Probabilities in Trading
Probabilities in Trading In the end Trading breaks down to probability and price. In order to explain probabilities in trading we are going to use options. It's not necessary you understand options because I'll explain some of the basic components. The markets are nothing more than statistics, mathematics, and ultimately probability.
options to trade
Options to Trade What options to trade? There are many choices. There are monthly and weekly options. It all depends on what you're trying to accomplish. If you're trading intraday you can choose the shortest duration option, but use a deep in the money option. Deep in the money options are trading primarily with intrinsic…
Spread Trading Options
Spread Trading Options Once you know what a call and a put is you're next step might be a spread. Spread Trading Options is a great way to manage your risk. In this video I'll walk through an example so you can see how spreads minimize your risk. Also, show you how spreads do not…
Market Divergence Lead to Volatility?
Market Divergences Lead to Volatility? The markets ended 2015 essentially flat. Will we see more volatility in 2016? That's what I will discuss in this video. The story is market divergences. We will use comparison chart to compare all these indexes and analyze the divergences in the market. Large divergences have always ended in wild…
How to Execute Trades
How to Execute Trades How to execute trades and save money on your fills. This video will give you some tips on how to enter and exit an order. Retail traders have preferential treatment when it comes to orders. So play with the orders and see what you can get as your best fill. If…
Bargain Hunting for Stocks
Bargain Hunting for Stocks Found a beating up stock you wanna buy? Don't catch a falling knife. Here some different ideas about what you can do to bottom fish stocks.
Implied Volatility Percentiles
Implied Volatility Percentiles In thinkorswim the implied volatility for each option chain is shown in the trade tab. The implied volatility in the upper right of each chain is the average implied volatility for all the options within that option chain. How do you know if the implied volatility you see is high or low?…
Trade Liquid Markets
Trade Liquid Markets Mathematically speaking it is impossible to make money in a market with wide bid and ask prices. If there is a low liquid product and the bid and ask is wide you're losing as soon as you enter the trade. Don't pay to play. You wanna be the house.
Contrarian Scan in thinkorswim
Contrarian thinkorswim Scan First let's talk about what to expect in the final trading week of 2015. Typically at this time of the year there is a mix of tax loss selling and window dressing. Tax loss selling is when investors sell their beaten down stocks for the year in order to take their tax…
Don't Fall for the High Implied Volatility Trap
Don't Fall for the High Implied Volatility Trap Experienced options traders who learn about selling high implied volatility often fall into this trap. They scan for stocks only with very high implied volatility and inevitable try to sell that volatility and collect the high premium. Not a bad strategy you say. So what's the trap?…