PHO TOGRAPH: DAN SAELINGER | ILLUSTRATION: RANDALL WATSON
• WHEN THE STOCK MARKET blasts
higher, nobody wants the fun to end.
And the higher it goes, the more exhila-
rating it becomes. While some pundits
will always declare an end is near or
here, changing course is a topic of con-
versation many analysts would rather
avoid. But ultimately, no matter how
smart we think we are, we don’t get to
choose what happens next. Fate does.
Whether you’re trading stocks,
options, futures, or forex, or which
direction you choose, your priority is
to manage your risks. What matters is
you apply strategies that bring you the
highest chance of success in any
condition—up, down, or sideways.
As an option trader, you have many
strategies to choose from. But how
do you know which one to use when
you’re not sure if the markets are too
toppy or are ready to bounce back
after a slide? In our feature article
“Toppy Markets and Heavy Bottoms”
on page 16 we look at three strategies
you could use that have some upside
potential but limit your risks.
Market conditions change and you
need new trading ideas. Where do you
get them from? The article “Three
Steps from Idea to Trade” on page 20
points you to an approach you could
incorporate into your daily trading
Why Spoil the Party?
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routine. It’ll help increase your market
awareness, a necessity if you wish to
elevate your trader status. A savvy
trader isn't going to spoil the party.