Category Archives: Trading Tips

Trading Volatility - The VIX

I see many noobs/hot blooded traders betting their entire life savings on buying 1000 VIX Contracts, just because they are under the impression that the VIX, which moves 40-50% at times of high volatility, is their guaranteed shortcut to becoming … Continue reading

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Trading Tip #13: THE LAST HOUR OF TRADING

Depending on your skill level and experience, the last hour of trading (from 3 - 4 PM EST) could either the best or the worst hour of trading for you; and by worst, I mean your account value being wiped … Continue reading

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HFT Strategy: STATISTICAL ARBITRAGE - PAIRS TRADING

Statistical Arbitrage is exactly what the name suggests. In Stat Arb, you (algo) basically calculate the past/historical correlation between two stocks or two assets, and try to find dislocations or price discrepancies between them. Here is an excellent example of … Continue reading

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Trading Tip #12: DEBIT SPREADS - OPTIONS

Debit Spreads are a great way to trade Sideways/Range-Bound markets. Instead of buying plain vanilla Calls and Puts, you can reduce your risk dramatically by trading Debit Spreads. Here’s How A Debit Spread Works: Call Debit Spread: Lets say a … Continue reading

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Trading Tip #11: DO NOT TRADE BETWEEN 11 AM - 2 PM EST

If you weren’t aware of this already, I’d like to let you in on a secret: The hours between 11 AM and 2 PM are usually refereed to as “Muppet Hours”. This is when the Muppets/Charles Schwab Traders, waiting for a decisive … Continue reading

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Trading Tip #10: CREDIT SPREADS - OPTIONS

Probably one of my favortiest options trading strategy, Credit Spreads are the reason why I still exist. There were times when I had seriously considered quitting my day job as a Trader and join the army or something; of course … Continue reading

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False Prophets, Fake News Outlets, and Propaganda Machines

This is more of a life lesson than a trading tip. In my years as a trader, after churning out all the garbage and the shit that we are fed by the media and the internet, day in and day … Continue reading

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Trading Tip #9: HEDGING WITH OPTIONS

Skill Level: Basic to Intermediate. Before mom and pop had even heard of Options (Calls/Puts), the big guys .aka. Institutional Investors had been using options for many years to hedge their massive uberly leveraged positions. In fact, the main purpose … Continue reading

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Trading Tip #8: TIMING THE MARKET

It simply cannot be done. Contrary to what the fu*kwits on CNBC and the Blogosphere will make you believe, it is impossible to Time the market, unless you’re the Architect/GOD/Multi-Dimensional Being, who can bend the fabric of space-time. What you … Continue reading

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Trading Tip #7: OPTIONS EXPIRATION WEEK

“If you wish to get fu*ked in the ass with Godzilla’s monstrous magnum dong, then you should buy 10,000 (contracts) out-of-the-money NFLX Calls on the expiration day for .01 cent @ 3:59 PM EST.” Now, for those who don’t know … Continue reading

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