Bracket trading is one of the techniques taught by BetterTrades and is a strategy embraced by Better Trades coach Ryan Litchfield, who makes it a key component of his two-day Trader's Forge workshop, which designed to educate students to successfully trade the stock market.

Bracket trading is designed by BetterTrades to take much of the emotional stress out of the process of preparing to trade the stock market. The idea is to establish targets that a stock must hit before a Better Trades student gets involved with buying a call or put option. The parameters are set at the end of the trading day, when the market is closed, and permits the student to think clearly, without all the hubris of the market flying around and forcing them to make spur-of-the-moment decisions.

Bracket trading with BetterTrades follows a few simple steps:

• Look at the stock's price chart and establish the possible price target if the stock decides to increase in price.
• After determining the upside target, look the other way and establish a potential price target if the stock decides to turn bearish.
• After both the upside and downside targets have been determined, set an order with your online broker to enter the trade if either of the targets are hit. Make sure your instructions to the broker allow you to cancel the other side of the trade.
• After entering the trade, establish your target for potential gain and your target for an exit, in case the trade goes the undesired direction.
• Then just sit back and watch it unfold.

More information can be obtained when you attend a Better Trades seminar taught by Ryan Litchfield, who considers it to be an integral part of the education process. Students who attend the Trader's Forge seminar are asked to answer a series of "if-then" questions, which helps qualify them for the next phase of questioning. Depending on how the questions are answered, a trader will be able to discern the proper steps in making a better trade.

Ryan takes the bracket trading process into great depth during the Trader's Forge and in many of his online classes. He'll teach you how to determine the best stock price, as well as the best potential option price. It's important to buy the option at the proper strike price, with enough time on the option and with the most profitable delta. It's all part of the process designed by BetterTrades.

Bracket trading is ideal for someone who works a 9-5 job and can't actively trade during the workday. An "end-of-day trader" must set up their trades when the market is closed, which is ideal for bracket trading. The strategy also works for people who may be too nervous to watch the trade during the day and prefer to simply put the transaction on automatic pilot. It's just another option a student has when they learn to trade the BetterTrades way.