When trading options, position allocation is one of the keys to avoiding undue variance in your trading portfolio. Watch this short video on how to access your risk and allocate accordingly. Follow me on Twitter @MikeShorrCBOT
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Many traders look at their win to loss rate when evaluating their trading. This is an important concept, if you are right way more than you are wrong, you probably are not going to enjoy much success. But, many are missing one part of the puzzle, expected value. Not only IF you are right or […]
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Risk management, we talk about it all the time in the live signal rooms. It is one of, if not the, most crucial parts of trading. You can have all the best trade ideas in the world, but if you cannot effectively manage your risk, you are setting yourself up for failure. It’s important to […]
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There are many types of option orders, but there are two special ones available on the ThinkOrSwim platform. Click the video below as I explain what these order types are and step-by-step how to execute them. Grab a free day pass to one of our live signal trading rooms today>>http://bit.ly/nl-freepass Follow me on Twitter: @MikeShorrCBOT […]
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Late last week, we got filled on a debit put spread signal in the gold ETF $GLD. Monday we have seen a continued flight to quality with heavy buyers in both gold and Treasuries flooding the market. Click the video below to see how we are going to adjust our position to try and get […]
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Many traders shy away from trading options because for many reasons. The two main ones I have encountered are either they are too complicated or there is too much risk or a combination of both. The risk part is simply just not true. If used properly, options afford traders MORE control of their risk and […]
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We discuss tirelessly about risk during the trading day. Risk is not something to avoid, but manage. Some risk management is pretty straightforward like when dealing with vertical spreads. Other types of spreads, like calendar spreads require a bit more work and a few more tools. Click the video below as I walk us through […]
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The VIX and VXX are both very popular trading vehicles for trading volatility. But, unlike the perceptions of many traders, they are not exactly interchangeable. There are many similarities and more importantly, some very important differences. First, the similarities: Both are based on S&P 500 volatility futures Both will show a strong reversion to a […]
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The premium of an option is often used interchangeably with price. While that is almost true, it’s not entirely true. The price of an option includes both intrinsic and extrinsic value. The premium of an option refers to just the extrinsic value. Watch the video below as we analyze the premium associated with our position […]
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Many traders look at their win to loss rate when evaluating their trading. This is an important concept, if you are right way more than you are wrong, you probably are not going to enjoy much success. But, many are missing one part of the puzzle, expected value. Not only IF you are right or […]
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