Blog Posts

To excel as a trader, a wide set of skills is important – either for yourself or if you have a team where any weaknesses can be counterbalanced by the strengths of others. These skills include core financial competencies, risk management techniques, strong quantitative and analytical abilities, among many others that we’ll get into. Mastery […]

Day trading has become increasingly popular in recent years, with many people attracted to the potential for high returns and financial independence. However, the decision to quit a stable job to pursue day trading full-time is a significant one that requires careful consideration. This article will explore the pros and cons of such a decision, […]

Day trading has become increasingly accessible to individual investors. While it can be a legitimate financial strategy with great rewards in various ways, for some, it can develop into a harmful addiction. This article looks the nature of day trading addiction, its signs, consequences, and potential ways to address it.   Key Takeaways – Day […]

Day trading can be an alluring prospect for many, offering the potential for quick profits and financial independence. However, it’s a challenging endeavor that doesn’t suit everyone. Knowing when to step away from day trading is important for your financial and mental well-being. This article explores various scenarios and indicators that suggest it might be […]

Paper trading is used by both novice and experienced traders. It allows individuals to practice trading strategies and gain market experience without risking real money. For beginners, it enables them to understand the basics of trading without losing money. For experienced traders, it allows them to test new strategies in a simulated environment. This article […]

Ratio spreads are advanced options strategies that involve buying and selling different numbers of options contracts with the same expiration date but different strike prices.  These strategies can be used to profit from specific market movements while limiting risk. Note that this type of unbalanced structure typically requires greater collateral requirements than traditional call and […]

Hedge funds and traditional asset management firms operate under starkly different business models, despite both being in the business of managing other people’s money.  They may seem similar on the surface, but their approaches to generating profits and growing their businesses are almost diametrically opposed.  This article will explore these differences, understanding why hedge funds […]

Traders can be categorized in various ways, primarily by their trading strategies and their level of professionalism.  Here’s a breakdown: By Strategy Day Traders Definition – Traders who buy and sell financial instruments within the same trading day. They try to capitalize on short-term market movements. They rarely hold overnight. Characteristics – High-frequency trading, use of technical […]

Selling in-the-money (ITM) options is a strategy that often confuses both novice and experienced traders. For those selling ITM options “naked,” it’s often pursued by traders as a way to avoid paying margin interest or borrowing fees by simply buying or shorting the underlying. It can also be combined with other options positions as part […]

Aega, Sega, and Rega are advanced risk measures that go beyond traditional Greeks like Vega, Vanna, and Volga.   Key Takeaways – Aega, Sega, and Rega Aega, Rega, and Sega provide more comprehensive risk analysis for options with volatility smiles. They measure sensitivity to ATM volatility, risk reversal, and butterfly/strangle premium respectively. These metrics offer […]