≈ Master this Holy Trinity of Trading. ≈
“This is why I love the covered call. For the longest time, I refused to trade it because I thought it was boring and pointless. […] It’s now my favorite system. It’s changed how I think about trading and my portfolio design. If you lose on the call, you win on the stock […]. But just in case the stock went to sleep, you at least made money on the call. Same thing with the condors. If you lose on the condors, you should have made money on directional trades. […] In fact, my best months are the ones where my condor loses. […]”
This is our #TeamTackle member Justin Driskell over at the Clubhouse.
Risk is a relative measure. It’s not that risk is in the eye of the beholder, we’re talking Portfolio Design here. A well-balanced portfolio can make this seven-headed beast look like a teddy bear.
_ Condors are risky. It depends. A portfolio that is 100% composed of Condors is one thing. A 20% allocation on Condors balanced with other non-range bound cash flow strategies and also delta strategies is completely different.
_ Cryptocurrencies are risky. It depends. A portfolio that is 30% composed of Cryptos is one thing. Another thing entirely different is allocating 1% on them just as an explosive directional bet.
Balance is the key to success in this trading business. And balance is a synonym for Portfolio Design.
Portfolio Design, Position Sizing, and Risk-Reward. Master this Holy Trinity of Trading and you shall succeed.
Chart of the Day
The Holy Trinity of Trading
Video of the Day
What is a Covered Call
A covered call is a combination strategy in which the trader buys stock in increments of +100 shares and then sells -1 call option contract for each 100 shares of stock.
Tales of a Technician
How to Plant in a Bear Market
Last week in The Seed Sower we investigated the primary silver lining of bear markets. They make stocks cheaper thus providing a more nutrient-rich environment for growing our money. The challenge and the topic which we will address today is knowing when to go about planting your hard-earned cash for future harvesting.
Traders 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 Replay
If you missed last night’s episode where Coach Noah and Coach Grant talked about the latest bearish moves in the market or would like to watch it again, check it out here.
Tackle 25 Master Mind Group 8:30PM EST
Join and learn how to better use the Covered Call System with the Tackle 25 with Coach Greg Holmes.
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.
Trading Justice Podcast Episode 303: The 2019 Tackle 25
In episode 303 of the Trading Justice podcast the Justice brothers dive deep into the world of covered calls. Matt and Tim just finished creating and releasing the Tackle 25, a unique cash flow trading list and the brothers break down what went into the list and how it can help investors in 2019.