Thu, 28 April 2016
Join Tackle Trading's Gino Poore and Noah Davidson as they discuss the trickiness of trading during earnings while also covering market conditions for the week. In this Coaches Show audio replay, the Tackle Trading coaches cover more than just market conditions and economic news for the week. While market conditions were indeed covered, the focus was largely on trading through earnings. Earnings, a quarterly event where publicly traded companies post their performance for the previous quarter, causes waves for the stock in question, and sometimes even a sector. You can expect gaps up or down, but not necessarily in the direction you'd expect. Even if a company outperforms earnings, the price can plummet for a few days, or raise on news of underperforming. Simply put, it can be unpredictable. Newer traders are generally advised to trade with caution while keeping an eye on when earnings is coming up for a particular company they own, or even exit entirely while earnings is happening. Such decisions are left to the individual trader, but care is always advisable.
Direct download: TJ147TradingDuringEarnings.mp3
Category:Podcasts -- posted at: 2:51pm MDT
Thu, 14 April 2016
Join Matt and Gino for their discussion about the differences between delta traders and theta traders. There are two major greeks in trading: delta and theta. Delta represents directionality of a trade and its probabilty of profit, while theta represents time decay in an option trade. There are two other greeks, as well; vega and rho. They aren't covered as much, but vega represents volatility movement while rho represents interest rate change. As you can imagine, rho doesn't get much attention of late. In a way, delta and theta trading also represent different trading styles, as well. Directional trades require reasonably frequent maintenance to ensure they stay in the money and fine-tuning should a particular security start going the opposite direction. They can score homeruns, but can require a fair bit of work. Options, on the other hand, earn you cash flow so long as they're active. Provided you're the seller of an option, and it's set up correctly, it will have a decent percentage chance of expiring worthless for who bought it; leaving you with some cash in your portfolio. Even if you get assigned (that is to say the option doesn't expire worthless and the buyer takes your security), you *still* get paid even then. Granted, you'll have to go purchase that given security again if you want to stay in it, but that's just how it rolls sometimes. That's not to say selling options is strictly easy. It does require training to do correctly, and doing it wrong can easily destroy your account (particularly if you start trading naked puts without knowing what you're doing). Also, if a particular option looks like it will be exercised come expiration time and you *don't* want to exit the security, it can cost some time and capital to fix.
Direct download: TJ145TypesOfTraders.mp3
Category:Podcasts -- posted at: 11:45pm MDT
Wed, 13 April 2016
Join Tim and Matt for their discussion about the impact earnings can have on stock price and the impact you can make on your own financial future by trading for yourself. Earnings is a challenging time to trade for everyone, new and old trader alike. Will your companies of choice beat earnings expectations? Will the market even react how you'd expect to the news? For new traders, that second question can be particularly vexing. If a company beats earnings, its stock should go up, right? Well, not during earnings. A solid earnings report can cause a short term dip in the stock's chart, while a less-than-stellar earnings report may cause a spike. Why? Essentially, low spooky action at a distance. That very unpredictability is why new traders are recommended to trade light around a particular company's earnings reports, and why strangle and collar trades (essentially trades that go well whichever direction a stock goes) are so popular around earnings time. If you're new to the concept of trading (or even to considering trading for yourself), even trading during non-earnings season can be daunting. It's your money on the line, after all. However: is it not also your money in that mutual fund that's likely barely pacing the market? The handwave of that kind of performance due to it being the professionals doesn't really go that far, either. If it's the professionals, why isn't it doing at least 3% growth every month instead of every year? That may seem like a small number, but do remember that investment accounts tend to be for the long haul (up to decades). That 3% this month may only be $20 this month, but if the funds are kept in the account, that same $20 will get added to the previous balance every month. Within years, 3% becomes living income every month. If that sounds like your jam, this episode is just for you.
Direct download: TJ144EarningsAndBecomingATrader.mp3
Category:Podcasts -- posted at: 3:28pm MDT
Sat, 9 April 2016
Join Tim as he interviews guest star Christian Sisson about his growing up in Brazil and the path he took to being a trader. Start With Why by Simon Sinek focuses on, appropriately enough, why people do what they do through story and historical example. Oftentimes, companies and people can instead focus on the what instead of the why. Apple is an excellent example of this principle. Other companies marketing MP3 players tend to just focus on features and size (It's a 5GB music player), while Apple focuses on the why for someone would even want an MP3 player (1000 songs in your pocket!). The appeal of Apple's approach is how they frame the why of owning an MP3 player right into their pitch. On a smaller scale, compare these two hypothetical employees. "I'm working this job to pay the bills," is a weak why, and really more of a what you're doing. Compare that to "I'm working this job to learn skills and improve my situation, and it also happens to pay the bills," which contains a motivation outside of simple fiscal gain. --- Trading Justice is providing this site and any related materials (including newsletters, blog post, videos, social media and other communications) for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and may not represent specific trades or transactions that we have conducted. In fact, we may use examples that are different or the opposite of transactions we have conducted or positions we hold. This site and any information or training therein is also not intended as a solicitation for any future relationship, business or othe Join Tim as he interviews guest star Christian Sisson about his growing up in Brazil and the path he took to being a trader. Christian has always had a free spirit, which didn't bode as well for him growing up. His father was in the military, and hoped for Christian to walk the typical regimented professional path...
Direct download: TJ143ChristianSissonAndOrganization.mp3
Category:Podcasts -- posted at: 1:00am MDT
Mon, 4 April 2016
Join Tim, Matt, and Book Club host Garrett Holden as they discuss Simon Sinek's Start With Why in this episode of Trading Justice. Start With Why by Simon Sinek focuses on, appropriately enough, why people do what they do through story and historical example. Oftentimes, companies and people can instead focus on the what instead of the why. Apple is an excellent example of this principle. Other companies marketing MP3 players tend to just focus on features and size (It's a 5GB music player), while Apple focuses on the why for someone would even want an MP3 player (1000 songs in your pocket!). The appeal of Apple's approach is how they frame the why of owning an MP3 player right into their pitch. On a smaller scale, compare these two hypothetical employees. "I'm working this job to pay the bills," is a weak why, and really more of a what you're doing. Compare that to "I'm working this job to learn skills and improve my situation, and it also happens to pay the bills," which contains a motivation outside of simple fiscal gain. Sinek expounds on this premise through real-world and historical examples including Apple, Martin Luther King, Jr., and others to convey that finding your own why (and working toward it tirelessly), the most important drive for your success. Fight for your why. LINKS Trading Justice Book Club Site http://tackletrading.com/tackle-trading-book-club/ Simon Sinek's TED Talk: https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?language=en Tim's trading journey: http://tradingjustice.com/trading-justice-56-tim-justice
Direct download: TJ142BookClubStartWithWhy.mp3
Category:Podcasts -- posted at: 7:08pm MDT