Our system is not specifically optimized or tested for option trading. However, due to the fact that we look for short-term stock movement, options generally work quite well with our picks. Then we refined the Volumentum indicators, and implemented sector orientation, diversification and money management. The whole point was to design a holistic approach to trading that would go beyond giving investors entries into stocks. Beginning traders often overlook exit strategies.
Exit strategies are relatively simple in long term investing.
It is a matter of regular reviews and rotating positions that aren't contributing to the growth of your portfolio. In intermediate term trading, you need very specific exit strategies. Usually it is much easier to get into a position than to get out of it . In addition, we felt the need to educate traders on money management. This is an area that is closely watched by the most successful professional traders, however, it is an area much overlooked by individual investors.