When you trade with asymmetric risk to reward, in other words when the risk is very small compared to the potential reward, you are trading with a positive outcome. So, even when the odds are against you, you can expect an overall positive outcome. This is one of our primary advantages, where most traders simply have no idea.

There has never been a trading strategy with such low anxiety conditions. All due to the amazing risk to reward trades we enter into. And you can get in and get out very quickly with decent profits, or you could decide to hang around until the end of the day for the big kahuna return. Is it worth it?

When a trader creates an options strategy or any kind of setup, they are thinking what is their ultimate risk to reward, what is the worst case versus the best case. But the reality is that 95% of trades end up somewhere on that spectrum. Isn't that where we should be putting all our efforts?

As a day trader you have lots of options, pun intended. But most of you choose to trade things like forex or futures or even penny stocks. None of them have inherent edges built into them, neither do they have premium and volatility as drivers to leverage price. Options have that, and trading the 0-DTE increases that leverage by orders of magnitude, making it the most effective way to day trade.

Liquidity is the biggest problem these days for the options trader. You enter a trade thinking you have a shot at collecting some rich premium, and then the trade dries up, everyone goes home and takes their ball with them. Using Max Pain we can identify these traps and find places where we can avoid getting skunked.

Have you ever heard of a tranche in trading? It's a weird French work that simply means part of something. In our case it is part of a trade or an opening position. In this episode I explain how crucial it is to master your tranches.

Let's face it, there's something called systematic trading, which we all at some point think that there must be some well thought out system that works, all we have to do is become a computer and execute with deft precision. Then there's the discretionary trade, where we use SWAG.

Most traders have fallen into the trap of over trading, or trading too big, or making a fat finger mistake. The day starts, the routine begins, and you are set in motion looking for the opportunity to enter the market. Sometimes the setup isn't there, but you drudge on. There comes a point where the process comes to a dead end...that is what this podcast is about.