What I Learned This Week

I had the bright idea to include a regular weekly update on what I learn each week. Since this is the first post, and it's after about 3 weeks of learning, I'll catch you up. First, I'm planing to go through all of the lessons a minimum of 2 times -- more likely 3 or more, because I recognize the value of repitition in learning. My primary source of knowledge/lessons at this point are the On Demand courses that I've been given access to for the live classes I'll eventually attend. I've also supplemented this information with some library books -- more on these as I read more and have something to say. I'll describe the On Demand courses briefly, so you know what I'm referring to:

Master Trader - Chart reading and technical analysis
Trading PIT - Introduction to options and descriptions of entry and exit guidelines for several option trades.
Advanced PIT - Advanced option trades including repair strategies to help recover from your initial position.

I've watched the first three sessions of the Master Trader and listened to all of the Trading PIT classes in my car -- I figured out a way to play them on my laptop, but it's playing while I'm driving so I haven't been able to look at the charts and graphs shown, of course. The Master Trader course would be really silly to listen to in the car, since it's all about reading the charts and technical indicators. However, there are many things that can be learned by listening to the Trading PIT courses without the visual reference; as stated earlier, my plan is to go through all the information about 3 times.

Studying the Master Trader course, I've learned how to read Candlestick charts and plot support and resistance. I've also learned the basics of how to read the MACD, Average Directional Index and Stochastic indicators. I've also been introduced to Chaikin Money Flow.

Listening to the Trading PIT courses I've been introduced to the following list of trades/strategies: Protective Put, Married Put, Collar Trade, Bull Call & Put Spreads, Bear Call & Put Spread, Call & Put Ratio Backspread, Horizontal & Diagonal Calendar Spread, Inverted Diagonal Iron Butterfly (no, I'm not making these names up). Along with entry and exit guidelines and which trade to perform on what sort of stock movement, there's information about Deltas and how the underlying stocks affect the value of the option.