There are three sides of risk management that are crucial to understanding before you trade. The odds you will have a losing trade. The average size of the loss you will experience. The odds you will blow up your account. The odds you will hav... Read more
The bearish butterfly option play, (not to be confused with the bearish butterfly chart pattern) is an adjusted butterfly option spread which is a neutral options trading play that is structured to profit from bearish price action. Option trader... Read more
What are some good strategies to practice as trading drills to help improve your real money trading? For ideas to enhance performance into consistent habits and practices that have an impact on your trading you first must define your edge. Full... Read more
What is the difference between positive skew versus negative skew? Skewness is the measurement of a a coefficient that has the ability to be positive, negative or neutral (zero). The coefficient of the skew is the measurement of the magnitude of... Read more
What does “Buying on weakness” mean? Buying price action weakness is a trading strategy that enters into a long positions by stepping in and buying on a chart while it is still falling before a reversal in price. Traders buying weakness are buyi... Read more
Michael Burry is an investor and hedge fund manager of Scion Asset Management, LLC Holdings. He became famous by the best selling book “The Big Short” by author Michael Lewis that was also made into a blockbuster movie. Burry’s... Read more
Implied volatility or IV crush are descriptions for when an options vega premium dropped dramatically out of its pricing. This usually happens after a major event has passed for the underlying stock or market for the option contract. The most co... Read more
The flat top breakout chart pattern gets its name from the top of the chart being flat as sellers and buyers have met and agreed at the key resistance level. Once trades take place above that flat upper resistance level it is considered a breako... Read more
What is market breadth? Market breadth describes the amount of stocks that are participating in the trend of a stock market index or exchange. If a stock index is going higher but over half the stocks in that index going lower, this is called ne... Read more
A breakaway gap is a chart pattern in technical analysis that shows a big opening gap in price above the previous day’s closing price. The gap in price action on the chart is where no trading took place between buyers and sellers. A break... Read more
