Blog Posts

Liquidity management is an important aspect of trading that involves ensuring sufficient funds are available to meet financial obligations while maximizing profitability.   Key Takeaways – Liquidity Management Maintain a cash reserve – Keep 10-15% of your capital in cash or highly liquid assets to meet obligations and seize opportunities without forced liquidations. Diversify wisely […]

A collar options strategy is a protective options trading technique used by traders to limit potential losses on an existing stock position while also capping potential gains. This strategy involves simultaneously holding shares of an underlying stock, buying an out-of-the-money put option, and selling an out-of-the-money call option on the same stock.   Key Takeaways […]

LEAPs, which stands for Long-Term Equity Anticipation Securities, are a type of options contract with an expiration date that is typically more than one year in the future. These long-term options provide traders with extended exposure to potential price movements of the underlying asset, usually stocks or exchange-traded funds (ETFs) – but can be applicable […]

How do professional traders think and trade? Everyone has different perspectives, but it’s by and large a function of their philosophies, beliefs, training, goals, risk tolerance, and analysis. In financial markets, traders and investors rely on various indicators to make informed decisions.  These indicators are often referred to as market signals, and provide insight into […]

Many market participants have negative opinions of short selling, but it’s essential to healthy, functioning financial markets. In this article, we explain the various benefits of short selling.   Key Takeaways – Reasons Why Short Selling Is Important in Financial Markets We cover the following: Hedging and Risk Mitigation Market Makers Need to Short to […]

Is success in day trading primarily a result of skill, or is it predominantly determined by luck or variance?  This article looks into the various aspects of this question, looking at the roles that both skill and luck play in day trading and trading more generally.   Key Takeaways – Skill vs. Luck in Day […]

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 […]