Tackle Today: My First Condor Part II – Condors Killed 💀
September 25, 2018
≈ And now my bitter hands cradle broken glass. ≈
When I started to trade the Condors, I was new and knew nothing. I was excited, happy, humble, cautious and starving to learn. That’s the first stage of expertise.
Once in the second stage, I thought I knew everything. I was feeling confident and bold. An expert. I was the best Condors trader out there. I was Jack Dawson, The King Of The World.
We all know how the second stage ends but let me tell you one detail. I didn’t respect one basic, central, preponderant rule inside my Condors system: never carry a Condor during a high impact binary event. I had this exact same rule on other systems as well.
Trump won the election.
Although both risk and reward are defined in an Iron Condor, the price of the underlying asset must stay range bound. High-impact binary events couldn’t care less about price ranges.
I can almost hear the sound of the shotgun fired at my Condors. I was not carrying one single Condor during the US Presidential Election in 2016 but SEVEN of them, stacked upon each other with different short strikes. This was the second basic, central, preponderant rule I didn’t respect: the max number of Condors to trade at the same time in my account. 10% of the account value was gone in less than one month. Born of a broken man.
Now in my third stage of expertise, I am seasoned, I have scars of war. I realize I still know nothing and I’m, again, happy, humble, cautious and starving to learn.
This next Wednesday (Sep 26th) we are holding a webinar for the Cash Flow Condors System. Click HERE and sign up. Allow yourself to learn this system and skip the trap of the second stage of expertise.
Chart of the Day
Do whatever it takes to learn
Although now Credit Spreads are a second nature, this diagram I developed was my lifeline at the time. I would look at it everyday before placing trades until I knew it like the back of my hand. My advice is: do whatever it takes to learn. Drawings, diagrams, graphs, spreadsheets, lists, notes, it doesn’t matter. The one and only goal should be to trade the Condor like a Pro.
Video of the Day
Iron Condor Strategies Part 2 – Making Profits on a Regular Basis
In today’s video you’ll learn why you don’t need to predict market direction to profit and why the Cash Flow Condor System’s edge is as sharp as a tack.
Today’s Lineup
Coaches Lounge 11am 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 8:30PM EST
This is our weekly MasterMind group. Join the coaches tonight, 8:30pm EST to discuss the markets and help you prepare for the week.
Halftime Report 12:30pm 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.
Market Recap 4:30pm EST
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
