The biggest question that most traders face when determining whether or not to enter a trade is whether the price will bounce or break a level.
Bounce or Break
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Why Taleb is Wrong About Markets and Uncertainty
Once you cut through the layers of purple prose and elective neologism, Nassim Nicholas Taleb?s central thesis is not hard to understand: people often know less than they think that they do, and some human affairs are arranged so that they are negatively, neutrally, or positively affected by surprising events.
Volatility Trading Digest – Strategy Selection
In this issue, we update our indicators and then explain why we remain cautious while offering two work in progress ideas, one an updated hedge using iShares Russell 2000 Index (IWM) and another long SPDR Gold Shares (GLD) suggestion.
Just When You Thought You Knew It All
As markets become more global, technology for electronic trading changes, geo-political events occur, economic cycles change, severe weather conditions happen and of course we, ourselves change as we grow older.
Options and Hedges
In a couple of previous articles, I mentioned the role of Market Makers in the options market. These people make the market possible by standing ready to buy or sell options at any time.
XLF, Payment Processor IV Cheap, Trade?
As we head into the fiscal cliff and a potential European solution/crisis one thing strikes me, risk is not being priced into financial assets.
Going Vertical in AAPL
One of the basic directional spreads when learning to trade options is that of the vertical spread. It is extremely versatile and represents a major building block of more complex spreads.
Are You Playing an Emotional or an Objective Game?
The title of this article is a big question which I ask practically every student I have ever worked with. I guess I even ask myself the same thing from time to time, even though I have been trading the markets for a pretty long time now.
How Much is Too Much?
Having a large number of positions is actually detrimental to your investment portfolio.
The Casino Versus the Gambler
In the general public, any conversation about trading in the financial markets (and in particular day trading) usually leads most to conclude that it?s just another form of legalized gambling.
Relatively Speaking
I was a bit hesitant when considering this week?s article because the topic is very subjective. The difficulty lies in fully explaining the possible interpretations of the following chart, and how what could be a powerful tool for you may be misinterpreted if used improperly.
Mideast Kerfuffle
My first option trade was in 1990 on a crude oil contract leading up to Gulf War I. I was convinced oil prices would rise and I was right. I don?t remember how high crude went at the time, maybe $40 or $50 a barrel, but it was a nice win.