Hi Mike, September 1st 2013 makes it three years that I have been trading full time. I’m writing this email to seek your experienced trader’s counsel. I don’t have any job and I’ve been thinking about my experiences trading, which for the most part have left me bitter. You must be wondering how I’m still continuing to trade after three … Read More
Understanding Call Option Dynamics When the Market Rises
When new traders first discover options trading they get excited by the leverage that buying options can provide. One call option contract allows you to control 100 shares of the underlying security. So instead of buying the stock on margin, you can buy an option using a lot less capital. This leverage attracts traders who have limited resources because under … Read More
Do Not Sell This Position
Hi Mike, First of all I would like to thank you for writing The Playbook! I’m not quite through it, but I’m already finding it extremely helpful and valuable. I wanted to share some challenges i am currently having regarding a situation where there is conflict between certain rules I follow for establishing when to close a position and one … Read More
From The PlayBook: Reasons2Sell
Here’s our latest excerpt from The PlayBook. It comes from Chapter 3: “The Day Knight Capital Almost Fell (A Support Play)”. The chapter begins with a question: “How Do You Know When to Sell a Winning Position?” Dear Mike, I recently read One Good Trade and found it a quality read relative to all other books I’ve read. It has been … Read More
Anyone Make Money In Slow Markets?
Recently one of the trainees in the chatroom asked me if the slow currency markets are normal as we conclude the summer months of this year. My answer? Yes, we are still in holiday mode. I then explained my theory as to why we experience slow markets in general which is what I am going to explain to you in … Read More
Lessons Learned From A Million Dollar Loser
Imagine that you’re on top of the world…You have achieved brilliant career success on the trading floor of Chicago; you sit on the important governing body of your industry; you’ve got a wonderful family; and plenty of toys to enjoy in your spare time. And then, in what seems like a blink of an eye, you lose it all. You … Read More