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cognitive bias

Trading Psychology: 10 Biases to Avoid!

Especially when money is on the line and time is scarce, human decision making can be very flawed. Trading is one of the fields where erroneous and irrational behavior patterns are especially common. In this article, we’re going to look at the most common cognitive biases and irrational decision making patterns, and how to avoid them. Being aware of these thinking flaws has two main advantages. Firstly, it helps you avoid them in your own Read more

What is Delta Hedging – The Ultimate Guide

Delta hedging is an options strategy designed to eliminate directional risk. This is a great way to focus on and profit from other market factors such as implied volatility or time decay. Learning about Delta hedging and when to apply it can be a great asset for traders of any kind. With that being said, Delta hedging also has its shortcomings which you definitely should be aware of. In this post, you will learn everything Read more

Stocks vs options

Stocks vs Options – The Ultimate Comparison

Are you considering getting into options trading? If so, you came to the right place. In this article, we’re going to look at the differences between stocks and options as well as the advantages and disadvantages of both. After reading this article, you should know which of these trading styles is right for you and how to get started. Stocks vs Options Video Breakdown Check out the following video in which I break down the Read more

hedging with options

Ultimate Guide to Hedging with Options

Hedging your investments is one of the best ways to systematically decrease your risk and thereby increase your risk to return ratio. But when hedging your portfolio, there are certain things you have to look out for. In this article, you will learn whether or not you should hedge your portfolio and two of the most effective approaches to hedging with options. Why Hedge A hedge is a position that was opened to offset risk. Read more

algorithmic trading strategies

Top 6 Algorithmic Trading Strategies

Diving into the world of algorithmic trading can be exciting  and overwhelming at the same time. There are so many different approaches to developing your own algorithmic trading strategies. Especially for newcomers, this can be very intimidating. To help gain a much deeper understanding of the world of quantitative trading, I want to give you an overview of all the different algorithmic trading strategies that exist. Besides improving your understanding, this should also help you decide Read more

options adjustment strategies

Options Adjustment Strategies

When trading, things sometimes don’t turn out to go entirely according to your plan. But what do you do if this happens? Do you sit tight and wait, close the trade or do something else? In this article, you will learn about a few options adjustment strategies that will help you deal with struggling options trades. These adjustment techniques will help you minimize your risk without eliminating the potential for profit. Options Adjustments Video Guide Read more

options assignment explained

What is Options Assignment & How to Avoid It

If you are learning about options, assignment might seem like a scary topic. In this article, you will learn why it really isn’t. I will break down the entire options assignment process step by step and show you when you might be assigned, how to minimize the risk of being assigned, and what to do if you are assigned. Video Breakdown of Options Assignment Check out the following video in which I explain everything you Read more

Beta Weighting Explained

What is Beta Weighting & Why You Should Use It

Beta weighting is a fundamental risk management technique that is commonplace in every professional trading institution. But sadly, many retail traders shy away from it because, at first glance, it does seem complicated. My goal with this article is to change this. There is a reason why so many professional traders use beta weighting on a daily basis! After reading this article, you should be able to fully understand this reason and apply beta weighting Read more

Probability Distribution Of Stocks

The TRUE Probability Distribution of Stock Market Returns

The goal of a trader is to best possibly position him/herself to maximize their chances of winning. To do this, it is crucial that you as a trader understand the underlying probability distributions of stock market returns. Without having a good understanding of price distributions, you might base your entire trading approach on completely flawed assumptions. This can have detrimental consequences and is one reason for financial crashes and crises. The purpose of this article Read more