Rebalancing Your Portfolio To Control Risk Exposure

rebalancing

Rebalancing your portfolio and adjusting it for risk and reward can be a daunting task for some traders. As with most things in trading, sometimes it just simply looks harder. To start there are many schools of thought with regard to rebalancing and allocating a portfolio – none of which are correct since they are…

Continue Reading →

13 Stock Chart Patterns That You Can’t Afford To Forget

stock chart patterns

Stock chart patterns play an important role in any useful technical analysis and can be a powerful asset for any trader at any level. We all love patterns and naturally look for them in everything we do, that’s just part of human nature and using stock chart patterns is an essential part of your trading…

Continue Reading →

Stock Price Gaps – Why The Happen And How To Trade Them

stock price gaps

Beginning traders were probably shocked the first time they experienced a stock price gap. I guess even the most experienced traders still get taken back when there is an unexpected stock price gap in a stock they are trading. Either way I wanted to cover once again why they happen and what you can do…

Continue Reading →

Time To Dispel The Stupid Myth Of ‘Unlimited Losses’ In Naked Option Selling

naked option selling

I’m an option seller and I think we get a bad rap. When people first hear about naked option selling and option writing they immediately heard about “unlimited losses” and “unlimited risk”. This ignorance and lack of understanding is frustrating to say the least. It’s high time we bring this myth to an end! Frankly…

Continue Reading →

19 Famous Quotes From Great Investors That You Can Still Rely On Today

famous investor quotes

I love reading trading books and learning from some of the great investors and traders. My personal preference is to learn from the “Old Guys” like Livermore, Buffett, Lynch and Graham. These guys laid the foundation for modern investing. They didn’t trade on technicals and always offer great insight. Here are 19 great quotes. Add…

Continue Reading →

How To Correctly Use Beta When Building And Managing Your Portfolio

what is beta

Beta is a great trading and portfolio tool when used correctly – yes some people don’t use it correctly I’m afraid. Beta is another one of those crazy greeks that determines the association of a stock or a portfolio to overall markets. This is something that I haven’t covered in detail before and I apologize for…

Continue Reading →

Warren Buffett’s Portfolio – Shocking Truth About How He Trades Options

warren buffetts portfolio

I’ve told people for years and years that Warren Buffett’s portfolio and Berkshire Hathaway company publicly discloses that they are naked put option sellers. More specifically they sell index put options, the exact same strategy we use here at Option Alpha. Why Is This So Shocking? Honestly I always get a weird response when I…

Continue Reading →

The 14 Stages Of Investor Emotions And Trading Psychology

investor emotions

Markets have defined and specific cycles. This is because investors and traders are emotional – whether we choose to be or not. Everyone has the best of intentions when entering this business right? We all want to make a ton of money with as little risk as possible – who doesn’t. Where some traders fall short…

Continue Reading →

Stock Options And The 7 Factors That Determine Their Pricing And Value

stock options

Understanding option pricing and value is critical to becoming a successful trader. How can you know what something is worth (or what it could be worth) if you don’t know what factors go into its price? Take gasoline prices for example. We all know that consumer demand, seasonal changes, crude oil prices, refinery productivity, state…

Continue Reading →

10 Golden Rules For Trading Success Regardless Of What You Trade

options trading rules

There are some basic principles and rules that will make you successful trading regardless of what you trade. These are interchangeable for stock traders, option traders, future traders, and even forex traders. It doesn’t matter what you trade, it’s how you trade that makes you successful or not! The 7 Day Challenge Only about 5%…

Continue Reading →