«How many pieces are in your pie?»
Asset allocation is next on our list of money management topics. In traditional investing, asset allocation refers to how much of your overall portfolio goes into different assets such as stocks, bonds, real estate, and commodities. Usually, the portion you deploy in each comes down to your risk tolerance and investment objectives.
For instance, a more aggressive trader seeking a higher rate of return would allocate more to stocks and less to bonds and vice versa.
You can also apply the principle to your trading account but instead of spreading your capital among various assets, you’re spreading it across different systems. For instance, you may divide your account between cash flow strategies like covered calls, naked puts, condors, and directional systems like debit spreads. That provides strategy diversification and hopefully reduces the volatility of your account value fluctuations.
With time and experience, you’ll massage the exact amount of your allocation to each system. Do a little less of what doesn’t work and a little more of what does, and pretty soon, you’ll have a portfolio full of profitable systems you’re following with confidence.
Video Of The Day: Gino’s Gems – Finding the Unusual High Option Activity to Follow the Big Money
In today’s Gino’s Gems, Coach Gino Poore explains How to find the Unusual High Option Activity to Follow the Big Money.
Chart of the Day: S&P 500 ($SPY)
Stocks are pausing at resistance, but so far, bears lack teeth. You must love the lower volatility settling on stocks over the past two days. We deserve the break.
Today’s line up
Traders Lounge 11 AM 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 Tyler Craig and Gino Poore talked about Money Management or would like to watch it again, check it out here.
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.
Trade Masters 7:00 PM EST
Every Wednesday at 7 PM EST join us on the Trade Masters where two Coaches go head-to-head to see who can find the best trading setup.
Hard 14 MasterMind Group 8:30 PM EST
Owners of our premium system Hard 14 are invited to attend. System architect, Mark Justice, will be showing how to apply the principles taught in the course and more: (1) Watch & Learn as Coach Mark illustrates and points out large moving average pockets and potential origination points for the coming month; (2) Get updates on key moving average support and resistance points for the coming month; (3) Real-life examples of moving average signals from the previous weeks and patterns that are set up for the coming weeks; and (4) Extensive Q&A at the end of each session.
Trading Justice 487: The Wall of Worry Update
Welcome to episode #487 of the Trading Justice podcast where Coaches Mark & Matt Justice break down the wall of worry and give an update to the podcast from March (#466) where they laid out the original Wall of Worry which are macro events the market is focused on.
- Fed normalizing IR
- Supply chain crisis
- Russia / Ukraine
Sit back and enjoy the macro conversation from Mark & Matt including a discussion on whether China is now in the Wall of Worry.
Financial freedom is a journey
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involves a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax and accounting advisers, to determine whether such trading or investment is appropriate for that user.