Did you know that 87% of all significant price action occurs in only 11% of the time? So in other words – 89% of the time the tape just sort of meanders sideways within a range.
Now ask yourself this: Is your trading style compatible with that simple fact?
Either way, no you may understand why selling options premium is so profitable.
Most retail traders start looking at charts, and being human and all, they immediately latch on to the big moves:
Take bonds for example. No I mean – please TAKE them because it seems the ZB couldn’t raise a bid in a woman’s prison holding a fistful of pardons.
Anyone looking at this chart is going to think ‘OMG so juicy – I wish I had shortened bonds two years ago.’
Yes me too – I only caught a small part of that move.
But those large scale crashes are more of an exception than the norm.
Which means the majority of the time you’ll just sit there waiting for something to happen.
And when it finally does you probably have long given up and missed the move.
Look at 2021 – interest rates were going exactly nowhere – and this is a LONG term chart.
Imagine trading this – e.g. via an ETF – and then missing that first pop higher in early 2022.
When exactly would you have jumped in?
Maybe in hindsight you’ll find a spot.
That’s the predicament most people face when it comes to trading.
The market always moves – but it rarely moves in line with your trading horizon.
Which is how people miss large market corrections, just like the one we’ve been observing all across the front in the past year.
We are all boiling frogs – floating around the market environments we are slowly cooking in.
Since I’m in the mood of asking dumb questions: How have you taken advantage of the recent Dollar run?
If you’re holding Dollars in your account you’d think everything would be getting cheaper.
So why is everyone talking about the looming hyperinflation?
Very simple – compared with most other significant currencies out there the old greenback is the slowing falling anvil of the bunch right now.
I’m enjoying TF out of it over here in Europe right now for sure.
But big currency moves like this tell us something and that something is:
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