Hi Mike, I just spent the entire weekend finishing reading The Playbook and I just wanted to grovel at your feet a little bit. I loved it. OGT was my favorite trading book ever, and this book is an absolutely perfect companion. As a lonely trader doing it on my own, every time I read one of your books I … Read More
Maximizing Profits: Unlocking the Benefits of Understanding Options Trade Probabilities
Many who are new to options trading get excited when they hear about options trades that are “high probability”! What they think is that these option trades usually win and earn money. Thus a “low probability” trade must mean the chances of winning are lower. But is it really that simple? And why would anyone enter a low-probability trade if … Read More
An Aspiring Trader’s Email
At SMB we get a lot of emails from traders of all levels. Much of the time they are from aspiring traders who are very passionate about the markets and their work. And all of us here make every effort to respond and provide some insight into the world of professional trading. So in this article, I am going to … Read More
How Do I Take the Next Step as a Trader?
Mike, I know you’ve heard it many times. It’s like telling a model that they’re attractive. 🙂 But, you guys put out some very informational items. Every other day, I listen to “How badly do you want to be successful?” Very inspirational! The one thing I suggest is writing something on the level of knowing when to increase your size. … Read More
Principles for Turning Options Trading Ideas into Profits
Is there a method to determine the probability of an options trade? One of the terrific characteristics of trading options versus trading stocks is that there are methods of calculating probability of profit before you initiate the trade. The features of time decay, strike price and option volatility are unique to options trading strategies and apply whether you are buying … Read More
Options Trading Basics: Calculating Return on Investment
One of the questions often asked about investing in options is “How much can I earn”? Questions like this show how easy it is to fool someone if they really don’t understand how to measure trade results from one trade to the next. To put it bluntly most options trading books don’t tell the whole story. One marketing approach actually … Read More
What is the Best Market to Start With?
As a beginning trader, is there a market that is best to start with? @mikebellafiore I was asked this question during a recent Webinar “Trading Fundamentals: Things Great Traders Do and Never Do”. In a perfect world I like the idea of new traders trying all products and multiple time frames before choosing one. I am not sure this is realistic … Read More
Is This Trader Overtrading?
Q: Mike – so since scalping is dead, can you explain how Shark has hundreds of trades a day? (What I saw in the Playbook from his results on SMB ChopTracker)? Is it basically he takes a low risk entry and then is just adding and subtracting to his position with the ebbs and flows of the tape? Just curious so I … Read More