A basket trade is any trade that is performed for a set of 15 or more different shares or other securities, usually as a set proportion of those shares. Basket trades are most commonly used by institutional investors to maintain a proportionate portfolio of different shares or to purposefully alter the proportion of the shares […]
The FOMO is REAL today!! +4.1k What’s up, you guys? The FOMO is real. I am feeling so frustrated. I told you guys today that it would be a short day because I’m flying to California this afternoon. I started today saying I wasn’t going to be super aggressive because I just didn’t want […]
Contrarian traders base their trading strategies on the underlying principle that the market tends to overreact at both extreme highs and lows. Contrarian traders see these extremes as opportunities to profit from sharp reversals that can occur when the market corrects from a recent overreaction. However, contrarian trading strategies are more complex than simply betting […]
A Trading Curse or a State of Mind? +$3,603 This Morning! What’s up everyone? All right, so I’m finishing the day today up $3,603. On the surface that’s a great day, but before we get into today’s midday market recap, I want to talk a little bit about not comparing yourself to others because […]
It’s All About Freedom It’s all about freedom. This is what the idea of trading represented to me since the very first minute I realized it was actually possible. During that moment, I began dreaming about changing my life and having a whole new opportunity to achieve new goals and to finally dedicate my time […]
Finishing The Week +$22,150.96 Happy New Year! Hey, everyone. We are finishing up the week here, and this was a crazy day. It did not go the way I planned at all. The good news is I’m finishing the day up over $9,000. The bad news is it was really choppy. We’re going to […]
The wash sale rule is an IRS taxation regulation governing the use of investment losses in capital gains tax. The wash sale rule prohibits the investor from claiming any sale of a security as a loss if a similar security is purchased within 30 days of the sale. The wash sale rule also applies to […]
What is a Bull Trap? A bull trap is a trading term that describes a false signal to bulls that the price is going higher, but really is just a fake move before going lower. The increase has to be just enough to lure the bulls in, only for the stock to sink again, […]
Table of contents What is a Bear Trap Example of a Bear Trap How to Avoid a Bear Trap Updated 10/25/2023 What is a Bear Trap? Bear traps most often occur in strongly trending stocks. A bearish catalyst, usually supported by bearish short-term price action, suggests that a trend reversal is imminent, prompting bears to […]
A strangle is an options trading strategy that uses a put and call on the same underlying security with the same expiration date to bet on a substantial price move in either direction. Strangles are most often used in situations where the trader expects a substantial price move, but is unsure of the direction. Strangles […]
