The Money Variable Podcast
The Money Variable Podcast takes a fresh, real-world approach to money—diving into how finances shape every part of our personal lives and businesses. From financial trauma, to real estate investing, business growth, life insurance, wealth-building, day trading, and much more. We uncover the financial truths most people never talk about—but everyone needs to know.
The Money Variable Podcast
Series: Day Trading Part 2: Deep Dive: Options Trading (Execution)
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The March Day Trading Series Continues!
In this episode of The Money Variable Podcast, the March Day Trading Series continues with Day Trading Mentor Jewaun Washington as we take a deeper look into Options Trading and how trades are actually executed in the market. This installment builds on the foundation from Part 1 and focuses on what traders analyze before entering a trade.
In this episode, we discuss:
• How options trades are executed
• What traders look for before entering the market
• Key factors that influence trade decisions
• The importance of preparation and strategy when trading options
No hype. No guessing. Just real strategy and financial education.
Hello, everyone, and welcome back to the Money Variable podcast. I am your host, Marjorie E. Roberts, the founder of the Money Variable, which is a nonprofit organization that discusses financial literacy, but not just the normal financial literacy, checking in savings, loans, but we take a deeper dive and we discuss information that is generally not regularly discussed concerning finances. And I'm excited because we have an exciting guest here with us on today. But let me tell you a little bit about our show on today. So the episode is called Deep Dive Options Trading. And I am so excited about this because our last episode, I did learn a little bit of information, so I'm excited about it. But our host is going to tell you a little bit about himself in just a moment. But I just want you guys to know that this podcast is for information purpose and educational purposes only. If you have any questions, please reach out to our expert who is available and he has a book that you guys can also purchase. Okay. Our esteemed guest on today is Juwan Washington. So, Juwan, tell everybody a little bit about yourself.
SPEAKER_00Hello, everyone. I'm Jawan Washington. I'm from Bookhaven, Mississippi. And my journey has always been rooted into sports and performance. Uh, began my academic career at Kapaya Lincoln Community College and later earned my bachelor's degree uh in exercise science at Mississippi State University. Uh, my passion for health and wellness has led me into the fitness industry where I worked as a personal trainer. And now here I am, a full-time trader, um, and just teaching everyone how to trade and how to invest.
SPEAKER_01Oh, awesome! So we have an excellent show for you guys today, and I am so excited. So, we are going to start with our first question. Now, last week we did discuss a little bit about option trading, but it was kind of like just a little teaser introduction. So, just to piggyback off of that, why do traders choose options over stocks?
SPEAKER_00Yes, traders basically choose option over stock because it requires less capital up front and offer higher leverage, which is um higher percentage on your return. Um, one standard option contract controlled a hundred shares of a stock. So instead of buying 100 shares outright, you're controlling a hundred shares the same way as you would buy a hundred shares of a stock. So, for example, let's say if a stock is trading at$100 per share, buying 100 shares of that stock will cost you$10,000. But an option might cost$5 per share. And so um, since one contract represents 100 shares, that contract will cost you$500 instead of$10,000. Okay, so that's pretty much you know the reason why you you just less capital up front and you can make more money now with stocks. You have to buy so many, and you just have to let them grow over time to see that same return.
SPEAKER_01Oh, we that is good. You know, I'm gonna say this because I am really excited about this series, you know, because I I believe that knowledge is power and also not just knowledge being power, but the execution of the knowledge that you receive is even more powerful. So it's good to know it and to learn it, but it's even greater when you apply it. So I'm not just sitting here, you know, being the host. I am learning and I do plan on applying this information. Okay, so how do you identify a good entry point? And I know this is, you know, we're working with beginners here, you know, we want to expose this information to them, but what is a good entry point? I don't even know what uh an entry point is, I know what it means in other terms, yeah, you know, but I don't know what it means in the term concerning uh day trading. So tell us a little bit about that.
SPEAKER_00Yeah, so first I decide what type of trade I want to take. Um, and that could be a a day trade, a swing trade, which is what we spoke on last week. Um scalping, which is I'm in and out. I don't have time to look at the market all day. Uh, and I just want to get in and make a few hundred dollars and get out. Um, so I determined what type of trade I want to take, and then that determined the time frame that best supports this setup. In most cases, I identify strong entry point by looking at um the alignment between price action and the overall market. And I'll explain that later on and and I give you guys a demonstration on that, but just basically just looking at a weekly time frame, a uh daily time frame, four hour, one hour, and so on. So, based on whatever trade I'm trying to take, then that will determine the entry point.
SPEAKER_01Okay, so we got some notes on that. Uh we got some notes on that. Okay, so what indicators or or tools do you use to help you make a decision on what it is you want to do?
SPEAKER_00So I tell I tell my people all the time, like, don't solely like depend on indicators. Like indicators are not like it's not a hundred percent accurate. It doesn't tell you it it helps, but it don't tell you um 100% if if it's accurate or not. But anyway, I I just try to keep my chart simple and my main focus is on price action. Um basically price action is just it's multiple buyers in a row. If you see that the chart is trending up, or if you see that the chart is trending down, whichever way you're trying to trade, if you're trying to buy cars, which is you want the market to go up, or if you're trying to buy puts, if you want the market to go down, you wait on price action. And that's just a clear direction. Um, support and resistance. And um, I would just say the overall market structure. So you do have indicators like moving averages, you have momentum indicators just giving you a direction okay, it's more, it's more momentum on the upside, and just volume just show that it's just more people trading. So even though even though those help, you still want to know for yourself, like, okay, let me see if I can you know figure this out myself. Then the indicator would just help you. Yeah. So you look at the truck first and then add the indicators so it can help. That's pretty much.
SPEAKER_01Oh, yes, yes, yes. Okay, so now he's giving us some really good tips, you know, but he also has a book called The Million Dollar Strategy. And we want everyone who watches this to go and purchase the book, okay? And he also does a mentorship, he's he has mentees as well, and so he'll give you a little bit of information about that as well at the end of our podcast. But I just want to y'all to stick a pen in that so you'll think about the book and think about the mentorship program that he offers. So now, how much of your account should be risked per trade?
SPEAKER_00I would say per trade, I would say anywhere from like 10 to 30 percent of your account. So you trading with a thousand dollars, so no more than$300,$400 kind of pushing it because now you're at the point where you're trading almost half of your account. And so the 10 to 30 percent that uh that would keep the losses small and then allow you uh allow traders to stay in the game for a long time so they can improve their strategy, or if anything happened overnight, or if the market goes against you, or the trade goes against you, then you have that other 70% of the capital where you can go back in and you can buy the dip, or you can buy other stocks, or you can go shopping. You know, you never want to put up a hundred percent of your capital or uh in one trade or even in the stock market, period. You know, you won't you want to have capital on the side. So I would say um per trade, 10 to 30 percent account value. I I wouldn't I wouldn't put up a hundred percent more uh more like 40 maybe 50 percent.
SPEAKER_01Okay, that's good, that's good. You know, the the old folk got a saying, don't put all your eggs in one basket, you know.
SPEAKER_00Yeah, but yeah, yeah, yeah.
SPEAKER_01You just never know, and then like yeah, you can have multiple baskets, yeah, pretty much, yeah. Okay, so what is proper position sizing? First of all, I need you to explain to me what that is because I do not know what what does that actually mean. What is proper position and sizing?
SPEAKER_00Yeah, uh it's just it's kind of go back to the the last question, kind of go hand in hand with with um proper position sizing. It just it just means it just determines how large um your trade should be relative to your account size and risk tolerance. So, for example, if you decide to risk 10 of your account on a trade, your position should be calculated into that in case the trade fail. That way, you know, you if it's if the trade goes for a loss, you only lost 10%. You know, you didn't, like I said, you didn't lose 100%. So if I lost$100 or I lost a thousand dollars, like I still have the other capital to play with because there's gonna be other opportunity to trade. Like right now, like oil is going up. So I was, you know, buying or whatnot, and and and the stock market was going down. But like Oxy, Chevron, Exxon, like those companies was going up. So I was telling everybody, hey, this is what I'm buying because of what's going on. But if I put all my money in Amazon, which is down, I'm losing. So you want to diversify your portfolio when you're trading. You don't want to put all your money into tech, healthcare. You you want to diversify energy, retail, you know, healthcare, like diversify. So if one stock is down, the other ones are doing good. It's keeping your account afloat.
SPEAKER_01Oh, that's so good. Now, see, that is rich information. Okay, so now this is all everything you said is important. This is very important. What causes most beginners to lose money?
SPEAKER_00Hmm, man, a lot of things. Uh uh, I was definitely saying over trading. Over trading, go back to what we just spoke about, risking too much per trade, you know, and then I was just saying trading off emotion, um, trying to trade based on your situation. Meaning, if you know that bills are due by next week, you're going into the market and you're expecting the market to take care of your bills, and that's not how it goes. Like, don't depend on the market to take care of your bills because you can lose it now. You don't have no money to pay. So that a psychology point, like, okay, I'm gonna go in there, I'm gonna put this in the market, I'm gonna try to hit, you know, two, three hundred dollars and then pay my bills. And it's like, no, that's not that's not how trading works. Trading don't care about any of that. The market don't care about any of that. So I would just, I would, I would definitely say overtrading beginners, and they trying to hit overnight, and they don't want to trust the process, you know. Uh, and also Instagram, social media, people posting they're up 10,000, 20,$30,000, and they the headline is I've only been trading for two months and I'm already up 50k. And then now you thinking that you're gonna do the same thing, and you end up losing your savings and you know, your your friend money, uh, money you borrow. So stay out of social media, over trading, risking too much pet trade, and just trading off emotion because of the current issues in life.
SPEAKER_01Oh, that is that is is very, very good. And I know what he's saying is true, especially with the emotional part of things, you know, not just with trading, but in anything, you know, it might be a situation happening in your life, you might not be trading, but you might go and buy$200 worth of stuff you don't need from Walmart, you know. So, but that's pushed by your emotions at that particular time, whatever is happening at that time. So, you know, it could be anything, stuff that you don't need, or as he is saying, you know, you might be might have a lack, you know, of something. And then you're going online and you're trying to do this trade, but you're doing it because you the motives are not right. I do understand, yeah, but it also clouds your judgment as well. So basically, you you need to make sure that your thoughts are clear because you need to make the right financial decisions while you are trading and not pushed by your emotions. So that is really, really I add on to that.
SPEAKER_00Like, I listen, I have my days, and you know, you have arguments and going back and forth with people, and then you try to go trade. That's not good. You shouldn't be trading under stress and and chaotic. Like, walk away, give it time, come back. The market is not going anywhere. The market is gonna be here. Long as the companies are running and operating, the market is gonna be has been here before us, and they're gonna continue to be here when we're gone, so you don't have to trade every day.
SPEAKER_01Yes, indeed. It was sure here before I was born.
SPEAKER_00No, for sure.
SPEAKER_01It has been here for a long time. So he has already touched on the emotional aspect of things, and he spoke very good concerning you know the losses, you know, that most beginners have. So now I'm excited because now it's time for the demonstration. So I'm really excited about this, and we're going to let him take over. Now, I will be asking a few questions while he's doing what he's doing, but you know, he will be explaining certain things and you will be able to see his screen. And depending on whatever device you're on, you will be able to make it full screen so you can see uh a little bit better. But I'm excited. You ready?
SPEAKER_00Absolutely. Yeah, let's do it, let's get into it.
SPEAKER_01Let's do it.
SPEAKER_00Okay. So like earlier, like she said, you know, when you when I depending on what type of trade I'm trying to take, if I'm if I'm trying to play long term, if I'm trying to swing play um six week, I mean six month, uh, three months, if I'm trying to do a day trade that would determine where I would enter, and also what type of stock I'm trying to trade. So, like here I have a Robin Hood. I'm pretty sure everyone is familiar with Robin Hood. It is a broker where most people trade, but it's very um beginner-friendly. And so this is basically um the chart on a four-hour time frame. And so, first, I you know what I do like to do, I like to scan through stocks, which is over here is a watch list. If you look on the right-hand side of a watch list, this is my scanner. It basically like scanned the market for me and it tells me which stock um I should be investing in or I should be buying in. And so what I do, I go in, I don't enter just because it pop up. I I look at it, I chart it, I look for volume, I look for price action, I look, it's so many things that I go down and check off before I enter a trade. Right here is the SP 500. Um, this is the NASDAQ. Okay, so I just kind of go through stocks or whatnot. Um, but it it it'll alert and let me know which one based on my strategy, based on how I like to trade. You can also tailor it toward like your way of trading. But right now, I just have a Robin Hood. Um so this is a this is a strong stock. So if you look at it, okay. So this line here is a trend line. Okay, this is a trend line. So even though Robin Hood has dropped, it's still in the uptrend, meaning that this line is going up. Long as the candle stays above above this trend line is gonna continue to trend up. The market don't just go straight up. It has it days where dip down, go up, dip down, go up, dip down. But this is the trend line, okay, which is also called support. Okay, now remember I'm on a four-hour time frame, so I like to view the market or the stock on a higher time frame because I want to see what's going on before I even enter. Okay, this is a weekly, as you can see. I have my white line set up. These lines are set up based on support, and then you had a trend line, okay? And then I come down to a daily okay, and then you see that each time frame is gonna give you a different story, a different look. Okay, you start to see that it starts to change, okay? This is a four hour, then I go to a one hour, okay. Then I go to a 30-minute alright. Now, let's zoom in. Now, this right here is called consolidation, meaning that it found support, but it's not ready to break out and go back up yet. Okay, how do I know that it is as support? One, because of the trend line I showed you, okay, and then you also have to go back in time. See, this everything is a cycle right here with previous resistant, okay, right around$65 just with previous resistant. Now, it it went down because these are where the sellers are at. So it's not, it's it's having trouble getting above 65. So it came back down and it's tough support again, okay. And then when it found support, which is buyers, okay, it went back up. Now you notice when it got here, it came down again, but it held. So now this is no longer support down here. This is no longer support down here. The support is now here. Okay, because it held support and then it broke out. Now, you see the yellow candles? Now I change it because of my logo. It's really supposed to be red and green. The yellow is supposed to be red and the green is green, but I just changed it to my logo colors. But you saw that these two candles tried to do the same exact thing over here.
SPEAKER_03Yeah.
SPEAKER_00Because these are where sellers are at. But then it broke, it broke out. Okay, so that just gave me confirmation, okay, that Robin Hood is in a strong uptrend. So now I can draw a trend line here, and as long as it stays above this trend line, it's gonna continue to trend up. And I've all and I got all of this in my ebook too. So the thing that I'm going over with you guys is it's in my ebook if you don't understand. So Once it found resistant up here, which is indeed the same thing here, it came down now. It found support here, and then guess what? It went back to the same area where it rejects and then broke above. So now this is support. So it's just basically you're just trying to get to the next level, the next level, the next level.
SPEAKER_04Yeah, yeah, yeah.
SPEAKER_00You know what I mean? And uh once once that happened, it can't it rejected, but then you notice it didn't bounce here, okay, to go higher. It didn't bounce here. What it did, it broke. So once it broke this support, now it's going down to the next support, which is where we got to go back in time. Anytime you're looking at the chart, you have to go back in time to determine what's going to happen next. Okay, support, support, okay, coming back down. Now, if I'm trading, if I'm trading puts here, I know okay, if it breaks the support, it's gonna continue to go down. This is where you enter puts at. Okay, this is where you enter calls. Because remember, we we want the market to go up, we play calls. Right, we want the market to go down, we play puts. Okay, so you're making money. Long as Robin Hood continues to trend down, you're gonna make money if you're in puts. If you're in calls, as long as it trends up, you're gonna make money on calls. Okay. Now, this is where I want to get back to. Now, guess what? Where we at now? I'm asking you, where are we now? Are we at support or we at resistance?
SPEAKER_01I don't know.
SPEAKER_00I'm telling you, you got okay. So let me ask you this. Let me ask you this. All right, so this for previous resistant. Okay. Okay, previous resistant, now support, support. Okay. Now, where we are now, we at support now, or we have resistance. You gotta just look at just look at it.
SPEAKER_01Okay, so we are at resistant because it's not like below, is that right?
SPEAKER_00So we have so we're back at support now. Oh, yeah, because this was previous resisting over here now. Support because it's now it's finding buyers.
SPEAKER_01Okay, so it's on back on that line.
SPEAKER_00Go back up, yeah. Okay, okay, go back up. So you see that it's holding, it's holding, it's holding. It's not breaking down, it's just it's just staying there, okay. Okay, it's just staying there. So what is what it's doing is waiting on the breakout and go back up.
SPEAKER_01Okay, because guess what?
SPEAKER_00It did the same thing over here.
SPEAKER_01Sure did, sure did.
SPEAKER_00But this is called consolidation because it's like momentum, it's just it's just momentum, it just is basically just kind of like growing, like it's just it's just waiting like a pipe, it's just waiting on it to burst out, you know. So okay, but but if it breaks down, if you do this here, and then break down, then it's broke support, then it go down to the next support because of you gotta go back in time, okay? Okay, so this would be this if it breaks this support, this would be the next support.
SPEAKER_03Okay, okay, yep.
SPEAKER_00So I say that to say this is where I come and I I do my analysis, like I I review the chart before I make a trade. You have to do this first. You can't just hop in a trade because you see it trending online. You have to come here and see what's going on with the stock before you enter. Then I go to yeah, I'll let you speak, but I gotta tell you like once I decide what I want to take, then I go to Robin Hood and I put the trade in.
SPEAKER_01Okay, okay. So you come here first and you look and see to see what it's doing.
SPEAKER_00Yep.
SPEAKER_01And then you go and you put in the trade.
SPEAKER_00Not put in the trade because if you just put in a trade, you're trading blindly, you don't know what's going on. That's no different from your favorite stock, Amazon. You know, you shop every day, you gotta see what's going on, you know. Okay, you have to go look at Amazon and you have to see what is going on. Okay, so Amazon, even though it's going it went down here, it's still in the uptrend. So as long as it stays above this trend line, all it's gonna do is just come down, hit that line, and go back up.
SPEAKER_01Okay, okay.
SPEAKER_00So basically, you're doing research before you this is uh technical analysis.
SPEAKER_01Oh, technical analysis, yeah. Okay, so you do your technical analysis first before you go and you put in you buy before you buy, yeah. Okay, okay, yeah. So so when you do the technical analysis, are you going into what what platform are you using for that?
SPEAKER_00Are you so I use I use we ball um fidelity and I use Vibehood as well. I can I can show you guys how to enter a trade on Vibe and Hood. I can do that, but even um but I'm trading the company too. So this so yeah, I'm looking at the company, but then I'm gonna put the trade on the astral broker. Okay, Vibehood. Yeah, they got their own. They they they have their own platform where you can trade, trade a stock.
SPEAKER_01Okay, so this platform we're looking at now is is we bull.
SPEAKER_00I mean, this is trade in view, trade in view. This is trade and view. Okay, it's just charts. It's just charts. You can just, I mean, you can enter, you can enter a trade from here too.
SPEAKER_04Okay.
SPEAKER_00I can enter. So what you do, you connect your broker, and whatever stock you're looking at, you can just right-click, and then you can add alerts. Uh, you can add order right here. You see add order on Robinhood, you know, and you can sell, like you can do everything here. The way you do it, you go here and you connect your broker.
SPEAKER_01Oh, okay.
SPEAKER_00These are these are where this is where your money is at. This is where your money is at. So your trader bait, ninja trader we bull, um, and and so forth. Trade station. A lot of people trade uh on Trade Station, Tasty Trade. Oh, yeah.
SPEAKER_03Okay.
SPEAKER_00So you want me to show you how to trade, uh how to put it in? Yeah, if you yeah, yeah, I'll do that. Okay, I think I got it already, I already got it put up. Okay, so okay, so let's go back. So this is okay. So so this is Robinhood. Okay, so me personally, I want to play cars. Okay, because it's at support, it has just dropped from 153, it didn't drop half price. So this is where you can buy the stock at too. You can buy stocks too, but options is gonna pay you more money because I'm one contract is a hundred shares, but I explained, okay. So it's just consolidated in this 70 to 75 range, and it eventually is gonna break out and go up. But you know this, so the dates at the bottom, let's see. So from so you look at the very bottom here, so February 5th, 2026, all the way to March 12th, 2026. So it basically been consolidating like a month, like a month and some days, right? You do not want to put your contract too close. So with options, you have you have expiration dates.
SPEAKER_03Okay.
SPEAKER_00Okay, and and I so you do not you do not want to put your contract too slow, you want to give the stock time. You see that it's cons it's been consolidating for a month. So if you have your contracts out next week or the Friday after that, or the Friday after that, every Friday the contract expired. So I want to put my contracts out to like June, July, August. You know, I want to give it time. If you put it out next week and the stock don't move, then you're gonna lose money. So I want to give it time. So I go to Robin Hood, okay. Right here, these are the expiration date. Okay, every Friday contract expired. So let's say let's put it out at least 100 days, so 98 days later. Um, that's over three months. So June 18th, and we're gonna buy a call, okay, because we want them, we want it to go up, okay. And go buy, call, and expiration June 18th. Okay, now on the left side over here, these are the strike prices, meaning that this is the target that I want to hit. Like these are the targets that I want to get to. So, right now, in the middle, the share price is trading around$76. So I want to stay close to the money. I want to say like you can get$80,$85,900 call. You don't want to go too far out, like$130,$140, that's too far. You want to stay close to the money. This is called this is called at the money. This is the money.$76 is the money.$80,$85 is at the money.$90,$95,$100 is out the money. Okay. Anything below this share price is in the money. So$75.70. Is in the money because it's underneath the share price. Okay. Now, let's say an$80 call, it's going to cost you$9.63, which is$963. Because remember, option is 100 shares. So you just basically do$9.63 times$100. So you're going to pay close to$1,000 for this contract. And then you just put the trade in. But this, but this contract here can make you two, three, four thousand dollars. You can get two three hundred percent because I'm giving it time. I'm gonna go back to you, I'm gonna go back to this. So imagine you entering here, oh, and it go and it goes all the way back up to 110. Okay, that is that's that's almost that's what 40, the 40 move. Right. So if you get these contracts here, this contract right here, it'll make you, like I said, it'll make it you'll triple your money. Now, if that's too much, if it costs too much, you can say, okay, let me get something a little closer. Remember, the closer it is, the higher the risk. Okay, so let's say we get April the 17th, and we get the same 80 call, it's gonna be half price. It's gonna be$4.90, which is$490. So remember, the closer the aspiration is to the date today, the cheaper. The farther out the aspiration is, the higher the premium are. Let's go to let's go to one more. Let's click it. Let's look at one more. Let's look at um January 2027. Okay, 80. So this one's gonna cost you eight, 1800. So you see the reason why is giving your contract time. So you gotta pay more.
SPEAKER_01Yeah.
SPEAKER_00And they know it's gonna go up, so it's gonna cost you. But if you last one and then we'll we'll move on. But if you get, let's say Friday next week, the 20th, it's three dollars. Uh well, 80 call is a dollar and sixty-five cents, so it's less than 200 bucks. You can't make money on it, but I personally would rather pay six, seven, eight hundred dollars than paying this two hundred dollars and and trying to hit in a week.
SPEAKER_01So okay, so let me ask you a question. So if it was someone that was just starting and they only have a thousand dollars, what do you recommend that they do? Or what do you suggest, or what have you done in the past, or something like that?
SPEAKER_00So you want to stay away from Robinhood is a good stock, but you want to stay away from like uh let's see, Microsoft. Let me just show you the price difference. Okay, all right. So let's go to let's go to just go back to June 18th, right? So to look at the prices, so a 45410, the price, this is 2700, 2400, 2200, 2000. This is way too expensive for a beginner trader.
SPEAKER_01Oh yeah, oh yeah.
SPEAKER_00You see what I'm saying? So you have to be mindful of the company that you're trading. If I if I call this play in my group, and you only have you have two thousand dollars, you should not be you should not take that trade. You want to get in something smaller, um, like I said, the Robinhood, another company will be small. Um, who you like? Just just name it something. Which what company uh other than Amazon? What you like? Uh what you you still use PayPal?
SPEAKER_01Uh yeah, PayPal.
SPEAKER_00Okay, let's do PayPal. All right. Okay, PayPal. Okay. And let's go out to let's go back to June. We're just gonna kind of compare prices right now. So a$50 call would be good. So you see it's$209 for June 18th. You can get in a PayPal call. Because you steal you steal 20%. It's that's just 20% of your portfolio if you're working with a thousand dollars. Okay, you know what I mean? So PayPal would be good if you want to get something closer. I would just say not too close, maybe maybe April to 17, maybe like a month from now. And let's see, a$50 call 76 cent. So which is$76. So that's that's less than$100. 47 and a half call 100$134. So these are the things, these are the stocks and companies you can trade. The setup is there on the chart.
SPEAKER_03Okay.
SPEAKER_00You know, so um, but yeah, as a beginner, yeah, you don't want to be trading Tesla, Amazon, Microsoft. Again, that's pretty much how I work. You know, you go to the chart, look at it. Look, I got other stuff I go through too, but that that'll be that'll be too long. And then I go to Better Robin Hood or We Bull or whatever I'm trading on, I put the trade in. Then I also I like my group too before I even put the trade in, I say, hey, I'm buying, and I send them the ticker, which is the stock. Um, and I also give suggestion, like if you have a smaller account, I give suggestions like, okay, get this play, you know. But what this is the play I'm getting. So I do put I do put it to where you got the high rollers, and I have, you know, the guys are just starting out.
SPEAKER_03Yeah. Okay.
SPEAKER_01Oh this is good. Okay, so let me just do a little recap. So in the beginning, we need to have a broker company like Weebull and or Fidelity. Fidelity. So we need to ask them, and then before we actually do the trade, we need to do a trading analysis.
SPEAKER_00Well, you first you have to get a proof option.
SPEAKER_01Oh, yeah, that's right. That's right. Yeah, we did discuss that in our our previous podcast, but touch a little bit on that because uh what is that process like?
SPEAKER_00Yeah, so you go through some questionnaires. I think you go through maybe 15 to 20 questions. There's gonna ask you personal things, gonna ask you, you know, your identification, social, just to prove you are who you are, and then tech purposes as well. When you be making out this money, they're gonna send you that form at the beginning of the year. But also, you know, option can be a high-risk game. Like you can make a lot of money, but they they understand it. So they want to they want to make sure you understand what is option. Do you know how to open and close the trade? Do you know cause and put? Do you know any other thing that comes along with the game? So if you unfamiliar, then they're not gonna approve you. So they want you to be familiar with option and and what you're doing, and then they're gonna ask you like income and stuff like that. They're gonna make sure like you're not trading for anyone, you're not a hair fund, you know, those personal questions is what is what they're gonna ask you, but it's not long, it's it's not long at all. You get you get approved, um, approved immediately once you go through that process.
SPEAKER_01Okay, okay, so for our listeners, let me get you to do the recap of the steps because if I don't want to mess up again. Getting started with what they need as far as where software is concerned they should be using, and then how do they get to to this point that we're looking at on the screen and then going to to where what they want to do in in whatever software they're gonna use. Do that for um listeners.
SPEAKER_00Yeah, so so you first you want to come see me on hit my DM, and uh I can not so no that's what you need to do.
SPEAKER_01Let's let's let's talk about that. That yeah, let's talk about that.
SPEAKER_00Um here's the thing, here's the thing, guys. Like, I've been doing this for a long time and I've already made the mistake. I do not want you to make the mistakes I made. I just got onto and I and I can be a hard A, but I I just got onto someone, I popped this yesterday. He was like, So I had him in the play, and it was out to next year, January 2027. He saw that it went up, but then it went down. And he was like, Man, I I it went up, but I didn't want to take it because I knew it was gonna go. And I and I heard your voice in the back of my head, like it's it's a long play. We got over eight months left on it, and then it started to go down because the market's going down. But that doesn't mean get out. I mean you just gotta wait it out, you know. And he sold it for a loss. And he's like, Man, I know I missed. I'm like, well, why did you why did you sell? He's like, Man, I just saw the money going down. I should have taken the money when I when I was up, and I was like, but I said, but you have till next year. Like you have, I said, but that right there, I said, to be honest with you, I'm glad it happened because sometimes you need to lose a little money to learn, you know, because you know next time, like he's you know, you're not gonna take that loss. But I has I said I had already told you what was gonna happen, and you still did the opposite. And so, yeah, that's so that was that was his first experience, um, learning experience on taking the loss by being impatient and like wanting to hit right now for whatever reason. But but then I also told him, I said, but why you buy Microsoft? We're using Microsoft. I said, why you buy it? Like, yeah, because you you caught it out and I saw that it can make some money. I'm like, but you only working with three thousand dollars that's that one contract is half of your portfolio you should not be trading Microsoft you know what I mean so that piece itself you have to catch real soon because when you start making money or when you when you start funding your account and you keep doing the same mistakes you're gonna blow your you're gonna blow it you're gonna blow your money so make the mistakes early or listen so once you start to make a lot of money you won't have to go through that oh that's that's that's why it's important to have a mentor and we have someone who wrote a book called the million dollar strategy you know so he knows what he's talking about and I'm gonna have to have a mentor because you know I'd be doing all kinds of other stuff you know and and I I need somebody walk me through this this here I gotta have somebody take my hand oh my head oh yeah and I and I do and I do everything for you like I so to to go back I so I have a scanner so it scans the market it lets me know what's going on okay if the market bullies a badge which stock's popping up which stock has momentum down and upside and so then I go in a chart I look at it and then I wait on the confirmation which is when to enter the the entry and exit point that you mentioned earlier okay and then I look for the contract okay which contracts are best which contracts are affordable but also best and also an expiration date okay then I give the target hey like let me go back to let me let me share the screen again so for example like right here so I say let's say we get in um Robinhood calls and they say hey$92 is the first target okay the next target would be$112 but of course you have to give your contract time now the strategy but the strategy behind that is okay if we have 10 contracts okay y'all follow me you have 10 contracts all right boom it goes up we will sell at least six or seven here because it may pull back okay so we sold six to seven then it may some find some support and then we leave the runner so the other three that we have or the other four that we have we leave if we leave them for them to go to the next target okay so again you have 10 contracts it goes up you sell at least six or seven I would say sell seven because you want to secure capital and you want to secure profit it's probably going to pull back because this is resistant okay once it pulled back it's gonna go higher to the next target which is the next resistant which is 112 once it gets the 112 then the the three that we had we can sell those those may be three 400% but in order for this move to play out you have to give your contract time it's not gonna happen this week or next two weeks it could but it's a high chance that it don't so you have to put it out June July August you know something three six months out so it can play out like that the reason why people don't see the games and the stock to play out because they want it to happen this week yeah being patient like is it the market is not gonna move on your time it's just not and they know that people are buying in so what they're gonna do they're gonna guess what they're gonna do they're gonna do this right here what is what it's doing now they're gonna keep it choppy choppy choppy choppy and then you're gonna give up you're gonna sell because you're gonna get exhausted from holding and then soon you sell it going to shoot up every time it happened every time it's just they just know they just know it okay so now if I get in calls okay let's say I get in calls and let's say let's go back we have 10 contracts okay let's say it go up I say a seven okay and I leave three but then it comes back down to support and then it breaks let's say it breaks support though three that I had I would put my stop loss right here I would put my stop loss like right right below support right here I I wouldn't put it at support I would put it a little bit below in case you want to play around a little bit you know okay so let me ask you a question what is a stop loss since you mentioned it what is that it's basically like a price level like invalidate the trade so let's say we're in calls like I was just explained but then it break this support level that means that it's no longer strong that means it's now in a downtrend uh that means it's now it's meaning down it's now in a downtrend okay my stop loss would be right here because this trade is no longer valid cause is no longer valid because it broke so the next support level will be down here but I don't want to hold and then I'm down 80% right so just get out here I can get back in at this level okay I want to make sure that if I support then go back up okay this basically if I enter a call option and expecting the the stock to move up from support which is here and you know I set my stop loss below because if it breaks support it hit my stop loss and then it stopped me out it just takes me out to trade.
SPEAKER_01Ah so basically stopping your losses stop loss how do you select that though you can I can just right click it right here and I can just have you see it would say sell one hood as stop you see the stop right here I can just put it right there I can just put that right yeah I gotta log in but I can I can I can just or if I want to take my profit right click and then I can go to sale sale one at 90 95 wherever I want to sell it at so honestly it's it's like automated you don't have to manually trade you can automate it you can set it to wherever you want to go and then you can go work in 95 or do whatever you do for a living oh okay okay yeah it hands off okay that's true that I'm sitting there thinking that you got to be at the computer all day we in 2026 is you can do all of this on your phone i have the app on my phone too let's see let me pull up her so that same the same stuff that we're looking at right is is basically on my phone oh I see yeah I see that oh wow this has been very informative I mean I don't even know what to say I mean it's just I love learning new things I just want you to tell everyone first of all how they can get in contact with you and also tell them about your mentorship program and then also about your book okay yeah real quick we didn't we went over stop loss but we didn't go over take profit so okay maybe you did but it doesn't always have to if you get a right if you get a call like like we were looking at Robinhood again I'm gonna pull it back up again just I think it just better to be visual so let's say that okay we're getting calls and$92 our target as long as it goes up you're making money from the time you get in now you can sell at 10% 20 30 like you do not have to chase 40 50 every play or you don't have to chase 100% every play if you do 30 three times a week that's 90.
SPEAKER_00You know what I mean so the goal is to be consistent. You do not have to hit 100% on every trade every time take your 10 to 30 get out the market come back let's move on to the next play you know so that's very important because people try to hit 100% every play and that's not that's not realistic. Okay well that's great so you can find me on Mr Washington underscore on Instagram you can also find me on Facebook Juwan Washington yeah so you know guys if you need any help or any advice on trading you can just contact me also check out the ebook um million dollar strategy um the golden pattern is on gun road so my it's in my link in my bio and yeah on my on my Facebook page as well awesome awesome well thank you so very much for being our guest for this month's series I am so excited um and thank you guys for for joining us again my name is Marjorie E.
SPEAKER_01Roberts I am the owner of Robert's manga my bennet consultant which is an accounting firm you can reach me at www.robertsmangit.com you can also call me 769 247 4400 or 901500 three two seven two thank you guys so much and we will see you guys on our next episode with our special guest Juwan Washington thank you guys for joining us by
