Trading Justice

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...

  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

  The US is in the enviable position of possessing the world's reserve currency: the US Dollar. As the reserve currency, much of international trade is performed in US dollars; particularly oil sales. This is where the term petrodollar originates. With reserve currency status, the US can do things other nations can't, from printing money to pay off debts (if it wished to) to growing GDP by exporting debt to other countries. Other countries that try such tactics tend to end up with hyperinflation and currency collapse, such as Zimbabwe in the late 90s through the Aughts. Even with reserve status, though, such strategy isn't without risk. An economy can be grown only so far through debt, and interest rates staying at record lows for the better part of a decade had delitritous effects on consumer access to debt from banks. How did the US get its reserve currency status, and what is its future with developments such as the Yuan entering the IMF basket of currencies? Join Tim, Matt, and special guest Jeff Crystal as they continue their discussion of central banks and reserve currency in this episode of Trading Justice.

  The FOMC meets this week to determine the interest rate for the US and whether it'll hold to the movements from December. The market puts the movement at virtually zero, while actually backtracking and lowering the rate back down has about a 3% chance. With The Central European Bank declaring a continuation of quantitative easing last week, the world is watching and hoping that the Fed will hold off on raising rates a bit longer due to the general malaise that's currently lingering over markets from the US to China. Despite how serious this (and any Fed) meeting is, it's likely that the average American doesn't really know about it, the meeting's implications, or even care too much about the outcome more than whether he or she will be able to afford a little extra discretionary spending and saving. With the role the Fed takes in the economy, general trading principles, the importance of credit score, and other key financial knowhow not being taught in the school system, it's not too surprising, unfortunately. That lack of education can come to bite you if you don't take the time to educate yourself on how to secure your own financial freedom. Even something as simple as trading into other currencies as a hedge against inflation and other systemic risks can improve one's financial safety. ...and done right with training, you can even make money doing it. Join Matt and Tim for a discussion of economics, politics, and more.

Implementing options trading as part of your portfolio offers more than just consistent returns through cash flow and compound interest. With proper positioning and timing, writing options against securities in your portfolio can help protect you against a volatile market, as well. It's really a win-win for your portfolio. If the sold option expires worthless, that's cash flow in the bank. However, if you position the option properly and get assigned, you exit a security that would have had an adverse effect on your portfolio had you maintained the position. Yes, you're out the position, but if you were iffy enough to write an option against it for the express purpose of protection, you're ahead in the game. Remember, you can always re-enter that security later if its chart start improving. The old adage applies here, too: the trend is your friend. Do note that timing is important in utilizing portfolio insurance. If you write the insurance covered call while volatility is low, you won't get much of a premium for its sale, and it's likely just a normal covered call that will generate cash flow for you. However, if you wait until the security is already careening in a direction you didn't want it to, it's likely too late to completely salvage the position. It's a simple matter of paying attention to what's in your portfolio and acting accordingly when the time is right. Join the coaches as they discuss the importance of portfolio insurance, the latest news in the markets, and more.

Trading anything is never without risk, but some positions can be riskier than others. Options, for example. In the hands of an untrained novice, poorly trading options can lead to the complete implosion of a portfolio over a short period of time. However, with the right training and practice, options can instead become a low-risk cash flow generating part of a portfolio. So it was for Marius as he began his trading career. Most of the traders in his area (Romania) primarily traded forex and stayed away from options due to the perceived risks present. For those particular traders, that hightened risk was likely legitimate as they had no training on it. Marius, however, was undeterred and began researching various coaches and shows until he hit upon a mentor program through Andy Tanner. In this program, Marius eventually met Noah Davidson and learned about the intricacies of options trading, along with all their potential use in a portfolio: simple cash flow, insurance for a portfolio, and more. Marius even started giving back to the community with the creation of a variety of options calculating spreadsheets for his peers to utilize in trading. Join us as Tim interviews Marius Posogan about learning options trading, the importance of creativity to any pursuit, and more.

  We take many things for granted here in 2016. There are a myriad of ways to trade thanks to apps ranging from ThinkOrSwim to Robinhood supported by the advent of wifi and high-speed internet. Charting and screening tools allow for detailed analysis of securities with the press of a button. The markets can move at a blazing pace for every security out there, and we have the benefit of precise stock pricing to the decimal. None of that was always the case, though. It's easy to forget the internet is a relatively new invention in human history, with its implementation for basic stock trading being as recent as the early 2000s. Before that, the trading floor was handled by what was known as open outcry where a trader had to physically find a person on the floor to take the other side of a trade (think the end scene in Trading Places). Even decimal pricing, which allows for precise pricing of securities, wasn't implemented until as recently as 1999 in the NYSE. Join us in this episode of Trading Justice as Matt goes back in trading history with 30-year trading veteran trader Keith King as they talk about how it was, what the changes were like, and how it is now.

  There's a joke that teachers are secretly students of what they're teaching since teaching is the best way to learn something and master it. It makes a sort of sense, too; you can't (properly) instruct someone on a subject unless you understand it, and teaching something so another person understands the subject offers the instructor other ways of viewing the subject matter. So it was for Tyler Craig when he started coaching day trading for Legacy education after only six months of practice and instruction for himself. He did have to know the material to properly convey it, but by teaching people different aspects of trading and options theory, Tyler came to appreciate more nuanced aspects of trading as he had to adapt to many varied learning styles. If you feel stuck on a particular aspect of trading, think about how you would convey it to someone else in a way that person would understand. It may just open the door to your own understanding. In this episode, Matt and Tim are joined by long-time trader Tyler Craig to discuss trading education, the importance of mentorship, and taking the steps necessary to improve your life.

Fear is a motivator, and there are two responses it creates: action or inaction. Action, in attempting to overcome the fear; or inaction, in not knowing what to do, being overwhelmed, or simply trying to avoid the object of the fear. When it comes to finance, curiously, many default to inaction as the default response and pass along the burden of action to those "who know what to do": mutual fund managers and the like. Thing is, mutual funds don't adapt well to tumultuous markets, and are often aggressively bullish regardless of market conditions. This causes the fund to lose value, and folks who've passed the responsibility to the fund managers take the hit. That doesn't have to be the case, though. Educating yourself about the markets and investing can allow you to manage your own finances. Even simple strategies such as covered calls to generate cash flow can have a marked effect on your portfolio and possibly even your checking account. It is absolutely doable, but it does require action on your part. As with any pursuit, it can be overwhelming at first; there's lots of jargon and terminology, and it's your money on the line. To the first point, the terminology is there, but it can be learned. As to the second point, how is that any different than passing your funds along to a mutual fund that will likely not beat the market in performance? It's all about taking that first step for yourself. It can be daunting, but it's worth it; because you're worth it. Further, you don't have to take that step alone. There's this popular misconception that it's dog eat dog in terms of the markets, and everyone's out for themselves. At the institutional level with Fidelity and such, sure. At the individual trader level, though? Not at all! Folks help each other all the time. The market is so mind-bogglingly huge, and everyone's portfolios are so vastly different, that folks assisting each other in trading just makes trading better. Get involved with a trading community (such as the one on Tackle Trading) as you take that first step, and you'll realize it's not as daunting as you first thought. In this episode, Tim and Matt discuss stepping out from the shadow of fear in handling your own finances as well as the current state of the interest rates for the FOMC, BOJ, and CEB.

  Education is no doubt important. You can't do something until you know how to do it. However, the credentialization of the workplace and overly long degree tracks (including excessive general ed requirements) isn't necessarily the best system. Other countries carry more focused programs such as three year MBA track programs from start of college to finish. Such a curriculum allows students to get the most efficient use of their college time while also getting the exact skillset they want for whatever profession they wish to enter. Curriculum isn't the only problem currently facing secondary education. Spiraling costs of both public and private schools almost mandate a student take loans to even attend whereas said loans are part and parcel part of the inflationary cost. More money available in the system allows colleges to increase the cost, students take more loans to attend, the schools increase costs again, ad nausium. In this episode, Tim and Solon Stephanou talk about the current state of education in the US and abroad, the importance of an entrepreneurial spirit in succeeding, and the current presidential race.