Trading Addicts is focused on swing trading small to mid size cap stocks and buying inexpensive out of the money options.
Jeff Kohler is the founder of www.tradingaddicts.com, a stock, options, and futures trading service that opened its doors back in 2008. Jeff is also a blogger at www.ibankcoin.com, where he writes daily trading ideas and market analysis.
Jeff started his trading career in the brokerage industry, at the trading desk of Morgan Stanley DW Inc. He spent his early career executing equity trades and complex option trades for customers, while spending his available time learning the inner workings of the financial markets.
Jeff has successfully coached thousands of individuals to success in trading. As an active options trader, he earned the nickname “Option Addict” from a trading blog authored several years ago, in which he taught his trading principles to a wide audience.
Trading Addicts Review:
Trading Addicts is a fairly active service meaning there can be several buys in one day. So if you like active trading you will love his service. Primarily he is focused buying short term on out the money options. These options have a high risk to reward ratio.
Note: You will need a margin account to buy options but this is really just a matter of checking a few boxes in your trading account.
As an example, you might buy a Netflix (NFLX) call with a strike price of 130 for $170 that expires in two weeks when the stock is trading at 125.
So this means that if he is right on the direction you could easily double or triple you money in a few weeks. Of course they don’t all work out that way, BUT they don’t have to with the high rewards.
That’s not to say that is all his service does. He also gives buys on small cap stocks, similar to the swing trades that Jason Bond Picks or Microcap Millionaires do. Normally these are pretty short term trades from a few days to a few weeks.
What is different about Trading Addicts is he also gives alerts for longer term trades. These may be from a few weeks to months. These stocks can form a core holding in your account.
Jeff’s bread and butter trades however are the short term high risk/high reward options.
The Chat Room:
Like any good swing trading service he has an active chat room. If you have a large enough account to day trade ($25,000) and are able to watch the market all day then you will LOVE his chat room! Its full of active traders who live and breathe the market and pass along picks and advice during the day.
Also if you’re going to day trade you will need a very low cost broker like Interactive Brokers (that’s who I use) because if you’re going to day trade and paying a $10 per trade you’re going to get killed in commissions.
Interactive Brokers, for example is only a $1 commission per 100 shares and the TWS trading workstation is truly amazing.
So now when I take a “sick” day I can make it a profitable day off!
Daily Watch Lists:
Jeff creates a daily watch list for us subscribers, this list has the stocks that he feels are ready to make a big move based on his technical analysis.
Jeff lists his current open positions on the website. It will tell you if it’s a stock or option, price he entered the trade, a target he thinks it may get to and a stop loss in case it doesn’t. As you can see there are options, short term and long terms positions.
Educational Material:Trading Addicts has a very extensive education section on his site. If you want to learn to trade on your own, you can learn everything you need to know to do that. Starting from the basics of trading to all types of price patterns to look for.
These price patterns form the basis of Jeff’s trading. There are 12 sections covering everything all aspects of technical analysis. Should you choose to go it on your own you will be able to after learning the material.
Don’t worry if you are not familiar with options. A lot of people are afraid of options because someone told them they lost money trading them or they are really complicated.
Just to set you mind at ease if you are not that familiar with options, you can see there are a ton of videos and articles on all aspects of options. Plus, Jeff is always available by email if you are unsure of something.
The Bottom Line:
I have tried many stock picking services over the years and Jeff at Trading Addicts has a very good reputation. Jeff Kohler is a genuine trader, you can email him a question and he will get back with you promptly with an answer. He even has a LinkedIn account if you want to check it out.
When you first join most likely you will have some questions and its nice to know that you will get an answer.
While I am pretty familiar with options and price patterns, for someone just starting out its invaluable to have the education available from a REAL trader who makes his living from the markets.
However, my problem with Jeff is he really DOES have a trading addiction! He has way too many trades that don’t work out and I noticed while I was a member his winning percentage had gotten worse.
It got to the point where I really wasn’t making money anymore and felt I was just making trades for the sake of making trades. So I just decided to go with Jason Bond Picks.
It was the best decision for my trading account I could have made, you can read my review of Jason Bond Picks here.
If you need help in deciding which stock picking service best suites your style of trading, click here for my comparison of the services.
Looking to open a brokerage account or just find a better one? I wrote some reviews of brokers I have used and currently using.
OptionsHouse Review (Currently Using) OptionsHouse is the ideal brokerage for Trading Addicts because they specialize in options and many of Jeff’s picks are options.
Scottrade Review (Used when I first started)
Regardless of which Stock Picking Service you use or if even if you choose to go it alone, please download my two trading guides; 7 Habits of Millionaire Traders and How to Take the Proper Size Position for Your Account
NO strings attached, no email required.
If you have any questions about Trading Addicts or any of the other stock picking services, feel free to contact me and I will get back with you as soon as I can.
– Robert Walsh