STAGE 2 OVERVIEW
The objective of Stage 2: “Live Trade The Bull” of the Trading Success Blueprint is to become proficient at trading in the live markets.
During this phase we utilize a simple trading strategy, the Bull, to help you become comfortable with live trade execution, monitoring a live position, and dealing with your emotions when real money is on the line.
Your goal here is to follow the guidelines “as stated”, using the appropriate pre-determined capital level, and let the results happen.
This means we enter and exit the trade when the guidelines say to do so, regardless of whether or not we are up or down money, and regardless of how we feel.
Your focus is to fund a trading account, create a simple trading plan, and to live trade the Bull trading strategy consistently, for at least three trade cycles, with the same position size, whether you win or lose.
We are practicing dealing with the pressures of live trading and building integrity with ourselves by following a plan no matter what the outcome of the trade is. These are critical skills to master in order to progress to the next level.
As simple as this sounds, many traders find it extremely challenging due to the emotional pressures of trading with real money. Remember to ask for support if you are having challenges accomplishing this.
As you progress through the Stage 2 Coaching Guide, if you feel as though you are missing some fundamental concepts, please go back to review the Stage 1 Coaching Guide which will help you fill in any gaps in knowledge that you may have. If you find that after a review of material that the concepts are not clear, please refer to the Support section and get some support!
STAGE 2 LESSONS
You can always find the Fundamentals In Trading Library or FIT lessons in the Locke Options Community on on from the menu bar on the left. You can always go back to any of the FIT lessons to fill in any gaps in your trading foundation. The lessons are self-paced and the speed at which someone goes through the lessons is very dependent on the person’s learning style and knowledge level. We offer a sample completion schedule in this guide to help you plan your learning according to your goals.
The coaching guide for Pro and GO members include a very detailed summary of all lessons for Stage 2 traders and what they will find in those lessons.
TRADING STRATEGIES FOR STAGE 2
We suggest you live trade with only the Bull trading strategy for the first TWO MONTHS of live trading. If you’ve followed your plan and are comfortable with live trading after the second month, it is OK to begin working with other stage 2 strategies as outlined below.
The Bull Trading Strategy
Learn to trade this rule-based trading strategy from the Fundamentals in Trading library. This is a simple trading strategy designed for the Russell 2000 index that has a minimum capital requirement of $3,000 with a profit target of 9% per trade which takes about 15 minutes a day to manage.
Follow this trading strategy and watch recordings on the Options Trading for Income by the Guidelines weekly webinars. This trading strategy is one for Trading Success Blueprint traders in Stage 1 and above to focus on.
After TWO MONTHS of live trading the Bull you may be ready to learn these two other trading strategies that are included with the FIT library.
Quick and Dirty Broken Wing Butterfly
Learn to trade this rule-based trading strategy from the Fundamentals in Trading library. This is a simple trading strategy designed for the Russell 2000 index that has a minimum capital requirement of $3,500 with a profit target of 7% per trade which takes about 15 minutes a day to manage. After TWO MONTHS of live trading the Bull, we suggest you learn the this trading strategy in lesson 22 in the FIT Library.
This trading strategy is for Trading Success Blueprint traders in Stage 2 and above to focus on.
The Super Bull Trading Strategy
Learn to trade this rule-based trading strategy from the Fundamentals in Trading library. This is a simple trading strategy designed for the Standard and Poor 500 index that has a minimum capital requirement of $1,000 with a profit target of 100% per trade which takes up to 15 minutes a day to manage. After TWO MONTHS of live trading the Bull, we suggest you learn the this trading strategy in lesson 25 in the FIT Library.
Follow this trading strategy and watch recordings on the Options Trading for Income by the Guidelines weekly webinars. This trading strategy is for Trading Success Blueprint traders in Stage 2 and above to focus on.
The Bear Trading Strategy
Learn to trade this rule-based trading strategy from the Fundamentals in Trading library. The Bear is a simple trading strategy designed for the Russell 2000 index that has a minimum capital requirement of $5,000 with a variable profit target which takes about 15 minutes a day to manage. After TWO MONTHS of live trading the Bull, we suggest you learn the this trading strategy in lesson 26 and 26A in the FIT Library.
Follow this trading strategy on the Options Trading for Income by the Guidelines weekly webinars. This trading strategy is one for Trading Success Blueprint traders in Stage 2 and above to focus on.
The Unbalanced Butterfly 1 and 2 Trading Strategies
The Unbalanced Butterfly 1 and 2 (UB1 & UB2) are two different rule-based broken wing butterfly trading strategies designed to be traded on the Standard and Poor 500 index. They both have a minimum capital requirement of $7,000 and can be managed in about 15 minutes a day. Click here to learn more!
This additional trading strategy is approved for traders in Stage 2 and can be purchased separately if desired. The Unbalanced Butterfly 1 is reviewed in the Options Trading for Income by the Guidelines weekly webinars.
Follow this trading strategy on the Options Trading for Income by the Guidelines weekly webinars. This trading strategy is for Trading Success Blueprint traders in Stage 2 and above to focus on.
TRADING SUPPORT
ONE-ON-ONE COACHING
Personal coaching can be very effective and targeted to your specific needs. In these one- hour sessions, you can confidentially share your personal situation with your coach. Your coach is there to help you navigate efficiently and effectively toward your goals. PRO and GO members will find discounts on these services. Go to the Discounts page to take advantage of them. Click here to learn more about one-on-one coaching.
GROUP FORUMS
Group forums are available in the Locke Options Community for every trading strategy and performance course where you can get answers to your trading questions. Every webinar series has its own forum as well, allowing you to post topics or questions in advance and get the most comprehensive, prepared answers during the Options Trading for Income, Market Outlook, Trading With The Pros, GO Ask A Trader, or Trading To Win sessions.
LIVE WEBINARS
During every live webinar you have the opportunity to use the chat to type in questions for the presenters to answer. It is always encouraged that you join the live sessions whenever possible however if you are unable to join you will still have the ability to get your question answered by posting 48 hours in advance in the group forum for that webinar.
MINI ONE-ON-ONE COACHING
Anyone can request a mini one-on-one coaching session (even traders who are not Pro or GO members) is offered in our GO Ask A Trader, Trading With The Pros, and Trading To Win sessions. This is where you will have the opportunity to share a trading challenge you are having with a coach, who will then provide you coaching on that specific challenge to help you overcome it. The coaching will be in the public meeting and is limited to about 15 minutes.
Trader Chats on Discord
The Discord server is another way traders can stay connected as a community for time-sensitive answers. There are private channels for PRO, GO, and Market Outlook members but…anyone is invited to join us for free and stay connected.
PRO TRADER ANNUAL CHECK-UP
This is a private one-on-one session with John Locke and is offered to our PRO members who have been a member for at least 12 consecutive months or more. It is a great way to connect and adjust your course if needed. Eligible Pro member can send an email to sherri@lockeinyoursuccess.com to request their Pro Trader Annual Check-Up anytime!
EMAIL OR DIRECT MESSAGING
Our coaches should only be contacted through email or direct messaging when they request follow up in that manner or when something is very personal in nature or urgent for them specifically. All our coaches are professional traders and want to enjoy their personal time as well. Realize they would love to help everyone; however, it is ineffective for them to support hundreds of students if everyone is sending emails or direct messaging them. Please be respectful of their time and use the Group Forums, Webinars, and the Discord server as much as possible. If they are able to respond to your question, they will do so there. If not, another supportive member will do so. We are all in this together!
LIVE WEBINAR
Options Trading for Income by the Guidelines (PRO and GO members)
For at least TWO MONTHS of live trading, you should focus only on the Bull trading strategy during the live OTFI sessions. AFTER TWO MONTHS, you should also pay attention to The Super Bull and Unbalanced Butterfly 1 trading strategies during these webinars. Continue to listen closely to understand the options trading terminology. You are encouraged to have open the Fundamentals In Trading or FIT Dictionary to gain a better understanding of the acronyms and terms that are being used.
Feel free to ask questions either in the Options Trading for Income by the Guidelines group forum prior to the live session or during the live session in the chat.
GO Ask A Trader (PRO and GO members)
This is a great opportunity for a student to ask questions, receive live coaching, and gain general exposure to trading. We encourage you to continue to have open the Fundamentals In Trading or FIT Dictionary to gain a better understanding of the acronyms and terms that are being used.
Again, focus only on the Bull for the first TWO MONTHS of live trading. After TWO MONTHS of live trading the Bull, listen for conversations about any of the Stage 2 trading strategies by learning from the trading strategy conversations, as well as discussions on the trading process and good “trader hygiene” as our Options Foundations Coach Stephen, would say.
Feel free to ask questions either in the GO Ask A Trader group forum prior to the live session or during the live session in the chat.
This webinar series offers free coaching during the live sessions available to EVERYONE. Click here to submit a request!
Market Outlook (PRO and Market Outlook members)
Since you are focusing on trading by the guidelines only, the information in these sessions should only be used to gain an understanding of technical analysis, trading terms, and acronyms. Period. Please avoid any subjectivity in Stage 2.
RECORDINGS FOR LEARNING
Options Trading for Income by the Guidelines (PRO and GO members)
There is a huge library full of hundreds of episodes you have access to, sorted by year. We would recommend back testing the Bull trading strategy and checking your results with the trade logs provided.
TWO MONTHS after you have been live trading the Bull, you can start to back test the Unbalanced Butterfly 1 trading strategy and check your results with the trade logs provided.
Successful Options Trader of the Month (PRO and GO members)
There is a large library of presentations by successful options traders that you can watch over time. In Stage 2 we list a couple of the presentations to watch.
Bonus Presentations (PRO and GO members)
There are many great Bonus presentations we have offered over the years. There are lots of full length presentations on trading strategies and trading performance are available. In addition, if you pay taxes in the US you might be interested to watch some of the Trader Tax Talk recordings that are available to become acquainted with how your trading may affect your payment of taxes.
GO Ask A Trader (PRO and GO members)
You will start to build your GO Ask A Trader session library your first month of membership. For any live sessions, you have access to, you will receive a recording that is available for as long as you remain a monthly subscribing member.
After 6 months of continuous membership you will gain access to the entire GO Ask A Trader recording archives!
We encourage you to continue to have open the Fundamentals In Trading or FIT Dictionary to use to better understand the acronyms and terms that are being used.
Again, focus only on the Bull for the first TWO MONTHS of live trading. After TWO MONTHS of live trading the Bull, listen for conversations about any of the Stage 2 trading strategies by learning from the trading strategy conversations, as well as discussions on the trading process and good “trader hygiene”.
Market Outlook (PRO and Market Outlook member)
You will start to build your Market Outlook session library in your first month of membership. For any live sessions, you have access to, you will receive a recording that is available for as long as you remain a monthly subscribing member.
Since you are focusing on trading by the guidelines only, the information in these sessions should only be used to gain an understanding of technical analysis, trading terms, and acronyms. Period. Please avoid any subjectivity in Stage 2.
RESOURCES
There is a Resources page in the community that has lots of content for you to learn from.
The trade results spreadsheets that are available for download are a summary of the trades that have been reviewed on the Options Trading for Income weekly webinars since 2009. At this stage, we suggest to focus only on the Bull trade information at this time. Look for the tab on the bottom for the Bull trade.
TWO MONTHS after you have been live trading the Bull, you can start taking a look at the Unbalanced Butterfly 1 trading strategy trade results spreadsheets.
A couple of important tools a trader would use is being able to take snapshots of charts, drawing tools for the charts, and recording of video. Links to some of those resources can be found on this page.
Another link that might be of interest is The Bull – Trade Summary on this page. It is a slide presentation created by another trader.
SUPPLEMENTAL TEACHINGS
Boost Trading Results Through Proper Back Testing; The Five-Stage Process
This session is for traders who would like to learn a proper five-stage process of back testing a trading strategy. It will answer questions like: Why are my back testing results great but my live trading results are not? Is the system likely to work with my schedule and risk tolerance? How am I going to mechanically trade this thing? How am I going to handle large moves, overnight gaps, and catastrophic situations? What are the steps in the trade debrief process? Finally, how to create a success loop to skyrocket your results!
Managing Risk When Entering, Exiting, or Rolling Positions
This session shows how to minimize the impact of market movement on profit and loss, how to pick a good time to enter a trade, and how to develop a process to minimize risk. One way to minimize risk is to use the Trade Execution Planner Tool provided with this session.
The Winning Trade
View some great Stage 2 trading strategy winners like these:
The Bull trading strategy is shown in Episode 3 or The Super Bull trading strategy is shown in Episode 7
Trading Performance Podcast
These complimentary episodes are for any type of trading at any stage. The material presented will assist you to become a successful trader.
COMPLETION TIMELINE SAMPLE
Learning to do anything takes time and practice. It is recommended that you set aside about two hours per week or an average of about 8 hours per month. In about the time it takes to watch a movie every week you could become a proficient, confident, profitable trader.
We offer a very comprehensive sample schedule to complete this stage in approximately 3 months.
STAGE 2 ASSESSMENT
This section has less than 10 assessment questions to help a trader determine if they are ready to move on to the next stage or spend more time in this stage to gain more knowledge and confidence.
