This video covers a technique for cutting a position’s exposure to increased options volatility under these circumstances. Options trading in a low volatility environment is not without danger. If the market sells off, options volatility will increase causing a larger than normal drawdown on positions opened in a low volatility period.
I just need to eliminate my ehh trades
Last night, I was reading the review of one of our traders, Trader A, who wrote, “I just need to stick to my plays that make me money (ETRM, TWTO, GLYC) and just faze out those ehhh ehh trades, I will become very consistent and very profitable.” To Trader A, I responded, ” When u say get rid of ehh … Read More
Traders Rave About “One Good Trade”: How It Transformed Their Options Trading
One of the great rewards from writing One Good Trade are the positive unintended consequences. One of those is how much the book has helped traders other than equities day traders. Let me offer two examples. Today at lunch, I sat with an income options trader, who shared his trading breakthrough was reading One Good Trade. This trader had … Read More
In Options Trading, Risk Management must always come first
In this video, we discuss why it is more important for a trader to follow risk management rules than to be guided by technical analysis if a choice must be made between the two.
The power of Team Trading
Last night Team SWang, a collection of traders with unique skill sets that trade for firm, met for drinks and food to discuss ways that they could improve. They are one of the top teams at our firm, based on PnL and improvement. Their team leader, SWang, encapsulated how Team Trading can help traders: “I didn’t know a team … Read More
WEBINAR MAY 10th – Live Mentoring with a succeeding retail trader on sizing
Learn how to size properly during a live mentoring session with a retail trader who has surpassed 100k in trading profits. This succeeding trader is struggling to increase his size. Mike Bellafiore offers mentoring to help this trader reach the next level.
The trading exit is not what you want but rather what it should be
A trader read yesterday’s post Expectations poison good trading and remarked: I would like to focus on this savvy reader’s observation: “I’ve sometimes used the standard of what I WANT the market to do. (how ridiculous is that!)” Well…. from my seat it is not too ridiculous at all. I have been guilty of this. I have seen profitable traders … Read More
It’s hard knowing the right trading process to follow
I had lunch with a candidate for our September training class, who asked a really good question: “How did your past in sports and law influence your path as a trader?” Answer: Process To become successful in the past, I needed to follow and trust the process. To be successful as a new, developing and even experienced trader you … Read More