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Our media has successfully convinced people that "Muslim" is synonymous with "murderer" by painting Muslims as universal supporters of Daesh, Al Qaeda, whatever. Millions of Muslims have lived and worked peacefully all over the world for 1500 years. Where is the common sense we are supposed to...

Many systems/methods that sound like they should work do not work. For example, it depends on your system, but in many instances, stops are counterproductive.

It is Paul who is unhinged. For the record, he also understands nothing about economics.

It is psychology. But no one can change it for you: you have to change it yourself. Some people are just not suited for trading. If you have spent your life lying to yourself or blaming things on other people, or are fearful of losing a single dime, it's hard to see how you could ever tweak...

It may be most efficient to just trade the synthetic, then cover your short side with another option that is way out of the money. It will cost you a few cents but will decrease your margin requirement and yes, it's safer. Go back and look at October 19, 1987 if you don't believe me. I'm...

I guess college grads are good business for banks, since auto and home loans can be had for a mere pittance now. So if there are fewer cognitive jobs then are people going to become even stupider? I did not think it was possible.

No one knows. It's best not to try to predict using logic and events, partly because it's an exercise in trying to convince yourself you are right--not a good attitude for a trader to be adopting. I will say what I think I can predict, which is I doubt our lawmakers will be able to agree on a...

There are many ways to magnify this. I recommend this book, which covers several (but is probably not exhaustive): Indexes will work for you if liquid. DITM long calls, calendars, verticals, synthetics: lots of stuff will work.

Yes, that's the thing about wealth transfer: it doesn't really work that well. As soon as you spoil your kids (or if they know a bunch of money is coming later), they don't want to do anything. My parents gave us basically nothing unless it was Christmas or a birthday. And if it was Christmas...

My sincere apologies to any crabs who were insulted.

If you don't mind my asking (I am just curious, not looking for a conflict), if you believe that, why would you ever trade a stock, even for five minutes? Every utility charges people a penalty to reinstate their phone or electric service. Every REIT tosses out tenants who don't pay. Every...

Like many things in trading, there is a sweet spot in the middle. Enough ego to be confident that you can succeed is required to become a good trader. Too much, and you cannot admit your mistakes (your mistakes are the main thing you learn from). Narcissists can succeed by hiring the right...

A college degree is good, but skills and experience are also very important. If you work for one company for a long time, you may be doing specialized things that do not translate to the broader job market. It is necessary to keep your skills sharp by participating in training and asking for...

Yes, they are complicated. You don't need a PhD in physics, but you do need a deep interest and a lot of time to read, think, and paper trade. It's best not to mess with options unless you understand them and want to continue learning about them. It's not a weekend avocation. Your wallet...

Thank you.

I'm intrigued by this Craig Deare story and hope someone will help me become better informed. https://www.wsj.com/articles/white-house-fires-security-aide-for-criticizing-trump-administration-1487459248 Do writers in think tanks have "sources" in the way that journalists do? If so, do they...

McMillan writes extensively about this in McMillan on Options. I don't know whether it works. His premise is that you are following in the footprints of people doing insider trades, and he presents methods for determining whether it's really an insider trade versus simply a spike in the number...

PS--forgot to mention liquidity--so important with options. Crappy bid-ask spreads will ruin even a good method. Find a heavily traded UL or two.

ironchef, the calculations you are talking about would be based on implied volatility or historical volatility, neither of which represents the truth. The truth cannot be known, and there are many parameters involved in calculating the option price; this is why I'm encouraging you to use only 1...

[Expectancy = (Probability of Win * Average Win) – (Probability of Loss * Average Loss) Everyone on this forum should have this tattooed on themselves somewhere visible. There seem to be so few who understand it.