Another Way Of Looking At Breadth And Depth We've looked at how breadth and depth can give you early warnings of a new trend. By 'breadth', we simply meant volume. For any new trend to be sustained, there has to be at least steady – if not growing – volume. Similarly, the majority of stock issues have to be moving in...
We often discuss the importance of a good disciplined system when trading options. Note that most every effective professional has a system(s) which pays him or her very well. Today, we are going into the details of creating an effective system. As a side note, nearly every recommendation service we have at BigTrends.com operates on a unique system that is well...
How to Build Confidence — What is the definition of confidence? I define confidence as positive thoughts, feelings and actions reflecting your self-belief and expectations of your ultimate success. Success is never guaranteed, but self-doubt and negativity can ensure failure. When you belief in yourself, you move away from harmful distractions such as anxiety and fear, and you move toward...
Learning From Champions Each year as the various sport seasons come to an end and teams are fighting for championships, it becomes very clear what separates champions from everybody else. The interesting part (to us) is that champion traders have the same characteristics as champion athletes. What should we be learning from these teams and players? I'll use one of my favorite...
Regardless of your current experience level in trading, everyone had to start at the beginning. I suspect that the emotions and anxieties were pretty much identical for all traders early in their development. And since then, each trade has gotten easier as your confidence has grown. That’s what a learning curve is. Today I’d like to share two related ideas...
The mental part of trading is as important as the systems and indicators you utilize. Today, we'll touch on some insights from an excellent book for traders, Larry Williams' Long-Term Secrets to Short-Term Trading. Insight #1: "Why do most traders lose most of the time? Markets can spin on a dime and most traders cannot." Even the best traders (or...
We've all been there. Your trades aren't working the way you thought they would, and the mental strain affects your mood, confidence, etc. A systemized approach and clearly defined trading plan will help alleviate some of these effects, but here are some other tips to help "bust out of a slump". The following concepts are expanded upon in-depth in my...
With April 15th fast approaching, many investors are considering what allocations to give to tax-deferred or tax-deductible retirement accounts. Traders often ask us if they can trade options in their IRA account, and a number of brokerage firms now allow this on a defined-risk basis. Generally option trading is not allowed in 401k/403b accounts, but when/if those are rolled into...
What Everybody Ought to Know About Options -
Big pitfalls that novice option traders make and easy ways to not make those mistakes.
