Posts Tagged ‘Option Trading’

Fellow Options Traders, Why Aren’t You Selling Options in Your Trading Account?

The only explanation which would seem acceptable is no one has shown you how to perform this marvel of printing money before, so you are a bit unsure of how to go about doing so!If this is your situation, then you are excused…But if not, you are truly missing out. Even if you are in [...]

Is Option Trading Gambling?

We have seen it way too often, haven’t we?
Advertisements that tout making thousands of percents in profits within days and millionaires made within weeks, all by option trading! Such advertisements usually draw hordes of hungry, indebted gamblers who need that “one big win” to recover their debts or losses elsewhere to their unusually expensive [...]

Why Simple Put Options Buying Fail in Volatile Markets

The recent stock market crisis (2008) took the stock market down by more than 30% in less than a year. This has a lot of traders thinking that big money can be made simply by buying put options on stocks that will move down with the market, especially high beta ones. Nothing can be further [...]

Balance of Risk and Reward in Options Trading

You don’t need to be a trader or an investor to know that the higher the risk, the greater the reward. This concept is true in all aspects of life and business. The more risk you are willing to undertake in life, the more life returns to you. Indeed, risk and reward are directly proportional [...]

Why Trading Stock Options is Better in a Recession

The 2008 recession and stock market crash is the worst financial and economic crisis since the great depression. By Feb 2009, the Dow has dropped almost 50%, erasing all its gains since 1998. In terms of absolute points, the Dow has dropped over 7000 points, which is more than the entire Dow index before 1998. [...]

How to Trade Call Options

The majority of casual investors buy and sell stocks.  If they are bearish on a stock, some will even short-sell stock.  But relatively few investors fully understand and take advantage of trading options. 
 
With stocks, you own a small piece of a company.  However, with options, you purchase the right to buy or [...]

Day Trading Software Choices …Puts You In The Right Call

As a former broker for a few years, in the late 90’s, I had many of my clients tell me that they couldn’t take advantage of a certain recommendation because they had lost their extra money day trading. Back than the access to sophisticated software programs was limited and also rather costly. Today we are [...]

Swing Trading…Less Pressure Than a Day But Big Rewards

Between Day Trade and TrendsIf you are not a day trader or long term investor, you are a swing trader. It usually means you are holding on to a stock for at least a few days, but not more than a few weeks. Swing trading is traditionally considered a low risk venture, especially for thosewho [...]

Stock Market Trading Software…Up Or Down You Make Money

These Fundamentals Aren’t TechnicalI believe in order to lay a solid foundation for  successful trading, there are three basic fundamentals you must adhere to. The first is knowledge. There are only three things really that separate us from an expert. Training and experience comes after knowledge. Knowledge comes first, and expertise is accomplished through experience [...]

Trading Gold…This Precious Metal Will Continue to Shine

All Portfolios Should Contain a Percentage of GoldAnyone who can afford to should own gold. There are many legal ways of having  gold, however, it comes down to either physically possessing it, or owning shares on paper. Most experts agree that taking physical possession of gold is a good idea as a bet against inflation. [...]