Friday, 30 December 2016

Weekend readings, 2016/12/30

Paul Krugman: And the Trade War Came

Corporate America is still in denial about the prospects for a global trade war, even though protectionism was a central theme of the Trump campaign. … The … relevant legislation gives the occupant of the White House remarkable leeway should he choose to go protectionist.

Looks like a trade war is here…read how to benefit from this here

Continue reading →

   weekend-reading economy filibuster finance fiscal-stimulus gdx miners news positions psychology s-p-futures trading trump


Saturday, 24 December 2016

Weekend readings, 2016/12/24

How to Make 40% a Year Betting on the Market, Even if it Doesn’t Go Up

Here is the trade I made last week when SPY was trading about $225:

  • Buy to Open 1 SPY 19Jan18 220 put (SPY180119P220)
  • Sell to Open 1 SPY 19Jan18 225 put (SPY180119P225) for a credit of $1.95  (selling a vertical)

Vertical put (bullish call spread) strategy to gain 40% in 13 months

http://www.terrystips.com/blog/how-to-make-40-a-year-betting-on-the-market-even-if-it-doesnt-go-up/

Continue reading →

   500 bull-trap charting democracy equity etf finance nasdaq options trading trump uncategorized


Tuesday, 20 December 2016

Option Expiration and Pinning

Options trading can appear intimidating to some traders. To make money, you must understand how option values fluctuate, the risks of option positions and the regulations pertaining to option expiration. You can have option positions that expire after periods ranging from one day to more than a year. Understanding the mechanics of option expiration will save you from unpleasant surprises.

Continue reading →

   american-style delta-hedging european-style expiration main-site options-mechanics


Tuesday, 20 December 2016

One Easy fix for traders getting stopped out too early or cutting profits too soon…

If you’ve traded actively for at least a few months or years, you’ll know all too often the agony that comes with getting stopped out of a position and immediately, the trade takes off. A similar but lesser form of agony is felt when a trade has hit your price target and you proudly sell your position. Except, it keeps going and going…

Continue reading →

   uncategorized big-short charting day-trading futures loss option-spread p-l positions s-p-futures too-soon trading trading-loss trading-strategy volatility


Monday, 19 December 2016

Option Workshop, version 16.12.1329

In the new version we have unified the format of the options series codes. Now, the codes are displayed in a unified format for all elements in the interface.

Also we have made minor changes in the what-if scenarios functionality, exchange visibility configuration window and accounts visibility configuration window.

The description of these and other changes can be found in this article.

Continue reading →

   accounts exchange interface pl release main-site


Saturday, 17 December 2016

Weekend readings, 2016/12/16

http://economistsview.typepad.com/economistsview/2016/12/fed-watch-fed-turns-hawkish.html

Fed Turns Hawkish, by Tim Duy: The FOMC raised the target range for the federal funds rate by 25bp today, as expected. But the tone of the press conference and the summary of economic projections were more hawkish than I anticipated. The Fed is shifting gears, a shift I did not expect until more data piled up in the first quarter of 2017.

Fed surprises market by turning more hawkish faster resulting in a pause in the rally.

Continue reading →

   weekend-reading


Monday, 12 December 2016

Trump won and you missed the rally. Now what? Part 1

There is nothing so disastrous as a rational investment policy in an irrational world – John Keynes

Trump’s victory surprised even the most well-informed financial analysts and bloggers. A quick scan of the headlines leading up to the elections showed endless articles which pontificated what a Hillary presidency would mean for markets. And those few articles which did venture a guess at what a possible Trump aftermath would look like seem even more ridiculous now in hindsight:

  • Barclays – 6% fall in the S&P 500 before a partial recovery by year-end
  • Citi – 5% drop in S&P 500
  • RBC Capital Markets – 10% to 12% fall in the S&P 500
  • Wolfers,an economics professor at Dartmouth College – 12% off the S&P 500
Continue reading →

   uncategorized economy fiscal-policy gdx gdxj gld gundlach inflation investment miners nugt slv tips trump


Monday, 12 December 2016

Trading like this can be fatal for you, Part 2

In the first part of this article, I briefly discussed a rather painful early trading experience during the financial crises in 2007/2008. I was short and still somehow killed my account.

I let my emotions dominate my trades earlier in my career. My self-worth was tied to each dollar made or lost. I was many things back then. Too eager, too risk-loving, too young.

Eventually, learned that my trading career is like a war that never ends. Every minute of trading is a battle with others trying to separate me from my money. If we fail to manage our emotions, we become easy targets. After blowing up my account multiple times, I learned some very painful lessons.

As promised, I will share with you my framework to keep psychologically sane while trading and also what to do when off balance.

Continue reading →

   big-short emotion on-tilt psychology revenge-trading sp-futures stocks trading trading-loss trading-strategy uncategorized