Inside Calendar Spread Option Trading ATM Calendar Spreads, Aware of the Gotchas? Over the years of being both an options trader and trainer, I have seen different option strategies that come into and out of vogue. It seems almost cyclical, like fashion. For me, every option strategy has its time and place to be traded. I look at each option...
What Is the Relationship of VIX Levels and Volume Trends? At the annual FIA Expo conference in Chicago last week, there was quite a bit of discussion about the topics of products’ option trading volume trends and the recent levels of the CBOE Volatility Index (VIX) (VXX). The average daily closing values for the VIX Index were 32.7 in 2008, 24.2 in...
How A Fellow Investor Critiqued This Trader 10 Concepts To Improve Your Trading My motives in writing blogs and in teaching investment classes are in part selfish ones. I write and teach to become a better trader myself. By weaving together the key attributes that I deem most useful in trading the stock market and sharing them with other...
The Great Depression in Ten Pictures Lessons From The Past – 10 Charts & Graphs Of The Great Depression [BigTrends.com: Patterns and history often repeat themselves to one degree or another. With the similarities in the stock market charts and economic climate of the post 1929 crash to the 2007-2009 market decline, it’s useful to look at economic and...
Equity Markets Under Obama Stock Market Performance By US President Since 1900 [BigTrends.com: Surprisingly to many, the stock market has actually performed better under Democrat Presidents than Republican ones throughout history — average gain of 7.1% under Dems versus 3.0% under Repubs since 1900. This is why we remain largely non-partisan in our trading and investing (regardless of personal opinions)...
Best Trading Books – 5 Books That Will Transform Your Trading 5 Essential Trading Books To Boost Your Investing Performance And Option Trading Results I often get asked which books I would recommend for trading. If I had to make a list, I would not have to think hard as to which ones would be at the top of...
14 Signs of Fear in Your Trading and How to Overcome Them We talk a lot of keeping trading mechanical, keeping emotions out of our trading. That's a huge challenge; as we're built to have emotions both protect us and give us pleasures. Emotions send us messages: * Sadness: We have lost something important to...
Using a Triple Calendar Spread to Trade Google Earnings Trading Earnings Reports With Option Calendar Spreads One of the most useful characteristics of options is their ability to control risk and achieve a high probability of success when trading impending earnings announcements. Google (GOOG) will announce third quarter earnings after the market closes on Thursday. It does not take...
18 Timeless Trading Rules To Increase Your Investing Profits [BigTrends.com: Richard Rhodes provides a nice list of 18 trading principles below. The vast majority of these are in line with our trading experience, trend following concepts, and system/indicator testing as to what works. We’ve bolded some of the key concepts below.] I must admit, I am not smart enough to...
What Traders Can Learn from Bubbles Trading Bubbles Have Been Around For Thousands Of Years, How To Recognize & Profit From Timeless Patterns The recent speculative bubbles that did so much damage are neither new nor particularly damaging, once put in a proper historical context. The past decade has seen some dramatic bubbles and crashes in asset prices. There...
