Every week, the coaches at Prosper Trading Academy offer their insight on some of the most challenging questions covering recent stock market developments, trading tips, and relevant news stories. This week, Scott Bauer, Charlie Moon, and Mike Shorr cover this week’s CPI report and other future events that could impact the market, along with ways […]
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Every week, the coaches at Prosper Trading Academy offer their insight on some of the most challenging questions covering recent stock market developments, trading tips, and relevant news stories. This week, Scott Bauer, Charlie Moon, and Mike Shorr touch on the best stock market indexes to follow and common issues they notice among struggling traders. […]
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According to popular estimates, over 90% of stock traders fail. When you break the numbers down even further, they’re more staggering – about 40% only trade for one month, and 80% quit after two years. Only seven percent will continue trading after five years. So it begs the question – why do most stock traders […]
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An inside bar is just what the name implied. It is a bar that is “inside” of another bar. We use a daily chart for this approach. So the high from two days ago is higher than the high from one day ago and the low of two days ago is lower than the low […]
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A ratio spread is a neutral options strategy in which an investor simultaneously holds an unequal number of long and short or written options. … Conceptually, this is similar to a spread strategy in that there are short and long positions of the same options type (put or call) on the same underlying asset. A backspread is s a type of option trading plan in which […]
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We believe that some banks are in a position to make the next leg up? Why? You ask. Unlike your conventional banks, some banks like Goldman Sachs, JP Morgan, Citibank and, Morgan Stanley have resources that many conventional banks do not. They have MASSIVE trading entities. They are not simply a place to park […]
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Vega is the measurement of an option’s price sensitivity to changes in the volatility of the underlying asset. Vega represents the amount that an option contract’s price changes in reaction to a 1% change in the implied volatility of the underlying asset. We also discuss order flow and how it can affect implied volatility and the balance of supply and demand. Click […]
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Open interest is a concept that is unique to options. Volume is a parallel concept to stocks. First, what are they? Second, why should an options trader care about them? Open interest is the number of active contracts. It is a metric that can be tracked or displayed on most options trading platforms, like bid […]
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A call is an option that gives the buyer the right, not the obligation, to buy an underlying asset at a certain point in time at a certain price. A put option gives the buyer the right, not the obligation, to sell an underlying asset at a certain point in time at a certain price. […]
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“Gamma Scalping” is a concept that retail options traders should know about, but frankly will rarely, if ever, use. Not because it is a bad idea, but because it is capital intensive and it’s necessary to own the underlying asset. “Gamma Scalping” involves the process of scalping in and out of a stock or futures […]
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