We have all heard the phrase, “Trade with the trend, the trend is your friend.” While there is much truth to this statement, what specific rule based action do we take to make money from this simple concept? To dive into the important details and make sure that by the end of this article you… Read More »
On the day I am writing this article the equity markets are making new price highs for the fifth trading session in a row. There are a lot of stocks that are also making all-time highs. As traders, we know that we should participate in the dominant trend but base our exits on supply and… Read More »
Hello traders! As I sit here in beautiful Atlanta, Georgia, teaching a great group of students about my favorite market, my thoughts turn to the lonely traders sitting at home with little or no support system or rules. The view from my hotel room is a few treetops, and the silence right now is deafening. Read More »
Over the last few months, I’ve gotten quite a few letters with questions about the options articles. Today is a good day to follow up on some of those questions, and make some clarifications. Risk of Assignment: First, Mike B. writes about the risk of assignment when selling puts. He says: Here is my issue… Read More »
In the financial markets, successful speculation boils down to a few factors that, although not easy to attain, are quite simple. Those factors are low risk, high probability, taken with a reasonable degree of leverage. The fact is, most people that first engage the markets, that is, those that don’t have any idea how the… Read More »
I’m a logical thinker who also is a little ADD. I’ve found that if I have list or a logical progression of things to do towards a goal I’ll get there. I’ll go off on bunny trails (as my husband calls them) along the way, but my list or step by step process gets me… Read More »
Merriam-Webster’s dictionary defines greed as simply “… a selfish and excessive desire for more of something (as money) than is needed.” Greed is often referenced as one of the main contributors to trading loss. Greed mangles the mind by distracting the trader from what matters most in the trade, which is quite frankly to protect… Read More »
Newer traders are often prone to over-trading. Taking too many trades can come from the feeling that you will miss out on the opportunity to make money if you do not take every trade that comes along. When we trade, we must be selective as to when we enter into the markets. Once you have… Read More »
