The exercise of building an options trading plan is a very unique breed of business planning. We’ve found over the years that many options traders have career backgrounds as professionals or business owners. Traders with backgrounds like these often bring some of their old business planning tactics into their options trading plan. There are pros and cons to this. Pros … Read More
Traders call this a “frustrating” trading month
If you asked me to search my e-mails and chats for the word most used to describe trading this month it would be: “frustrating”. One trader wrote in an end-of-day review, “Very frustrating day for me due to finishing this red after most of the ideas were working in the AM.” Another trader wrote in his Daily Report Card, “definitely feeling a … Read More
One trader is failing because of this says him
I was talking to a struggling developing trader, presently at a trading arcade, who was looking for a new home because of a lack of mentoring. He understood that at his trading arcade (trader places a risk deposit for first losses and firm provides leverage) it was not their business model to extend mentoring and coaching. *There are other trading … Read More
ALL Traders Are Impacted by Market Probabilities
Discretionary traders, systems traders, neutral, mean reversion, momentum, swing, and day traders… ALL of these trading styles and niches rely, to one extent or another, on using probabilities. Discretionary traders keep probabilities in mind when making trading decisions. Systems traders rely heavily on many aspect of probabilities to create automated or nearly-automated systems. Neutral traders need to understand tail risks … Read More