≈ For an interesting week in the markets. ≈
Here are two trading tips for you to think about as you start out what should be an interesting week in the markets.
Tip #1: Do not trade without control of your emotions – Many successful traders wiped out accounts because they were going through a divorce or personal drama and let their emotions leak into their trading. Some traders are prone to anger and so on and so on. The market is cold and unforgiving and does not give do overs. If you do not have a level head take a day, a week, or however long you need to get your head on straight. The market will be there when you get back.
Tip #2: Learn early how you react to losing trades – Some people just can’t lose or better said, they emotionally cannot handle losing. Every trader will have losing trades as there are just too many variables in play for any trader to be perfect. Traders can go on monster runs where they might appear to be invincible, but the next trading loss is just around the corner. Be in control of your emotions and be aware of how those emotions will be tested when you have a losing trade.
Chart of the Day
FACEBOOK (NASDAQ: FB)
After last week’s declines, a number of stocks are testing major support levels. Facebook (FB) is just one example as it is testing yearly support of around $150.00. Breaks of support are bearish signals that traders use to exit bullish positions and possibly enter into bearish positions. Remember, you can make money as a trader when the market is going up or down. One of the sizeable advantages we have over buy-and-hold investors.
Video of the Day
SPEND MORE TIME MEASURING RISK
Coach T explains why you should always measure your risk above all things in trading.
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.
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.
Onboarding Session 8:30pm EST
Have you become a part of our team in the past 30 days? Join us tonight @ 8:30pm EST for an onboarding session with Coach Frank where he will show you exactly how to navigate the Tackle Platform.
3 Replies to “Tackle Today: Two trading tips”
100%
Thanks for the post. Exactly what I needed to hear about measuring risk based on the worst thing that could happen. In other words expect the worst, but hope for the best (not too be confused with hope trading). As a new option trader I had been using incorrect position sizing, which caused a 10% drop on a $30K paper trade account. The issue I ran into was basing my risk assessment on strike price of the spread at expiration rather than what could happen in 1 day.
I would be interested to know how you are assessing overall risk and market events using risk graphs in think or swim. Are there any video series on running these sorts of risk scenarios?
Hi Ryan,
There are a few videos in the Options 101 and Options 201 series: https://www.youtube.com/channel/UCmUs7CmNFAr7gE6wP7ktVjw/playlists
If there’s something you would like specifically, let me know and I can have one of the coaches feature it in an upcoming webinar.
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