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If 2018 was the year that RUT Condors almost faced extinction, 2019, so far, has been a great one for this Theta strategy.
OK, at least since February. Let’s not include January into the blessings because that rally looks suspicious.
The RUT has been sideways crossing up and down the 200-MA like a maniac, but sideways, nonetheless. One could argue that the chart has a slightly bearish tilt to it since it is showing timid lower lows and lower highs. If it breaks the $1460ish support, hell’s gonna break loose.
Despite the good-looking chart, if you mismanage or micromanage a Condor you can kill it just the same even if the chart is textbook-perfect. Having no rules is bad, however, having too many of them is just as bad. Delta rules, support/resistance rules, hedging rules, rolling up/down rules, rolling out rules, Gamma rules, so on and so forth. Which rules are you following to enter a Condor, manage profits and hedge losers? Are you following the rules, by the way?
That is when a premium system comes in. Not only that but a premium system together with monthly MasterMind Groups with the system architect himself. I am talking about the Cash Flow Condors system and Coach Tyler Craig.
Tonight we will be holding the October meeting for Condor traders at 7PM EST. Please, take note so you don’t miss it. See you tonight!
PS: I got a confession to make. When I was a novice, I got greedy and killed 7 Condors all at once. Let’s talk about trauma. Father Guido Stockaducci, help me, please.
Chart of the Day
The Iron Condor is a neutral strategy. The underlying asset, in this case, the RUT, has to stay range-bound, ideally. But the chart is only the chart. Portfolio design, position sizing rules, and system rules must be in place so you can be profitable long-term trading this strategy.
Tonight we will be holding the October meeting for Condor traders at 7 PM EST.
Video of the day
How To Build a Safe Iron Condor
Coaches Tim and Cody work their way through the Tackle Trading Spreadsheet and teach students how to build a proper and safe Iron Condor.
Today’s line up
Tales of a Technician
Three Portfolio Protection Choices
You have a stock portfolio. Maybe it’s full of mutual funds or ETFs. Or perhaps you took the stock-picking route and bought your favorite ten companies. At any rate, you are a buy and holder who frets over the coming recession. Or, more accurately, recessions. There will be multiple economic downturns over your investing lifetime, not one.
Traders Lounge 11 PM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
The Coaches Show Replay
If you missed last night’s episode where Coaches Noah Davidson, Grant Larsen, and Greg Holmes talked about the Long Strangle from the new Tackle Trading Playbook or would like to watch it again, check it out here.
Cash Flow Condors MasterMind Group 7:00 PM EST
Join and learn how to better use the Covered Call System with the Tackle 25 with Coach Noah Davidson.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Trading Justice Episode 342: Aftermath
In this episode of the Trading Justice Podcast, we discuss the book ‘Aftermath’ by James Rickards. This book examines the state of economics today after the financial markets crisis forced bankers to drop interest rates drastically and print money to inflate asset prices. Listen to the episode on the player below.
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