We have one more major thing to look at as we build out our casino—volatility. We know the house edge for every game, but we also need to know some basic statistics before we open the doors of our casino. Let’s just focus on standard deviations for this discussion and how they affect our returns, and the bettor’s returns. Game … Read More
SMB’s Options Tribe: Tuesday, December 27, 2011 at 5pm EST: Managing Options Positions by the Greeks Part 2
Tuesday December 20, 2011 at 5:00 pm Eastern Standard Time SMB’s Options Tribe is an online community of options traders dedicated to sharing successful options trading ideas with all of our members worldwide. Each week the community will meet online for the primary purpose of watching live presentations made by outstanding veteran options traders and experts in the world of … Read More
A good trading day can be right around the corner
Your trading can get better. I sacked a trainee to the demo yesterday for sloppy and irresponsible trading. This new trader spent the day thinking about his strengths and mentally rehearsing the best set ups for his trading. This was a time out day. I have done this to this trainee before after a period of underperformance, which then preceded … Read More
Trader Denial or a Good Time to Take a Break
I asked Dr. Andrew Menaker, trading psychologist, the following question: You have a trader, a very good trader, who struggles to start December. He writes you an email saying this market is garbage and his taking an extended leave. What is your response to such a trader? Dr. Menaker responded: While it’s true that market conditions do change, it’s also … Read More
Trading lesson of the day
I received this note from an excellent trader about the market before today’s open: Won be trading for the rest of the year. Tired of this (insert cuss word- deleted) trading. debating on even coming back till earnings season. I can certainly understand those thoughts after struggling through a tough trading market to start December. I have had those … Read More
SMB’s Options Tribe: Today at 5pm EST: A Multi-Month, Multi-Index Butterfly Strategy
Tuesday December 13, 2011 at 5:00 pm Eastern Standard Time SMB’s Options Tribe is an online community of options traders dedicated to sharing successful options trading ideas with all of our members worldwide. Each week the community will meet online for the primary purpose of watching live presentations made by outstanding veteran options traders and experts in the world of … Read More
A tough trading market
It has been tough trading out there of last for most. Here are some emails that I have received from traders: today was another bad day, cant seem to get a grip on this market, not alot of volume it feels to many shake outs, feel like shutting it down for the year. Im not even making terrbible trades just … Read More
Make this adjustment to your trading
I received these comments about December trading with a weekly review: As mentioned earlier in one of my daily reviews, I have added a plan change for December: I will lower my tier size to 100 shares on everything besides in-play A-setup stocks. Be more selective than usual. Avoid trading in & out unnecessarily. Lock in profits more quickly than … Read More