Disliked{quote} That's it: I should just do the opposite of what I have been doing. I should stop trying to get into low probability, low r:r trades for cheap, and instead, look to maximize my number of winning trades, even if it means I am settling for lower returns.Ignored
For example, here's a trade that they put on in FXE for a .97 credit:
Theta's currently at .75 which would allow for a good bit of decay, but the buying power erosion is $403.00 ... .
Moreover, from purely a risk/reward perspective, this is one shitty-ass trade:
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So, I gotta assume that the calculation here is that it is (1) a higher prob trade; (2) there's money to be made just from Theta decay. Otherwise, WTF ... ; it would be a totally shitty trade idea ... .
Fireworks are fun ... as long as you don't blow your fingers off.