Our service
MessageTrading.com is a subscription service, providing you everything you need to profit from Options. Our subscribers receive on average two Options trades per month sent to them via e-mail (and SMS). We will generally hold the Options during a time period going from a few days to a few weeks, but hardly ever more than a month.
Our Options Trading system works in both bull and bear markets (up & down) and has proven its profitability over several years. The signals are based on technical & fundamental analysis, self-created indicators and good money management & risk-reward rules.
Our SMS service is available in almost 200 countries and is supported by more than 800 networks worldwide.
Placing your trade
If you decide to take the trade, you just have to call your broker or bank, enter the trade yourself in your broker software (also possible with Blackberry or pocket pc), or let your account automatically trade the signals with one of our AutoTrading partners (soon available).
As a subscriber, you will also receive a
quick-start manual with important information, explaining everything you need to know to get started. We will also explain you what kind of orders we advise you to use and give you some important money management rules (to set your own risk level).
Our trades
Once you
subscribe, you'll receive on average two Options trades a month via e-mail (and SMS) offering you all the details. Here is an example of an SMS or e-mail detailing an Options order:
Buy calls GM
Code: GMEE (strike 25 - May 2006)
@ +/- 1.20
Target: 2.40
Stop: 0.60
This means that we advise you to buy call options of GM (symbol of General Motors) with Options symbol "GMEE" (May 2006 call Options with strike price of $25) at a price of approximately $1.20. Our target is $2.40. If we are unlucky and the market goes against us, we will sell our Options at $0.60 to limit losses.
If you're new to Options, have a look at our
Options Basics page for more information.
Set your own risk-level
We advise you to put a maximum of 25% of your Options account in 1 trade. This way you will end up with very nice profits while having the security to stay in the game, even after numerous bad trades.
You can lower that percentage if you would like to reduce your risk and stress-level even more, or you can increase that percentage if you want to drive up your risk-reward ratio. Have a look at our
smart investing techniques if you want to learn more about this subject.
Get help when you need it
Next to our quick-start manual, you will also gain access to a
priority e-mail address. This ensures you can gain quick and helpful responses to any questions you may have regarding your subscription, our trading signals or the Options market in general.
FREE virtual options trading account
If you would like to first gain experience without risking real money or even before opening an options account with a broker, we offer a FREE Virtual Options Trading Account (including quotes) to our subscribers.
An example trade
This chart shows two Options trades made through MessageTrading in July 2006. The trades were made using Options on the S&P Depositary Receipts, an ETF (Exchange-Traded Fund) that follows the S&P 500 Index.
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Trade 1
In the beginning of July, an e-mail (and SMS) was sent out to our subscribers advising to buy Put Options. 8 days later, the trade reached our target resulting in a profit of 71% caused by a 2.41% decline in the underlying value.
Trade 2
Shortly after, we sent out a new e-mail (and SMS) advising our subscribers to buy Call Options on the S&P Depositary Receipts, as our trading system showed a rise was imminent. As predicted, the market rose (by 2.83%), providing us a profit of 64%, while only remaining in the market for another eight days.
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Info about options brokers
Most options brokers and banks provide real-time or streaming Options quotes for free so you can follow your trade any time.
A few other general things that apply to most Options brokers:
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The opening and maintenance of an Options account AND the software are FREE of charge.
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An Options account can be opened without the obligation to fund your account.
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Several brokers offer a virtual trading tool that gives you the opportunity to first gain experience with the software without putting real money on the line.
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The only thing you have to pay, is a commission for the trades that are really executed.
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Commissions of $1.50/Options contract (1 contract equals 100 Options) are common.
We can provide you with information about our recommended Options broker. It's an international market leader in Options trading that offers a very good combination of low commissions and excellent service. Just send us an
e-mail.
For more info on Options, you can take a look at our
Options basics page.
Tips for successful Options Trading
It's true that Options provide the possibility to double your account in a few days, although we don't advise you to put your whole Options account in 1 trade. This can be a strategy to failure. In today's markets there's always a chance (even though very small with our system) on a few consecutive losses and we want to stay in the game for the subsequent big winners, don't we?
The truth is also that most traders lose money. Some people even claim that 80% of all traders lose money in the long term! But since the markets are a "zero-sum game", this also means that the other 20% of traders are making a hell of a lot of money. After all, for every loser, there is a winner. We just have to make sure that we will be part of that 20%!
The 3 most important ways in which successful traders distinguish themselves from losing traders are:
They have a profitable trading plan.
We provide you the trades based on thorough research. Our Options Trading system works in bull markets AND bear markets (up & down) and has proven its profitability over several years. So this first rule won't be an issue.
They stick to that trading plan.
Once you have decided for yourself to take the trade, you have to stick to it. Discipline is a very important key ingredient for a successful trader! We plan our trade and trade our plan. Don't let yourself become a victim of 'fear and greed', 2 emotions that are responsible for most losses on Wall Street.
They observe good money management & risk-reward rules.
Let me explain this rule with an example:
Say you have $2,000 you've set aside to trade Options.
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You can start trading our Options signals with your whole account. If you are lucky and you have for example 2 consecutive winners of 50% (a realistic assumption), you would have $4.500 after 1 month. That's a profit of 125%!
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Now let's keep the same scenario but instead of 2 consecutive winners of 50%, let's say you have 2 consecutive losses of 50% (not likely at all with our Options Trading system but also possible). Only $500 would be left after 1 month. That's a loss of 75%.
As you can see, when trading with your whole Options account, you can more than double your account in 1 month time. But if you have very bad luck, you can also lose a lot of money in such a way that there isn't much left to put in the subsequent big winning trades. That's why it's important to stick to
good money management rules.
We advise you to put a maximum of 25% of your Options account in one single trade. This way, you still can make a lot of money and most important of all, you can survive numerous bad trades and still be in the game!
Of course you can lower that percentage if you would like to reduce your risk and stress-level even more. You can also increase that percentage if you want to drive up your risk-reward ratio and possible profits.
To make this more clearly, we put it all in a table.
We assume you have $2,000 to start trading Options and you only trade with 25% of your account. In the table we also suppose that 33% of our trades are losing trades, that each winning trade has a profit of 60% and every losing trade has a loss of 50%. Those are realistic assumptions, we can even say that our trades are often even more profitable!
As you can see, we started with 2 losing trades of -50% and our trading account only lost 23%. It would have taken 6 consecutive losing trades before we would have a loss of 50%!
And as you can also see, after 1 year, our Options account made a profit of 222% without any stress!
Please note that commissions are not taken into account in this calculation.
This way it takes more time to double your account than in our first example but we have done it twice in 1 year without having to worry about some losing trades! If you can do this year after year, you can make a fortune! Let's have a look at the following simulation:
When you would reinvest all your profits, after 6 years you would be a millionaire and this without any stress and starting with only $2,000!
