Why Don’t I trade Blue Chip Stocks like Apple and Amazon?

Today I’m going to talk about some of the most common questions that people ask me. Such as “Why don’t you trade options?”, “Why don’t you trade futures?”, and “Why don’t you trade Blue Chip stock?” Well, today I’m going to tell you why I don’t trade those.

The Reason I Don’t Trade Options, Futures or Blue Chip

The reason I don’t trade options, futures or Blue Chip stock is that I choose to focus my trade within the $10 million-200 million range. I don’t trade above $200 million or below $10 million because it takes a lot more work to be consistently profitable in those sectors. Once you become consistently profitable you should really focus on how to maximize your profit with that sector. That requires a whole different kind of tracking which means there are too many details for you to focus on to be able to trade in multiple sectors.

Level Two Options

Now, let’s talk about some level two options. Among the level two options there are huge differences between micro float and bigger float and between micro-cap and the large cap. The micro float/bigger float and micro-cap/large cap categories each have their own level two. Something you should know is that these level twos react differently to size. Sometimes size – huge size – matters in lower cap but it doesn’t matter in higher cap. 200,000 shares on a bid is very small compared to a 200 million dollar full and 2-billion-dollar market cap. 200,000 shares is relatively small, so if you put 200,000 shares into a micro-cap and you’re looking at 20% of the entire $1 million float. Since level two options are live, you’ll see them bouncing back and forth constantly. If you’re trading two level two tickers at the same time, your mind will be bouncing back and forth trying to follow each ticker. In this situation you might think, “Oh, $20,000 is a lot in the billion-dollar market cap” because you’re so used to looking at the other ticker. When you confuse how each ticker reacts, you’ll regret trading two tickers at the same time. That’s why level twos are very important when trading in multiple sectors. That is the biggest reason I don’t trade in Blue chips and micro caps. I hate trading in two sectors at the same time.