Instead of buying outright calls or puts, institutional traders might use a basic risk reversal, which is a mix of both calls and puts to structure a position. A basic risk reversal, however, has significantly more risk that simply buying…
Any way you slice it, losing is part of trading. A big part. If you do not learn how to lose, you are not going to be in the game for very long. There are two ways to lose on a…
Have you ever looked at a stock to buy and were really excited about it, but hesitated because you thought it also could just as easily go down? If so, consider using an option instead of buying or shorting the stock….
Ask any successful trader or investor and they will almost certainly tell you that a solid understanding of risk management has been the key to their success. Not only that, but developing a simple plan then can implement consistently. This simple…
A fantastic analogy below from Investopedia describes the differences between Fundamental and Technical investment data. They are two separate approaches to evaluating the markets for both identifying opportunities and managing positions. In a shopping mall, a fundamental analyst would go…
All investment plans can be broken down into these simple components. Any strategy and time duration of investment fits within these disciplined evaluations: 1) Identify High Probability Candidates 2) Execute with Proper Risk Control 3) Manage Position 4) Maximize Trend…
The development of the ETF (Exchange Traded Fund) marketplace has changed the investment landscape. Investors and traders have an investment vehicle with the flexibility to enter or exit like an individual stock, but the with the diversification possibilities of a…
There are so many tech tools at your disposal to tackle all your trading needs. In fact, it is not uncommon to see traders with a very large setup consisting of multiple computer monitors, a television, phones and even assistants….
