Dollar Cost Averaging or DCA is a technique used in investment that allows traders and investors to purchase fixed dollar amounts of a specific investment vehicle. In this case, it is common for the trader to purchase a large quantity of shares when the prices are low and lesser shares when the price is higher. […]
Day Trading
Fill Or Kill (FOK) Definition: Day Trading Terminology
A fill or kill, FOK, order is a type of execution order that can be placed with a brokerage for the buying or selling of a security. When the brokerage receives the order, it either executes the order for the entire quantity at the desired price (or less) or it cancels the order completely without […]
Top 3 Risks With Trading OTC Markets
The OTC Markets (Over The Counter) is a market for stocks that don’t meet the requirements for being listed on a major exchange like the NYSE or NASDAQ and has become somewhat of a wild, wild west arena over the years. However, it still attracts a plethora of traders and investors who are looking to […]
16th Consecutive Green Day & Crossing $25k In Profits For October
16th Consecutive Green Day & Crossing $25k In Profits For October All right. Let’s do our midday market recap. We’ll go over the trades from this morning. So I’m finishing today, the 16th consecutive green day, number 16, with $664.61. Only two trades today, I didn’t push it. I really stayed focused, and I would […]
Is The Bitcoin Bubble About To Burst?
If you’ve been reading all my previous blog posts (link to them here) you’ll notice that this one is a little different. As I love writing more about trading psychology and making some trades recap from time to time you may already know I like trading regular stocks (mostly picked from the S&P 500). […]
LEAPS Definition: Day Trading Terminology
LEAPs are a type of option that stands for Long-term Equity Anticipation Securities. In practice LEAPS are simply vanilla equity options with an expiration date of more than one year. While most equity options are set to expire in 3 months or less, with a smaller market for up to 6 months, LEAPS are an […]
Black Scholes Definition: Day Trading Terminology
Black Scholes model is a price disparity formula used to determine European call options price. Also referred to as Black-Scholes-Merton model, it takes into account that investors have an alternative to investing in securities earning risk free interest rate. Basically, this formula is used to acknowledge that an option cost is a function of stock-price […]
Day 15 of the Hot Streak +$1,456.48
Day 15 of the Hot Streak +$1,456.48 Okay, so time for our midday market recap. We’ll go over the trades from today. Today is day 15 of the hot streak, so 15th consecutive green day. Finishing the morning up $1456.48. Not [inaudible 00:00:18]. You guys can see the P&L right here. The three stocks […]
Assignment Definition: Day Trading Terminology
If you are new to options trading, then you probably have a lot of questions. There are many different terms out there and many of them are difficult to understand. One of those terms is an assignment. If you have never heard of the term before and you want to trade options, it’s a good […]
Rho Definition: Day Trading Terminology
Rho is an option Greek that refers to the rate of change which affects the price of a derivative in respect to interest rate changes. As a Greek measure, it is also used to determine the sensitivity of an option. Greeks are important measures of risk management. Not only do they allow money managers, traders […]