You need skin in the game
August 31, 2018
≈ Take your next step. ≈
There are many ways to learn how to do something. Practice is important. In trading, practice trading is generally done with paper money or virtual trading accounts. These trading tools can be invaluable for any beginner or veteran to test strategies, order entry and learn how to trade in a virtual environment.
But, you do need to have targets and goals to take your trading into the live market at some point. You can’t virtual trade forever, and you need a process to take you from virtual to live.
The best way to take this leap from virtual to live is to do it small, with a specialized strategy that you’ve spent a lot of time learning. Many new traders will start with 100 shares of a stock they can afford and trade a covered call. Others will sell a naked put on something they’re willing to own. It can be anything, but it needs to be something.
If you’re in your first year of trading, and still stuck in paper, set a S.M.A.R.T. goal for yourself that is specific, measurable, action-oriented, realistic and time-bound to get at least your first strategy or trade into the live market.
If you’re a veteran who’s been live trading for a long time, set a goal for yourself to get your next strategy into your live system with fully developed rules.
It’s important for any journey to know what your next step is. Once you’ve identified it, then all that’s left is to take it.
Chart of the Day
SALESFORCE INC
Salesforce.com reported better than expected earnings last week. The price action immediately following the report brought the stock into an old resistance and technical catalyst.
Video of the day
Understanding Market Sectors
Noah Davidson and Gion Poore talk about how the market sector can be changed by current events.
Today’s Lineup
Options Theory
It’s All About the Delta Differential
I’ve had calendars on the mind of late. I introduced them to you two weeks ago here. Last night I featured them in the latest Mind of a Trader webinar. Catch the recording if you missed it. Today I wanted to continue the investigation with a focus on delta differential. If you’re going to use calendars, it is imperative that you understand this principle.
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.
Cashflow Club REPLAY
If you missed last night’s episode where Coach Tyler talked about credit spread trades on TLT, FXE, and WMT or would like to watch it again, check it out here.
Watch Replay
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.
