The One Minute Millionaire Diamond Mine
 The Wealth Factor
 Stock Market Strategies
 By Dr. Stephen Cooper

Traders Diary

“Another open position I now hold is the March 33 call on QQQ (QAVCG). This one got hammered a bit but is now back in the black by 32%. The QQQ is now up to $37.68 so that 33 call is well into the money and will really gather steam if the QQQ advances further. I have until the third week of February to dance with this one, according to my 30-Day Rule. I will put a stop-limit at my entry now so that no loss can happen. After sweating it out and now having a profit; letting it turn to a loss would be an ulcer-producing situation to be heartily avoided.”

Does this Make any Sense?

Perhaps the above paragraph could as well be in a dead language as far as you’re concerned; maybe not. It was composed for the direct benefit of Protégés who are studying the Stock Market stream at Enlightened Millionaire Institute. Let me show you the chart on this one, and you’ll better understand.

What it all Means

The red horizontal line on this chart of QQQ shows well established resistance. I bought into this one when prices were below the resistance line, which sits at $36. Each time QQQ went up to $36, it hit its head on the ceiling and tumbled back down. On December 29th, QQQ finally broke up above $36, and resistance. Once it did that, my option began to make money. I had to wait for several weeks to see this happen, which in most option trades is quite a long time. Now that the position has achieved a nice 32% profit I certainly do not want to see it go back in the red; therefore, I place what is called a "protective stop" at a price that will assure that I do not take a loss. By doing this, I am still allowing for the possibility that QQQ will go up farther and make me more profit while protecting the downside.

Logical Exits

For me, and many others, exiting the trade can be challenging. That is why I have identified 3 exit principles and developed some practical trading rules to honor those principles. In the next issue, I’ll tell you more about how to exit your trades gracefully.

Yours in better trading,

Dr. Stephen Cooper

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As a trader, teacher, author and lecturer Dr. Stephen Cooper has guided thousands of students to greater success in trading stocks and options. His site, is an excellent resource for traders of all levels. A free newsletter is available by going to Over the past five years Dr. Cooper has conducted live teleconference courses covering personal financial basics, stock screening, technical analysis and practical trading. He has authored The Online Option Trader, Windows to Wealth, and The Truth About Money. With over 18 years of experience Dr. Cooper is recognized for his successful techniques, his clear and systematic teaching style, and technical expertise.