At 56, Paul Tudor Jones is a self made billionaire with a net worth of 3.3 billion and is ranked as the 336th richest person in the world, he knows exactly how to trade the biggest money for the biggest returns. One of Jones’ earliest and major successes was anticipating […]
Paul Tudor Jones Speaks:Are You Listening? Read More »
What were the greatest trades of all time? Who made them? Here is a list of the who, what, when, where, and how of the greatest trades that were ever made. While the risk management of executing many of these trades is not what many traders would want, we can see many of these
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Traders should never underestimate the role that stress plays in trading. Most will succeed or fail based on their ability to handle stress, rather than how many winning or losing trades they have, or even how good their methods are. It is possible for a trader to win consistently and still not be able to win in
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The following excerpt is taken from my book Show me Your Options co authored with Christopher Ebert the “Option Scientist”. (The following chat is set inside a facebook group in 2011, Apple has appreciated greatly since this book was published). Income Investor: I heard you were the group’s resident guru on stock options. I sell
What is an Inverse Covered Call (The answer may surprise you) Read More »
The current pace of change in the world is at the highest velocity it has ever been. It use to take decades to build companies now it takes years. Apple can go from the verge of bankruptcy to the largest company by market cap in about a decade. General Motors can
Monster Stocks For a Changing World: My Top Five Picks Read More »
Options are great tools in the hands of knowledgeable traders but options are also dangerous in the hands of a gambler. Option contracts can be used to manage risk or expose your account to excessive risk that can lead to ruin. They can be used to put the odds in your favor or
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I am holding two long picks going into Monday morning $AAPL and $MLNX. While both of the stocks are in very strong bases they are very near to all time highs and have the potential to pop up and run if the market price action stays healthy. This is the
My Two Long Picks Right Now Read More »
Here are principles from Dana Glante from the Stock Market Wizards book by Jack Schwager on how she made double digit returns year after year from her short only trading strategies even in bull markets. Steve Watson in the same book contributed the last one. RED FLAGS: High receivables (large outstanding billings for goods and
How To Short Stocks like a Market Wizard:10 Red Flags Read More »
Option delta is represented as the velocity of a price change in an option, given a 1 point move in the underlying asset and is usually displayed as a decimal value. Delta values range between 0 and 1 for call options and -1 to 0 for put options. The delta
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I believe a surprisingly dangerous way to play options are to sell covered calls. This may sound strange to most option traders as it is the most safe convenient ways to use options for long term holdings. Many Individual Retirement Accounts (IRAs) will even allow participants to write covered calls on their stock holdings.
A Dangerous Way to Use Options Read More »
There are people that believe stock options are dangerous, risky, and are to be avoided in place of safer shares of stock. They know it is possible to lose your entire account trading options. If you are selling options short then it is even possible to lose more than your account is worth if you use
Stock Options as Tools Read More »
The key to managing risk in options while trading them in place of stocks is to roll them over when you have nice profits and would like to stay in a trending stock. If you buy a SPY ETF call option contract with a $200 strike price for $300 when SPY is trading at $203 and the ETF runs
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How can an option trader enter into a position, risk only $500 of their total trading capital but control $50,000 worth if stock? The numbers will vary greatly depending on the option pricing factors of intrinsic value and the Greeks but the point here is that it is possible to control a large dollar value of shares with a small outlay of cash. You
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If the markets can have a nice summer rally from here my two long picks are Apple & Google. Apple has just completed a nice “cup with handle pattern” and set up to break out at $620, if it breaks through the near term resistance we could see a quick
My Two Favorite Stock Picks For August. Read More »
If one of the greatest traders in history told you how to buy and sell the best stocks for the most profits would you listen? Well we have a chance to do just that with William J. O’Neil’s book “How to Make Money in Stocks”. His lifetime of research on the precise fundamental and
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As a stock trader have you ever wished there was a way for you to bet on a huge in either direction?Then he thought about the option strategy Optionz Traderz had used in the past. Their is an option strategy that allows you to do just that; they are called long Strangles and Straddles. It is possible to
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You can read trading books until you are red-eyed and suffering from information overload. You can spend thousands of dollars on trading seminars, and you can waste a lot of time trying to get successful traders to give you the secret sauce. But in the end, it is simply you versus the markets. You
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In my reading of over 250 trading books and my endless web surfing I have come across many quotes from rich traders that I have truly liked and they have made me profitable in the markets. Here are my favorite ten that I not only love but have made huge impacts
Rich Traders Speak, are you Listening? Read More »
Great shorts are stocks that are over valued with huge price to earnings ratios hoping for huge sales and earnings growth in the future. The best shorts have 50, 75, and sometimes even 100 P/E ratios. When they fail to make their earnings and their growth declines their stock
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One of the ways I coach myself each day before trading begins is to say to myself “Don’t do anything stupid”. When I quit doing stupid things that is when I started being consistently profitable year after year. You can do all your homework for trading, you can write your
When Good Traders do Stupid Things. Top Ten List Read More »