No matter what you trade or what the market is doing, you need to have a game plan. It can be as simple as creating a checklist to follow every day.
The stock markets care about who wins the 2020 U.S. presidential elections. Stock traders look for potential trading opportunities regardless of who wins the elections. Look for clues within each of the party lines so you can be better prepared to face the election results.
There's no way to predict bear markets. Each one is different from the next. But these options trading strategies can prepare you for unexpected market events.
Trend direction and volatility are two variables an option trader relies on. Combining trend following, momentum, and trend reversal indicators on the thinkorswim platform may help you determine which direction prices may be moving and with how much momentum.
Traders sometimes talk glowingly about thrilling options trading strategies without considering the risks. There are some alternative strategies such as short out-of-the-money verticals that you could consider to better manage your risks.
When developing an options trading strategy, you might consider whether a trade is risk-defined, has positive theta, and is "high probability".
Overtrading can be a killer to your P/L. The trick is to trade consistently and always know what the markets—and your positions—are doing.
You can upgrade your trader status by expanding your leverage with portfolio margin, but first you must know synthetic equivalents—here's a primer.
The greeks option traders use are loved by many, but understood by few. Know the false “truths” about option greeks to better manage your trades.
A trader's job can be easier than an average mutual fund manager's—A few reasons the playing field for traders is more than leveled.
Today’s obsession with the “short term” has created a new paradigm for “long-term” investing. It might help to put a trading spin on the long-term view.
Options traders thrive on volatility. So when dull markets are a drag on your P/L, don’t wait for the market to come to you—go after its components. In geek-speak, welcome to volatility dispersion.
With IRAs, plenty of stop signs tell you what you can and can’t do with options. Are there workarounds?
If the quants are making all the money these days with high-frequency trading, what’s it gonna take to compete? Beat them at their own game.
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Content intended for educational/informational purposes only. Not investment advice, or a recommendation of any security, strategy, or account type.
Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.
Market volatility, volume, and system availability may delay account access and trade executions.
Past performance of a security or strategy does not guarantee future results or success.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.
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