern analysis. Known for its reliability, this pattern is often considered a forerunner of significant trend reversals. Description of the Head and Shoulders Pattern • The Head and Shoulders pattern is characterized by three distinct peaks on a chart. The central peak, known as the 'head,' is the highest, while the two surrounding peaks, or 'shoulders,' are lower and approximately equal in height. This pattern typically forms after an extended uptrend, indicating exhaustion among buyers. • The Inverse Head and Shoulders, as the name suggests, is the upside-down version of the standard pattern. It features a central trough flanked by two shallower troughs and usually develops during a downtrend, signaling a potential bullish reversal. Differentiating Features from Triangle and Wedge Formations • Unlike the converging lines of Triangle and Wedge formations, the Head and Shoulders pattern is distinguished by its unique 'M' or 'W'

shape. This structure is a result of specific price movements - a rally to a new high (the first shoulder), followed by a decline and a subsequent rally to a higher high (the head), and finally another decline and rally to a lower high (the second shoulder). • While Triangles and Wedges indicate a consolidation phase with a breakout potential, the Head and Shoulders pattern specifically signifies a reversal in the prevailing trend. It highlights a critical shift in the market's sentiment, from bullish to bearish or vice versa. Interpretation of Standard and Inverse Head and Shoulders Patterns • The standard Head and Shoulders pattern is viewed as a bearish reversal indicator. It suggests that after a prolonged uptrend, the market is transitioning to a downtrend. The 'neckline,' drawn by connecting the lowest points of the two troughs, serves as a key level. A definitive break below this line confirms the pattern, indicating a sell signal. • Conversely, the Inverse Head and Shoulders pattern signals a bullish reversal at the end of a

downtrend. A break above the neckline, in this case, acts as a confirmation of the pattern, indicating a buying opportunity as the market sentiment shifts from bearish to bullish. Harnessing Chart Patterns for Strategic Advantage Recognizing and effectively applying chart patterns like Triangles, Wedges, and Head and Shoulders in trading can significantly enhance a trader's ability to make informed decisions. The key to capitalizing on these patterns lies not only in their identification but also in understanding the market context in which they appear. How to Recognize These Patterns Early • Regularly analyzing charts helps in honing the ability to spot these patterns early. Familiarity with the typical appearance and structure of each pattern is crucial. • Pay attention to the volume accompanying the formation. For example, a true Head and Shoulders pattern often exhibits declining volume at the formation of the second shoulder.

• Combine pattern analysis with other technical indicators like moving averages or RSI (Relative Strength Index) for confirmation. For instance, a rising wedge might be accompanied by a declining RSI, reinforcing its bearish implication. Understanding the Context and Market Conditions for Accurate Interpretation: The Broader Picture • Always evaluate chart patterns within the broader market context. The historical trend, market sentiment, and macroeconomic factors can influence the effectiveness and reliability of these patterns. • For example, an Ascending Triangle might have a higher probability of a bullish breakout in a strong bull market. • Market volatility can impact the formation and interpretation of chart patterns. Be cautious during highly volatile periods as patterns may not adhere to typical expectations. Incorporating Patterns into Your Trading Strategy • Use the patterns to determine strategic entry and exit points. For instance, entering a trade after a breakout has been confirmed and setting a stop loss below the pattern's lowest point can be a prudent approach. • Incorporate sound risk management practices. No pattern provides a guaranteed outcome, so it's vital to manage risk with proper position sizing and stop-loss orders. The Limitations of Relying Solely on Chart Patterns • While chart patterns are powerful tools, they are not foolproof. False breakouts or breakdowns

are common, and patterns can sometimes lead to misleading signals. • External factors such as economic news, geopolitical events, and market sentiment can dramatically influence the efficacy of chart patterns. A pattern that forms ahead of a major economic announcement might not follow the expected outcome due to the impact of the news. Mastering the Art and Science of Chart Patterns As we conclude our exploration of Triangle, Wedge, and Head and Shoulders patterns, it's clear that these chart formations offer valuable insights into the market's pulse. However, their true power lies not just in their individual characteristics but in how they are integrated into a broader trading strategy. Key Distinctions • Triangle Formations: These patterns, including Ascending, Descending, and Symmetrical Triangles, are primarily indicative of a consolidation phase with a potential for continuation or reversal, depending on their structure. • Wedge Formations: Rising and Falling Wedges signal impending reversals. Their unique sloping lines, moving in the same direction, differentiate them from Triangles. • Head and Shoulders Pattern: This pattern, distinct with its three peaks, is a reliable indicator of major trend reversals, differing from the more neutral or continuation-oriented Triangle and Wedge patterns. The Synergy of Combined Analysis As I sit back in my chair, reflecting on the lessons the market has taught me, I realize that the true mastery in trading comes from a harmonious blend

of different analysis methods. It's like looking at the desert through different lenses--each perspective adds depth to the overall picture. In my journey as a trader, I've learned that relying solely on chart patterns like Triangles, Wedges, or Head and Shoulders is akin to navigating by the stars alone. Yes, they provide guidance, but it's the synergy with other tools that truly charts the course to success. Incorporating fundamental analysis brings in the broader economic view, like understanding the terrain. Paying attention to market sentiment is like feeling the wind's direction--it tells you what other traders are thinking and expecting. But it's not just about blending different methods. It's about understanding that this combination enhances risk management, like a seasoned traveler who knows to carry both a compass and a map. This synergy doesn't just increase my chances of successful trades; it also helps me navigate through market uncertainties with a balanced approach. So, as I share these insights with you, remember that the art of trading is not just about predicting the next move. It's about combining the wisdom of chart patterns with the insights from various analysis methods. This approach empowers us to make informed decisions, not just as traders but as wise navigators of the financial markets. Our goal is not merely to foresee market movements but to journey through them with confidence and wisdom, much like a traveler who respects the Arizona desert's vastness yet knows his way through it. Aiden Gray is an avid full-time trader living in Sedona, Arizona. He specializes in day trading futures and stock options with Track ‘n Trade Live. Aiden is a member of Lan Turner’s President’s Club and a contributing writer to PitNews Magazine.

• Ascending Triangle: A bullish chart pattern characterized by a flat top resistance line and an upward-sloping bottom support line, indicating a continuation of the uptrend after a breakout. • Bearish: A term used in trading to describe the expectation that a market, asset, or price will decline. • Bullish: A term used in trading to describe the expectation that a market or price will rise. • Chart Patterns: Distinct formations created by the fluctuations in price on a chart, used by traders to predict future market movements. • Descending Triangle: A bearish chart pattern characterized by a flat bottom support line and a downward-sloping top resistance line, indicating a continuation of the downtrend after a breakout. • Falling Wedge: A bullish chart pattern where both support and resistance lines slope downwards, with the resistance line falling more sharply, indicating a potential reversal from a downtrend to an uptrend. • Fundamental Analysis: A method of evaluating a security to measure its intrinsic value by examining related economic, financial, and other qualitative and quantitative factors. • Head and Shoulders Pattern: A chart pattern characterized by three peaks, with the middle being the highest (head) and the other two lower and approximately equal in height (shoulders), often indicating a bearish reversal. • Inverse Head and Shoulders: The opposite of the Head and Shoulders pattern, featuring a central trough (head) flanked by two shallower troughs (shoulders), typically indicating a bullish reversal. • Market Sentiment: The overall attitude of investors towards a particular security or financial asset.

Neckline: In chart patterns like Head and Shoulders, a line drawn across the lowest points of the two troughs (in a standard pattern) or peaks (in an inverse pattern) serves as a key level for confirming trend reversals. • Resistance Line: In technical analysis, a price level at which a rising asset tends to stop or reverse its upward trend. • Rising Wedge: A bearish chart pattern where both support and resistance lines slope upwards, with the support line rising more steeply, indicating a potential reversal from an uptrend to a downtrend. • RSI (Relative Strength Index): A technical indicator used in the analysis of financial markets. It is intended to chart the current and historical strength or weakness of a stock or market based on the closing prices of a recent trading period. • Stop-Loss Order: An order placed with a broker to buy or sell once the stock reaches a certain price, used to limit a trader's losses on a position. • Support Line: In technical analysis, a price level at which a falling asset tends to stop or reverse its downward trend. • Symmetrical Triangle: A neutral chart pattern formed by the convergence of a downward- sloping resistance line and an upward-sloping support line, indicating a breakout in either direction. • Technical Analysis: A trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume. • Trend Reversal: A change in the direction of the price movement of an asset or a market.

Glossary Triangles and Wedges Article

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Behind the Trades: Deion Mitchell’s Approach to Trading Options

by Deion Mitchell It was a rainy Tuesday in late October, back in 2007, when I found myself at the Chicago Board of Trade’s Education Center, there to deepen my understanding of the markets. Yet, as the raindrops played a rhythmic cadence against the windows, my focus drifted away from the trading screen. Outside, the city was a blur of rain, each droplet distorting the bustling scene into a watercolor of urban life. Lost in this mesmerizing view, I barely noticed when Lan Turner, my mentor and the closest thing I had to a teacher in this cutthroat world of trading, approached. With his sharp, enigmatic demeanor that was as intriguing as it was slightly intimidating, he leaned over, pulling me back to reality, and

asked, "Ever heard of options trading, Deion?" His tone laced with the thrill of a challenge and the wisdom of experience. Lan Turner wasn’t much older than me at the time, but his presence always commanded respect, much like the key character from a John Grisham novel —enigmatic, astute, and always three steps ahead. "Do you ever feel like you're playing chess with only half the pieces?" His question caught me somewhat off guard, but as I pondered it, I realized he was hinting that something was missing from my current trading strategy.

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This moment marked the beginning of my journey into options trading. Lan introduced me to this new world with practical examples and theoretical insights. His distinctive method of simplifying complex concepts truly captivated me. Lan had a knack for unraveling the intricacies of options trading, presenting them in a unique and intuitive way. He could distill the essence of complex strategies into clear, manageable and simple ideas, making the formidable world of options seem so much more accessible and less daunting. As I delved into his teachings, I remember oscillating between feeling overwhelmed and utterly fascinated. Each session was like peeling back layers of a mystery, revealing the core principles in a way that was both enlightening and inspiring. His approach was not just about imparting knowledge; it was about changing the way I perceived and thought about the markets. This shift in perspective was crucial, as it laid the groundwork for the deep understanding and strategic thinking that would become the hallmark of my new approach to trading. But his simple question sparked a curiosity in me that I hadn't felt since my first day of trading. Something was alluring about how he framed options—a world filled with possibilities, risks, and rewards that seemed to stretch beyond the boundaries of traditional trading. As I explored this new realm, I realized that options, while often mentioned in the same breath as stocks and futures, are fundamentally a different beast. Each operates in its own unique way, offering distinct advantages and carrying particular risks. My journey to understand these differences wasn't just about mastering new trading instruments; it was a voyage of self-discovery, pushing my boundaries, and learning to thrive in uncertainty.

In this article, I invite you to walk with me through the high-stakes, adrenaline-pumping world of trading. We'll unravel the mysteries of stocks, options and futures, exploring how they differ and why these differences matter. From the nerve-wracking moments of day trading, making split-second decisions, to the triumphant highs of successful options trades, this narrative aims to enlighten and inspire. Whether you're a seasoned trader or a curious new onlooker, there's a thrill for everyone. So, fasten your seatbelts and prepare for a journey through the twists and turns through the world of trading, where every decision can be as suspenseful as the climax of a legal thriller. Welcome to the world of options through my eyes, Deion Mitchell. The real turning point in my understanding came when, under Lan's guidance, I executed my first options trade. It was a simple call option, based on a well-thought-out market prediction. The thrill of watching the option's value fluctuate with the market movements was exhilarating. It was akin to discovering a new superpower, one that allowed me to harness market trends in ways I hadn't imagined possible before. As I dove deep into options trading, I started realizing its potential. It wasn't just about buying calls in uptrends, and puts in down, but crafting intricate strategies to capitalize on market stability, volatility, and even sideways movements. Realizing that options could be used not just for speculation but also for hedging existing positions opened my eyes to a whole new spectrum of trading. This revelation was empowering. I soon began to embrace the intricacies of options trading, finding beauty in its complexity and excitement in its

potential. The world of options was no longer a daunting labyrinth of risks and jargon but a landscape brimming with opportunities and challenges. During this phase of my journey, I transformed from a cautious observer into an active participant. Each trade, each strategy added to my understanding and appreciation of my powerful new trading tool. Understanding Options: The Basics Options trading, at its core, is about choices and possibilities. Imagine standing at a crossroads where each path represents a different future for an underlying asset, such as a stock. An option is essentially a key that gives you the right to choose one path or the other, but not the obligation. Here’s how I think about options. There are two primary types: call options and put options. A call option is like holding a golden ticket that allows me to buy an asset at a predetermined price within a specific timeframe. This ticket becomes valuable if the asset's market price soars above my locked-in purchase price. Conversely, a put option is akin to having an escape hatch that lets me sell an asset at a specified price, regardless of how low the market price falls. Options are contractual agreements, but unlike a straight up stock, or futures purchase, they offer the flexibility to walk away if the market doesn't move in your favor. This flexibility is a significant part of the allure of options trading. The cost of this flexibility is the option premium - a fee we pay for the privilege of having the choice, much like buying a movie ticket. We have the choice to go see the movie, but not the obligation.

The Allure of Options What drew me to options trading, which continues to fascinate me today, is their incredible versatility. Unlike stocks, or futures, where you're locked into a contract to buy or sell an asset at a predetermined price, options provide the ability to tailor strategies to any market outlook, whether bullish, bearish, or neutral. Options trading is like playing a multifaceted game of chess. Each move - whether it's buying a call, selling a put, or constructing complex multi-leg strategies - opens a world of possibilities. You can design strategies that profit from market upswings, downswings, and even periods of little to no movement. This flexibility to adapt to any market condition is not just exciting; it's empowering. Moreover, options provide a level of leverage that can amplify returns. You can control a significant amount of the underlying asset with a relatively small investment (the premium). This leverage must

be used judiciously, as it can amplify losses as well, but it opens the door to opportunities requiring significantly more capital in other forms of trading. The beauty of options lies in their ability to cater to different risk appetites. They can be used to speculate with a high-risk, high-reward approach, or to hedge and protect existing positions, offering a safety net in volatile markets. This dual nature makes options a versatile tool in any trader's arsenal. My initial foray into options trading was driven by curiosity, but it was the depth, flexibility, and strategic complexity that transformed that curiosity into a lasting passion. The Thrill of Options on Futures In the world of trading, options and futures often dance in the same ballroom, yet they follow different

rhythms. The best way to illustrate this is through a narrative from my own trading journey, one that starkly highlights their contrasting natures. It was during the early days of my foray into options. Take, for instance, a time when the Crude Oil market was highly volatile and I had purchased several long contracts in the futures market. However, Lan's insistence on the importance of risk management rang in my ears, so I bought several put options. I recalled a lesson from Lan where he likened risk management in trading to auto insurance. In options trading, the premium paid for the option is like an insurance policy. If the market turns against us, our loss is limited to the 'deductible' in this analogy – the difference between where we entered the market long, and where we purchased our put. While any additional losses are then 'covered' by the profits

from the option. When paying our car insurance; we don't lament the monthly premiums just because we didn't have to make a claim, which would imply an accident. This strategic use of options for risk limitation has become a cornerstone of my trading. Within weeks, Crude Oil took a sharp downturn. My portfolio suffered significant losses, but the put options I purchased soared in value. This strategic move effectively insulated my overall position from a substantial financial blow. It was a profound lesson on the importance of hedging and risk management - a lesson that was as thrilling as it was educational. Risk management is not just a protective strategy; it's an integral part of a trader's arsenal. Whether trading options, where the risk can be limited to the premium paid, or buying into a stock, or a futures contract, where the risk can be much higher. Understanding and managing risk is about anticipating twists, preparing for the unexpected, and ensuring that the story has a favorable ending, regardless of the market's unpredictable nature.

Realizing the Power of Delta The climax of my trading story occurred when I discovered the transformative power of delta in options trading. This was my 'eureka' moment, a revelation that completely changed my approach to trading. Delta, in the world of options, is akin to a compass guiding a ship through the tumultuous sea of the market. It represents the rate at which the price of an option changes relative to a one-point movement in the price of the underlying asset. In simpler terms, delta indicates how much the value of an option is expected to increase or decrease with every dollar movement in the underlying stock. To illustrate, imagine delta as the sensitivity of an option to the movements of the stock it's based on. If an option has a delta of 0.5, it means that for every $1 change in the stock price, the option's value will change by .50 cents. This little number, seemingly innocuous, became the cornerstone of my trading strategy. The pivotal point came during a particularly volatile market phase. I had a portfolio of diverse options, and it was becoming increasingly challenging to predict how each would react to market changes. That's when Lan Turner introduced me to the strategic use of delta. He showed me how to interpret delta not just as a measure of price sensitivity but as a tool for predicting the likelihood of an option ending in the money. Understanding delta transformed my approach to options trading. Instead of merely speculating on the direction in which the market would move, I began to incorporate delta into my strategy, selecting options with the right delta values that aligned with my market predictions and risk tolerance. For instance, in a bullish market, I look for call options

with a higher delta, indicating a greater likelihood of profitable movement with the stock. Conversely, in bearish conditions, options with lower delta values became my go-to, as they are less sensitive to negative movements in the stock’s price. This approach allowed me to tailor my options portfolio with a more nuanced understanding of risk and potential reward. It was no longer about making blanket predictions; it was about making calculated, informed decisions based on the behavior of delta. This knowledge enhanced my ability to profit in favorable conditions and helped me mitigate losses during market downturns. In essence, realizing delta's power was a defining moment in my trading career. It elevated my strategies from simple speculation to informed, data- driven decision-making, much like a seasoned lawyer using critical evidence to turn the tide in a high-stakes legal battle. Personal Growth and Lessons Learned As my trading journey moves forward, it's essential to reflect on the personal growth and the invaluable lessons learned along the way. Trading, particularly in options and futures, has been more than just a profession; it's been a constant learning, adapting, and evolving journey. Reflective Insights One of the most profound insights gained is the understanding that trading is not merely about financial gain but about the discipline of the mind and the management of emotions. The markets are unpredictable, often volatile, and always challenging. Learning to navigate them requires not just technical knowledge but also psychological

resilience. The highs and lows in trading are akin to the suspenseful twists in a novel — they test your patience, strategy, and ability to stay calm under pressure. Key Lessons Among the most important lessons learned is the significance of risk management. In stocks, futures, and options trading, risk management is not just a part of the strategy; it is the strategy. Each decision, each trade, and each investment must be weighed not just for its potential profit but also for the risk it carries. This approach has instilled in me a sense of prudence and respect for the markets. Another critical lesson is the importance of adaptability. The markets are ever-changing, and a strategy that works today may not work tomorrow. Being successful in trading means being flexible, continuously learning, and being willing to adjust strategies in response to market dynamics. Lastly, the journey underscored the value of mentorship and collaboration. Learning from Lan Turner and interacting with other traders provides me with a perspective that is instrumental in shaping my trading approach. It taught me that while trading can be solitary, the knowledge and experiences shared within my trading community are invaluable. As my story nears its conclusion, these reflections and lessons form the essence of my trading philosophy. They are not just strategies for financial success but guiding principles for personal and professional growth in this unpredictable and exhilarating world.

The Moral of the Story As we reach the conclusion of this narrative — much like the final pages of a John Grisham thriller where the plot resolves and the lessons emerge — it's time to distill the essence of my trading adventure. My journey into options and futures trading has been more than a series of financial transactions; it’s a journey of discovery, learning, and personal development. The key takeaways from my adventure are many, but here are five: 1. Understanding Is Key: Mastery of concepts like delta in options trading can transform your approach from speculative to strategic. 2. Risk Management Is Crucial: Whether in stocks, or futures, understanding and managing risks is not just part of the strategy; it is the strategy. 3. Flexibility and Adaptability: The markets are ever-changing, and success lies in adaptability and responsiveness to these changes. 4. The Power of Mentorship: Learning from experienced traders can provide invaluable insights and accelerate your learning curve. 5. Psychological Resilience: Trading is as much a mental game as a financial one, requiring patience, discipline, and emotional control. To those readers intrigued by the world of options trading, I encourage you to continue your exploration of these fascinating markets. Remember, every expert was once a beginner. Start with the basics, seek knowledge, and don't hesitate to ask for guidance. Parting Wisdom As a parting piece of wisdom for aspiring traders, I leave you with this thought: Trading is not just about pursuing profit; it's a journey that tests and builds

character. It teaches applicable lessons beyond the trading floor — about decision-making, managing uncertainty, and continuous learning. In the world of trading, every challenge is an opportunity for growth, every loss a lesson, and every success a testament to perseverance and strategy. Embrace the journey with curiosity, resilience, and an open mind. Deion Mitchell is a part-time trader, Lan Turner's President's Club member, and contributing writer to PitNews Magazine; Mr. Williams is a retired aeronautical space engineer from Lockheed Martin Skunk Works.

1. Options: Financial derivatives that give the buyer the right, but not the obligation, to buy (call option) or sell (put option) an underlying asset at a specified price within a certain timeframe 2. Call Option: A type of option that gives the holder the right to buy a specific quantity of an underlying asset at a predetermined price (strike price) before a specified expiration date. 3. Put Option: A type of option that gives the holder the right to sell a specific quantity of an underlying asset at a predetermined price before a specified expiration date. 4. Futures: Financial contracts obligating the buyer to purchase and the seller to sell, a specific asset at a predetermined future date and price. 5. Delta: A measure of an option's sensitivity to changes in the price of the underlying asset. It indicates how much the price of an option is expected to move per $1 change in the price of the underlying asset. 6. Premium: The price paid for purchasing an option. It represents the cost of acquiring the right to buy or sell the underlying asset. 7. Risk Management: The process of identification, analysis, and mitigation or acceptance of uncertainty in investment decisions.

8. Hedging: A risk management strategy used to limit or offset the probability of loss from fluctuations in the prices of commodities, currencies, or securities. 9. Leverage: The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment. 10. Strike Price: The set price at which a derivative contract can be bought or sold when it is exercised. 11. Expiration Date: The date on which a derivative contract (such as an option or futures) expires, and the rights to exercise it cease to exist. 12. In-the-Money: A term used to describe an option contract that has intrinsic value - for a call option, when the underlying asset's price is above the strike price and for a put option, when the underlying asset's price is below the strike price. 13. Out-of-the-Money: An option that has no intrinsic value - for a call option, this is when the underlying asset's price is below the strike price, and for a put option, when the underlying asset's price is above the strike price.

Technical Appendix - Glossary This technical appendix provides definitions for some of the key terms used throughout Deion’s article, offering readers a clearer understanding of the concepts discussed in the narrative of stocks, options, and futures trading.

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Mastering The Christmas Tree And Balaam’s Ladder Trading Strategies

by Claire Kristensen, co-Author Aiden Gray When I first dipped my toes into the trading world, I quickly learned that timing was everything—yet it was as elusive as capturing lightning in a bottle. Whether I was jumping in too early or too late, I often found myself lamenting missed opportunities. This led me to revisit Lan Turner's book, focusing on two methodologies: The Christmas Tree and Balaam's Ladder. My Journey Into Dollar Cost Averaging: Mr. Turner's unique Christmas Tree approach to dollar cost averaging has become my preferred method for market entry. I begin by cautiously entering a long position rather than committing fully from the start. When the market moves against me, I place buy limit orders at strategic levels, viewing it as an opportunity to improve my entry price and systematically increase my position size.

The "Christmas Tree Trading Strategy" might not bring about a white Christmas, but it could very well green up your portfolio. Named for its visual representation in the Track 'n Trade trading platform, where a series of green buy limit orders seem to hang like ornaments on a festive tree; this strategy focuses on a calculated, incremental approach to market entry. This approach effectively lowers my average entry cost, positioning me for higher potential profits when the market rebounds. Exploring Balaam's Ladder. As I gained confidence and honed my skills, I became interested in Balaam's Ladder, the counterpart to the Christmas Tree strategy. '

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‘Balaam's Ladder' offers a strategic approach to capturing profits in a bullish market turn. Visually represented in the Track 'n Trade trading platform by a series of ascending red sell limit orders, akin to climbing a fiery ladder, this strategy carefully builds a short position as the market rises. Each red limit order, symbolizing a step on the devil's ladder, incrementally adds more shares or contracts, elevating the short position's dollar cost average. Aptly named for its devilish play on risk, as there's no definitive peak to a rising market. Balaam's Ladder embodies the daring yet calculated approach of engaging with an endlessly ascending market, a venture that requires both courage and caution.

I design my sell limit orders to gradually build short positions. This strategy is particularly effective when I anticipate a market’s peak. It lets me benefit from the trend's downward movement without pinpointing the exact top. Instead of cannonballing into a position, you initially buy when bullish, or sell when bearish a fraction of your target, perhaps 250 shares out of a planned 1,000, or one contract in the futures market out of five. As the market moves against you, you strategically add more shares or contracts to your position until you've reached your maximum allocated share size or your predefined exit stop is triggered.

The Christmas Tree

Alternatively: Start with 1, add 1 add 1 add 1 add 1 add 1 stop 6. Or Start with 1, add 1 add 2 add 4 add 8 Stop 16.

In contrast to "Cannonballing," where a trader jumps in with the full position size upfront, the Christmas Tree and Balaam’s Ladder employ a technique akin to "dollar cost averaging." Dollar-cost averaging is where you invest a fixed dollar amount in a specific asset at regular intervals, regardless of its price. However, with the Christmas Tree and Balaam’s Ladder Strategies, we're not strictly sticking to regular intervals but adapting to market conditions. If the market moves unfavorably, you can improve your average entry price by adding to your position at a better price. The Christmas Tree and Balaam’s Ladder turns what many might see as a market setback into a strategic opportunity. By purchasing additional shares or

contracts at lower, or higher prices respectively, you effectively reduce your average entry cost, which can ultimately enhance your profit potential when the market swings back in your favor. The Mechanics of the Christmas Tree How to Initiate a Position with a Smaller Share Size: 1. Identify Market Entry Point: Start by determining your desired entry point in the market based on your analysis. Let's say you've set your eyes on a stock currently trading at $50 per share. 2. Decide on Position Size: Next, decide on your total desired position size. For example, you might aim for a full position of 1,000 shares.

However, instead of buying all at once, the strategy calls for starting smaller—perhaps with 250 shares. 3. Place Initial Order: Place a buy limit order for 250 shares at or near your determined entry point. This fractional size allows you to test the waters without fully committing. Strategy for Adding More Shares if the Market Moves Against You: 1. Set Additional Buy Limit Orders: Pre-determine price levels at which you will add more shares if the stock moves against your initial position. For instance, you could set subsequent buy orders at $49, $48, and $47. 2. Size Increments: Decide on how many additional shares you will buy at each subsequent level. You could continue with increments of 250 shares, or adjust based on your risk tolerance and strategy, doubling up the incremental number of shares, which brings your dollar cost average down more quickly. 3. Max Position & Exit Strategy: Know your maximum position size in advance (e.g., 1,000 shares in this example) and have a firm exit strategy. Set a stop-loss order to trigger if the market continues to move against you beyond a point that you're comfortable with. 4. Reassess & Adjust: As your additional orders get filled, constantly reassess your position. Calculate your new average entry price and adjust your stop-loss orders accordingly. 5. Take Advantage of Market Swings: The goal is to improve your average entry cost as the market moves against you, so that when the trend reverses in your favor, you are positioned for a more profitable exit. In this example, the Christmas Tree Strategy has allowed you to enter the market in a more risk- managed way, and you were able to benefit when the market turned in your favor. The Roll: Implementing the 'Roll': In navigating the ups and downs of the market, I've adopted Lan Turner’s technique he calls 'the Roll’.

The Concept of the Roll: There are moments in trading when, despite best efforts at strategic entry, the market continues to trend against my position. In such scenarios, as my position size grows, so does my exposure to risk. This is where the Roll becomes crucial. The objective of the Roll is to reduce risk in a position that has grown uncomfortably large due to continued adverse market movement. (Catching a falling knife.) Executing the Roll: The Roll strategy is executed at the first suitable opportunity, typically at a point where the losses are minimized or, ideally, when the market rebounds to a breakeven level. At this juncture, I liquidate a substantial portion of my position. This action effectively reduces my exposure and risk, providing a safety net if the market trend continues to oppose my initial analysis. The Roll is not just about cutting losses; it's a proactive move to safeguard against potential further downturns. It's an acknowledgment that while the market may still turn in my favor, the current extended position may carry more risk than initially planned. Strategic Consideration for the Roll: 1. Risk Assessment: Before executing the Roll, I assess the current market situation and the size of my position in relation to my overall risk tolerance. 2. Decision Point: I choose a point for the Roll based on technical indicators or a return to a near breakeven level. 3. Position Adjustment: I then swiftly reduce my position size, thereby decreasing my exposure and potential downside risk. 4. Readiness to Re-engage: Post-Roll, I remain vigilant and ready to re-enter the market or continue dollar cost averaging from this new, more secure position again, waiting for market conditions to change favorably.

The Benefit of the Roll: The Roll offers a cushion against the unpredictability of market movements. By reducing the position size during times of adverse market trends, I retain the flexibility to manage my trades more effectively and maintain control over my risk exposure. The Roll is an integral part of my trading approach, ensuring that I am prepared for various market scenarios, always prioritizing capital preservation. Risk Management: I want to stress the Importance of a well-defined exit strategy. 1. Purpose: An exit strategy serves as your safety net, guiding you on when to cut losses or take profits. It's not just about knowing where to enter; it's equally, if not more, crucial to know where to exit. 2. The Roll: In my trading experience, I've honed the Roll strategy to such a degree of effectiveness that in many instances, I've managed to bypass the need for stop orders to exit my positions altogether. By consistently implementing the Roll, I’ve been able to continually adjust my trades, effectively avoiding large losses or excessive risks. By marrying the mechanics of the Christmas Tree with Balaam’s Ladder with stringent risk management protocols, including stops and the Roll, we, as traders can seek to optimize our market entries while safeguarding against excessive losses. Advantages: Risk Mitigation 1. Staggered Entry: By incrementally entering the market, the Christmas Tree Strategy to the long side, and Ballam’s Ladder to the short side, allows you to spread the risk associated with an ill-timed single entry point. If the market moves against you, your initial loss is limited to the smaller share size you started with. Disadvantages: The Potential for Large Losses 1. Incremental Risk Exposure: While the strategy allows for risk mitigation, it simultaneously exposes traders to incremental risk. As you add more shares to your position, you are essentially

'doubling down' on a losing trade, which can backfire if the market continues to move against you. 2. Irrational Markets: Remember, markets can stay irrational longer than you can stay liquid, and this has never been more true than when trading the Christmas Tree and Balaam’s Ladder strategies. Automated trading systems may execute trades at lightning speed, but they lack the intuitive sense of a skilled trader. Both of these strategies involve a form of market 'intuition'—knowing when to add to or reduce your positions is an art as much as it is a science. There are numerous variations of the Christmas Tree and Balaam’s Ladder strategies, and what we’ve discussed so far only covers the basics. I encourage you to use your imagination and creativity to explore these strategies further. A great way to do this is by watching Lan Turner’s educational trade example videos, where he demonstrates several variations himself, then practice in a demo account, which allows you to expand your capabilities and understanding without financial risk. Incorporating these strategies into my trading toolkit has marked a significant step towards becoming a more adaptable and resilient trader. These are not just methods but tools for navigating the ever- changing landscape of the markets, helping me to develop a versatile approach to my trading journey. I hope they do the same for you. Claire Kristensen is a part time futures trader and stock investor living in Las Vegas Nevada. She’s a member of Lan Turner’s President’s Club, and a contributing writer to PitNews Magazine.

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The Great YouTube Trader: Don’t Get Bamboozled

by Lan Turner The rise of YouTube as a platform for traders to share their strategies has significantly changed the game for investors and traders. Many traders have gained a following by promising easy profits and showing off their trading successes. These videos often showcase large profits and bold market predictions, which can entice both beginners and seasoned traders. Yet, these online trading celebrities can be a double- edged sword. The promise of quick wealth and overnight trading success can mislead new traders. Some YouTubers may use editing tricks and selective live sessions to create an illusion of infallible trading strategies, which doesn't reflect the true nature of the risky and uncertain financial markets. This article will give you the knowledge to tell the difference between actual trading skills and deceit.

We'll uncover the subtle cues that indicate whether a YouTube trader is legitimately skilled or if you're seeing a performance meant to mislead. We intend to create an informed community that can approach the world of financial trading with a critical eye, avoiding scammers and valuing genuine education and insight. The Tale of Two Accounts: There's a deceptive practice that some high-profile YouTube traders are engaging in. It's being exposed by regulatory crackdowns where trading "gurus" maintain multiple separate trading accounts—one for long positions and the other for shorts. As the market fluctuates, they wait for one account to show a profit. That's the account they then broadcast to their audience, creating the illusion of a one-sided winning streak.

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The red flags of this scheme are subtle but telling. The most significant is the lack of transparency in placing orders. If a trader frequently executes trades off-screen, it's a sign of likely manipulation. Additionally, suppose live trades seem haphazard, and trades don't align with their stated strategies or past patterns. In that case, it suggests that viewers might only be seeing a selectively successful narrative. I've seen live trading gurus confidently tell viewers the market was heading down, providing detailed explanations of their bearish outlook. Pointing out projections, support levels, and market liquidity. But then, it turns out they suddenly had a big winning trade off-screen, going the other direction. Why talk up a bearish market while quietly betting on a price rise? This kind of trickery breaches ethical standards and distorts the reality of trading. It promotes a dangerous misconception that trading is a surefire win and downplays the inherent risks. This false portrayal can lead novices to adopt similar reckless tactics, often with costly outcomes, under the misguided belief that this is standard trading practice. Deception in Action: The Case of 'Trader Jack”: I stumbled upon “Trader Jack's” channel during one of my late-night research sessions. Jack had a confident air about him, and his trading sessions were nothing short of mesmerizing. Each trade seemed to end in a celebration of profits. The allure was undeniable, and he had a knack for making it all look so easy, so accessible. Jack's endorsements of a particular brokerage firm were persistent, weaving in calls to action and encouraging viewers to sign up and trade as he did. As I watched, something felt amiss. Jack's trades were executed flawlessly, but the setup seemed peculiar. Orders were often placed off-screen, and despite his

purported transparency, the execution of most of his max-size entries were rarely visible. It was as if, by magic, Jack's positions were always in the green. It soon became apparent that Jack was playing a game of digital sleight of hand. He secretly traded multiple accounts on multiple monitors—one he'd buy, the other he'd sell. The market's inevitable swing in one direction or the other would turn one account profitable. That's when Jack would pivot the YouTube live screen-share, showcasing the success while discarding the evidence of the losing trade, hidden off-screen. It was a well-crafted illusion that I might have fallen for had I not been aware of the signs. When the regulators finally caught up with Jack, it was revealed that his luxurious lifestyle was not a direct result of his trading skills but rather the commissions and fees he earned through new traders he brought to his recommended brokerage firm. This trickery does more than mislead the individual investor; it casts a long, dark shadow over the entire trading industry. When traders like Jack peddle dreams woven from deceit, they chip away at the foundation of trust essential to our field. It is detrimental to the unsuspecting novice and the integrity of trading as a whole. Each sham is a stain

on the reputation of every honest trader, undermining the hard-earned confidence placed in us by clients and the public alike. It is imperative that we, as a community, condemn such practices unequivocally and strive to maintain the highest standards of transparency and truth. Only then can we hope to restore and uphold the respectability of our profession. Additional Red Flags: A Deeper Dive into Deceit Lack of Transparency: • The absence of a verified track record is a glaring red flag. Legitimate traders usually have a history of their trades that can be reviewed and verified. • Be wary of selective trade reporting. Scammers often showcase only winning trades and conveniently omit the losses. Unrealistic Promises: • Claims of guaranteed returns and minimal risk are immediate warning signs. The market is

• inherently uncertain, and no one can promise consistent profits. • High rewards pitched with little to no effort is a fantasy. Profits in trading require knowledge, risk management, and patience. Pressure Tactics: • Urgency in marketing, suggesting a limited opportunity to join or invest, can be a tactic to rush judgment and prompt hasty decisions. • Be cautious of those touting 'exclusive' insider knowledge, which is usually non-existent in the regulated markets. Questionable Scaling and Positioning: • Entering trades with unrealistic position sizes, known colloquially as the "cannonball" approach, often indicates a strategy more reliant on luck than skill. • Ignoring or skirting around standard risk management practices and not scaling into positions gradually is a sign of potential recklessness.

Suspicious Brokerage Relationships: • Excessive promotion of a particular broker, especially if coupled with claims that the broker prefers or benefits the trader, is suspect. • There's a potential conflict of interest if a YouTuber profits from their followers' trading volume or losses. Dubious Offers of Free Capital: • Be wary of entities that offer free trading accounts or funded opportunities based solely on demo account performance. Real trading involves real risk, and legitimate firms require a proven track record with actual capital. • Genuine brokerage firms and proprietary trading houses typically mandate a thorough evaluation of a trader's risk management, strategy, and psychological fortitude with real money before allocating funds. • Offers that bypass the due diligence of real- money trading history may be designed more to entice and mislead than to discover and foster genuine trading talent. No Discussion of Risk Management: • A trader who doesn't discuss stop-losses or risk- to-reward ratios may not have a solid risk management strategy, a crucial component of successful trading. • The absence of clear risk management plans in their content should raise doubts about their credibility. Lifestyle Marketing: • Using displays of wealth as proof of trading success is misleading. Real trading understanding is shown through performance, not possessions. • Focusing on lifestyle over substantive trade analysis and results can be a smokescreen for a lack of genuine trading ability. Shallow Educational Content: • Providing educational content that doesn't cover the fundamentals or dives into market analysis is often not helpful. • An overemphasis on success stories without the analysis or reasoning behind trades shows a lack of depth.

Questionable Testimonials: • Reliance on testimonials, particularly those that are paid for or cannot be independently verified, should be treated skeptically. • A genuine track record does not need embellishment with fabricated success stories. Ignoring Community Feedback: • Deleting negative comments or criticism is a red flag; a trustworthy trader welcomes constructive feedback. • Engagement exclusively with positive reinforcement can be a sign of creating a false narrative of success. A lack of proper government disclaimers: • It’s a requirement for legitimate individuals and firms to register with their governing authority, and to display the proper legal disclaimers. • Many scammers add disclaimers to their work to create an air of legitimacy. These red flags serve as critical checkpoints for traders navigating the digital world of trading advice. The old saying, "If it seems too good to be true, it probably is," has never been more true than in the trading world. The landscape of online trading education is fraught with both opportunity and deception. Remember, the real measure of trading acumen isn't found in the flashy displays of success but in the quiet consistency of informed decision-making and risk management. Your trading journey should be built on a foundation of knowledge, not the shifting sands of illusion. Let us part with a reminder: In trading, as in education, the pursuit of knowledge is a never- ending journey that rewards the diligent and the discerning. Seek out the real, commit to learning, and trade with wisdom. Lan Turner teaches finance at Utah Tech University and has been a guest lecturer at the Chicago Board of Trade and Chicago Mercantile Exchanges. As the editor-in-chief of PitNews Magazine and contributing author, he brings a wealth of knowledge to his readers.

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PitNews Magazine In-Depth Insights, Analysis, and Education on Trading and Financial Markets; Stocks, Futures & Options Published by: PitNews Press, Inc. About PitNews Magazine PitNews Magazine is a renowned publication in the trading and financial industry, known for its insightful analysis and comprehensive education on various market aspects, and has been in publication since 1998. Our aim is to equip traders and investors with the tools, knowledge, and strategies they need to excel in the competitive world of Stocks, Futures, and Options. Featuring contributions from seasoned professionals and experts, our magazine includes articles from our acclaimed Editor-in-Chief, Lan H. Turner, and distinguished traders and contributing columnists such as Dr. Scott Brown, Aiden Drake, L. Ben Turner, David Duty, Claire Kristensen, among others. Note that some author names have been altered for privacy. All articles, examples, and stories in PitNews Magazine should be considered, from a legal standpoint, as works of fiction used to illustrate strategies or further narratives, unless specifically stated otherwise. Our magazine provides readers with a cutting-edge perspective on trading strategies, software platforms, research tools, and much more. We utilize artificial intelligence tools to assist in researching topics, editing articles, creating graphics and images, and suggesting grammar and spelling corrections. In fact, this copyright notice was crafted and refined using artificial intelligence to improve readability. If you're interested in joining our team, contributing an article, or becoming an affiliate reseller of our magazine and other services, please visit our website for registration details. For more information about PitNews Magazine, visit www.PitNews.com. Copyright © PitNews Press, Inc., All rights reserved. No part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law. All images have been licensed or created specifically for PitNews Magazine.

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