Volatility (both real and implied) has been stepping higher. While not at extreme levels, the S&P 500 Volatility Index ($VIX) is at a precarious point. Volatility is one of the more reliable market segments for a mean reversion bias. Most of the time, the VIX lives somewhere between 10 and 30. However, when it gets above 30, the index can … Read More
Why Smart and Successful People Fail at Trading
SMB trains traders from all around the world. And we’ve discovered something interesting. We’ve learned that there is a very low correlation between past success and success at trading. Ivy League graduates and successful entrepreneurs alike often struggle with their trading despite past successes. A common misconception among these intelligent traders is that they believe they will succeed at trading … Read More
SMBU’s Options Tribe Webinar: John Locke of Lockeinyoursuccess.com: Combining Technical Analysis with Options Income Trading to Improve Returns
December 15, 2015 This week, John Locke of Lockeinyoursuccess.com will be discussing how he combines technical analysis and the principles of options income trading to improve returns. Update: The recording of this webinar is available on the Options Tribe Premium archive. Seth Freudberg Director, SMB Options Training Program The SMB Options Training Program is a program designed for novice and … Read More
How I Became a Consistently Profitable Trader [True Story]
I spent 25 years working for a big company. It was a great job, but like most big company positions, it eventually wore me down and burned me out. I happened to talk to my dad one day after a particularly stressful day, and he asked me about work. I told him, “I can’t do this anymore.” He asked me … Read More
[New Series] Which Technical Indicators Work Best?
Ever wonder which technical indicators are best for trading? Look no further than this series with Andrew Falde that teaches you exactly how to answer that question with statistics, custom algorithms, and back testing. No relevant positions. Trades are hypothetical.
Pro Traders Have This in Common
The best traders in the world have something in common. More interesting than that… it’s something that struggling traders do not think is all that important. Not only do the best traders in the world share this trait; it’s also common to see this trait in top professional athletes, artists, world renown musicians, etc. Just like amateur traders — amateur … Read More
One Mistake Your Broker is Glad You’re Making
A common mistake that new and developing traders make in the options market is to trade strategies that involve high commissions relative to the earning potential. We often see newer options traders applying great options strategies to the wrong instruments. Option trading strategies that involve frequent management to control risk can be commission intensive. This is especially true if you’re … Read More