Here are five ways to effectively manage risk as an option trader: The first step in managing risk as an option trader is position sizing. When buying options the amount of capital you spend buying an option contract long is the most you can lose if your option expires worthless before expiration. The best way […]
Risk Management For Options Trading Read More »
The efficient market hypothesis or ‘EMH’ for short is the theory in economics that believes all known information is already reflected in current stock prices. The followers of this hypothesis believe that due to this fact it is not possible to beat buy and hold investing over the long term in returns or even in
The Efficient Market Hypothesis Explained Read More »
Order flow is the process of buyers and sellers trading between one another that causes market prices to stay the same or move up and down. Zooming in on order flow it is the volume bars along with the time and sales information of trades. Order flow is where buyers and sellers meet at an agreed
Price Action vs Order Flow Read More »
Mental models are used as frameworks and filters and a way to think about the world and make the right decisions based on principles. Mental models are not always correct but they can raise your probability of having success with how you think and the decisions you make based on robust principles. Jeff Bezos used
Creating A Regret Minimization Framework Read More »
The Wheel Options Strategy or the Triple Income Strategy is an option play where an option trader tries to profit from a trade on a single stock in three different ways. Step 1 is where the trader sells cash secured put options and collects the premiums on a stock that they wanted to buy at a specific price to
The Wheel Trading Technique Read More »
Insider trading is defined as buying or selling stocks on public exchanges using information that is not publicly known or available to other investors or traders. This happens when people with access or connections to confidential or non-public financial information, news, or facts about a publicly traded company trade based on what they know or share
What Is Insider Trading? Read More »
This is a video guest post by Jake @TrendSpider. Chart Courtesy of TrendSpider.com
Finding An Edge During A Stock Market Crash Read More »
Everyone should have their own strategy and plan for trading or investing in the stock market to create an edge in their own timeframe. Each time you buy a dip in price action it should create a good risk/reward ratio and fit your own risk tolerance and have the potential to achieve your own return
When to Buy the Dip and When Not To Read More »
This is a guest post by Jake @TrendSpider. In this weekend blog post, you will find our “Top 5 TrendSpider Charts This Week”, weekend analysis, and the link the this Sunday’s show! Make sure to check out our Sunday Chart Show this weekend at 6 PM EST with Arun Chopra, founder of Fusion Point Capital!
Current Stock Chart Patterns on SPY QQQ and IWM Read More »
Dollar cost averaging is an investment process where you invest a set amount of money into a market at regular intervals. The strategy is to put a fixed amount of dollars in a specific investment like an index fund so you get more shares when the price is lower and less shares if the price
What is Dollar Cost Averaging? Read More »