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The important point is that you don't want a fund to punt your money on a risky biotech stock and either blow up or take a big chunk of your profits. If you put my money in a lower risk trade then I am happy with a lower return than the SPY. I will still pay you something and I can sleep at...

Markets are suppose to be efficient. We should think of risk as the size of drawdowns over time. Over the Long term, where we have/expect bigger drawdowns, we should expect higher returns. The key to achieving those results is time. The longer time we have the greater chance of achieving those...

By definition, swing trading defines trends using historical data. When it's time to execute a trade you don't get to trade on historical prices. I agree with you, it's the same as buy low sell high. You won't know whether you got it right until there is enough Historical data after the trade...

Defining profitability without measuring the risk taken is cheating both your clients and yourself, no doubt to earn a bonus above the watermark. If your risking everything and making 2-5%, then you will blowup fairly soon and if not, your clients are wrong to reward you for such unreasonable...

I'm sure there's more than one way to achieve the end game. For me, it's making money to spend on other things. I would rather be lucky than smart. I don't need to know whether the trend is going up or down next when I'm up a lot of money. And there was a time when I used to ask those questions...

In a chronically bankrupt industry like shipping, they provide piecemeal ownership to existing shareholders. I was able to buy stock in both genko shipping $GNK and eagle shipping $EGLE on their last day of trading for pennies and then waited for the bankruptcy reorganisation to relist the...

If you look at shipping stocks in the US, they have been using bankruptcy for the last decade or more to restructure the business to raise capital while keeping the existing shareholders. They use it to convert all their debtholders to equity investors and stockholders take a haircut. So it is...

In my own humble opinion, each person has to find a style that matches the level of stress they need to reach their optimal performance. It is normal to be anxious about the future which the outcome is unknown. When traders are scared of their positions then they are either too big or they're...

People think that small retail orders don't get the attention of the market makers or algos. You would be surprised when you put your small order between the bid ask, how the algos react. It really depends on the liquidity in the option contract your trading. If you become the bid or the offer...

The algo's can monitor the order flow and react to the flow. When they see orders moving out or in and it repeats as they make adjustments, it creates an infinite loop which can happen on the frequency of a 100+ order adjustments per second. This is when you realise that your up against another...

I would argue that Warren Buffett's strategy is very different from most investors. If you look at where he has made his real money, stocks like GEICO, it was all about dollar averaging down till he owned the whole company. He then removes the incompetent management and uses balance sheet...

So one of my biggest winners in 2016 was $AMZN where I bought options and rode them through the earnings event and the stock exploded multiples of the expected move based on the ATM straddles. So the study is odd in that they bought options and took them off before the earnings announcement...

This Bloomberg article talks about Luiz Alves Paes de Barros making 1,000% return on his stocks? https://www.bloomberg.com/news/articles/2016-12-21/-anonymous-billionaire-ready-for-spotlight-after-1-000-rally When you make those kind of returns on a stock - is that possible? What is he really...

For me, there is only one way to exit trades and that is based on my profit goal. Or when the profit of a position gets into my top ten most profitable trades for the last 30 years, I dont ask what is going on or what does the chart say - I just sell it and celebrate. This model has worked...

So the idea that a guy gets paid money to pick who should manage your funds who also gets paid to pick the stocks which are then charged a transaction fee are not able to actively trade and beat a passive equity portfolio with no transaction costs and management fees - what a shocker ! How many...

I have had ITM positions expire with delivery of stock which exceeded my capital in the account at TD. It appears that the broker doesnt assess the risk of options being exercised other than the risk assessed when allowing you to put the option trade on itself. Once I received the stock...

The futures spreads are unique to each market based on interest rates and the cost of storing the underlying or dividends paid out. I would suggest buying a book on all the different strategies as many have to do with expectations on seasonality vs the factors listed above. An example would be...

This is a function of how the broker routes orders to the floor and the algos who pick off trades: 1. TD collects $1.50/option contract from a high velocity trading firm to see and trade against your option orders before they hit the floor which is what happened. Thus the order never made it to...

The reality is very different from your scenario. Try to cover your short options when the market is gapping down and the market maker is quoting $2 spreads on the bid/ask. You wont get out for the amount of your credit or $4 dollars but something much higher like $8/$10/$14 dollars and your...

The markets are efficient - everyone including Tom agrees with that. End of story. There is no edge in selling or buying premium and the broker gets rich. Thats why they are setting up a broker cause greed has no end. The people that make money understand that you have to make Money long term...