Expiry Trade Case Study

How do you double your money every 3 years with a simple investment strategy?

With UK banks giving you at best 2% savings rates and UK inflation set at 3% you are losing your money putting it in the bank. In our minds that is a very risky strategy. In the real world, you are putting your money in the bank and losing it year on year as it erodes away to inflation.

Instead, why not educate yourself how to place a trade once a month for around 20-30 minutes at a set time?

Have a look at Cameron and Mark trading this back in October.

Expiry Trade always happens on the 3rd Wednesday of the month on the ASX and the 3rd Friday of the month on the FTSE.

Tell me what will you be doing on the 3^rd Friday of the month, next month?

The whole point of this trade encapsulates our trading method. Our method is not based on fundamentals or technical analysis, we prefer to trade on market inefficiencies.

Why? They are so reliable.

The market will swing one way and then correct itself in the next few minutes or certainly before the next hour. Also, they arrive often at similar times of the day, week or month so we know when we need to be around to take them, instead of waiting all day like you have to with price action.

Wait for the market to tell you. We also prefer to wait until the market tells us which direction to go in. You cannot predict with certainty which way the market is going second by second. Though many traders trade like this.

Believing you have a crystal ball is a sure fire way to the poor house. (Tweet this)

Honestly? Putting excuses to one side. There are two real reasons people fail at trading.

1. They don’t know their trade set up well enough.
A: Know exactly when you are getting in and why.
B: Know exactly where you are getting out and why,
both positive and negative.

2. They over trade.
A: They get a winner and get overconfident and start trading on hunches.
B: They get a loser and start trading to try and win it back, maybe having over staked in the first place.

So what do you need to do if you want to win at trading?

1. Really know your trade setups.
2. Don’t over trade.

Only do one trade set up even if it’s only once a month if that is all you can execute well. The rest of the time? Practice in whatever way you can the next trade setup.

How not to overtrade?

Simple, only know a few set ups really really well and only take them. If they are a really good set up they will be high probability (think 80%) and will only come round 2-3 times a month at most. Et Voila! no overtrading.

Please do not try and trade setups because the latest Guru said so and its going to make me 20% this month. Its not real.

I wonder what would happen if you only took the trade setups you knew really well. They were all high probability. They were the only trades you took?