Don’t Click “Send Order” Until You Know These 3 Numbers About Your Option Trade

Option Trade Order Confirmation

You know the feeling, right? You’ve spend hours analyzing charts, you’ve looked at numerous expiration graphs for your next option trade, and you’re pretty sure that you’ve picked out a great trade with a high probability of success. Let’s suppose you chose a 60 day, 10 Delta Iron Condor and the expiration break evens give…

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The Case For Why You Should Never Manage Risk Once A Trade Is Entered

Managing Risk

We all know that classic axiom about investing; manage/control your risk throughout the trade. But did you know that it could possibly hurt you? Yes it’s true that managing risk could help you actually lose money! Taking trades off that are losers before they have the ability to show a profit might be detrimental. In…

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The 1 Mistake You Make When It Comes To Diversification And How To Change It

Diversification

So many people in the investing world talk about diversification like it’s the end all solution to risk. Spread all your eggs into different little baskets so you don’t get hurt by the big bad market when things go south. Personally, I think this is a bunch of crap! Why would you buy a basket…

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4 Daily Rituals For Conquering Your Trading Psychology

Trading Psychology

If you are prepared to commit to doing a few small rituals everyday, you can see powerful positive changes to your trading results. As emotional investors we can have constant conflict between what we consciously want and what our subconscious mind deems to be what we want or need. Henry Ford said it best. .…

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3 Step Formula To Easily Figure Out How Many Options Contracts You Can Trade

how many option contracts to trade

It’s fairly easy to blow up your trading account. . . Too often traders (both advanced and beginner) allocate way too much to a single trade. They think that because they have a “smaller” account that they need to up the risk and leverage to make money “faster”. What a stupid mentality. . .and I…

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How To Profit From Big Stock Moves Up Or Down – The Art of Trading Straddle Options

Straddle

You know a big move is coming you just have no clue which direction! You can just “feel” the energy building in the stock – maybe it’s before earnings or some big FDA approval. Whatever the case, a big move is coming and now with the Straddle option strategy you can profit from a move…

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Why You Underestimate The Power Of Order Spreading vs Bundling

Order Bundle

Chances are that when you place a trade you send everything into the exchanges in one, big order? Bundling all of the options you want into one order because, well, that’s the easy way to do it. What you may be missing is that by doing this you might actually be putting yourself at a…

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When Should You Buy Back The Short Leg On A Credit Spread?

Credit Spread Adjustment

You’ve made a great credit spread trade and the market is going the direction you wanted. Congrats to you! At this point you’ve made nearly all the money you could possibly make on the trade and you’re left with a dilemma? In this post I’m going to walk through the two major scenarios that you…

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Option Trading Case Study: Finding The Ultimate Strangle Trade?

Options Trading Case Study

I’m trying something new here with these option case studies. Let me know what you think via the comments section after watching the videos because I’d be more than happy to make more. Adding a suggestion of what you’d like to see would be helpful too. . . Strangles = A Pure Volatility Play Strangles…

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The Worst Possible Trades You Could Ever Make – 2 Real Examples

bad trades

Strong statement right? I can back it up and will in this post. There are many ‘bad’ trades but today I’m going to focus on 2 of the worst possible trades. And just to be 100% clear this has nothing to do with market direction. Some would say that the two worst possible trades would…

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