Retail traders simply can’t make money on a consistent basis …. Many skeptics…
TradingProof.com was developed to dispel a lot of common myths about option trading. Many say that the average retail trader simply cannot profit in today’s markets. Respectfully, we strongly disagree! Week in and week out, we trade Weekly Options quite successfully at the retail level. We are not floor traders nor investment advisors and we are not licensed brokers so we have no more of a market “edge” than anyone else.
Like many other websites, you will find a results page filled with our trades. There will be winners and losers, percentage gains and losses. However, unlike ANY other site out there, we actually provide our trading statements to anyone who wishes to see them. You can see firsthand that our trades were actually executed!
Our strategy is simple. We rely on sound statistical probabilities more so than technical analysis. While we’re not against technical analysis, we seldom use it since our principles and probabilities tend to work to our advantage. We also do not over leverage our account or try to “kill-it” every trade. While we enjoy an occasional grand-slam, we more often make our money hitting singles and doubles – And we see success most every week!
Our blog is completely FREE. Sign up for a free account and browse every trade we make. We currently do not teach our trading methodology, nor do we offer trading advice. We’re simply offering you the opportunity to see how we make our money.
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I decided to create this website knowing firsthand the struggles most retail traders go through during the initial learning process. I also know many new traders have exhausted their accounts early on and never get the chance to try again. So, my vision for this website is not to prove the skeptics wrong. It’s to empower you, the retail trader, to educate yourself on trading options with a primary focus on weeklys. It’s because I lived through the struggles that I now know the endless possibilities because I’ve lived those too!
My hopes are that when you read through my site and see my personal trades and trading statements, you will not allow skepticism to enter your mind when it comes to trading. I want you to believe in yourself and your ability to be a successful trader!
I did not foresee the creation of this site. However, over the years I’ve stayed busy teaching people the fundamentals of day trading the Emini Markets. Some of these conversations led to the discussion of my option trades which, in turn, led to many requests for such a site. As a result, TradingProof.com was born.
At this point, you may be asking yourself “Who is this guy? What makes him an expert?” Well, my name is David Marsh. Some of you may already know of me through my original site: www.EminiTradingStrategies.com.
I started trading options back in the early 1990’s. In those days, the internet was still pretty new to the trading world. I was introduced to options around 1993 when I attended my first class in Chicago, IL, and a second in Dallas, TX. Knowing absolutely nothing about options, learning options in a classroom environment was incredibly tough. So much so, that I walked out after class frustrated and confused. Today, everything I learned back then for a hefty fee can be learned simply and at no cost thanks to the internet.
Over the next several years I traded options with limited success. I had some good trades and I had some bad trades. Overall though, I was losing money. For the most part, I abandoned options trading in the late 90’s and focused more on day trading. I became very successful day trading equities, and eventually the ES, S&P Emini Futures.
Weekly Options eventually became available in 2005. I, like many traders, didn’t even know about weeklys back then. But hey, what did I care? I was primarily trading the ES anyway. Around that time, I started building up my long term retirement fund using mainly stocks and mutual funds. I had a close friend manage most of that for me while I stuck with what I knew: day trading.
Then, in 2010, I started trading weekly options on the RUT and SPX. Like most people do when they start trading options, I traded vertical spreads and iron condors. That was working great until I lost my A$$ on a huge iron condor trade. That was a tough lesson learned! It was about 2011 that I then began trading butterfly spreads and diagonal spreads. That, in turn, is what eventually led me to the weekly options success I enjoy now.
I have been using my current strategy, the same strategy I use on this blog, for over 18 months with great results. Some of you may think that doesn’t seem like a lot of time. However, keep in mind weeklys are still relatively new, and trades are taken each week as opposed to once a month thus offering more opportunity to initiate trades. My strategy is to build my retirement money with Weekly options and take those profits and reinvest in long term dividend paying stocks.
Per your request we now haveTrade Alertsavailable. We send out trades to you before we place them in our own account. We’re also working on auto-trade service… Stay tuned!.
Our trades are generally 3 point spreads that require only $300 margin per spread traded. A 10-lot trader would need $3000 where a 5-lot only $1500. As far as opening requirements, it varies with brokers. We use the Think Or Swim Platform, which is owned by TD Ameritrade. TD will open an options account for $2,000. But, remember you do not put the entire balance in “play” during a trade.
We do not give trading advice, but we would personally start small. In other words, a 1-lot. Build up some capital and take it to 2, 3, etc. Let it build up over time. Remember, we generally have several trades per week. Even trading 1-lots can really add up!
Every online forum has their resident gurus. Trading forums are no different. I am personally skeptical of ANYTHING I read on trader’s forums. On the other hand, I certainly see their point. Let’s face it, the internet is full of trading scams. I’ve seen them too. Some of these websites look very promising with a bunch of testimonials and a results page that would put a hedge fund manager to shame!
But where’s the proof? Up until now, I don’t believe ANYONE online has ever produced their trading statements! I am not here saying any particular website is a scam. I have no clue if the results they post are real or fake and frankly it’s none of my business.
This is why I show my trading statements. A lot of my trades have some CRAZY ROI %. If I showed these numbers to my local financial advisor he’d laugh at me! But, the TradingProof is in the pudding folks… I’ll leave it to you to make your decision.
No, not really. What I do is not hard but it does have different components to it which tend to confuse some traders. We simply offer an Alert Subscription so you can have access to our trades as we take them. IF we have the interest, we would consider holding a live class where we would reveal all that we do.
We offer email site support only. However, it should not be needed. When we have a trade, you will get an email and a tweet. You simply login and see the trade. If you decide you want to place the trade, you would simply place the trade on your broker’s website/order entry platform. Here’s an example of a trade alert:
OPEN POSITION: Buy SEP 18 SPY 200 Call / Sell SEP 25 SPY 203 CALL Net Credit 1.00
Breaking this down: WE are doing a spread order. Buying the 200 selling the 203 SPY call spread for $1.00 GTC (Good Till Cancelled) – That’s all there is to it! All order modifications and closing orders will be handled in the same manner.
But, if you have questions you can absolutely email us using the Contact Us form in the member’s area. Just realize that we will not respond to specific questions regarding the “why’s” behind our trades.
No. We do trade weekly options, and we do place orders typically every week. However, many of our trades simply do not get filled. We are successful because we place trades that are in our favor to win. We do not place trades just to be “in the market” or so we “don’t miss a week”, and we NEVER chase trades. This is a huge problem with inexperienced traders. They are so worried about missing out on profits that they take trades that are generally not in their favor just so they don’t feel as if they missed out. PLEASE do not expect that from us. There is always next week!
We generally do not trade iron condor trades as the risk far outweighs the reward. If you’ve been trading long enough you know it’s only a matter of time before a bad iron condor crushes you.
In fairness, on occasion I will trade a vertical spread and I believe there may be 1 or 2 trades in the blog that are indeed iron condor trades. If conditions warrant a vertical or condor, I will consider it and from time to time place the trade if appropriate. I’d venture a guess that less than 10% of my trades will be verticals.
NO worries! We’re not here to sell you anything. Register for a free account and monitor our trades as long as you’d like. No credit card required. We hope our blog posts and corresponding trading statements help you to become a better trader.
I simply take the ROI off of my margin per trade. For example if I do a SPY trade with 3 strikes wide 200/203 The margin will be $300 per 1 lot. So if I do 10 lots my margin is $3000. If I profit $700 on the position I divide $700 by $3000 and get ROI 23.3% on that particular trade. I do deduct commissions as well. To me, this is the most honest way to do it.
Generally you do not have to stop what you are doing and rush to a computer to place an order. You should, however, try to place the order as soon as practical. Generally, our orders are pending for hours, if not a day or two. Keep in mind, when the market starts to move quickly we can get filled rather swiftly.
Depending on your broker you may be able to place the order on your phone. I do it all the time with the Think Or Swim App that I have on my iPhone.