Blog

Options Market

Viewing posts from the Options Market category

Trading with your Head and Heart

Every trader has an analytical part (head) and an emotional part (heart). A system that suits you will engage both aspects of your personality. When you start trading a system, you face two expectations. One is the statistical expectation, which we have discussed in detail. The other is your emotional expectation from the system. If the two expectations are not coherent, then you will not be happy trading the offending system.

This raises questions about why you trade. For many people, the only reason to trade is to make profit. However, you could have many other reasons, such as the excitement of trading or the intellectual challenge of competing with other traders. You should check to see if the following are consistent: your profit objective, trading horizon, mathematical expectations, and emotional expectations.

Read More

How To Succeed By Falling Again And Again

Failure is what most people want to try and avoid. However, failing again and again can actually be what leads to success. When you are trading options, the reality is that you are going to fail from time to time. There will be trades that you will execute where you will lose money. You could decide to quit and never trade again, or you can take those failures and learn from them.

Read More

How to Profit by Trading Mini Options

The Chicago Board of Exchange on Monday March 18th, 2013 launched a series of mini options that trade just like standard options, but each mini options contract represents 10 shares of the underlying stock instead of 100 shares in a standard options contract.

Read More