SteadyOptions Trading Blog

A trend trader’s goal is to systematically ride the waves in price action for as far as they will go. There are two different types of traders: discretionary traders and systematic traders. Lets examine the differences between those two types of traders.

Investors often are looking to diversify from the stock market and options and frequently turn to real estate as another asset class. Many like the idea of "owning" something tangible, that they can go look at, or know they physically possess. They may purchase rental properties, commercial buildings, developments, or a variety of other possibilities. 

If you have been trading for a while, for sure you have heard that most traders under-perform, including the so called professionals, the big funds, the "smart money". As it turns out, I had nothing better to do and decided to take a look at how some of those pools of institutional money performed in 2015 when all was said and done.

Most options traders are aware of the definition of risk for strategies. For example, a covered call is low-risk and an uncovered call is high-risk.  While not recommending that everyone run out and open uncovered call options, a point worth making is that these “universal” definitions are not always reliable.

Investors in 2018 are faced with a challenging investing environment for both US stocks and bonds. So what can an investor do to increase portfolio returns without taking on too much additional risk? Those comfortable with and capable of trading simple option income strategies like strangles may be able to accomplish this objective.  

Alphabet Inc (NASDAQ:GOOGL) follows the overwhelming pattern of this bull market's personality -- bullish momentum in a stock just days before earnings. Let's take a look at how just a two trading day period has been influenced so heavily by optimism. Alphabet reports earnings on 2-1-2018, after the market closes.

For my first guest post on SteadyOptions, I poured through many potential topics before coming up with this article.  It was exciting, as the community is active and advanced – we could cover anything.  Ultimately, instead of a typical educational post, how about we tackle a slightly different topic? 

"If your trading system is so good, why to sell it for few hundred bucks? Why not to keep it to yourself and earn a zillion dollars?" This is a question I'm frequently asked, from skeptics, but not only. After all, it makes perfect sense, isn't it? If you can make triple digit returns every year, why share the secret?

Have you ever wondered what sets the best options traders apart from the amateurs? Why is it that certain traders can consistently outperform no matter what the market cycle? Below is a list of the Top 10 Traits Of Successful Option Traders. 

Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Bitcoin is a digital currency, created and held electronically. In 2017 Bitcoin has hurtled past $20,000 per coin from less than $1,000 per coin. All in the span of one year. Is it the greatest bubble of all times? 

Delta (positive or negative) tells us which way we want the underlying to go to make money. Delta applies to single positions but also to the whole portfolio. When Managing our portfolio from a macro perspective, Delta is probably our main risk exposure. It is important to manage the portfolio delta to limit directional risk.

Is time in trading important? If it matters, then why nobody talks about it? What are the most important elements of trading? Capital, Trading System, Money Management, Black Swans, Luck? If you imagine trading on an XY axes, what would be your “X” and what would be your “Y”?