You are powerless over the markets, regardless if you have 30 years of experience or only 30 days.
Focus on your process, because you can't control the outcome.
I believe you need to have positive intention about your trading as "intentions equal results."
Your intention is closely related to your attitude and your attitude affects your judgment, judgment affects your behavior, and behavior predicts where you end up in life.
You can't work backwards from losing money in one month and...
In this episode, Michael Martin has a frank discussion about what you need and what you don't need at the beginning of your career.
In one sense, your job is to survive. That means going slowly and playing superior defense.
Many traders keep a full-time job to make sure they can pay their bills before going solo.
You don't have to double your position to have added to a winning trade.
Try adding 20% to see how it feels.
For best results, you'll have to backtest in a simulator to determine the best location and position size for adding to your winners.
If you believe, like I do, that most markets don't trend and that trends persist, this might be a good tactic for you to look at.
The hardest part of investing (and trading) is knowing when to take profits. In my trading, I'm using systematic exits.
Harder, is when I have a long-term buy and hold in my investment portfolio and I have to let go of a name that I've had for ages.
See the corresponding video on Disney.
You can create some interesting spreads between weekly and monthly option expirations.
Some traders buy the longer dated options and sell nearer expirations to pay for them.
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There are traders whose sole responsibility is to create alpha in only one sector or in one commodity group. Sometimes, it might be in just one contract such as natural gas, for example.
Since most markets are not trending, focusing on one sector can be a challenge if there is no direction or trend. Unless you've been trained...
These particular traders have learned to make money in natural gas regardless of the market environment. That ability did not show up overnight and it took a...
I don't believe there is anything that can be called "advanced trading." Most of the time that I see that expression, it's in marketing literature.
The best trading rules that make your money are easy to understand and simple to execute. Words like "advanced" are there to feed your ego.
My take is that if a trader has a strong sense of self, then finding the right trading methodology is easy (or easier). Trading is largely psychological and emotional and the best traders acknowledge who...
There were times when I invited huge vol to my portfolio. It would run up 20% and then dive-bomb to -20%...that's intraweek!
The portfolio comprised of outright directional trades including long/short futures, debit option trades, and long stocks.
What I found over time though, was that all this ebb and flow created an equity curve that looked like a heart monitor.
I had to find a way to create positive slope to the curve. That's how we keep score.
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Frustrated about your trading? Maybe you're fine right where you are and you just have to accept "what is" and take life on life's terms.
I see this a lot in traders who always want to be somewhere else when they are doing fine right where they are. If this sounds like someone you know, listen in...
Although it takes a bit of time and effort, building a systematized set of trading rules is worth it in the long run.
Instead of reading charts to come up with trading ideas subjectively, each evening you'll run your trading rules to generate orders which you'll enter the following morning.
In this episode, Michael Martin recounts how he developed his original model and how it evolved into what he's doing today in trading and teaching building models and systems.
Start with long-dated Call options and turn them into a Bull Call spread by selling the upper strike when the underlying reverses down. Cover that leg when the vol crashes.
You can create other structures too, such as condors or butterflies all based upon a core holding of long dated calls.
If you put every dollar you have to work, you don't give yourself any room when Murphy's Law kicks in.
If you keep some dry powder, you'll be able to able to withstand some shocks to the system, as well as have capital to deploy when something falls into your lap.
Michael Martin interviews options trader and portfolio manager Hari Krishnan on the current environment and how traders can position themselves with options to capture greater profits.
Krishnan is the author of The 2nd Leg Down: Strategies for Profiting after a Market Sell-Off.
Crypto investing is missing some key components that an investor's are used to in trading equities, options, and futures.
In this episode, Michael Martin discusses what's missing and why you should measure 8 times and cut once in the crypto space.