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
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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 »
When politicians take over market sentiment and stray words by Washington leaders send the market moving suddenly in either direction instead of the laws of supply and demand dictating movement it is time to be careful. It is very possible before the fiscal cliff deadline is reached this month that we could both see a
My 5 Thoughts on Market Action & 4 Charts Read More »
“Make everything as simple as possible, but not simpler.”-Albert Einstein “Simplicity is the ultimate sophistication.” -Leonardo da Vinci My trading success has been a journey NOT of adding things to my trading, but subtracting. My success has always been with simplicity my failures in doing the overly complex. The more I added to my trading
The Top Five Things I Ignore While Trading Read More »
The vast majority of traders have a little voice that arises at times caused by greed and the ego I call “The Inner Trading Demon”. It can feel at times like this “Demon” takes us over and makes us do ridiculous things, especially when we are new to seeing hundreds of dollars come and go
The Inner Trading Demon Read More »
“The elements of good trading are: 1. Cutting losses, 2. Cutting losses, and 3. Cutting losses. If you can follow these three rules, you may have a chance” -Ed Seykota If a new trader comes into the markets with dollar signs in their eyes with nothing but excitement for how much they can make and
The 10 Lessons New Traders Need for Market Survival Read More »