Useful Sites
Charts
Track Big Money &
Insider Trading
News And Sentiments
Swing Trade Strategies
Most Popular Option Strategies
- Long/Short call
- Long/Short put
- Debit Spread
- Credit Spread
Trading Tool Box
- Logic is the building block. Ask why and use market generated information to get answers. Your toolbox will grow with your curiosity.
- Monthly reports such as unemployment data, inflation, sales, sentiments, and housing data are typical catalysts for big price swings. Monitor when those reports are due and what the consensus estimates suggests.
- Economic data are priced in before the numbers are released. It is the discrepancy between expectation and actual that moves markets.
- For financial markets such as treasury (interest rates), equity index, precious metal, and foreign exchange, study reports that had the biggest impact on price.
- Understanding the relationships and co-relation between major sectors is imperative to building your foundation.
- Chart reading or technical analysis is an important part of every trader’s toolbox.
- Start with the basics and experiment to find your favorite indicators.
Trading Plan Tips
- Don’t trade the market
- Trade the trade and manage it using risk management plan
- 80% of people lose money in trading and only 20% make money. People who make money are those who are more rational and not emotional with trades. Trade emotionless.
- Be a disciplined trader
- Try to be more mechanical by trading every day with same trades and same trading strategy over and over again
- Trading is a craft
- Try one strategy for 10 weeks and become master at it and then move on to next strategy
- Use at the most only 2 or 3 strategy E.g. Bull call, Iron condor, and Calendar
- Only trade liquid Index, ETF, and Stocks
- If loss occurs 2 weeks in a in a row then take a break
- Learn to walk before run; try paper trading for 3 month before playing with real money.
- Don’t drive sport car before you can ride a sedan ; start with 1 or 2 contact size and then scale up.
- Find a mentor ; Register to OptionBigBull.com and sign up for free courses.
Balance Portfolio
- 3-4 bullish (Speculative)
- 1-2 bearish (Speculative)
- Hedge – GLD (Gold)
- Hedge – TLT (Bond)
- SPX iron condor – Income
- Weekly SPX calendar – Income
Technical Analysis
Best Technical Analysis Indicators
Top 3 Chart Patterns
01 Symmetrical Triangle
- Sign of breakout- can either go up or down
02 Rising Wedge
- Consolidation and then losing momentum; at the end breaks downhill
03 Gap And Go
- Gaps up in pre-market ; at open drops to previous day price and rises again upward
