Diversification for small portfolios

When we talk about selling options in the form of strategies like the short Strangle, we often start with the profitability of the trade. When was it particularly profitable? When should we maybe reduce trade size? How does buying protection affect that profitability? And while these questions are all important, they are nothing without an underlying diversification in a portfolio of […]

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Price Action Trading System?

What is a Price Action Trading System?  Price Action trading is a method that is commonly used by many traders. Most professional traders use a very logical system that is not complicated, whereas most amateur traders are hung up looking for the “Holy Grail” system and indicators that will bring them all their riches overnight. Price Action is a system […]

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Trade small and trade often

Can your portfolio handle a loosing streak of 4, or more trades? Every trader will experience that a few trades goes bad. Of course it doesn’t happen to you, but would your portfolio survive? Or would you be nearly broke if 4 trades went south. That is why a trader should always trade small. It costs a long time to recover […]

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Is Options Trading risky?

Whatever you do there is a risk. In some decisions there are more risk involved than others. This counts also for trading, whether you trade stocks or options. When you buy stocks all your money you bought the stock for is on the line. However when you buy an option it is in essence like an insurance.  Would you consider […]

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How to sells calls and puts

Traders sell calls and puts depending of their assumption. They will receive option premium upfront by selling options. In this yield-seeking environment, selling options is a strategy designed to generate current income. We sell options with high implied volatility. We want the option to expire worthless or we buy them back when they are much cheaper. If you the options […]

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