Tag: trading
Let Price Action Show You What To Do In An Approaching Bear Market
Traders have access to an overwhelming amount of market indicators. But does a trader really need any of these indicators to be successful at trading? At the end of the day, the price determines our loss or profit. Therefore, we should focus our research on price action rather than time lagging indicators or market fundamentals. […]
Why Successful Traders Make More By Trading Less
During my 25 years of trading and mentoring others, I have been dragged through the coals a few times. And by that, I mean I have: blown up a few trading accounts; had some massive gains only to watch them turn into worthless penny stocks, and; I even had one trade based around the volatility […]
Eight Easy Tips That Can Turn Your Trades From Losers to Winners
There are many profitable option trading strategies, but none of them will work unless you are willing to stick to a set of guiding principles. Several rules I employ are helpful in maximizing profits, limiting losses and, most importantly, taking the emotion out of trading. Below, I will go over my basic trading philosophy, why […]
This Stock Just Broke Out
Mondelez International, Inc. (NASDAQ: MDLZ) seems to be getting ready for a price bump as per the latest charts. Mondelēz, is an American multinational confectionery, food, holding and beverage, and snack food company based in Chicago, Illinois. Bullish Indications #1 Consolidation Area Breakout: The daily chart shows that the stock was trading within a consolidation […]
Why December Is Shaping Up To Be A Very Volatile Month
It looked like we might coast into the end of 2021 on a calm and seasonally bullish note with the major indices up some 25% for the YTD. But, a new Covid variant and stubbornly-high inflation have thrown a wrench into that outlook. I think December will be unusually volatile, which equates to unpredictable, which […]
Which Is Better: Covered Calls Or Cash-Secured Puts?
Covered Calls and Cash-Secured puts seem to be the most popular choices among traders in finance and stocks. And for a good reason. The two trades in the same market, just on different terms. That’s right. And it all started with the same idea… Both kinds of trading are pretty much the same, except for […]
Using Options To Protect Gains While Maintaining Upside Potential
The stock market is hitting all-time highs and investors are torn between the possibility of an economic downturn, or entering a new leg of the bull market. Last week’s article noted that money managers were increasingly using call options to gain additional exposure to the stock market. Some of this behavior might be deemed as a reckless […]
2 Distinct Concepts That Options Traders Need To Know
Market volatility is starting to tick back up as macro headlines from Iran/Iraq come in. And now we are about to enter earnings season, which not only will cause big moves in the individual names, but over the past few years, has proved to be a volatile first quarter. More specifically, on individual names that are […]
How To Read Options Activity For Clues To A Move
Using option activity as an indicator of impending price moves is difficult, subjective, and unreliable. That being said, it can help confirm other indicators and increase the probability of a profitable trade. Indeed, there have been many situations in which activity in the options pits accurately predicts or presages an impending price move. There are […]
The 6 Rookie Mistakes Options Traders Should Avoid
I thought this would be a good time to review some of the common mistakes traders make when using options. As shoppers have become increasingly savvy in finding online bargains and discounts, we see similar behavior spilling into other aspects of their lives. This includes investment advice and stocks they seek. But sometimes it’s better to […]
