On trading advisory services

Well,

I still have two trial subscriptions for option trading services. I find that they are more information scanners for me as I may or may not make the trade that they suggest. One has a 90 day trial which is actually pretty good as that gives me time to really run it through it's paces. They also include a blurb that guarantees 9 money doubling trades in that period but I can still cancel even if those are met, no strings. This one does some decent checking on the stock as well as the typical data scan and they do not pull in much "technical" chart analysis that is easy for anyone to do.

The other only has a 30 day guarantee and uses more chart analysis... although it is a cheaper service.

Having said that both have access to information that I do not, or will not, choose to pay for as it would be more expensive than paying them. I have open trades from each of the services now.

Both have almost covered the initial cost with the trades that I have taken. The more expensive as given more trades and profitable positions so far (none sold yet) and the cheaper only one active trade, as I have had it for less time mainly but it does provide fewer trades overall.

I may keep one or both if they prove fruitful while still running my own trading alongside...seeing as options are cheaper I can do that easily enough.

I have not quoted any figures or trades from these yet but I have 60%, 44%, 55% with one that is -20% and some others just in the green.

These numbers are a little deceptive, or can be. My trades have been deeper ITM so the percentage will be lower even though the actual dollar return may be higher. Some of the service trades were smaller ATM or OTM trades so 60% is not as impressive...until I count that I took a 4 contract position in that case due to the low cost. That is not too high as the trade was for $1 options and I would have bought 300 shares of the underlying stock had I bought the stock and both cash returns would be in the same ballpark.

I need to rethink my loss allowance on these smaller trades and make use of some of the leverage available at some of these $1 or less options. I could have made the one trade with 6 contracts and been at my loss allowance as I would stop them at 50% loss or $300. These have opened my eyes to the ATM trades as being not as scary as some may have led me to believe.

Like anything else in the trading game, risk and loss management are the key to profits, or at least the key to still being around to play the game.

I hope not to gain a reliance on advisory services so I am learning what they use and finding other ways to gain the same sort of information. These two seem to be on the ball where all of the others I have seen and tried (some were very expensive) have missed the mark altogether.

Jeff.