Every person should keep a journal of their trades.\u00c2\u00a0 Each trade idea we try to provide the information below so you can understand the trade.<\/p>\n
My Portfolio Philosophy:<\/p>\n
I believe in a multiple strategy portfolio.\u00c2\u00a0 When one strategy is working then others will do “ok”.\u00c2\u00a0 The best example of this is when the market moves drastically in one direction.\u00c2\u00a0 The directional strategies will work well when compared to the premium collection strategies.\u00c2\u00a0 All of my services are built off of common sense trading concepts.\u00c2\u00a0 I believe in technical analysis.\u00c2\u00a0 This is using the stock price history to analysis potential movement.\u00c2\u00a0 At the core, I use technical analysis to find target and stop levels.<\/p>\n
Other core trading concepts that everyone should follow:<\/strong><\/p>\n Buy low Sell high or sell high and buy low<\/strong><\/p>\n This is key to everyone’s trading but never taken to the fullest extent as an option trader.\u00c2\u00a0 When following this mantra a trader must look at the stock price but also look at where the implied volatility levels are as well.<\/p>\n Targets and Stops<\/strong><\/p>\n Have these set before you enter a trade.\u00c2\u00a0 This are critical in knowing what your risk is in a position.\u00c2\u00a0 If you don’t know your risk then you should not enter the trade.<\/p>\n Comfortable Trading<\/strong><\/p>\n Trade Strategies that you understand you know are comfortable with risks and reward.<\/p>\n Trade on a time frame where you can devote the time needed for that strategy.\u00c2\u00a0 Don’t start day trading if you can only be there for 30 minutes of the day.<\/p>\n Start Small<\/strong><\/p>\n There are significant financial risk when investing and trading so it is crucial to understand the risk associated with every trade that you enter.<\/p>\n Diversification<\/strong><\/p>\n The classic line of don’t put all of your eggs in one basket.\u00c2\u00a0 Always have multiple stocks in multiple strategies. These strategies can be broken down into many subsets of risk.\u00c2\u00a0 Directional vs non-directional, time frame, debit vs credit and volatility.\u00c2\u00a0 All should be diversified so your risk is spread across each spectrum.<\/p>\n Trade Management<\/strong><\/p>\n Just like diversification, it is wise to not risk more than some small % of your portfolio on any one trade.\u00c2\u00a0 You can use expected probability to increase this percentage, but you maximum percentage should still be a small percent of your entire portfolio.<\/p>\n Attitude<\/strong><\/p>\n If you are not having fun doing what you are doing, then don’t do it.\u00c2\u00a0 If it causes more stress, then don’t do it.\u00c2\u00a0 Find a strategy that you are comfortable with the risk, so that you can sleep at night and come back to your investing with a positive attitude.<\/p>\n My services are built around these core concepts.\u00c2\u00a0 We will be rolling out several services that will focus on specific strategies, but each will act as it’s own mini portfolio.\u00c2\u00a0 You as the trader will have to determine what percentage of your risk capital that you think will be appropriate for your market outlook\u00c2\u00a0 and your existing portfolio.\u00c2\u00a0 For example if you think there is a large move coming in the market then you will not want to risk a lot of capital in premium collection strategies and vice versa.<\/p>\n CheapIV – Swing Credit Trader<\/strong><\/p>\n The goal of this service is to build a base of position that have low risk and use the time decay of options in our favor.\u00c2\u00a0 This service utilizes iron condors, iron butterflies and diagonals to capture credit premiums.\u00c2\u00a0 This strategies should be apart of everyone’s portfolio.\u00c2\u00a0 Our time frame is different then most premium collections services.\u00c2\u00a0 The majority of the time we do not want to place our trade in the front month.\u00c2\u00a0 Most traders realize that the option premium decays the fastest in the front month. When selling premium this is the quickest way to realize a profit from the option decay.\u00c2\u00a0 This is also the quickest way for a stock to move against your position.\u00c2\u00a0 Front month options provide a faster rate of decay, but they also provide less time for the stock to ebb and flow.\u00c2\u00a0 If you take a step back and look at the movement within a stock, in order to hit maximum profit that stock will be at a specific point at expiration.\u00c2\u00a0 We find that timing this movement is one of the most difficult things to do.\u00c2\u00a0 So we don’t do it.<\/p>\n We use the ebb and flow of the stock to our advantage.\u00c2\u00a0 We place the premium collection\u00c2\u00a0 strategies to our advantage as well.\u00c2\u00a0 We also use options with 30-90 days to expiration.\u00c2\u00a0 This gives us plenty of time for the stock to move.\u00c2\u00a0 This is high win ratio service.\u00c2\u00a0 We try to hit singles not home runs.<\/p>\n To find out more about this service and see examples click here!<\/p>\n","protected":false},"excerpt":{"rendered":" Every person should keep a journal of their trades.\u00c2\u00a0 Each trade idea we try to provide the information below so you can understand the trade. How you found the trade Stock Analysis Targets Stops Options Analysis Option Strategy Profit of Option strategy at targets and stops Potential Future events in stock that could affect strategy […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"","meta":{"footnotes":""},"class_list":["post-53","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/pages\/53","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53"}],"version-history":[{"count":0,"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=\/wp\/v2\/pages\/53\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.cheapiv.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}