Have you ever wondered why some people just turn it up under pressure… while others crumble and panic? I know I have… especially when I was struggling as an elementary school teacher with $250K in student loan debt — picking up aluminum cans with my wife, and taking on roofing jobs in the summers… Of … Read more
With the market back near all-time highs… many traders are out there trying to chase stocks after the monstrous move and comeback we saw last month… … and you know what, who’s to say stocks don’t continue higher from these levels. However… if you think about where most stocks came from, it’s hard to buy … Read more
When I first got out of college… I didn’t have dreams of becoming a trader or a titan hedge fund manager… in fact, I thought I was going to play pro baseball. However, those plans never evolved… so I decided to go after a master’s degree in education… and become a teacher. And like many … Read more
My mentor, Jeff Bishop, is considered a genius according to the rigorous standards held by MENSA. He’s able to use his super-computer brain to download information about the options market and absolutely crush it… And for the longest time I thought you had to be some sort of math whiz to make it as an … Read more
While some traders are still trying to make sense of all the trading events that occurred this week: On Monday stocks experienced their worst single-day performance of the year, as the Nasdaq dropped by more than 3.4%, and the Dow almost losing 1,000 points at some time during the session. China devalues its currency to … Read more
Make no mistake about it… yesterday was as brutal as it gets for the stock market. In fact, it was the fourth-worst close (-800.49 points) in the +100 year history of the Dow Jones Industrial Average. And while I consider myself a pretty nimble trader there was very little time to maneuver with stocks gapping … Read more
It’s easy to make mistakes when stocks are moving all over the place–reacting to headlines and tweets. This morning, I’m going to cover three errors that I’m seeing traders make in this market, and offer my advice on how to overcome them. Here they are: Problem 1: Overtrading Do you plan your trade and trade … Read more
Some of my portfolios have been sitting in cash since the middle of last week… Why? Because we’re in a news-driven market. Right now, stocks have the ability to turn from North to South (or vice versa) on any given tweet from the President, a comment out of China, or an interview from the Fed … Read more
Today I’m going to walk you through an actual Weekly Windfalls trade, the idea behind the strategy, and a little bit of what goes through my head when I’m making my trading decisions. But first, I want to talk about a big misconception in trading that is holding so many people back. One of the … Read more
The value of an option contract is based on several factors. They include the risk-free interest rate, time to expiration, the price of the underlying stock, the strike price, and the volatility. You see, unlike stocks where the only thing that matters is price movement, options are multi-dimensional. And if you are not taking into … Read more