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When To Take Profits on Options I’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. Options trading is really fascinating, and it’s a great way to make money, and I think it is very important to know when to take profits, especially if you like trading The Wheel as I do. So the question is, when should you take profits when trading options? How exactly do you figure this out, is there a formula for it? In this article, I’ll share some guidelines for how and when you should take profits on an option trade. We will answer the question of whether you should let options expire or take profits early. I will show you some very specific examples of two trades that I have going on right now (at the time of this writing on March 17th, 2021). One of them, I took profits today, and the other one I’m still holding on and I will show you exactly why. ]How To Calculate Profits On Options Firstly, let’s talk about how to calculate profits on options. In order to address this, there are two types of options traders. One type of options trader are ones that are buying options, and the other, which I feel is very lucrative, and this is what I’ve been doing for a long time, is selling options and collecting premium. I want to actually talk about selling options and receiving premium, because this is, as I said, what I’ve been focusing on recently with trading The Wheel Strategy. My year-to-date profits on this account so far are more than $54,000 selling premium on options, and I’ll show you exactly how to do this. So when selling options, you’re receiving premium, and for me, the most important metric here is the so-called premium per day or PPD. MARA Example The first example that I want to give you is my position with MARA. Looking over my transactions with MARA over the last 30 days. I sold puts at a strike price of 20, and for this, I received $0.28 in premium per option that I sold. Now options come in 100 packs, so this means that per option I made $28. Now, in this specific example, I sold 50 options total, so this means that I’m receiving a premium of $1,400. I put this trade on March 10th, and these options expired on 3/19. This is $1,400 in premium in 9 days. This comes to $155.55 in premium per day, or PPD. Now this includes weekends. My rule is I’m buying back the option when I can get 90% of the maximum profits, but there’s an exception to this rule. First, let me tell you what that means. So again, I sold each contract for $28, for $0.28. The idea is to buy back the option at $0.03, and this is exactly what I did today (March 17th). So we have another two days to expiration. So today, I bought back a total of 50 contracts at $0.03, and by doing so I made $0.25 in profits on MARA. Now, this is where again, we’re looking at 50 contracts, times $25, so this is $1,250. I was in this position for 7 days. So $1,250, divided by 7 days, means that I made $178.57 a day. Let’s just round to $179 per day. As you can see, $179 is more than the $155.55 that I planned per day. Now let’s think about it. If I would keep MARA right now, if I would keep this option until expiration, but what would happen? I would make an additional $150 in three days. This means that now my premium per day is only $50 per day. This doesn’t make sense to me because this here is actually bad, because my plan was to make $156 per day, and I was able to make $179 per day by buying the options back. If I would hold on to this trade and let it expires worthless. So this is where here, and let it expire worthless, right? This is what would happen. I would make an additional $150 in three days and the premium per day would only be $50. That does not make sense to me at all. This is why here in MARA, it made sense to buy back the put option because by doing so, it frees up buying power meaning that now I can sell more puts. So the idea here is that I’m selling more puts and making more money on the new puts than I would make holding on to MARA. DKS Example Let’s go over another example with a position I have right now with DKS . I sold the 66 strike on March 10th. I sold 15 of them and I received $75 in premium. 15 contracts times $75 comes to $1,125. So let’s do the math right now and see if it makes sense to close this trade today (March 17th) or if we should keep it, and we’re using very similar logic here. So we sold the 66 put expiring March 19th, and we received $75 per contract for it, $1,125 total. We then divide this by 9 days to get to our premium per day, which is $125. So right now, on March 17th, let’s see how much DKS is still worth. Right now, the bid/ask for DKS is $0. 05 over $0.10, and that’s really interesting because I want to buy it back at $0.07. Let’s say right now, if I would place an order right now, I could buy it back at $0.10. Should I do it? If I did this, I would make $75, minus $0.10 ($10 per contract), which is $65 per contract. For all 15 contracts, I would make $975. We find our PPD by dividing $975 by 7 days, which comes to $139. So if I really wanted to, and if I needed to free up some buying power, I could do this. But let’s see what happens if we hold this for a few more days. So if we hold DKS until expiration, we can make an additional $150. It might actually make sense to close it out because $150 over the next three days does not make a lot of sense. When I looked at the option earlier, DKS suddenly jumped from 78 to almost 79. This is a 10% jump in 30 to 45 minutes. When we opened this morning, first, we went down, and then we went a little bit up, and then we were hovering right around where we opened. Earlier this morning, the DKS put was trading at $0.25. So the question is earlier this morning, would it have made sense to close it? Earlier today on March 17th, I could have bought it back for $0.25. So that wouldn’t have made sense, right? Because then if I’m buying it back for $0.25, I would only make $0.50. So this here, $0.50, this is then $750 in seven days, and if we divide $750 by 7 days, this is $107 premium per day. As you can see, the $107 premium per day is less than what I expected. If I would hold DKS to expiration, we can make an additional $0.25, $25 times 15 contracts is $375. Now, if you take the $375 in 3 days, that would be $125 premium per day. So when I’m getting $125 premium per day, this is when it does not make sense to sell it just yet. Should You Take Profits Early? So this is the important thing because the question always is, do you take profits early, or hold until expiration? Well here’s my formula for this. So I want to give you a very specific formula that you can use if you want to. If the current realized premium is a premium per day, PPD, is larger than the planned PPD, this means close it out early. If the remaining premium per day is smaller than the planned premium per day, close it. Only if the current realized premium per day is smaller than the planned premium per day, in this case, hold it. If the remaining premium per day is larger than the planned PPD in this case, you want to hold it. Summary This is why today I wanted to show you my formula for when to take profits on options, especially when you are an options seller. You see, selling options and receiving premium is what we do with The Wheel Strategy, and the most important metric here is the premium per day (PPD). This where using the PPD, you can actually get down to a formula of when exactly you should buy or sell. This is where it’s just a good rule of thumb if you don’t want to do all these calculations. So the rule of thumb is I close a trade when I can realize 90% of the maximum profits.
NASDAQ:MARAEducation
by rockwelltrading
3
Why Most Traders Lose Money — Here Are The Top 3 ReasonsI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. Anyone that has been around the markets and trading for any period of time has probably heard that most traders lose money. In fact, there’s actually an old trading adage that says: 90% of new traders will lose 90% of their account within 90 days. So after reading that, before you reach for your broker’s phone number to wire out all of your money… how about I let you in on a little secret: If you follow some simple rules and avoid these 3 mistakes, you can be in that minority of traders that actually make money consistently in the markets. And if you are currently making one or all of the mistakes, I’ll also show you exactly how to fix it. So let’s dive in! 1) Most Traders Enter A Trade Too Late The first thing on my top 3 reasons why traders lose money is: Most traders get into trades WAY too late! There are a lot of reasons this happens, but most commonly it’s because new traders are basically gambling. They’re buying stocks or options based on news, or a hot stock tip, which really isn’t what I would consider a strategy. So let me give you a great example with a company I’m sure you’ve heard of: Uber Technologies (Yes, enemy #1 for taxi drivers worldwide.) Last year UBER , known for its popular ride-sharing and food delivery services, IPO’d in May (2019). With the disruption this company caused, their IPO had a lot of hype surrounding it, bringing a lot of investors to the table. On the day of their IPO, UBER opened at $42/share and people poured into the stock. For a few weeks, the stock had a turbulent, roller coaster of a ride all the way to as high as $47.08/share, a little over a 13% increase since its IPO. And around this new high, more and more inexperienced retail traders piled in thinking that it would continue its bullish run with dollar signs in their eyes. The mainstream media was continuing to hype it and more and more and investors and traders gobbled up more of the stock. Looking at the image below, you’ll see after that high of $47 things got UGLY fast, with UBER falling day-after-day, week-after-week. It wasn’t until November of 2019, about 7 months after their IPO that UBER found a temporary bottom at $25.58, down more than 45% from its high of $47.08… and I would bet there were a LOT of people who bought near or at the highs and were still holding at that point. So what did retailer traders do when UBER made a bottom? Yes, once again most (losing) retail traders didn’t get in at, or even around the bottom… once again, they piled as UBER neared its previous highs. And as you’ll see yet again, UBER rolled over on its way to making another new all-time low this past March 2020 going all the way down to $13.71/share. That’s more than a 70% decrease from its ATH and yes, I’m sure some investors rode it all the way to the bottom. Now I want to share a second example with you, so let’s take a look at Amazon AMZN . So as you know, AMZN is a HOT STOCK and last year it has a crazy move where it crossed $2000/share…. and yes, just like our example with UBER , inexperienced retail traders piled in at the very top. Once again, in the weeks that followed, AMZN’s stock tanked leaving those who’d piled in dazed and confused, now holding onto sizable losses. So as you can see, the first of my top 3 reasons most traders are losing money is simply because they’re piling in way too late in a stock’s move, generally near a high. Now on to reason number 2: 2) Most Traders EXIT Too Late Yes, as you can imagine if people are getting in too late, well, they’re also typically getting out too late as well. So let’s talk about why this happens. Why do retail traders tend to hold onto trades way too long, either turning a small loss into a BIG loss or sometimes even more painful, turning a winner into a loser? Let’s take a look at another example with an UBER competitor, LYFT . Like UBER, LYFT also had its IPO in 2019, opening up at $87.24/share… but that didn’t last long. In less than two months, LYFT went as low as $47.17… and what do you think those who bought during the IPO are saying right about now: “Oh, I’m holding it because IT WILL TURN AROUND!” This is generally where I see traders get religious Instead of ‘taking their medicine’ and getting out when the trade moved against them, they held on and are now pleading and praying the stock will turn around. I hate to be the one to break it to you, but ‘hope’ is not a strategy… at least not one with a winning trading record. Now on to number three in our list of top reasons why most traders lose money: 3) They Don’t Have A Trading Strategy As you’ll see, I’ve saved the best for last as this one alone can help fix or eliminate the other two we just discussed. So first, let’s answer this question: What Is A Trading Strategy? Well, a trading strategy gives you three key pieces of information you need before ever entering a trade: 1) It tells you WHAT you are trading. Is it stocks, options, futures, cryptocurrencies? This is answered in your trading strategy. 2) It answers when you ENTER a trade. 3) It answers when you EXIT a trade and that’s exiting with a profit or loss. Now, let’s take a look at an example here using TSLA on how I make trading decisions. I like to look at three different indicators, that when in alignment, give me a clear signal to go long or short a stock or ETF. As you can see on the charts, back in December of last year (2019) my indicators gave us a long signal on TSLA at around $370/share. And the indicators told me we were good to go until around $850/share. All I had to do is let the indicators tell me when to get in and when to get out… no guessing, hoping or praying. Summary So as you can see, there’s actually no big secret to why most traders are losing money. It’s actually pretty simple to see and correct, but it takes a plan and a little bit of discipline. If you’re brand new and not sure where to get started, I’ve written The PowerX Strategy, a book that outlines my EXACT trading strategy for trading stocks and options.
TVC:NDQEducation
by rockwelltrading
1
How I’ve Improved Productivity in My Trading DayI’ve been trading for a long time, and over the years, I’ve learned different ways to make the most of my time. Today, I want to talk about three ways I boost productivity in my trading day: - Using my PowerX Optimizer to quickly scan for long and short trading ideas. - Using my Wheel Income Calculator to find attractive premium collecting ideas. - Having a trading plan and following that plan. In this article, I’m going to break down each one of these and explain what they are. I’ll also explain how they help me streamline my trading. This gives me more time to focus on other things I’m interested in, like my business and real estate. 3 Pillars To Trading I always say there are three pillars to trading: - You need to have a trading strategy. - You need to have the right tools. - You need to have the right mindset. For me, I trade two strategies: PowerX and the Options Wheel. And I developed my own software tools to help me trade these strategies quickly and efficiently. The PowerX Optimizer software shows me what I should trade, when I should enter, when I should exit based on my preferred criteria, and my Wheel Income Calculator tells me which option strike has the best risk/reward. If trading software doesn’t show me this, it’s not allowing me to make the best use of my time. Let’s take a closer look at these software programs, starting with the PowerX Optimizer. PowerX Optimizer With my PowerX strategy, I’m looking to buy calls on stocks trending higher or buy puts on stocks trending lower. The PowerX Optimizer is a software I programmed for myself, my head coach Mark, and my son. A few years ago, we made it available to everyone. This software answers the three questions I’m looking to have answered when I’m looking for stocks - What to trade. - When to enter. - When to exit. The PowerX Optimizer will answer all three of these questions for you. Now, I had the software programmed for myself because I wanted all my criteria in one place. With the PowerX Optimizer, I can scan for my basic criteria that I set within the software. For instance, I want to see a 60% return on investment over the past year, I also want to see stocks that are between $5 and $200, and I want a profit factor higher than 3 and a risk/reward higher than 2. This is the criteria I use for trading this strategy. Your criteria may be different. The scanner finds the best stocks and options for me based on my criteria. I certainly don’t want to just stumble across a stock or trade everyone on TV is talking about. Worst case scenario, if nothing meets my criteria, I simply move on. Every day this scanner produces a list of stocks that I potentially want to trade — in less time than it takes to make a cup of coffee! Talk about a time saver! In the beginning, I would just use charting software like TradingView, and I would go through a bunch of stocks every day to see if they met my criteria. It got to the point where I figured there had to be an easier way, which is why I had the PowerX Optimizer developed Instead of spending hours and hours sifting through charts and doing the math, I’m able to find a handful of stocks to look through every day in just minutes. This frees up my time to focus on other things. The Options Wheel Calculator With my Options Wheel strategy, the idea is to “get paid to wait until you buy the stock.” So I’m looking to sell a put and collect premium, and I want to pick a strike that coincides with the level I would feel comfortable buying the stock. Ultimately, I want to get assigned, and then I’ll look to potentially sell covered calls on the stock. The tool I use to identify stocks and options I want to trade with this strategy is the Wheel Income Calculator. The Wheel Calculator pulls up stocks and tells me the minimum option premium I need to collect to make this trade work for me, and the risk/reward setup for each strike. I have set aside $500,000 in buying power for this strategy. That’s what works for me. It does work with smaller accounts if that’s what you have to work with. That’s why I love these tools. They have made my life so much easier. I’m not just picking a trade based on a gut feeling. Instead, I’m trading with a systematic approach that’s based on data. Remember, I like to trade for SCR Profits. SRC stands for Systematic, Repeatable, and Consistent. Trading Plan And that leads me to the last thing I want to talk about today: having a trading plan. You see, having a trading plan is key to having the right mindset to trade. There are three key parts of a trading plan that I’ve already mentioned, but again, they are: - What you’re going to trade? - When you’re going to enter? - When you’re going to exit — both for a profit and a loss. This is also where those limit and stop-loss orders I mentioned earlier come in handy. Limit orders allow you to tell your broker the price you want to get filled, and if you get that price, you move on. Same with stop-loss orders. You tell your broker what point you want to get out of the trade, and if the stock hits that level, you’re out. This allows you to not be tied to your computer, watching every tick the stock makes and opens up your day to allow you to focus on other things. I cannot stress enough how important it is to be prepared when you’re trading — and to have a plan before you enter a position. So, as you can see, by defining my strategies, I developed tools like the PowerX Optimizer and Wheel Income Calculator to help me find trades quickly and efficiently that work with my rules and my plan. I hoped this helped and I’ll see you at the next one.
TVC:SPXEducation
by rockwelltrading
1
Trading With MarginI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. Let’s talk about trading with margin. What is margin? Who should trade with it? Should YOU be trading with it? You see, when used correctly, margin can be your best friend, but when used incorrectly, it can be a disaster. Leverage is a double-edged sword, and it can work for you as well as against you. This is why I want to show you the responsible way to trade on margin. So let’s get. What IS Margin? So first off, what the heck is margin? Well, when opening a trading account, you can open a cash account or a margin account, but what is the difference between the two? With a cash account, if you put $10,000 into the cash account, it means that you have $10,000 in buying power, meaning that you can buy stocks and options for $10,000. Now, when you have a margin account, the difference is when you’re putting $10,000 in cash in there, the broker will actually lend you another $10,000. So in total, you’re getting $20,000 in buying power. How To Open A Margin Account This is how you open a margin account, with tastyworks because this is the broker that I personally use, & I have four active accounts with them. So when you go to tastyworks, it asks what kind of account do you want to open? Is it an individual account, an entity/trust, or a joint account? Then they will want to know what kind of account you want to open. Do you want to open a margin, cash, or retirement account? So with a cash and retirement account, this is where the broker does not lend you money. So whatever cash you have in there, this is what you have in buying power. However, when you use a margin account, you’re getting 2:1 buying power. Buying Power: Stock vs Options When it comes to buying power, there are two things that you need to know. First is there is buying power for options, and buying power for options is always non-leveraged. So if you put $10,000 in cash, even in a margin account, it means that you have $10,000 in buying power for options, and I’ll explain to you in a moment why that is. And then we also have buying power for stocks, and here this is where margin kicks in. So $10,000 in cash will give you $20,000 in buying power for buying stocks. There’s also something called portfolio margin, and we will talk about this in just a moment, but I first want to show you exactly what it means here to have the buying power for options and to have the buying power for stocks. How To Use Margin The Right Way So I want to give you here a very specific example for Apple AAPL , and we first want to look at what happens if you want to sell, while trading The Wheel. So let’s just say that you want to sell the 125 put for AAPL . What does that mean? It means that if you’re selling the put, you might be forced to buy AAPL at $125 a share, and for each put option that you’re selling, you would have to buy 100 shares of AAPL . So this means that you would have to bring $12,500 to the table per contract, right? Now here’s the deal. When you’re selling options, the broker is already giving you a discount. So let’s see how much the broker is charging us if we want to sell a 125 put for AAPL . So for AAPL I’m just choosing next week’s expiration because at this point the expiration and the price don’t matter right now, because all I want to show you is how much buying power is needed if I were to sell 1 put. So the buying power that will be reduced from your options is $2,202. So as you can see, if you are buying AAPL at 125, you would have to bring $12,500 to the table, but here the broker is only charging you $2,202. Now again, we want to assume a $10,000 account because this is what many people are starting with. So on a $10,000 account, theoretically, you could sell 4 of these options, and for this, if we are doing this, and edit our order to sell 4, we see that the broker will charge you $8,783. So on a $10,000 account, at first it seems that you have enough margin for this. Wrong! Don’t do that! So this is where we talk about the responsible way and the irresponsible way to do this. So when you do this, this would be irresponsible. So here is what I think you should do. Remember, on a $10,000 account, you’re actually getting $20,000 in buying power for buying stocks. So you have $20,000 for buying stocks, so if you are selling one option, and you would get assigned, then you would have to buy stocks for $12,500 and you still have $7,500 left, right? This is why you should only sell one option, even though your broker will only charge you $2,205 because if you’re assigned, you would have to bring $12,500 to the table. The good news is you have that because the broker gave you $20,000 in buying power. So this here is the right way to do this, and the right way means that you’re not over-leveraging yourself. How To Use Margin The Wrong Way So here’s what would have happened if you would have sold 4 options and got assigned. Well, in this case, you would have to bring to the table 4 times $12,500, so this is $50,000, but you only have $20,000 in buying power. So there’s a difference. So if you take the $50,000 minus the $20,000 that you have in buying power, you are $30,000 short, and these $30,000 become a so-called margin call, and these are the dreaded margin calls that you sometimes hear traders talk about. A margin call means that right now you have to wire the broker $30,000, which you probably don’t have, right? If you don’t do this, he will sell 300 of your shares. So you’re still technically fine if you have less than the $20,000. He probably sells a little bit less so because he wants to make sure that you are just overcoming this shortage. Portfolio Margin There's also portfolio margin. What the heck is the portfolio margin? Well, the portfolio margin is for bigger accounts, and when I say bigger accounts, it really depends on the broker. You see, some brokers request at least $100,000 in your account. Others request that you have at least $150,000 in your account, and even others request that you have $175,000 in your account. It really depends on your broker. Now, however, if you have the required minimum in the account, you can apply for portfolio margin. Why would someone be interested in doing this? Well, portfolio margin basically means, & again, it depends on the broker, that you are getting a 5:1 or a 6:1 leverage. It means that if you have let’s say $200,000 in cash in an account, it becomes a million dollars in buying power, or depending on the broker, it could even become $1,250,000 in buying power. So now you have a lot of buying power, and again, you have to use this responsibly. Just because the broker is giving it to you, you shouldn’t use all this. So the same principles for me personally, apply like if I were using a 2:1 margin account. I personally use this “excess buying power” when things go wrong when I need to save a trade that is in trouble. So this is when I have to fly a rescue mission. Summary Well, first of all, it is super important that you understand what margin is, what buying power is, and then that you also understand that your broker is only charging you a small amount when you are selling options. Don’t overleverage yourself, because when you do this you’re getting the dreaded margin call, and when you are getting the dreaded margin call you have to either wire money into the account, and this pretty much right away, the broker usually gives you 24 hours. Some brokers might be generous and give you 48 hours, but usually, it is within 24 hours. If you don’t wire the shortage to your broker, he will sell your shares until the margin requirement is met. So you lose full control and you don’t want to do this. Anyhow, I hope this has been helpful.
TVC:NDQEducation
by rockwelltrading
A Boomer's Guide To WSB's LingoI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. WallStreetBets Lingo I wanted to do a special episode today that’s for us, the older people. The Boomers, The Gen X, & well, basically everybody above 40. See, it has been such a crazy week. There has been insane volatility and volume on stocks like GME , AMC , BB , and then recently Silver. Most of it has been in the hands of the WallStreetBets crowd, and it’s really easy to get overwhelmed with what exactly these folks are saying on the WallStreetBets forum. I mean, they’re using terms like “tendies,” “YOLO,” and “boomers.” So today I want to help you and me to cut through the noise and define some of the terms that you might be seeing on WallStreetBets if you’ve been going to this forum. GME & WallStreet Bets Recap Now, before I do this, let’s take a minute to recap what’s been going on. You see, WallStreetBets is a popular forum on Reddit with millions of followers. At the time of this writing, they have now about 8.2 million followers. That’s up from around 2 million at the beginning of the week. They decided to go after hedge funds, especially short-sellers, and chose a few heavily shorted stocks as targets and drove prices up. Now, ultimately, these short-sellers are the ones who are mocking the small account traders, had to close their positions at a massive, massive loss. Now the most famous being talked about is (GME) which is GameStop. Wow! It went from around $40 all the way up to $418, but then the stock went down, mainly because of the extreme limitations that online brokers put on the stock. Robinhood, for example, was only allowing traders to buy 20 shares of (GME). I mean, come on, that’s a joke. WallStreetBets Lingo Now back to why I’m writing this article. You might have been peeking into the WallStreetBets forum to see what’s going on, and you may have been confused by all the terms they’re using. This is why I want to show you the ten most common terms that you’ll see on this forum, and I’ll explain to you what they mean. 1. STONKS Now, “stonks” started as a meme a few years back and was used in reaction to what others thought were bad trading stock choices. Now on WallStreetBets, it is used as a more general term for stocks that they might be trading. 2. NEWBIE The term “newbie” is an easy one, and it refers to a rookie trader who is new to trading. 3. BOOMER Now, we are talking again about boomers and a “boomer” is what the WallStreetBets crowd used to describe an older person. Somebody actually called me a boomer. I thought that being 51 years old made me apart of Gen X, but I guess boomer has become more of a generic term for anyone over 40 or so, at least in the WallStreetBets forums. 4. BAGHOLDER Now, another popular term being thrown around is “bagholder.” What are bagholders here? Bagholders are traders who have taken a heavy loss in a stock. In other words, they’re left holding the bag. In the WSB's forum somebody said, “Glad I found a WSB, I like the stock, and all of you guys and I don’t mind being the bagholder now or in the end.” This is a person was suffering a pretty massive loss, and this is what would be referred to as a “bagholder.” 5. TENDIES You may have also seen “tendies” being used quite a bit, and tendies refer to the profits a trader makes off a stock. Traders like to use that chicken or drumstick emoji when they’re talking about tendies. There was an awesome individual, on the forum who posted that they were using some of their GME tendies to buy Nintendo switches from GameStop and then donated them to a children’s hospital, which I think is amazing. 6. YOLO One that you may have already heard is “YOLO,” and it’s an acronym for You Only Live Once. Someone in the forum said, “Just YOLO’d 330k dollars to keep this party going to the moon.” We’ll talk about “to the moon” here in a moment. I’ve also seen it used like, “Hey, I just wired it, I yolo’d it.” You only live once, right? 7. DIAMOND HANDS Number 7 on this list is “Diamond Hands.” When somebody mentions diamond hands, it means that they’re holding their position no matter what. Even when they are suffering through some massive drawdowns, so the diamond and the hand emojis are also used in reference for diamond hands. One of the most famous diamond hands on WallStreetBets, is someone who posted a $5,000,000 loss, but overall, he still nicely up. But, hey, look, that is a big loss. This is where you need diamond hands, right? 8. PAPER HANDS So now, on the other hand, and this is where we go to term number eight, which is the term “paper hands.” So what are paper hands? It’s the opposite of diamond hands, meaning if someone has paper hands, they’re nervous, and they sell their position instead of holding it. So these are the people who are selling GameStop right now. All right. 9. APES So now, on the other hand, and this is where we go to term number eight, which is the term “paper hands.” So what are paper hands? It’s the opposite of diamond hands, meaning if someone has paper hands, they’re nervous, and they sell their position instead of holding it. So these are the people who are selling GameStop right now. All right. 9. APES So you’ll see things like “apes stay strong” or also sometimes you’ll see “I’m happy that I’m with you degenerates” because this is what they are referring to themselves in this community. So it basically means that this is a community, and they’re in this together. 10. TO THE MOON Now, the last one here is “to the moon.” that already mentioned. So to the moon is their profit target, right? “Volume is low. Don’t believe the news. GME is going to the moon.” and this profit target is fairly wide open. For GME at some point, the target was defined at a thousand. This is a very, very high-profit target, which seems to be “the moon” they’re referring to, and traders are also using the Rocketship emoji to reference to the moon. So these are the top 10. Summary Me personally, I am staying away from these crazy stocks, or stonks, right? They’re fun to watch, but I personally prefer SRC profits. So what does this mean? It means profits that are Systematic, Repeatable, and Consistent. I know sounds super boring, but you see, it works very well for me. I’m getting too old for the YOLO mentality, you only live once. And you see, just yesterday I wired my January profits from my trading account into my checking account. It was a little bit over $21,000. Boring? Yes, but it pays the bills, right?
NYSE:GMEEducation
by rockwelltrading
9
Pattern Day Trader RuleI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. Now I want to talk to you about the pattern day trader rule because this rule requires that you have at least $25,000 in your trading account if you are day trading. Here’s the tricky part. The tricky part is that you could trigger this rule even if you’re only swing trading, and not day trading, which is why it’s important that you are aware of what the pattern day trader rule is. I will give you examples of what can trigger it, even if it’s accidentally, and I’ll break down what then happens if you trigger it. Most importantly, I want you to be aware of how you can avoid it. What Is The Pattern Day Trader Rule? So what is the pattern day trader rule? According to FINRA, who set the rule, a pattern day trader is a trader if you execute 4 or more day trades in 5 trading days. So if you execute 4 or more day trades in 5 trading days, then you’re being flagged as a pattern day trader. This is not a good thing. So what actually is a day trade? A day trade is a trade that you open and close, during a trading day. So as an example, if you buy a stock at the open, at 9:30 Eastern Time, and then sell it before 4:00 pm Eastern Time, you are placing a day trade. Now, very, very important: this whole rule only applies to stocks and options. It does not apply to futures, forex, or binary options. It only applies to stocks and options. How To Trigger The Pattern Day Trader Rule How can you actually trigger this rule even if you’re swing trading? Well, it actually happened to me very recently. My head coach, Mark Hodge, and I, we were trading with our Mastermind members. I asked Mark to place a trade in my account, but he accidentally placed it in the wrong account. When something like this happens, I have a rule. “When you make a mistake, liquidate.” So I asked Mark to close the position, and when he did that counted as a day trade. So we opened the trade, realized we made a mistake and closed it right away. This lead to me having one strike in this account. And again, if we would get 4 strikes within 5 business days, then we are flagged as pattern day traders. Now, here’s another scenario. Let’s say that we enter a trade tomorrow and it hits the profit target or stop loss on the same day. So this would be another strike because now we are also entering and exiting during a trading day. So as you can see with this, even if you’re not day trading, it is possible that this could happen a few times. If this happens 4 times within 5 trading days, then you’re flagged as a pattern day trader. What Happens When You Trigger The PDT Rule? What happens when you trigger this rule? Well, first of all, if you have more than $25,000 in your account, nothing happens. This is because the pattern day trader rule says, if you are a pattern day trader, then you need to have $25,000 in your account. Now if you don’t have $25,000 in your account, then you will be restricted to trade on a cash basis only for 90 days. What does this mean? Well, see, as a day trader, you actually do need a margin account, and when you trigger the pattern day trader rule and cannot put $25,000 in there, this means that now you are restricted to trading with cash only. So let me give you an example. Let’s say you are trading the Wheel trading strategy, and you put $20,000 in an account. This means if you put it into a margin account, that you get $40,000 in buying power. So when you trigger the day trading pattern rule, you no longer get this buying power here, the 2:1 leverage. You are now basically going back to whatever cash you put in there when you trigger this rule. How To Avoid Triggering The PDT Rule? Now the question is, how can you avoid this? Well, and I want to give you three tips for how to avoid it. Number one, have $25,000 in your account because if you have $25,000 in the account, then triggering the rule won’t matter. What about if you don’t. Number two, you want to make sure that you count the number of day trades. Leave the date you placed a day trade on a sticky note, and count the number of day trades that you do even if it is accidental, so you can keep track of how many strikes you have. Number three, you can avoid it here by trading a cash account. So if you’re not trading a margin account, you don’t have to worry about it. Then, of course, if you are trading futures, forex, bitcoins, so cryptocurrencies, or if you are trading binary options, this is also when the day trading pattern rule does not really matter. Summary Now you know what the pattern day trader rule is, how you can trigger it, even if it is accidentally, what happens when you trigger it, and how you can avoid this. So let me ask you this, at this point, was this helpful at all? If so, feel free to share this video on Facebook, on Twitter, and I’ll see you for the next article.
NASDAQ:NDXEducation
by rockwelltrading
1
Short Selling Put OptionsI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. Short Selling Put Options When short selling put options, a question people ask me is, “Okay, Markus, how do you decide what strike price do you want to sell and whether there’s enough premium in there?” I made a put options calculator called “The Wheel Calculator” that I gave away as part of my recent class on selling put options (Theta Kings) that helps me determine just that. This calculator is now also integrated within The PowerX Optimizer Software as well. Using my put options calculator, I can enter a few different figures and it quickly lets me know if this stock makes sense to sell put options on. I started a small account with $25,380, and have continued to grow it substantially. This was all done by selling put premium using my handy put options calculator! So let’s take a look at a few examples using the airlines. Here’s how you can quickly compare if an option makes sense to sell. So United Airlines UAL , at the time of this is trading at $31.08/share. So I’m going to take a look at the April 24th expiration and the $20 strike price. I’m thinking maybe it would be a good idea to sell the $20 United Airlines UAL put option. So now that I have the strike selected that I would like to sell put options on, let’s take a look at the premium these options have. This will let us know if this trade actually makes sense. Right now, the Bid/Ask is $0.74 over $0.87. So I probably can get $0.80 for selling this option. This is all I need to enter in my spreadsheet, along with the expiration. With the needed inputs entered into my handy dandy put options calculator it tells me, “United Airlines can drop 36% and you’ll still be okay.” It has to drop 36% before we get in trouble. I think that’s pretty good odds in my opinion. The cool thing is that it also says that based on my account size, I should buy 17 options, and I would collect $1,320 in premium. So this means that per day I would get $110 in premium. That’s not bad at all if I can make $100 on just one position. And I like to have 4 to 5 positions in my account at any given time. So based on the number of positions I like to have, this means that you can make $400 to $500 per day collecting premium. I like this a lot because it means annualized I would make 87%! 87% is nothing to sneeze at, right? Short Selling Put Options — American Airlines So now let’s do this same thing with another airline, American Airlines AAL , and see how the numbers look. So like we did with UAL , I’m looking at what strike price in relation to where AAL is trading would it make sense to sell. For American Airlines AAL it looks like probably the $8 strike price would make sense right here. You always want to do it below the previously established low. So let’s take a look at American Airlines AAL . The price right now is $12.26. the options strike price, we said we’d probably have to look at is $8. Here we’re able to collect $0.35 per contract at the $8 strike price. And you see, I could actually, since American Airlines is so cheap, buy 41 options based on my account size. So 41 options and I would collect $1,444 in premium. This means I would get $120. That’s not bad at all. And you see, American Airlines AAL also can drop 35% and we would still be OK. We only get in trouble if American Airlines over the next 15 days drops more than 35%. Possible? Yes. This is why you should always be willing to own the stock. And this is why you want to make sure that you’re not getting in trouble. You need to adjust your position size based on your account. Here obviously, I don’t want to trade two airlines because if airlines are crashing, they probably all do. With that said, let’s take a look at Boeing AAL . Boeing Example I like trading Boeing. I'm looking at a Boeing AAL chart to see where might be a good level here to sell Boeing. Based on where AAL is trading at right now, it looks like $100 would be a good level to take a look at. Let’s first try a strike price of $100, shall we? For $100 we get probably a $1.55 right here, with Boeing AAL trading right now at $150. So if we were to sell the $100 put option on AAL , we are looking to make $1.55/contract. And you see, this means that Boeing AAL could drop 33%, so we’re good here. However, we can only buy three options. Why? Because Boeing AAL is really expensive. So if we would have to buy Boeing at $100, this is when it gets expensive, right? So you see, the strike prices here are much, much, much lower. This is where you see I would only trade three not to overextend myself. And that’s very important when you’re selling puts. You want to make sure that you’re not overextending yourself because otherwise, you’ll get margin calls. Margin calls are ugly. A margin call means that your broker tells you, “I want more money.” You want to avoid that at all costs! Because if you don’t have the money, you would have to sell the stock at a price that you don’t want. Usually, this is how you can wipe out an account. Anyhow, you see this is how we would only make $43 a day. Let me ask you, what would you rather make? $110 to $120 per day? Or $43 per day? I don’t know about you, but for me, these are better. So it’s very easy to quickly compare which options you should be trading when you’re selling puts. One of my favorite trading strategies right now is selling puts. This is what you have seen in the past few examples. My goal is to make $400 to $500 per day by doing so. The best days to sell puts is on a down day. On a down day, the VIX is usually shooting up and options premiums are higher. This is exactly what you’re looking for as a premium seller. For experienced options traders, selling put option premium in an environment like this can be a great way to consistently generate income, even if the stock doesn’t do exactly what you want. I hope this helps!
NASDAQ:UALEducation
by rockwelltrading
1
How To Start A Successful Trading BusinessWhen you start trading, you need to go into it like you would if you were getting ready to start a business. Too often, I see new ‘traders’ who open their account and before ever mapping out any goals, a strategy, a trading plan, or anything, they’re already putting money into the markets… …and for me, this isn’t trading, this is gambling. So in this article, I’m going to walk you through how you can start your own successful trading business. So let’s dive in! Starting A Trading Business: Step 1 – Charting Software First, as a technical trader (like me) you MUST have good charting software. Charting software is your window into the world of stocks. As a technical trader, we rely on charts and indicators to find high-probability setups. Charting software with good indicators is an essential first step in your path to being a successful trader. I personally use (and highly recommend) TradingView. It is a paid service and for what I do, I use the Pro Version which currently costs $14.95 per month but it is well worth it. Remember, starting your own successful trading business requires a modest investment into the ‘infrastructure’ of your business. Step 2 – Finding The Right Broker Now on to step 2, finding the right broker for you! Finding the right broker can be a tricky process, especially if you live outside of the United States. If you’re trading stocks and options, I highly recommend tastyworks, or Interactive Brokers if you live outside the U.S. Starting A Trading Business: Step 3 – Trading Strategy Next, now that you have your charting software and broker, every trader needs a good trading strategy. Similar to the broker, one size does not fit all. Why? Well, there are a LOT of variables that can go into developing your trading strategy. For example, are you trading for Income or Growth or the amount you have to trade with? All of these things play a big factor in the type of strategy you want to, can, or should trade. Right now, I’m trading two strategies. My core strategies right now are, The PowerX Strategy and The Wheel. Step 4 – Trading Computer The next thing to consider when getting your trading business set up is you will need a computer. Almost all brokers and trading software are cloud-based, so you don’t need a seriously advanced computer anymore. Most computers that are less than 3 years old should be more than powerful enough to run even the most system-intensive trading platform. Step 5 – Additional Monitors. Now, for your home set up, I think at least one additional monitor is a must. The good news is that if you have a laptop, you already have one monitor! If you travel a lot (like me) I would highly recommend the ASUS MB169B+ 15.6″ Full HD 1920×1080 IPS USB Portable Monitor. They’re lightweight and work great on the road or at home. It fits easily in my backpack (because I HATE checking bags) and doesn’t add much weight. Step 6 – Trading Newsletters Next, over my morning coffee, I like to read a few different trading newsletters. I have three primary newsletters right now where I get most of my market-related news. Most of the talking heads on TV are absolutely terrible for getting non-biased information anymore. No matter what station, everything you hear is coming through some sort of filter. For this reason, I stick with these three newsletters that I’ve found to provide good info: - Morning Brew - Seeking Alpha’s Wall Street Breakfast - The Rockwell Trading Newsletter Summary Now that you have all of the pieces in place to start your trading business off on the right foot, in my next article I’m going to go through something that at first, I’m sure you will cringe: Trading Taxes. But I assure you if you’re proactive and take the time to get set up and structured properly, taxes aren’t actually as bad as you’d think for full-time traders. I hope this has helped and you’ve enjoyed it. Good trading!
DJ:DJIEducation
by rockwelltrading
How To Place A Wheel TradeI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. All right, so how exactly do you place a trade for The Wheel? Well if you have been following me for a while, then you know that I love trading two strategies. The first strategy I trade with is The PowerX strategy and it’s my bread and butter strategy. The second strategy I love trading is The Wheel strategy and this strategy has a very high winning percentage. In fact, I’ve been trading it publicly live on my YouTube channel over the past few months, and thus far, knock on wood, I have a 100% winning percentage. Having a trading strategy is key, but how do you actually place a trade? In this article, I will show what steps you need to take, from what type of account you need, to how exactly to place the trade. I’ll show you these steps using two popular brokers, first on tastyworks, and then on Interactive Brokers because I know that many international traders use this platform. Getting The Right Trading Permissions Firstly, you can trade The Wheel in any account you want, even in a retirement account. You just need to make sure you have the right options for trading permissions. When it comes to options trading there are four levels. On any account opening form they ask you, as any broker would, “What type of activity do you plan to conduct in your options account?” It doesn’t matter whether it is a cash account, a margin account, or a retirement account, all you need for trading The Wheel strategy is the lowest permission possible which is Tier 1. With Tier 1, you can write and sell covered calls, as well as writing and selling cash-secured puts. This is exactly what we are doing with The Wheel strategy. So this is step number one because if you don’t have these permissions, there’s not a whole lot that you can do. Contact your broker and make sure that you have Tier 1 options permissions, which again, are writing covered calls and cash-secured puts. If you have a higher Tier, like Tier 2 or 3, that’s okay, because Tier 1 is included in the higher Tiers. The 4 Things You Need To Know Before placing a trade, there are the first four things that you need to know: What type of option are you trading? Are you trading a call or a put? You need to know what is the expiration of the option. What is the strike price? What’s the minimum premium that we want to get in this trade when trading The Wheel strategy? For those who may not be aware, when I take a trade I send out an alert notifying those who opt into our Power Income Alerts feature. I recently sent an alert out for a trade with WYNN that I recently took. According to this alert, the idea is we believed that WYNN would stay above 70 by October 30th, but if it is less than $70, we would be assigned shares, then sell calls against the position. The alert contained the four things needed to know in order to place the trade. It had the strike price, the expiration, and the credit that we wanted to achieve. With this information from this alert, I’m now going to explain to you how would enter this trade in tastyworks, and then I will explain to you how exactly you do this on Interactive Brokers as well. How To Enter A Trade In Tastyworks Once you bring up the tastyworks platform, the first thing that you need to do is enter the symbol. In the upper-left-hand side, we would enter WYNN because this is the stock that the alert went out for, so we type in W-Y-N-N. Now, the second thing is, as soon as we bring it up, you click on the “TRADE” on the left-hand side. After you click the “TRADE” tab, you have to select the expiration from the list that populates. According to the alert, the expiration we are looking for is October 30th so this is the expiration we would select. Now you’ll see all the calls on the left-hand side and all the puts on the right-hand side. You just click on the bid price, and after clicking, it’ll say “S1”. So this means now that you are selling one contract. Now, depending on your account size, you might want to sell more than one contract. This is why the alert will tell you the buying power that you would need to trade one option if you want to trade it cash secured, which I highly recommend you do cash secured, and that would be $7,000 for each option that you want to trade. So for me personally, in the account I was using, I wanted to trade three options so I adjusted the quantity until I saw three options. So the next thing is that you need to specify is the minimum amount of premium that you want to achieve. In the alert, I specified that you should receive at least $0.50 credit. The bid/ask of this option right now is between $0.80 for the bid and $0.84 for the ask, and it makes sense to go with the mid-price which most brokers suggest. Now click on “REVIEW AND SEND”, and then you have the opportunity to quickly reviewing your order. So now we have three WYNN options here that we are selling (-3), with an expiration of October 30th, and a strike price of 70. You’ll see a P which stands for “put,” and STO means “sell to open.” The limit order I used to sell it was at $0.82. Now $0.82 is above the $0.50 credit that I suggested that you get at a minimum in the alert, so if you are able to get more than the minimum, good, do it. There are estimated commissions and fees, and then you just have to hit “SEND ORDER” and the order gets placed. You now just have to wait to get filled. If you’re not getting filled right away, you can adjust your bid and ask, so instead of going for $0.82, you can then try lowering your bid to see if you get filled. As you can see, it’s very simple, and next, I want to show you also exactly how to do this on Interactive Brokers, and it’s just as easy. How To Enter A Trade In Interactive Brokers All right, so let’s go over how to place a trade with the Interactive Brokers platform. Now I will be using the information from the same alert we used when placing the tastyworks trade. This platform looks slightly different, but the functionality is always relatively the same. There will be a place where you can enter the symbol, so we are typing in WYNN as the symbol in the upper left. As soon as we hit Enter, it will ask us if we want to trade stocks, or do we want to trade options, so of course, we pick “options.” This will bring up the options chain. An alternative way to bring up the options chain is to click “New Window” above the field where you input the stock ticker and click “OptionTrader” to bring up the options chain. I will look almost similar to how it looks on tastyworks. So here again, we enter, simply W-Y-N-N and now we need to pick the expiration. The expiration going back to the alert is October 30th and a strike price of 70. Just like we did in tastyworks, after selecting the strike price of 70, we click on the bid. Once we click on the bid, it will bring up the order at the top. It asks for a limit order, and we can also adjust the number of contracts. So instead of trading one contract, we can trade three contracts. We can also adjust the limit order to 82, as we had with tastyworks. When we’re done, all we need to do right now is hit the T for Transmit. Summary As you can see, there are differences between these packages. I personally use Interactive Brokers a lot, and it is very popular with international traders. I also use the tastyworks platform and find it a little bit easier to use. Now you know how to place a trade according to the Wheel, using tastyworks and Interactive Brokers. Other brokers, other than these two, will be very, very similar. After reading this article, you now know what type of account you need for trading The Wheel Strategy, and you can use a cash account, a retirement account, or a margin. It doesn’t matter as long as you have Tier 1 options permissions meaning you can write/sell covered calls, and cash-secured puts. Within the platform, all you need to do is input whether you’re trading a call or put, the expiration, strike price, and what’s the minimum premium that you want to collect. It really is that easy.
NASDAQ:WYNNEducation
by rockwelltrading
How i know what stock have a good future in a crisis - TutorialHello, Some people asked in Telegram / PM how i know what stock will go up and which one should them short or long. I made a list about the different sectors of SPX 500 if its needed to go bear or bull on it. After you choose the sector you need to check the ADX of the coorporation, it need to be strong and always remember to chose the strongest coorporations of the sector that you selected. Here is the graphic: imgur.com You can see my last charts that i did green on almost all of them. Hope you liked and helped to you! Please follow me to keep doing daily analysis for free! Thank you so much! Regards,
NASDAQ:ZMEducation
by aleex5893
REVIEW: DJI (Wall Street), DAX and nuclear options. I've looked into the DJI and the DAX because they are connected. I also considered events affecting the Hong Kong index. In the text below, I consider China's 'nuclear option'. Overall I'd say the probability is greater for the south on these indices (from this point in time). But caution - because there is a residual probability for the north and I can't know how far south the markets may go if the markets are with me. These are very troubled times. 1. The markets are overbought because of QE4.0, lowering of interest rates and high hopes about a China 'Phase one' trade deal. 2. But there is trouble in the Hong Kong Stock market. 3. POTUS signed the Hong Kong Democracy Act which could cause the Chinese to retaliate in some way (nobody knows how). The 15th of December 2019 is an important date on which $160 Billion of tariffs on imports to the USA, get lumped on China or they are withdrawn. If the tariffs are withdrawn, expect markets to head to the moon (stupidly). If the tariffs are applied, expect a correction of some sort. Bond troubles In other trouble China has begun the so called nuclear option of selling off US Treasuries. Note that Treasuries are bonds, which means that money is owed to China by America i.e. they represent a debt owed by the US. Why would China sell off US Treasuries - which are debts owed to China? Perhaps because China expects the US Dollar to be worth less in times to come. It's like this - if I lend you money fixed in USD value, and then you decide to devalue your US dollar by various means, it means I'm getting back less value. For an exploration of Bonds go here . China holds about $1.2 Trillion of US debt. A sell off of US Treasuries is said to destabilise financial markets. How - is a separate complex story. The point is that China's retaliation on the Hong Kong Act could be this 'nuclear option'. The point of all this is that there are complex issues affecting the markets. Disclaimer: Nothing shared here is investment advice or encouragement to trade in securities. If you lose your money, kindly sue yourself.
FOREXCOM:US30Education
by Captain_Walker
1
MENA takeover: IntroductionEurope (and NA and JP) have been ruling the world for 700 years, ever since Fibonacci brought back the number 0 and created finance. Gunpowder helped too. Europe domination really went exponential once the stock market put people with money in relation with people with ideas, especially in UK. Before that the arabs ruled the world for a few centuries, so MENA, before that the romans (and greeks a bit) so europe, before that the carthaginians I think? so mena, before that it alternated between Egypt, the Iraq region, Turkey, Iran (persians)... India and China have always been big but actually so big they just do their thing. They're a planet by themselves I guess. Mongols conquered the world so there is that too but otherwise the military + economic + standard of living + science domination has been alternating between europe and mena. And Europe time is running out... (This includes NA). The end of an era is happening... People trying to sound smart are saying china (and sometimes india too) will take over but I doubt it. They just do their thing, they always have. I do not think it is highly probably. Ye sure their gdp probably keeps going up but their culture etc won't dominate. They could go into complete isolation (again). Do they even need the outside world that much tbh xd ps: poor hong kong. rip. This is just an intro, there are plenty of reasons that show us what is happening (including inflation and all that scammy nonsense). 1 thing I really like is "biohistory" it's a new subject they have a couple of videos on youtube I recommend watching them. North Africa has seen the arab revolutions about 10 years ago, so they have started leaving the middle ages (finally). It takes time but... In the 70s the shah of Iran turned the country from middle ages into a regional superpower (some say he got too ambitious and this is why the US didn't help him and even helped the islamists take over). So it can go pretty fast. And it doesn't take that much! That region including non listed countries has a GDP of 3 trillion. Their economy (per capita) could triple, it's not crazy (didn't it already triple the past few decades?) their population triples, and bam in 30 years you got a GDP of 27 Trillion, while NA EU JP stagnate or even decline. The MENA region on their side also has oil, natgas, fertilizers, and idk what else, that are only going to go up in value. This can help support 500 years of world domination. Europe dominated the world for less reasons than this. Anyway, the gap between developped world and the rest (except sub saharan africa, they are rekt) will tighten I can guarentee this. The US have just declared sending troops to Saudi Arabia to deal with Iran... With the coming UBER depression, likes of which you have never seen, the US won't be able to keep the region tamed. Pay attention to this: "During the two decades before 1975 per capita income in Iran grew faster than in Turkey and kept pace with Korea. By 1975 the level of per capita GDP in Iran was more than double those attended in Korea and Turkey. However, since the late 1970s income per head in Iran has witnessed a rapid decline. . . By 1990, GDP per capita in Iran had declined by half, almost down to the levels prevalent in the early 1960s and falling behind Turkey and Korea." Double digit growth. The 15 years before 1975 were called the "white revolution" led by Iran shah, and 1978/1979 (when the decline started) was when the shah had to quit the country and the religious "supreme leaders" took over. This is very long term (several decades), but when the "developped world" sees their greatest depression in history with nothing left to slow it down (rates at zero or less, inflation high already, debt insane already, QE pushed to the max, etc)... developped world economies are going to be the safest ones and the ones to recover faster. Let me repeat, when the west depression begins, investing in a middle east country with plenty of issues and potential wars will be MUCh safer than investing in the developped world. Great time to start looking at this region. Warren Buffet and John Templeton did not have access to double digit growth, but maybe we will. The ones that have the vision to look at the right place while every one else is focussed on the previous opportunities. OF THE PAST. Don't be sad because it is over. Smile because it is beginning :)
TADAWUL:TASIEducation
by MrRenev
1
US Stock Markets: And what's Mueller got to do with you?!This screencast is speculative - and I invite the full brain power of Tradingview's community to consider the variables which might affect the US Stock Markets around this time. Let's do this together. The stock market has retreated, probably due to nerves about the Mueller report - among several other things. If the report contains nothing on which Trump is impeachable then, I'm expecting a pump north. Mueller's hit list so far has been : 1. PAUL MANAFORT 2. RICK GATES 3. MICHAEL COHEN 4. MICHAEL FLYNN 5. GEORGE PAPADOPOULOS 6. ALEX VAN DER ZWAAN 7. RICHARD PINEDO (Names are in all caps only due to copy and pasting. Names and convictions are all in the public domain, so I'm not defaming anybody.) Some may think that with so much dirt around it's unlikely that Trump will come out of this clean. Hey, this bull market is about Trump - let's not debate that. If Trump goes down the markets go down like lead balloons. Alternatively, if Trump comes out clean enough, expect bullish moves which may then be limited by other factors. Separate to Mueller's investigation and report, there are 16 other investigations into Trump. If just one sticks, there could be catastrophic collapse of the American markets - with shock waves globally, hitting Forex as well. We have other variables to consider : 1. The Fed 'money printing' press going to be turned up. 2. Bleaker than expected economic projections by the Fed and Draghi. 3. Expected weaker US Dollar - creating bullish pressure in the long term. 4. Flattening or inverted yield curves 5. Uncertainty's and delays on deals with China. 6. Potential Brexit shock waves. 7. Germany struggling against recession. 8. 'Housing' market bubbles in several countries including the US, in trouble. 9. US and Global debt totally out of control. 10 etc. .. and much more. Sorry - I don't know what's gonna happen. I do not give tips on entry positions.
OANDA:US30USDEducation
by Captain_Walker
2
THE BIG EIGHT: Where is the world heading?In this screencast I review 8 important markets. There are some common levels and patterns of price movements. The India50 is the odd man (woman) out. The forecast of a global recession has been made (not by me). This is related largely to global debt now standing at around $233 TRILLION US-Dollars and debt in America currently around $22 Trillion US-Dollars. The picture is complicated by trade tensions, political and other macroeconomic events. Our inheritance is will be the result of a decade of ultra-low interest rates and quantitative easing (aka printing of money), now complicated by global geopolitical and macroeconomic issues. Stock markets (and related indices) have a complex but important relationship to the Forex markets.
FX:US30Education
by Captain_Walker
DANGER: Amazon and FANGS could be in trouble. Amazon has just crossed $1 Trillion in market value. This is without doubt a parabolic expansion. History has shown us that parabolic charts like this suffer a significant correction. Do not expect me to say when - as I have no crystal ball. Tech stocks have been propping up Wall Streets expansion. But there is a problem. The stock markets in the US and around the world are being eroded in value. Google is your friend. Around the globe there is market contraction due to trade wars and international political tensions. Reliable research shows that value of stocks below the top 30 is falling in average. This is a danger signal. The traditional 'news' is not your friend. From day to day we hear different news casts. These people are there to sell their news - that's all. Dig deeper. The world is in trouble! Amazon cannot fight and win over the whole world. It just ain't that big or powerful. Tech stocks have been living on borrowed time and feeding frenzies. If Amazon goes south, and the rest of tech goes south, expect to see major corrections on Wall Street. Those looking to short the stock markets may wish to look for trend changes on the 4H - 6H time frames and with Amazon.
NASDAQ:AMZNEducation
by Captain_Walker
Dow Jones (Wall Street) - crash is an irrelevant issue.I explain in the screencast why I think 'crash' is an irrelevant issue. It is impossible to know whether 'we're in a crash' because a crash can only be discovered well into into it or after it has happened. True trend-followers will appreciate that all one can do is find a suitable trend - and follow it. Simple but I didn't say it was easy. In fact I will assert that true trend followers really don't care whether there will be a crash or the next market melt up. What people (in general) want, is to be able to foretell the future. Sorry, they can't - and no guru has such powers. We might prepare for the future in various ways. This is not ordinary life. It's not everyday activities like trying to find the safest point in time to cross a road. The reality is that markets are wild random things - pure chaos of a different order - where the 'normal rules' we may apply in everyday life just fail miserably. As I've said in other posts, a whole new mindset is needed to manage this very different sort of chaos. With 76 to -90% of real trader accounts consistently losing money (hard data), the battle is not with the charts or the markets. The battle is with yourself and your psychology.
OANDA:US30USDEducation
by Captain_Walker
Big trouble in 'Little China'In this video I review again some evidence that everybody can see with their own eyes. The US30 or the DJI is in trouble. There are observable signs of a trend change in a parabolic picture from the Weekly right down to the 4H time frame. The market is convulsing with hope and greed. But the geopolitical situation is very unstable at at this time, and a terribly overbought market as it is, is pretty fragile. Have a look at some entertaining and informative videos from Francis Hunt which goes into greater detail. DOW Jones - SKULL & BONES day crash to be real deal! Dow Jones and US Indices in deep sell off more serious then most suspect
DJ:DJIEducation
by Captain_Walker