The Evolved Trader Guide to Trading Alerts

by | Oct 28, 2021

Hey, Evolvers. 

Last week I sent out an issue about the dangers of chasing alerts. 

But I often receive questions about how to use my Evolved Trader alerts.

Today, I want to make sure you’re clear on what goes into each alert and what you can learn from them.

How to Trade My Alerts

I work hard to help Evolved Trader subscribers make the most of my trade alerts…

This goal adds a different dynamic to my own trading … Sometimes I’ll send out an alert before I even enter the trade. I try to do so to allow everyone more time to research and set their own entries if the trade suits them.

That said, you should NEVER solely rely on any alert service. 

That’s not how to become a self-sufficient trader. 

So how can you use my alerts? 

I think they can be a great teaching tool. My goal is to help students understand the process while potentially making real profits.

But remember to not chase. Due to technical challenges beyond anyone’s control, alerts may not get to subscribers as fast as we’d all like. That leads to the possibility of either entering a trade too late or flat out chasing.

So today I want to cover a few guidelines that can help you benefit from the Evolved Trader alerts while making smart decisions…

Know Your Risk/Reward for Every Trade

Optimize your risk/reward for every single trade. 

If you want to enter a trade after the stock makes a significant move, don’t enter it blindly. Wait for a bounce and avoid giving in to FOMO. 

Many traders stop out of trades with losses because they didn’t get in at a good risk/reward level. 

Wait for the stock to settle back, then look for an entry at a key support level.

If you get one of my alerts AND know the setup works for you, try to get in as close to my entry price as possible. Always do your research. Make sure every trade you take fits your specific strategy. 

My entries aren’t perfect, but I try to get in at key areas. If you’re paying more than 10% of my entry, your risk/reward may not be great…

What to Do if You Miss the Entry

If you miss an initial move entirely, wait for pullbacks for other potential entries. 

Often, you’ll spot other opportunities if you’re patient and keep a close watch.

And even though I mentioned this last week, I think it bears repeating: Use limit orders. 

If you use market orders, you’re just asking for trouble. Limit orders are far more conservative and well suited for this strategy because they can give you more control.

Also, it’s a good idea to take smaller positions after missing significant moves. In those cases, I only put in a third of my normal position size.

Lesson Summary

  • The key to any good trade is maintaining good risk/reward.
  • Never chase alerts and always do your due diligence. Look at key support levels for entries.
  • If one of my alerts suits your criteria but you’d pay more than 10% of my entry to get in, exercise patience. Wait for a pullback or move on.
  • Use limit orders to help you manage your risk.
  • If you miss a significant move, decrease your position size.

Conclusion

My goal for this service is to help train students to never need alerts to profit from trading options. 

That said, I want Evolvers to make the most of my trade alerts. So I work extra hard to give you information you can use.

In the end, it’s up to you to learn all you can from alerts and webinars and manage your risk.

Meet Mark:

Mark Croock is a former accountant who after studying under Millionaire Trader Tim Sykes turned his small account into $3.19 Million in trading profits by applying Tim’s strategies to options trading.

He started Evolved Trader to pay it forward and help other traders learn how to leverage options

 

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