The Powerx Strategy: Companion Guide
The Powerx Strategy: Companion Guide
The Powerx Strategy: Companion Guide
COMPANION GUIDE
Dear Friend,
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COMPANY HISTORY
Rated A+
Once in the U.S., Markus began evolving his trading career, working from
home and living the trader’s lifestyle. Anyone he talked to about his work
was intrigued, and many confessed that they, too, wanted to work from
home and, more importantly, work for themselves. Markus was quick to
invite anyone and everyone to his home office to show them exactly what he
did day after day—in his mind, showing was always better than, simply,
telling.
What Markus didn’t expect? That visitors would eagerly tell their friends.
By 2005, just three years after he arrived in the U.S., Markus was no longer
the unknown trader-to-be. Instead he was trading full time and taking his
first steps to establish his trading eductation business. Markus designed a
system capable of teaching anyone how to trade in only 15 minutes a day. His
strategies and software were simple, strategic and completely streamlined
—and, more importantly, they worked.
Seen on many top financial education platforms including NBC, CBS, FOX,
ABC, Rockwell is also a proud member of the Better Business Bureau and has
maintained an A+ rating for many years.
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LIVE EVENTS
ROCKWELL LIVE TRADING EVENTS
Experience the very best of Rockwell at our live events. Designed for traders who
want to upgrade their skills while learning new strategies to grow their accounts
systematically and sustainably, this transformative and fully immersive
weekend will give you the clarity and confidence you need to take your trading to
the next level—and beyond.
Through these targeted, high energy, high intensity trainings, you’ll create
critical alignment between you, your trading and your money management, so you can
build a trading account that truly provides for you and your family. By positioning you
and your fellow traders within an intimate, highly focused setting, you can play out and
be 100% focused 100% of the time.
• Learn Rockwell’s core, proven trading strategies to help be better positioned in any
market condition
• Find the best, lowest-risk option trades with high profit potential
• Discover the secret to trading in just five minutes per day, plus an effective strategy
for binary options that uses five-year probabilities to put the odds in your favor
• Choose the right money management approach—the approach that best aligns
with you and your goals
• Cut through the clutter and the chaos to eliminate the stress and overwhelm that’s
holding you back
“ I just wanted to drop a line to say thank you for a great couple of days. I
thoroughly enjoyed the Houston Trading Event...I’ve probably been to a
dozen or so trading seminars hosted by shameless snake-oil salesmen
that only have one agenda. You certainly don’t fit into that group. Thank
you for your honesty and genuine interest in your students. I look
forward to your next event.”
— Mark Finsen
But if you traded this stock according to the PowerX Strategy, you could
have made 61.2%. Here’s how…
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When we switch our chart to a bar chart, it looks like this:
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Pg. 49>>> Whenever the Stochastic %K is ABOVE 50, it’s indicating that the stock is in
an uptrend (see below).
Pg. 50>>> And when the Stochastic %K is BELOW 50, it’s indicating that the
stock is in a downtrend (see below).
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Pg. 51>>> INDICATOR 2: RELATIVE STRENGTH INDEX (RSI)
The next indicator is the Relative Strength Index (RSI), and we are using a setting of 7.
Same as Stochastic %K, the RSI Indicator oscillates between 0 and 100.
Pg. 52>>> Again we want to pay attention to the 50 line. When the RSI is
ABOVE 50, it’s indicating that the stock is in an uptrend (see below).
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When the RSI is BELOW 50, it’s indicating the stock is in a downtrend (see below).
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Pg. 54>>> When the MACD is ABOVE its Signal Line, it’s indicating that the stock
is in an uptrend.
When the MACD is BELOW its Signal Line, it’s indicating that the stock is in a
downtrend.
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Pg. 55>>> Now let’s bring this all together. In the chart below you’ll see all
indicators together:
I personally like to make this even easier to see, and here’s how:
● When all three indicators are green, I color the bars in the chart green.
● When all three indicators are red, I color the bars in the chart red.
● When only 1 or 2 indicators are green or red, i.e. not all three, then I color the
bars in the chart black.
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Pg. 56>>> This makes it VERY easy for me to see when a stock is in an uptrend
(green bars), when it is in a downtrend (red bars), and when it is only moving
sideways (black bars).
With these settings, you can now determine in five seconds or less, whether a
stock is in an uptrend or a downtrend. Just look at the previous image.
Since all three indicators are showing an uptrend, this stock is in an uptrend
right now.
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PART 2: WHEN TO ENTER A TRADE
Pg. 58>>> #1. We want to BUY a stock $0.01 above the high of the bar on
which all three indicators are green, i.e. the first green bar.
The high of the first green bar is at $8.35, therefore we want to BUY $0.01 above
that high at $8.36. As you can see, we’re getting filled on the next day.
Pg. 59>>> Here’s another example:
The high of the first green bar is at $7.25, therefore we want to BUY $0.01 above
13 that high at $7.26.
Pg. 60>>> Here’s an example where we don’t get filled right away:
The high of the first green bar is at $7.30, therefore we want to BUY $0.01 above
that high at $7.31.
But for the next three days, the stock doesn’t move above $7.30. But since the bars
are still green—in other words, all three indicators are still signaling BUY—we leave
the order in the market. On the 4th day after the signal occurred, the stock finally
moves higher and we get filled.
IMPORTANT: If we had gotten a BLACK bar, we would have canceled the order
and waited for the next green bar.
If you want to SHORT a stock, you can use the same logic to SELL a stock:
We want to SELL a stock $0.01 below the low of the bar on which all three
indicators are red—in other words, below the first red bar.
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Pg. 61>>> Here’s an example:
The low of the first red bar is at $8.50, therefore we want to SELL $0.01 below that low
at $8.49.
The low of the first red bar is at $8.50, therefore we want to SELL $0.01 below that low
at $8.49.
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Pg. 63>>> There are two more SHORT signals. Take a look at the image below:
Here are all the signals in one chart—note, GREEN triangles are BUY signals and
RED triangles are SELL signals.
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PART 3: WHEN TO EXIT A TRADE
Successful traders use stop losses and liquidate their positions with a small loss
if the trade goes against them.
Average Daily Range (ADR) = Moving Average (High of Daily - Low of Daily, 7)
Pg. 67>>> In the example below, the Average Daily Range is $0.42:
For my stop loss, I like to use 1.5 times the Average Daily Range:
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Pg. 68>>> In this example, the stop loss is $0.42 * 1.5 = $0.63.
When we enter the trade at $8.36, we simply subtract $0.63 from our entry and
place our stop loss at $7.73.
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Pg. 69>>> Here’s another example. In this scenario, we enter the trade at $7.26 and
simply subtract $0.63 from our entry and place our stop loss at $6.63.
As you can see, the stop loss is perfect: If we enter at $7.26 and prices move down to
$6.63, we know that we are wrong and exit immediately. This way we only risk $0.63
per share—just $63 for 100 shares.
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EXIT 2: PROFIT TARGET
This is the BETTER way to exit—by taking a PROFIT. For my profit target, I like to
use three times the Average Daily Range:
Pg. 72>>> In this example, the profit target is $0.42 * 3 = $1.26.
Pg. 73>>> Here’s another example. In this scenario, we enter the trade at $7.26
and simply add $1.26 to our entry and place our profit target at $8.52.
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Pg. 74>>> Here’s another example:
● Entry is at $7.31
● Stop loss is placed at $7.31 - $0.63 = $6.68
● Profit target is placed at $7.31 + $1.26 = $8.57
As you can see a few weeks after entering the trade, we hit our profit target—even
though we NEVER came close to our stop loss. That’s the power of SMART exits.
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EXIT 3: BLACK BAR EXIT
This exit is extremely powerful because it enables you to exit a trade when the
stock is going NOWHERE.
● Without the “Black Bar Exit”, we would have been stopped out at 7.73 for a
loss of $0.63 per share or $63 for 100 shares.
● With the “Black Bar Exit”, we exit the trade at 8.85 for a profit of $0.49 per
share or $49 for 100 shares.
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LEVERAGE YOUR ACCOUNT WITH OPTIONS
Pg. 92>>> Let’s run through a quick example to illustrate these points. Below is a
stock that gave us an entry signal to BUY for $11.10. Based on the calculations that
I gave you in the previous chapter, we place our stop loss at $10.59 and our profit
target at $12.12.
As you can see, a few days after entering the trade, the profit target was hit, and
we made $1.02 per share or $102 for 100 shares. That’s 9% in just a few days!
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TRADING OPTIONS with POWERX STRATEGY
Pg. 96>>> Let’s start with an example—in this chart, all three indicators are
signaling BUY. And today, the price of the stock moved above the high of the
“signal bar” and if we had traded the stock, we would BUY the stock at $13.96.
Based on the stop loss and profit target calculations that you learned earlier, the
stop loss for this trade would be at $13.27 and the profit target is at $15.34.
o we still have to
But we’re not trading the stock. We’re trading OPTIONS. S
look at the stock to see what it’s doing, since the option is tied to the stock.
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Pg. 100>>> WHEN TO EXIT THE OPTIONS TRADE
After entering an options trade, take a quick look after the markets close to see if the
stock gives an exit signal. In this example, the stock is moving up as expected after a
few days—but we haven’t reached our profit target yet.
In this case, you’d keep monitoring the stock. As soon as either the profit target or the
stop loss is hit—or you wind up with a black bar—we exit the options trade. When you
think about it all that way, it’s very simple, isn’t it?
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GROW A SMALL ACCOUNT TO A B IGGER ONE
Pg. 110>>> The Best Money Management Approach
Let’s assume you start with a $10,000 account.
The table below shows you exactly how much you are supposed to risk:
When you start trading, you apply the 2% Rule, i.e. you are allowed to risk 2% of
your account. 2% of $10,000 is $200 (see Row 18)
And you already know, that when you risk $200 and you apply the “Golden Rule,”
you are trying to make $400.
You will have some losing trades, and you will have some winning trade. Your goal
is to make $100 per week on a $10,000 account.
So if you are trying to make $100 per week, you will make $400 within 4 weeks and
your account grows from $10,000 to $10,400.
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Pg. 111>>> If you were able to make $100 per week consistently for 4 weeks in a
row, you have now earned the right to risk more.
As soon as your account is at $10,400, you are now allowed to risk $400 on every
trade:
And since you are now risking $400, you are trying to make $800 per trade.
If you achieve your goal of making $200 per week consistently for the next 4 weeks,
your account will grow by $800.
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Since you are now risking $600 per trade and you apply the “Golden Rule”, your
profit target is now $1,200. Therefore you no longer try to make $200 per week, you
are now trying to make $300 per week.
And after you prove to yourself that you can make $300 per week for the next 4
weeks, your account will grow by $1,200 (4 weeks * $300).
As soon as there’s more than $12,400 in your account, you are allowed to increase
your risk again from $600 to $800.
And you increase your profit target from $1,200 to $1,600 since you are applying
the “Golden Rule:” You risk $800 and try to make $1,600.
Pg. 114>>> The table below shows when exactly you should increase your risk,
and therefore your profit target:
As you can see, after 1 year of trading, you could potentially grow a $10,000 into
$46,400 on Feb 28, 2019!!!
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MY TRADING PLAN
I want to make $___________ per year
Other Rules:____________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
“ The Rockwell LIVE event was soooo worth 2 long days of flying for 4 days
in Texas. Trading is going great for me after being at Rockwell LIVE, so
I am really glad I got to be there. ”
— Shannon Weum
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$YHUDJH3URILWSHU7UDGH
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Coaching & Mentoring
Rockwell Trading anchors its processes in comprehensive
one-on-one coaching and mentoring. Your Rockwell Trading
Success Coach will mentor you directly to help you eliminate
the negative habits holding you back while, at the same time,
pushing you to refine your goals and map out a path from
here to there. Because once you’re there, there’s no limit.
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POWERX SOFTWARE
Analyze over 15,000 stocks, options and ETFs in
minutes with the PowerX Software, and leverage
expert insights and real-time intel to place smarter,
more strategic trades.
“ When I first met Markus, I knew right away that Markus’ trading knowledge and
experience were just what I needed to be a successful day trader. Markus has
become my ‘Mentor’ and I firmly believe that by following his complete day trading
program I will become a successful trader as well as having the opportunity to
network with a community of like minded traders.”
— Ken Kowalchuk
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WHAT'S NEXT?
Ready to dig in and take that next step
with Markus & Mark? Ready to kickstart
your trading career? Ready to push
yourself to finally achieve and maintain
true financial freedom?
YOUR one-on-one session with your Success Coach or, even, with Markus or
Mark. It’s all possible—and it’s all possible RIGHT NOW.
Your customized strategy and coaching session paired with the skills, insights and
know-how you’ve achieved can help position you for better understanding and better
success now and in the future.
If you’re ready, so are we—and we want to help you excel. Schedule your strategy
session now by meeting with one of our Success Coaches and make the most out of
this powerhouse weekend.
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