Trading Justice

    Those new to trading can find uncertain markets between bull and bear markets daunting. Prices can fluctuate more than usual from day to day, and the volatility in the market increases the difficulty of wringing risk out of trades. Even a reasonably balanced portfolio can run into trouble when the markets get overly jittery. However, it's not impossible to protect your portfolio with trade insurance: options trading. Selling well-placed options on owned stocks can generate cash flow even if a stock is going sideways or even downward. The real kicker? Options selling does better during periods of high volatility. That's not to say you should start clicking all crazy-like in the option chain tab of your brokerage software, though. Like all trading, risk is still involved. There is a right way and a wrong way to trade options, and if you do it wrong (particularly with unprotected, or naked, options), the risk of a given trade increases, as do the odds of imploding your portfolio. With practice and training, options trading can be a consistent cash flow strategy even in uncertain markets. In this episode, Matt & Tim are joined by serial entrepreneur and trader Rance Masheck to discuss trading in uncertain markets both past and present, and Rance's wending path of financial entrepreneurship that lead him to founding the iVest trading platform. AND! Courtesy of Rance, you can check out the iVest trading platform for yourself with a special offer for Trading Justice fans. Just follow this link and fill out the form to get access to iVest.

Finding good trades can be a bit challenging even during bull markets. When the bears start lurking back into the market, though, it can feel even harder to do since it seems like everything is going down. Well, there are always winners, even in down markets, and directional trading doesn't care whether it's a bull or bear market at all. It's all about strategy and having a good set of parameters when seeking out new stocks. Of course, different stocks work well for different strategies. Day-to-day movements don't matter as much to investment traders like Warren Buffett, and long-term performance of a stock doesn't overly matter for a day trader. That's not to say, though, that you should ignore the analysis that isn't typically used for your type of trading (fundamental for investing, technical for day trading). Using both in tandem regardless of strategy will help you find winners regardless of what the market's up to. In this episode, Coach Matt is joined by Coach Noah to discuss how to find trades, what the different sectors are up to, and even to delve into what negative interest rate is all about.

  Both Emily Muiruri and Rosemary Kioko came to the US from Kenya in 1993, and started in real estate. This lasted until the summer of 2014 when Emily lost her job and decided to take the summer off. At the end of her sabattical, she and Rosemary decided to attend a Legacy Education class on stock market investing, and they both fell in love with the concept of trading. Since then, they've formed a Women Investing club (currently at 10 members) to help each other learn and make better trades together, and they've also both continued their trading education with more classes and mentorships. It hasn't always been the smoothest road, but both Rosemary and Emily have stuck with it, and they continue to become better traders for it. In this episode, Tim invites two special traders to join him on the Trading Justice Podcast: Emily Muiruri and Rosemary Kioko. They're the founding members of the Women in Trading club, and they discuss with Tim their passions, their journey, and have fun doing it.  

The markets haven’t been to kind so far this year; what with a dropping S&P, sinking oil, and general economic slowdown. This isn’t really new, though. Several indicators are pointing toward a recession: lower revenues & earnings have happened for the past several quarters, lower economic reports, crawling to shrinking GDP. By those metrics, five  Continue Reading »

  Trading without systems in place is possible at any skill level. Just seek out trades that have good fundamentals and technicals and place the trade. However, you can lose a lot of time and even negatively affect your portfolio if you're not careful. Even if a security has great fundamentals and technicals, is it right for you? This is where a system can come in handy and save you serious time and heartache. The most basic system is a set of trading rules you make for yourself regarding probability, ROI, your tolerance for risk, and other factors. This makes assessing a potential new trade super easy. Does it fit your rules? If so, great! Place the trade and move on. If not, excellent; you saved yourself the pain of making a bad trade. A step beyond simple trading rules are actual trading systems, such as Theta Fade by Steve Huang. A system takes generalized rules and sharpens them to the point that the rules become super focused. In Theta Fade's case, the rules focus on trading options once a week, on Friday. May not sound like much, but said system was a big part of Steve Huang being placed into the Rich Dad Hall of Fame. In this episode, Tim is joined by Kevin O' Banion to discuss Kevin's journey as a trader and offer an insight to how Steve Huang developed his own trading system.

All four coaches from Tackle Trading are here for this special episode of the Trading Justice podcast as they go over the latest news in the markets and share the details of the new & improved Tackle 25! Among what's covered: The S&P's reaction to China on Monday and Tuesday, Volatility coming into the new year, The underlying issue with China's Monday drop, What China's goal is with printing more currency, How China's market being relatively new is impacting trading, The current strength of the US dollar, A strengthening JPY and what it could mean, What the EUR/USD pair is currently up to, Oil's behavior in the current environment, The purpose of the Tackle 25 and how to make it work for you, How covered calls off the Tackle 25 can help create cash flow, What ROID is and how it works, Possible portfolio balancing when making covered calls, ...and more!

  2016 has already gotten off to a dramatic start with the Shanghai market dropping 7% and the rest of the world following suit in a mass selloff. The world economy isn't in the best shape. Markets are showing signs of impending recession around the world, from emerging markets such as Brazil and China to developed markets including Europe and the US. The bull market, should it continue, would be entering its seventh year... quite venerable as far as bull runs go. With this backdrop, Matt, Tim, and Gino discuss what they expect in 2016. On the front of interest rate hikes, the Fed is stating they're aiming for 1.5% after four more raises through the year. The market expects maybe 1% from two total raises this year. The US dollar, directly impacted by interest rate hikes, is generally expected to pass 100 this year. By how much is uncertain, but the USD has a history of making major runs should resistance points be broken, and 100 is a major resistance point. The strengthening dollar is also expected to play a part in the euro and dollar coming to parity some time this year when coupled with the EU's continuing QE policy. Dovetailing the USD, oil (and other commodities such as gold) will likely continue to be hammered when viewed in conjunction with record oversupply, declining demand, Iran coming online later this year, and OPEC still keeping the pumps flowing until at least June. Time will tell how far oil may fall until it starts rallying again. The Brothers Justice are joined by fund manager Gino Poore as they share their predictions for 2016 on all market fronts, from forex & interest rate to commodities and any major news they each expect. AND! Tackle Trading has a special offer: enter the code THETA upon checkout at Tackle Trading for a free 15-day trial of Pro membership at Tackle Trading!

  It's always good to reflect on happenings past, with the end of the year being a good time to do so for many people. Matt and Tim do just that in the latest episode of Trading Justice. Matt lead with the Fed starting its program of normalizing interest rates and the implications that will have on the market moving into 2016, while Tim split his top pick between August's flash crash and the Yuan being added to the SDR. Tim chose another major event that left the world stunned in mid-January:s the Swiss Franc de-pegging to the Euro, wrecking countless businesses overnight and playing havoc on forex trading. Dovetailing the uncertainty, Matt listed all things China, from its stock market intervention to its ongoing recession and the impact it's having on the world. Coming in at number three for both Tim and Matt was the drop in price of crude oil. Unrestrained pumping by OPEC countries to attempt to drive out frackers, Iran about to come back into the international market, and a global slowdown in demand have all lead to a market glut that will likely not clear out through much of 2016. With interest rates still at record lows earlier this year, many businesses, including names like Apple, took advantage of cheap loans to buy back shares from the public, consolidating ownership for these companies back inward. Both Matt and Tim highlighed this, with Matt at number four and Tim at number five. Tim's fourth biggest news story of the year was the European Central Bank announcing its own QE program. With markets slowing down worldwide earlier this year (and Greece taking center stage at the time), Draghi announced a $1 trillion Euro QE program in an attempt to stimulate the Eurozone's economy. Massive valuations for tech companies are the order of the day, much as they were in 1999 - 2000. With companies like uber weighing in at over $1 billion(US) in valuation by private equity firms, it feels reminiscent of the previous tech bubbles in the past. Whether those valuations will actually carry over into the IPO for these companies (particularly for lawsuit targets like uber), remains to be seen. Matt pegs this impending bubble at number five for the year. The Brothers Justice take a look at their respective top five major news events for the year and went back to check on predictions made back in 2014. Matt   They're also joined by mentor student Nicholas Kingsbury to discuss trading. Matt's Top News Stories for 2015

1. Fed Lift Off with Interest Rates
2. All things China
3. Commodities especially Oil slaughter
4. M&A / Stock Buy back activity
5. Tech Bubble 2.9

Tim's Top News Stories for 2015

1. Flash Crash / Yuan SDR
2. CHF de-pegging to EUR
3. Crude Oil slide
4. European QE
5. M&A Activity

 

When learning martial arts, you don't start with training the body. You start with training the mind. A recent student of Tim's shared this insight at one of his classes, and the insight applies just as much to trading as martial arts. You need the right mindset and and attitude or you're setting yourself up for failure. A stereotypical view of the market is that it's a place where you can make money hand over fist with little to no effort. Trading from that mentality is akin to begging industry professionals to take your money, though. Big plays can happen occasionally, but they are far from common, and not actively pursued by veteran traders. Trading is about taking the long view with your account and utilizing those two magical words: compound interest. If, instead of trying to go after one big multithousand dollar payday (which doesn't really exist), you simply trade for a 3% return on your investments, over time you can be making multithousand dollar trades as a matter of course if you reinvest your earnings back into the market every month. We're not talking just a year or two, either; we're talking over a decade or two. It takes hard work, discipline, and patience, but it is absolutely doable.   In this episode, Matt and Tim talk about the importance of mindset when approaching trading.

With the impending announcement on Wednesday of a potential interest rate increase for the first time in over seven years, there’s a lot of talk about the effects it may have on the market. What about the central bank itself? What is it exactly? …and when did it come about? Does a country even really  Continue Reading »