Riding the Wheel
Many ‘old school’ brokerage firms put vast restriction on the use of options. One thing they might let traders do is sell ‘covered calls’ against a position. Covered calls are a great way to produce income against a portfolio of relatively low volatility stocks. They are not the only way though. One can sell ‘cash secured puts’ as a way of collecting income in stocks that one might want to own someday, or to simply produce income.Read More
Triple Fib Strategy
Today, I wanted to discuss a strategy that I like to use in sideways, churning markets. It's called the Triple Fib Strategy and it uses the power of Fibonacci combined with the power of adding to positions (if you do it right).
If you are a trend trader like me, you typically don't like to see sideways market conditions on the 4hr and Daily charts.Read More
The Trend Failure Signal
If you have been following my articles, you have probably realized that I am a KISS (Keep It Super Simple) investor in most scenarios and that includes following the trend in most of my trade decisions.
However, there are situations where a reversal opportunity has a high probability and certainly a positive Risk to Reward opportunity...Read More
Day Trading - 12 Key Trading Concepts to Survive and Crush it from a 20 year Trading Veteran
Trading is inherently risky. By following 12 fundamental money management rules you can keep your capital safe while building valuable trading experience.
Our 12 rules to keep you in the 10% winning club vs. 90% of traders who lose money:Read More
Power Trading - Overcoming Market Intimidation
Trading. What an interesting subject. Almost everything is traded and at some time in your life you most likely have traded something. Even at early ages, did you ever trade your peanut butter and jelly sandwich for a ham sandwich in grade school? How about your time for a new TV. A product you made for money. Your money for something that you live in, drive, sleep on, or eat. It’s all trading.Read More
Do You Know And Understand Your Real Trading Personality?
No two traders are alike. Traders enter the markets with a wide variety of backgrounds, and come from all walks of life. Some are finance majors. Others are retired policemen, working mothers or students trading from their dorm rooms using free campus wi-fi. Each and every trader has a distinct, unique personality that governs their trading behavior.Read More
Performance Stress - Taming Your Trading Monsters
“What’s wrong with me? Why can’t I do what I’m supposed to do? I keep telling myself to stay calm and patient – let the trade come to me. But, before I know it, I’ve jumped into a trade that, I recognize later was never a possibility in my plan.
But I did it anyway. And, of course, it goes downhill after that. Then, I get gun shy and hesitate to take trades that are valid set ups. It’s frustrating. I know what to do, but when I’m really in the act of trading, I fall apart."
The Process of Becoming an Entrepreneurial Trader
You might ask, ‘‘If I am stuck in the Technical Trader’s Trap, how will I get out of it? And how do I turn myself into an Entrepreneurial Trader?’’ Or in other words, ‘‘How do I transform myself from a Frustrated Technical Junkie into a Successful Entrepreneurial Trader?’’
First of all, make sure you have entered the trading business for the right reasons.
It is true that successful trading can reward you with more money for less work and an independent lifestyle, but you need to understand that trading is not a get-rich-quick scheme. It takes hard work and dedication to get there.Read More
Day Trading and Algorithmic Trading in Futures
Whether you like them or hate them, day traders and algorithmic system traders, commonly referred to as “algos,” are here to stay. Both groups of traders bring additional liquidity to the marketplace, which is a positive. However, some would argue that the baggage they bring with them isn’t worth the additional liquidity. It is no secret that highly day traded markets such as the e-mini S&P experience additional volatility throughout the last hour of the trading session as day traders square their positions. In addition, it is difficult to deny that algo traders haven’t created a marketplace that sees severely abnormal prices at a relatively higher frequency. Nevertheless, the new challenges posed by aggressive day traders and high-frequency traders via computer algorithms aren’t all that different from the obstacles faced by traders during the heyday of open outcry trading; the antagonists are simply wearing a different mask.Read More