Yo Pit Crazies,

The Trade Zone is off and running so go check it out.

What to trade?  It came up in my Easy Trade Button Class that realized volatility sets the tone for all of my trades.  Not investments, those are different things.  Trades are just a horse you saddle and ride for a while.  Investments are the barn you put the horse into and watch the value appreciate over time.

It’[s like looking over my track record for my Option Pit products, no giant winners but profitable with an eye toward minimizing the losers.  1 good trade can make up for 3 small bad ones, although my win loss record is a bit better than that.  You don’t want 1 bad one killing 3 winners.  If I keep with the Easy Trade Button example I size the trades so I keep the loss to less than $250.  It does not always happen like that and in fact since launch 7 of the 66 trades have been over but not by much.  That means I only need one win to cover the loss and on I go.  With 66 trades and 45 wins that adds up to green by keeping loss control tight.

The number 1 issue I have seen mentoring students is loss control.  12 years of mentoring 1 on 1 and that was the issue far and away.  I had some students where If I only took out 5-8 losses for a year they would be profitable.  5-8 loses out of 150-200 trades! What does this have to do with my post today and Ark Funds Innovation and Technology ETF (Ticker: ARKK).  Cathy Woods has created an impressive array of names, but not at great prices save Tesla Inc (Ticker: TSLA)