AGAIG: Supplemental Income Strategy Using One Trade Per Day With Charts For ThinkOrSwim

[csricksdds]

SUPPLEMENTAL INCOME USING ONE TRADE PER DAY​

I envisioned this strategy for a California friend who works each day from 9:00 a.m. until 6 p.m. (California time) and who desires to make around $2,000 per month supplemental income. He should have the first 1-2 hours available for trading purposes before leaving for work (one of the few blessings that comes with California Pacific Time living)? I even set up a separate account myself to try this method for a six-month trial period to see how well it might work?

This method should work using a cash account, or even a regular brokerage account, under the new FINRA guidelines that no longer require a $25K minimum balance for making day trades. My understanding is that Schwab has set their new level at $2,000 minimum for day trading purposes?

For my personal trial I am limiting this strategy to four trading charts: ALAB, SPY, MSTR, and COIN (any four charts of your choice should work). The charts I am using all have good intraday volatility of at least 5+ points movement.

The strategy is to make only one trade per day buying two contracts to start. My friend is in the process of opening a TOS account for $2,000 (or more) which is the new minimum for day trading with Schwab.

He will need to be very careful and selective for trades in order to maintain his account at, or above, the 2K level. As soon as his account is opened, I will help set up his charting using one of my AGAIG charts. I will teach him to enter his “ONE” day-trade buying ATM (At-The-Money) from one of these four charts using the SHORT BUBBLE and RED VERTICAL SQUARED HISTOGRAM as entry points (for short trades) and the LONG BUBBLE with GREEN VERTICAL SQUARED HISTOGRAM or GTC levels for exits (this can be used in the reverse for long trades as well).

He should hopefully be able to execute one good trade each morning before he leaves for work?

My further instructions are as follows:

Buy two contracts each trade until you account reaches $3,000. At three thousand begin trading three contracts; at $4,000 begin trading four contracts and when your account reaches $5,000 begin trading five contracts (and so forth up the line as your account increases in value).

Now, remember my friend is trying to generate an extra $2,000 per month. Since there are approximately twenty trading days per month and these stocks are volatile, he should try to make at least $100 per contract/per day. This requires only a 2-point move ATM to generate that amount per contract.

This is also the method I would recommend to any individual using a small account (or any size) wishing to grow it.

Happy trading!


mod note:

See the next post for the actual strategy

 

[csricksdds]

AGAIG: Supplemental Income Using One Trade Per Day​

So, let’s discuss this type of trading. First of all, if a person has a cash account they can place this type of trade for less than $1,000 (a smaller account). They can also start trading one contract and then move up in contract number as success allows? I would point out, however, that we recommend any new (inexperienced) trader use only paper trades until they are comfortable with making trades.

Some traders are trying to manage multiple trades with frequently five, or more, trades in place at one time. Using only one trade per day is much easier to manage? Another issue frequently experienced is the phenomenon of making a profit in the morning and giving it away in the afternoon (I know that process very well)!

Consistently placing one trade each day (preferably a morning trade that is closed before noon) is easier to learn how to defend and manage risk, if necessary to do so. If, and when, a single trade starts to move against me I will frequently turn it into a spread to help contain the erosion and give more time for it to work itself out.

As pointed out previously, I am using my AGAIG Charting to place these trades. My charts are geared to help me visually determine direction and entry points. As with all trades getting DIRECTION right is very important and this is where my indicators come into play. I like to have at least two indicators in agreement suggesting a change in direction. For these trades I will usually place a trade when I get both a SHORT BUBBLE and RED VERTICAL HISTOGRAM, or a LONG BUBBLE and GREEN VERTICAL HISTOGRAM indicating a potential change in direction before placing a trade.

My suggestion is to start with two contracts if you have a small brokerage account, keep your profit expectations reasonable, and maybe use a GTC for closing the positions. I place my trades ATM (At-The-Money) and look for movement based on what the stock usually moves intraday. I find that most of the stocks I use will move 1-2 points, or more, once a new direction has taken place.

My suggestion is to start with a $2,500 account, trade two contracts for each trade, move to three contracts when you get above $3,000, four when above $4,000, and so forth up the line. Be careful and manage trades to stay above your $2,000 trading level.

When analyzing my chart these are some of the things I look at:

• Is current price above or below the VWAP and will a change in direction move it back towards that Volume Weighted Average Price?
• How did the stock and market open? Did it immediately move up in price? If so, are there wicks extending above where Bulls have tried to raise price higher but were unsuccessful and where it still needs to establish an Opening Range Lower Price?
• What is the overall market doing? Is the overall trend moving up, down, or sideways. Is there a Doji Candle showing “indecision” (a small candle body with wicks protruding both ways).
• Are we moving above, within, or below the ORB.
• Have my Murrey Math Pivots been established? Is movement taking place above/below or at the 20 EMA line.
• What does movement on the lower True Momentum Oscillator suggest for direction?
• What are my TREND LABELS and CAUTION LIGHT suggesting.
• Looking at the labels above how is this stock acting in relation to the MAG 7, QQQ and SPY.

These are questions easily available VISUALLY on my charts, and trades can be placed when you feel comfortable with what you see. You should get to the place where you have an overall impression of what is taking place with little more than a glance?

You will notice that I have two trend Labels on the lower left and lower right of the chart. They are not always in agreement as they are looking at trend from different perspectives. When both suggest the same trend is worth noting.

I am posting one of my dual charts for you to view and use if you so choose. For these one-per-day trades I am using a five-minute chart, but a ten-minute (or other) will work as well. In this chart I am using COIN and MSTR which are two of my favorite Day-Trading stocks. I always trade them using at least 2-3 days until expiration and later in the week will use next week’s expirations.

You might want to give this lower stress type of trading a try?

Dual Chart Link: http://tos.mx/!wJOxPxVj

Chart Look:

https://imgur.com/a/yaxrM9f

Feedback is always appreciated.

Happy trading!

 

[Zlotko]

Can you show the chart ?

 

[csricksdds]

Can you show the chart ?

Any of my AGAIG Charting will work. A good one would be AGAIG Rinse and Repeat http://tos.mx/!hVLMz6Sl (this is a 2-chart which you can double). I can do a double for you if needed

 

[antwerks]

SUPPLEMENTAL INCOME USING ONE TRADE PER DAY​

I envisioned this strategy for a California friend who works each day from 9:00 a.m. until 6 p.m. (California time) and who desires to make around $2,000 per month supplemental income. He should have the first 1-2 hours available for trading purposes before leaving for work (one of the few blessings that comes with California Pacific Time living)? I even set up a separate account myself to try this method for a six-month trial period to see how well it might work?

This method should work using a cash account, or even a regular brokerage account, under the new FINRA guidelines that no longer require a $25K minimum balance for making day trades. My understanding is that Schwab has set their new level at $2,000 minimum for day trading purposes?

For my personal trial I am limiting this strategy to four trading charts: ALAB, SPY, MSTR, and COIN (any four charts of your choice should work). The charts I am using all have good intraday volatility of at least 5+ points movement.

The strategy is to make only one trade per day buying two contracts to start. My friend is in the process of opening a TOS account for $2,000 (or more) which is the new minimum for day trading with Schwab.

He will need to be very careful and selective for trades in order to maintain his account at, or above, the 2K level. As soon as his account is opened, I will help set up his charting using one of my AGAIG charts. I will teach him to enter his “ONE” day-trade buying ATM (At-The-Money) from one of these four charts using the SHORT BUBBLE and RED VERTICAL SQUARED HISTOGRAM as entry points (for short trades) and the LONG BUBBLE with GREEN VERTICAL SQUARED HISTOGRAM or GTC levels for exits (this can be used in the reverse for long trades as well).

He should hopefully be able to execute one good trade each morning before he leaves for work?

My further instructions are as follows:

Buy two contracts each trade until you account reaches $3,000. At three thousand begin trading three contracts; at $4,000 begin trading four contracts and when your account reaches $5,000 begin trading five contracts (and so forth up the line as your account increases in value).

Now, remember my friend is trying to generate an extra $2,000 per month. Since there are approximately twenty trading days per month and these stocks are volatile, he should try to make at least $100 per contract/per day. This requires only a 2-point move ATM to generate that amount per contract.

This is also the method I would recommend to any individual using a small account (or any size) wishing to grow it.

Happy trading!

Can you be more descriptive in this step?

He will need to be very careful and selective for trades in order to maintain his account at, or above, the 2K level. Are you using MTF for trend setting ranges support resistance ....etc and since he won't be there to watch it will there be stop loss and how far out are you buying the option? just in case it doesn't go like anticipated are you giving enough "room to run"?

 

[cando13579]

Can you be more descriptive in this step?

This????maintain his account at, or above, the 2K

 

[antwerks]

This????maintain his account at, or above, the 2K

yes this one- and more - He will need to be very careful and selective for trades in order to maintain his account at, or above, the 2K level. Are you using MTF for trend setting ranges support resistance ....etc and since he won't be there to watch it will there be stop loss and how far out are you buying the option? just in case it doesn't go like anticipated are you giving enough "room to run"?

 

[csricksdds]

Can you be more descriptive in this s

This????maintain his account at, or above, the 2K

You are correct. The account needs to be maintained above 2K. It is the same as protecting any account one has.

 

[csricksdds]

I have been asked to show the charting I am using for this and also to be a little more descriptive of the process. I will work on that and post in the next couple of days. Thanks for the feedback

 

[JK1]

I pinged Schwab yesterday and they told me the change to $2K doesn't go into effect until June 4th. Has anyone heard differently?

 

[rad14733]

I pinged Schwab yesterday and they told me the change to $2K doesn't go into effect until June 4th. Has anyone heard differently?

From what I've seen, June 4th, 2026 is the official date for the new PDT rule to go into effect...

 

[JK1]

I'm relatively new to options trading and spending a lot of time learning the intricacies of this new universe. I've found this community to be a treasure trove of smart people and information.

Instead of buying contracts, could this strategy work equally well selling contracts given a smaller (starting) account?

Buying Calls --> Selling Puts
Buying Puts --> Selling Calls

If not, I'm a sponge and will appreciate hearing more...

 

[antwerks]

I'm relatively new to options trading and spending a lot of time learning the intricacies of this new universe. I've found this community to be a treasure trove of smart people and information.

Instead of buying contracts, could this strategy work equally well selling contracts given a smaller (starting) account?

Buying Calls --> Selling Puts
Buying Puts --> Selling Calls

If not, I'm a sponge and will appreciate hearing more...

https://optionstradingiq.com/options-trading-101/

 

[csricksdds]

I'm relatively new to options trading and spending a lot of time learning the intricacies of this new universe. I've found this community to be a treasure trove of smart people and information.

Instead of buying contracts, could this strategy work equally well selling contracts given a smaller (starting) account?

Buying Calls --> Selling Puts
Buying Puts --> Selling Calls

If not, I'm a sponge and will appreciate hearing more...

It works both ways if direction is right. Selling profit is limited to the amount you sell for while buying has the potential to be more profitable but both methods work.

 

[JK1]

https://optionstradingiq.com/options-trading-101/

Thanks for sharing. I've also found good content at: OIC .

 

[JK1]

It works both ways if direction is right. Selling profit is limited to the amount you sell for while buying has the potential to be more profitable but both methods work.

Got it...thank you. Also, I'm learning a lot from your posts. Thanks for sharing your experience.

 

[antwerks]

It works both ways if direction is right. Selling profit is limited to the amount you sell for while buying has the potential to be more profitable but both methods work.

It worked with ALAB today!!!

 

[csricksdds]

It worked with ALAB today!!!

Nice going!

 

[antwerks]

Nice going!

well day two was again spot on played both directions for ALAB 191 to 187 and then 190- 193 nice day thanks to the Doctor!!!! and here I thought I hated the Dentist....lol I played the open on COIN for a big win too...

 

[csricksdds]

well day two was again spot on played both directions for ALAB 191 to 187 and then 190- 193 nice day thanks to the Doctor!!!! and here I thought I hated the Dentist....lol I played the open on COIN for a big win too...

We're used to being hated! I treated children but became an anesthesiologist first so I could put them to sleep. Children are great when they're asleep