There’s a saying that’s popular among a certain type of investor… (The successful type) It goes like this: Pigs get fat; hogs get slaughtered. The idea is this: In trading, you don’t want to be so risk averse that you never make a decent profit. You want to be a little bit of a pig. […]
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Since trading went online, everything is in your face 24/7. Yes, I know we could access all the financial news from around the world before the Internet, but today, the computer is like a screaming banshee working to get your attention every second of every day. Personally, I’ve noticed in the past that when I […]
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I’ve been very impressed with the market’s strength and what seems like investors flushed with the Fear of Missing Out (FOMO) emotion. The bullish action is a huge disconnect from what continues to be negative sentiment. This is a case of watching what they do, rather than what they say. I’ve been leaning bullish, and […]
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The market is a bit hard to read. Before, everyone was worried about just how far the market would fall… Now, we are asking the opposite question. Regardless of the latest rally, there are still plenty of bearish indicators… Since the market can turn on a dime, it’s critical that we structure our trades the […]
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My trading career started in the “pits” of the Chicago Board of Options Exchange, where I worked as a market maker. That was more than two decades ago. Since those first days, I’ve lived a lot… learned a lot… lost a lot… and won a lot… And today, I have more than 20 years of […]
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So much ink has been spilled throughout the past few weeks over whether we will enter a recession, or if we are already in one that I’m starting to think we should be trading ink futures. A lot of the discussion surrounds semantics; does two quarters of declining GDP qualify? We will get that reading […]
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The year was 1989, and I was a brand-new, “wet behind the ears” options trader in the pits of the CBOE. Yes, I have been doing this THAT long. You Can Get Me On Your Side for Just $19. Back then, we couldn’t trade options like we do today — online with a click of […]
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Over the past two weeks, the major market indices staged powerful rallies. QQQ is up some 16.1% from June’s low and the small-cap iShares Russell 2000 ETF (IWM) is up almost 14.5% from its low. The SPY is now about 11.9% from the high and just ran into the first line of resistance around the […]
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Yesterday the S&P 500 closed the last trading day of the month up 9.1% for the month. That’s the best month since 2020! Could the market be coming back? Or is this just a head fake for investors? Either way, the S&P has a long way to go before it can match the return my […]
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When people ask me what the “secret” is to profitable investing, I reply… “You have to trade for income. You have to start collecting premium.” It’s simple really, that’s what the best traders in the world focus on. Yes, we like to hit home-runs, but the truth is that weekly cash flow will always outpace the […]
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