FAQs

What services do you offer?
We offer a full membership service for a fixed monthly subscription.  The subscription can be cancelled at any time.

This includes access to our Video Tutorial section where we teach how to read stock charts (known as technical analysis) to an advanced level, how options work and how we profit from them among other key subjects. (See next section “What subjects are covered in the Video Tutorial section for members?” for more detailed information). The videos are kept as simple as possible, allowing you to absorb the material quickly.  The content is ideal for people who have never traded before, as well as those who want to develop their trading skills.

To apply the material learnt in the Tutorial Videos, subscribers receive regular trade alerts to turn their knowledge into LIVE profitable action. The aim is that you can watch and learn as Zach takes trades, thus gaining valuable experience right from the start.  Other trading sites out there charge thousands of dollars for DVD courses, online webinars, and access to trading chat rooms, yet still ask you to pay more and more for one trading course after another as you advance to the next level.  Furthermore, subscribers have access to Zach’s Forum where you can interact with Zach and other traders as you discuss trades and ask questions in a private chatroom, developing your skills even more.

We believe in offering access to top notch trading education tutorials and on-going trade alerts for one monthly subscription of just USD $99 per month which is amazing value!

What subjects are covered in the Video Tutorial section for members?
The videos cover a variety of subjects such as:  How to set up your charts and understand them; understanding options and how we profit from them; how to profit from the bid-ask spread when entering and exiting trades to make even more profit; technical analysis videos explaining the many different types of setups we frequently trade, including how to identify when the financial institutions are stepping in to move a stock so that you can trade with the wind in your sails! This stuff will open your eyes like never before, as you learn to trade with a big advantage.
Do you offer a free trial?
Yes. We offer a free 7 day trial which provides access to the Trade Alerts page, where you can view videos of our current open and previously closed trades.  This will give prospective members a good idea of the type of trading we do and the returns typically made. You will also receive any trade alerts we issue to our full members during the free trial period*.  No credit card is required for the free trial. Access to the Video Tutorial section and Zach’s forum is reserved for fully subscribed members only.  After the trial expires, to continue receiving ongoing trade alerts and gain access to the tutorial videos and Zach’s Forum, join as a subscriber for only $99 per month, which is excellent value. *Trade alerts are only issued when we get a trade setup. Therefore it may be the case that during your free trial no trade alerts are issued if market conditions are not conducive to taking a trade. Bear in mind though, you will have access to all our previous trade alerts including analysis videos on those trades.
What kind of trading do you do?
We swing trade US stocks and ETFs using technical analysis, i.e. using stock charts to determine when to enter and exit trades. We use options as the trading vehicle and simply buy call or put options and aim to sell them for profit. We do not short or write options.
What is a swing trade?
A swing trade aims to catch moves in stocks or ETFs, typically lasting anywhere from a few days or weeks, to a couple of months. (See the track record page for the typical gains and duration of our trades). This means you can have a day job while following the trades – you don’t need to be constantly glued to your screen – this is not day trading.
Do you do day trading?
This is a primarily swing trading site. Having said that, occasionally day trade opportunities do present themselves, particularly when commodities break down, where we will take an options position and aim to close it the same or next day for profit.
Do you trade my money for me?
No. We do not engage in any handling of client money whatsoever. This is a trading education site. By subscribing and regularly monitoring our trade alerts and viewing the tutorial videos, you will get a feel for trading options and learn how the markets can be traded successfully over the course of the year.  How you trade your own money is entirely at your sole discretion and risk, and there is infact no requirement or obligation to trade your own money at all. However, should you choose to follow our trades, you are strongly advised to read the Traders’ Rulebook and Mistakes To Avoid in our Free Stuff Section. You are also reminded that any trading you undertake is entirely at your own risk, as per the Terms of Service that members (including free 7 day trial members) agreed to when registering on the site.
How are you different from other stock alert websites?
We don’t spew out useless daily videos for the sake of it. We don’t sell courses or webinars for hundreds or even thousands of dollars. We don’t focus on just one sector of the market or one type of setup. Video alerts are issued when there is something to say directly relating to taking or closing a trade. Videos are kept brief and get straight to the point – no time is wasted chatting about the rights or wrongs of where the market is or where the market should be! The market is the market, and we trade it when we get a technical setup, simple as that. There is no guessing and no ambiguity in our videos.

As for the tutorial section, the videos are around 20min in length, and therefore more detailed because they explain the mechanics of the different trade setups, stock charting, options, etc. so that you fully understand the material and gain an edge when trading.

You mention technical analysis as the basis for trades. Do you consider company fundamentals, P/E ratios, and analyst recommendations?
You’ll be amazed at how much news – fundamental or otherwise – is reflected in the charts – in advance of time.  We’ve seen and traded bull flags patterns in advance of company buyouts (See LNKD buyout yielding 950% profit in our Best Trades of 2016 Video),  traded the gold miners (GDX) ahead of fed meetings (see this alert), traded crude oil ahead of inventory announcements (see this alert) and seen big moves off those events in our favour – all because the charts told us in advance which way things were going to move. Remember, it is the charts that determine which way something will move following a news event – not the other way around!
I'm a fast learner. I can watch the tutorial videos, learn the material and then I won't need to subscribe any longer, right?
Not quite. Learning the theory of technical analysis from the tutorial videos is the first step. The material cannot be learnt or applied in isolation. There are so many nuances and conditions to actually taking a trade which due to practicality cannot be covered in the tutorials, (the tutorials are kept as simple and concise as possible) and therefore the tutorials must be viewed in conjunction with the ongoing trade alert videos as they are issued, over a period of time.  There may be many variations of a trade set up or factors why we take or stay away from a trade. Trading CANNOT be learnt as a theoretical subject, neither can it be learnt from books. An important part of the learning process is actually experiencing identifying trades, entering them, observing them play out, and closing them correctly, whether for profit or to stop out – in REAL TIME. The ‘human psychology’ aspect cannot be ignored. There are many emotions running through your mind, whether fear or greed, and it is only experience over time of this process that will give you the best chance of succeeding.
Sometimes I only have periodic access to the internet so can't always enter the trades at the same time that you do. Can I enter a trade the next day?
As you will note from our track record, most of our trades are open for a few weeks, which means you should have time to enter the following day, providing the trade hasn’t already started to move towards target, and the option is still within the same price range as the alert. When we exit a trade, the timing is a bit more important as we normally aim to close the trade on a strong move in the underlying stock so that we can exit at the ask price (this advanced trading technique is taught in our tutorial videos). Providing you have periodic access to the internet during the trading day (9.30am – 4pm EST) that should be adequate. For the occasional day trades we take, it is essential to enter or exit the trade in a timely manner.
Do you trade penny stocks?
Rarely. If we get a swing trade setup on a penny stock, we’ll take the trade, generally when the market bottoms at the end of a correction. However, we don’t chase intra-day moves as a lot of other websites do, neither do we directly short stocks, small cap or otherwise.
I heard options are risky and one can lose 100%. Why do you trade them?
Options provide the potential for truly explosive returns, which means you can trade with less capital.   A good options trader will typically yield a 100% return in a matter of weeks – sometimes a few days, particularly when market volatility is high. At various times of the year profits in the region of 1,000% or more are not uncommon – see Zach’s best 5 trades of 2016. This gives options a very compelling risk-reward ratio.  In return for superior gains, the risk is up to 100% loss of your investment in the position if the trade fails. (We do not short or write options). However, an experienced options trader will exhibit a high win ratio (ratio of profitable trades to losing trades), and will also manage risk sensibly.  Given that options can give explosive returns, when combined with high calibre technical analysis and good risk management there is plenty of potential for superior returns, especially over a prolonged period.  Options are therefore ideal for investors with small accounts, especially when learning from an experienced options trader.

Furthermore, trading options actually takes the stress out of trading. When trading stocks directly, one has to pick a level to stop out at should the trade fail, but in practice few have the discipline to close the trade, thinking its ‘probably’ best to leave the position and ‘wait for it to come back’. The result is commonly an even bigger loss than you budgeted for, causing stress and anxiety as the trade relentlessly turns into a runaway loss.  Using options, you know that if a trade fails you will lose up to 100% of what you invest in the position, and therefore you only allocate an amount that will not compromise your account if the trade fails. If the trade does go against you, your options will go down 90% pretty quickly, but there is no stress in deciding whether to stop out or not, as you’ve already budgeted for the fact that you may lose up to 100% if you’re wrong when you entered the trade.  Granted you’ll be disappointed that the trade failed, but you didn’t end up with a runaway loss, and more importantly, if the trade recovers, you are still in the game – that 90% or even 100% loss can come roaring back if the trade turns around. Have you ever stopped out of a position trading stocks directly, only to then see the stock go back up…without you? Well, there’s none of that when trading options!

If I follow your trades, how much should I invest in each position?
If you are new to trading, then before trading with real money it is best to study the tutorials and trade alerts and get a feel for what trading is all about. Only then should you consider trading with real money. More on this in our ‘Trader’s Rulebook Section’.  As regards how much to invest in each position, you are again strongly advised to read the Traders’ Rulebook and Mistakes To Avoid in our Free Stuff Section. On average you should not allocate more than 5%-10% of your account in any one position.
How long will it take to learn to trade?
As mentioned above, while you can study our Tutorial Videos and absorb the material relatively quickly, the real learning comes from watching the trade alerts and observing how the market and individual stocks move over the course of the year. Learning to time trades with the S&P 500, particularly when it pulls back or experiences a correction is a vital part of the learning process. Given that in recent years the S&P has on average pulled back significantly only once or twice a year, it means that newer traders have to be patient to gain such experience. Therefore it will take at least a year to really feel comfortable and gain confidence in trading, and learning to manage your expectations and emotions. However, by following the guides in the Free Stuff section, and observing the trade alerts and how they play out, your rate of learning and gaining experience will be as efficient as possible.
I notice you don't take many short positions?
Generally the markets have been in an uptrend in recent years, and taking a position against the trend is too difficult. Generally we take long positions, however, when the market pulls back or is in correction mode, we will short more. In addition we more frequently take a short position on commodity ETFs when we get a good setup. However, we don’t physically short stocks, we take a ‘short position’ by buying put options.
When watching your videos, is there any way I can speed them up, like I can on youtube?
Download the Vimeo Repeat & Speed extension in Chrome. You can then select the speed at which you watch videos.
What broker can I use?
Any broker that offers options. Non US residents will need to open a brokerage account with a US broker.
My broker won't approve me to trade options. Why?
Brokers have to show the regulator that they are protecting inexperienced account holders from taking big risks with their money. Given that one can lose 100% when trading options, brokers only approve people to trade options when they say they have c. $50k capital in personal assets (proof not required) and already have a few years experience trading options, e.g. 5 years (again, no proof required). Brokers actually want your business and want to approve you to trade options, but can only do so in the above circumstances. They do this simply to cover themselves with the regulator.  Needless to say, trading options does come with personal responsibility, and you are strongly advised to read the ‘Mistakes To Avoid’ section, in particular not putting more than 10% in any one position, in order to avoid losing all your money. In addition you should only trade a small amount of money when trading options for the first time.
Do I need to use freestockcharts.com?
Not at all. You can use any charting software you wish. We mention freestockcharts.com on the site because it is a free resource, and gives members new to trading an introduction to stock charting for free.  The charting software used in the videos is the paid version of freestockcharts (TC2000), which we believe to be a cost effective platform.
What are ETFs?
These are exchange traded funds that trade like a stock, and on which we can buy options. So for example, USO is the ETF that tracks crude oil, GDX is a fund of the largest gold mining stocks, SPY is the ETF that tracks the S&P 500 index etc.
When trading options, am I buying to open or selling to open?
At Trading with Zach we only buy options – whether Calls or Puts. Therefore on entering a trade we always buy to open, and on closing a position we sell to close.
When entering or closing a trade, should I do a market or limit order?
You should never do a market order, especially when trading options. A market order simply tells the market makers that you are completely irresponsible and are willing to accept any price. They will take advantage of you if you let them. (Subscribers can see an example of this in the Tutorial Video section – “How to Enter A Trade…At the Bid Price”).  Always do a limit order which is you simply telling the market the maximum price you are willing to pay on entering a trade, and the minimum price you are willing to accept when exiting a trade.
The spreads on options can be pretty wide on some stocks. How can you trade them and make a profit?
In the Video Tutorial Section, we show in detail how it is possible to enter a trade at the bid price and exit trades at the ask price – the very opposite of what most inexperienced traders do. In other words a bigger spread can be most beneficial to us, as we aim to profit from it in addition to the actual move in the underlying stock. While it is not always possible to enter at the bid and exit at the ask, we also teach members how to find hidden orders between the ask and bid to get the best price possible.