The other day I received an email from a reading asking about position sizing. His basic comment was that position sizing is sort of confusing and I can see why it might seem that way. The bad news is that if you’re having questions about position sizing, it means you have a much bigger problem than […]
Last week I mentioned that I recently started a full time job. Let me assure that working full time is far from my favorite thing in the world, but, at least for now, it’s what I need to do. While I was out on one of my 4 a.m. caffeine loaded, cold, dark jogs, I […]
Pain. I’m always looking for ways to reduce pain when I’m trading and by pain, I really mean heat. I know that I’m not alone in that pursuit because I see credit spread traders waiting and waiting to fade big moves. For example, they might want the market to sell off as much as possible […]
Sometimes when you play in the market you get hurt. Monday, August 24th and the days leading into “Black Monday” will inflict a good amount of pain on many market participants. I took a bunch of pain in my Iron Condor positions, but, fortunately, my $RUT Butterfly is doing okay. Those little options bugs are […]
The market is crashing, the market rallied, it’s earnings week, Greece is in trouble, the banks are failing, and the list, quite frankly, is endless. There are really only a few things that matter in trading and none of them show up on CNBC, Bloomberg, or any other news outlet. On a very basic level, […]
Most investors love to receive dividends and income on their investments; it’s always a good thing when a little extra cash shows up in your account. Unfortunately, Central Bank rates around the world are at historically low levels making those payments smaller and less frequent. In fact, interest rates have gone beyond low and are […]