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How Market Internals Can Help You Read the Market
Think or Swim Internals Chart Market Internals can be used to give you an overall feel of the market direction. The market internals are similar to a compass or the instrument panel on your car. The internals can give you a sense of the speed and direction of the...
Successful Trading; Two Key Elements to Help you Reach your Goals
There are two words often used to describe a successful trader; consistency and self-control. A successful trader makes consistent profits. What exactly are the components of a successful trader? Using the equity curve as a measure of success, often those less...
Interactive Brokers Increases Margin Due to Brexit
I remember during market crashes in the past, Interactive Brokers (IB) increased the margin for many products.There was a lot of complaining about it on certain forums but I personally was happy to see the increased margins. As an IB customer myself, I like knowing...
How to Master Procrastination in Your Trading Decisions Quickly
Do you procrastinate when making a decision to enter a trade? Do you get frustrated when you have made a decision, and the choice you made looks as though it may turn against your positon? When you exit a trade, do you beat yourself up because you could have made more...
American and European Options: An Overview
American and European Options: An Overview There are two types or styles of equity options. One is an American style option and the other is a European style option. What are some of the similarities and differences in the two styles of options? If you buy a European...
Assignment in Options Trading – The Long (and Short) of It
"Tell me and I forget. Teach me and I remember. Involve me and I learn." Benjamin Franklin Have you ever been assigned in options trading? Many traders have gone through assignment at some point in their career. This article is meant to be a refresher on the "ins and...
Tax Advantaged Options
Did you know that certain options have special tax treatment? The IRS has favorable tax treatment for anything termed a "IRS Section 1256 Contract." These are: Regulated futures contracts Foreign currency contracts Non-equity options (broad-based stock index options...
Does Stress & Distress Lurk in Your Trading?
What’s Behind the Monster Which Could Interfere with Your Trading Decisions? Does this happen to you when you are trading? You become anxious and exit a good trade before it has an opportunity to mature to its profit target You become frustrated and take off a...
Straddles & Strangles – Part II
In last week's article, I wrote about the long straddle in options trading, and how some traders incorporate the strategy into their trade plan. I will now cover the long strangle, another option strategy that features the use of options in unison with each other....
Straddles & Strangles – Part 1
Many traders use straddles and strangles in their options trading plan. This week's article is intended to be a synopsis of the straddle strategy, and potential uses a trader may consider. The strangle strategy will be covered next week. What is a Straddle? A straddle...