Archive for December 2009

Option Trading: Credit Spread Strategies

A credit spread is a type of vertical spread. It is a trading strategy in which you are buying an option, call or put, at a certain strike price, and simultaneously selling the same type of option at a different strike price of the same month. The sold strike price must have a higher [...]

The Most Important Trading Strategy That No Traders Can Afford not to Know

Whether you are investing in stocks, futures, forex or options, you know that there are many ways to trade them. With every school teaching different systems, methods and strategies, sometimes it is difficult to distinguish which is the most powerful of them all?
Almost every trading books and trading seminars that I have come across [...]

How To Trade Forex – The 14 Tips That Really Work!

Trading forex (foreign exchange) is highly risky. Due to the leverage available, with very little money down you can have big gains, but also big losses. In addition, there is financial friction, since you are paying fees in the form of the spread. Only highly sophisticated investors should trade forex — and if you’re not [...]

Stock Option Trading – Fundamental Flaw in Fundamental Analysis and Stock Picking

Clinging on to Fundamental Analysis and stock picking software, only keeps you stuck in trading equities. Trading this way, compounds concentration risk in one asset class and fails to adequately diversify risks across Equities, Bonds, Currencies and Commodities.  There’s much more to stock option trading, than stock itself.I cite Benjamin F. King’s study, quoted repeatedly [...]

Options: Trading Strategy and Risk Management (Wiley Finance) (Hardcover)

The key concepts and essential strategies behind the successful use of options Written by Simon Vine, a seasoned trader who has over ten years of experience on Wall Street under his belt, Options is the definitive book on options for traders, investors, and risk professionals. Options provides a step-by-step approach [...]

How to Day Trade For Living – 5 Quick Tips

The real meaning of day trading comprises mainly of buying and selling of financial equipment on one day duration of trade. Unlike the long-term type of investment, day trading offers almost limitless opportunities for investors and promises immediate results, that is, of either profit or loss. In addition, this is again that kind of business [...]

Stock Option Trading – Paradox – More Trades on Dull Days and Normal Days than Big Days

Contrast these 2 days.  29 Sep, 2008: Dow down -7.50%, Nasdaq down -10.06% and S&P 500 down -9.63%.  Versus 13 Nov, 2008: Dow up +6.25%, Nasdaq up +6.11% and S&P 500 up +6.47%.  Many retail option traders would have rushed to get their spreads filled on such big days, either to get short or long.  [...]

Online Trading Education

Rating: 5 out of 5 stars
Reviewing: INO TV’s Online Trading Education 
Learning in the financial industry is a lifelong process. The complexity of the global marketplace and the level of competition amongst traders and investors means on-going education is not an option but rather a necessity. INO TV has given me the online trading education [...]

Stock Option Trading – Candlesticks & OHLC Bars Lose their Patterns on a Distribution Curve

Time-based charts (namely Candlesticks, OHLC Bars and Heikin-Ashi) fail to truly depict price.  This article will help you realize that time-based pattern recognition is an unreliable method for stock option trading.Some retail training firms like to popularize the myth that, “Everyone looks at these patterns in the charts”.  They are partly right.  Though, their use [...]

You can make profit with a Good Options Advisory Service and money management in Stock Options Trading

You want a very nice seletive support advice to aid you in studying trade better, and to support you when have to make tough judgements, and hence you are entering Stock options trading. You always want to know that you can count on having top of the line quality options advisory. A well thought out [...]