I was in IN for a couple months and developed a plan, now I trade the plan and the account is humming along even while I'm on vacation, not glued to a screen checking things is great
You are describing the concept of practical intelligence. Such an important way to learn through exploration and adaptation via trial and error. Observing experts like yourself, we can avoid some significant errors - but we have to have the courage to try.
The reason is because of volatility. If volatility goes higher, it increases the buying power used on your open positions. So if you're sitting at 90% buying power usage and volatility pops up, then you'll get a margin call. 😊
@@hemanthgowda5821 perfect answer above, but yes, it’s to allow for the expansion of buying power and margin use due to increased volatility. Our leverage using futures is a phenomenal tool for making money, but it also comes with the need to show responsibility and keeping your buying power in check in the case of a significant vol expansion.
Just wondering: is there a "reverse 112" position with 2 short calls at 7-10 delta and a call spread above that (30/29 delta or so) - effectively taking advantage of a short bias? Thanks
I've also looked at this before too, but especially on futures, call options are so cheap that it's really hard to find any premium worth the risk of selling
The schools and government want workers. Without workers society will not exist. So it is no surprises this is their plans. However, after being a worker for some numbers of years one needs to aspire to be a business owner/entrepreneur so that he/she will not be a slave working for money for 40 years until retirement. Being a trader is like being an entrepreneur. Not everyone wants to sacrifice their time and money to break free from the corporate plantation. For those who make the sacrifices, they will eventually be financially free and have time freedom. They will no longer trade in their time for money and they will have money works for them. "A salary is like a drug they give you to make you keep coming back to build others people dream".
I was in IN for a couple months and developed a plan, now I trade the plan and the account is humming along even while I'm on vacation, not glued to a screen checking things is great
Thank you, Tom...🙏
Great segment Tom. Appreciated.
You are describing the concept of practical intelligence. Such an important way to learn through exploration and adaptation via trial and error. Observing experts like yourself, we can avoid some significant errors - but we have to have the courage to try.
Muchas gracias Tom por tu generosidad, tu conocimiento es de gran ayuda
What’s the main reason you hold onto 50% BP without using it ?
The reason is because of volatility. If volatility goes higher, it increases the buying power used on your open positions. So if you're sitting at 90% buying power usage and volatility pops up, then you'll get a margin call. 😊
@@theagemawaythanks for that. I was wondering about that as well
@@hemanthgowda5821 perfect answer above, but yes, it’s to allow for the expansion of buying power and margin use due to increased volatility. Our leverage using futures is a phenomenal tool for making money, but it also comes with the need to show responsibility and keeping your buying power in check in the case of a significant vol expansion.
Exactly , most people can manage there own money, who needs the fees.
Just wondering: is there a "reverse 112" position with 2 short calls at 7-10 delta and a call spread above that (30/29 delta or so) - effectively taking advantage of a short bias? Thanks
@@CustomerService-cp9xo yep. Not my fave since there is usually bullish drift, but yes.
I've also looked at this before too, but especially on futures, call options are so cheap that it's really hard to find any premium worth the risk of selling
i have been selling 3 delta puts and watching account grow boring but no stress
What underlying(s)?
@@raysteel6317 /es
The schools and government want workers. Without workers society will not exist. So it is no surprises this is their plans. However, after being a worker for some numbers of years one needs to aspire to be a business owner/entrepreneur so that he/she will not be a slave working for money for 40 years until retirement. Being a trader is like being an entrepreneur. Not everyone wants to sacrifice their time and money to break free from the corporate plantation. For those who make the sacrifices, they will eventually be financially free and have time freedom. They will no longer trade in their time for money and they will have money works for them. "A salary is like a drug they give you to make you keep coming back to build others people dream".
Let me guess got this off a TH-cam video?