Trading Education: Letting winners run - Horses for courses - Corvin Codirla [Video]
|In today's Tip TV education segment, Corvin Codirla, Founder of CCFX details the trading the trending market and mean reverting market. He is joined by Tip TV's Nick Batsford.
Codirla says letting winners run and downsizing loses is the key to successfully trade the trending market. To make it simple, he presents a strategy – Random trading system with defined exits i.e. enters on a random flip of a coin and exit on well-defined trailing stops.
He then goes on to suggest selling options – short straddles or strangles – as a preferred strategy to trade ranging market. Batsford is quick to point out that selling/writing options is a limited profit and unlimited loss strategy and hence caution needs to be observed.
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