The Option Alpha Podcast
The Option Alpha Podcast
Kirk Du Plessis
128: Stock Market Direction Becomes Irrelevant When You Average Down
23 minutes Posted Apr 29, 2018 at 11:00 pm.
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Show notes

Show notes:

How important is picking the right stock market direction when trading options? Depending on how you trade, it can be either vitally important or not important at all. Today's podcast offers some insight and examples of why higher trading frequency and why averaging down (or up) around the market creates an environment in which market direction becomes more irrelevant the longer you trade. As retail traders, we want to try to replicate more and more frequent "resets" of our overall break-evens which in turn lead to less dependence on the market direction for profits.