One of the fears about trading options is being hit by an event and the stock moving against you. A 5 contract trade opened at 2.00 can be vaporized in a day on some bad news. $1,000 nearly wiped out. Not easy to recover from that, either. I’ve been there many times. It [...]
Remember last summer and fall when the market action dictated which direction most stocks would go? Those days where breadth was miserable one day but shining the next. Correlation was high, nearly reaching 90%. Confusion was at its peak as the markets were jolted daily by news, innuendo, rumors and conflicting viewpoints. It seemed [...]
I wander frequently over to Trader Habits to see what Eli Radke is thinking. On May 22 he put up a great article that all traders should read. The reality here is he will tell you what you are thinking and how you should act. Emotions are a major part of how you trade – [...]
