Before any trader uses stock options they must understand how options are priced. Options are not assets they are perishable bets on the price of a stock during the time frame of the option. Stock option contracts have different strike prices for different time frames. Inside their prices are imbedded the cost of time, volatility […]
The Anatomy of a Stock Option Price Read More »
I believe there are different stages in a traders development and career. There is the stage of the newbie where you know nothing, the next stage is the new trader where you know something but make nothing, the good trader stage where you make some money, then the rich trader stage where you no longer
10 Signs You Might still be a New Trader Read More »
William Delbert Gann (June 6, 1878 – June 18, 1955) or WD Gann, was a trader who developed the technical analysis tools known as Gann angles, Square of 9, hexagon, Circle of 360 (these are Master charts). Gann Market forecasting methods are based on geometry, astronomy, and astrology, and ancient mathematics. Opinions are sharply divided
W.D. Gann’s 28 Trading Rules Read More »
Well, here we go again, hours away from watching the show that is the markets. This week again is going to be more about every word out of Washington about the fiscal cliff than about chart patterns, trends, or fundamentals. Right now I do believe that the markets are pricing in a resolution to the
Three Charts with Key Lines in the Sand Read More »
After many requests for specifics on entries/exits and my thoughts on the weekly option Apple long strangle plays I have been doing, here you go>>> On Thursday afternoon 30 minutes before the close I decided to open a weekly option strangle on Apple. With its wild action over the past two weeks it was a
My Big Juicy Apple Option Strangle Play Read More »
What a week this one was. Wild, sharp, quick, and volatile moves. If you held a position more than 5 minutes the odds are that you felt some pain financially or emotionally. Big winners turned into small winners and small winners turned into big losers in the time it took for a restroom break. Markets
7 Ways to Conserve Your Emotional Trading Capital Read More »
Option Strangles Traders who strongly believe the price of an underlying asset will change significantly in the near future but are unsure about the direction of the move can trade combinations of options that differ only in the exercise price. A common combination strangles. These are option trading strategies that combine both puts and
Long Option Strangles Explained Read More »
The biggest reasons that new traders do not make progress quicker and become more profitable faster is that they do not truly apply a strong work ethic to their trading education. Many of us when we were new just fiddled with trading. We would get excited and look at some quotes, and maybe talk to
Don’t Trade Lukewarm Read More »
One of the most painful things a trader can experience is hindsight. Wishing they let the winner run, cut the loss short, traded bigger, and on and on. Hindsight looks so obvious AFTER the fact. If we followed our trading plan based on our system and method we should not have regrets. Yes, we should
Trading with No Regrets… Read More »
Fragile- “Easily broken, shattered, or damaged; delicate; brittle; frail.” Robust- “Strong and healthy; hardy; vigorous.” Anti-Fragile- “A postulated antithesis to fragility where high-impact events or shocks can be beneficial. Anti-fragility is a concept developed by professor, former trader and former hedge fund manager Nassim Nicholas Taleb. Taleb coined the term “anti-fragility” because he thought
Is your Trading Fragile? Robust? or Anti-Fragile Read More »