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Tips for an Option-Based Long-Term Portfolio

Was since 2020 when, in a revolutionary decision, the main US brokers (Ameritrade, Fidelity, Charles Schwab, eTrade) decide to offer  zero-commission in stocks, ETFs, and options trading,  that the stock market's control changed forever: now the  retail traders , decide face to face with institutional and hedge funds, the trend it will take.  Seems unbelievable, but is a fact. One consequence is the unstoppable meme stock phenomenon we have until now, with its exaggerated volume trading and yields, in which buy the dip  is almost a religion for novice traders, and use OTM cheap calls , its bible.  For other retailers like me, that maintain a month-rebalanced long-term portfolio (apart from the usual swing/day trades), it was a great opportunity to start trading options more aggressively , buying ITM options and credit spreads instead of merely stocks, thus creating an options-based portfolio as now commissions are no longer cutting dramatically the profits. Below, I share here s

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A Trading Plan, the best Trader's Weapon

I follow the stock markets daily since 2008. That year I began investigating the stock trading world, due to the real estate crisis that ate part of my investment portfolio designed by bank "financial experts". As I'm always interested in finance, I took the decision to manage my mone…
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Enhance your entries with the Volume Profile

With a stock market like the current one, moving in all-time highs, artificially created and maintained by the Fed, with the latent threat of the second wave of Covid, and the slow economic recovery expected in 2021, some traders (like me), with the intention of having better risk management, are c…
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Identifying Breakouts and False Breakouts

Breakout Traders.
After years of reviewing investing blogs, and sharing experiences and trading styles in chats with other traders, I'm sure that (one of) the most popular are the "breakout traders". This is a type of trader who uses technical analysis to identify high conviction brea…
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Gold and Airlines: attractive ETFs for next weeks

Gold is very attractive again.
Due to its fundamentals, Gold is a great option for the next weeks, given that its inverse counterpart, the dollar, may continue to weaken due to two certain factors: the approval, increasingly close, of the US stimulus bill and the lower trend in inflation. Its risk i…