How To Make Money with A Stock Trading Newsletter or an Options Trading Newsletter

admin — Sun, 29 Nov 2009 11:18:04 +0000

Believe it or not, good Options trading newsletters and Stock trading newsletter have helped people make a lot of money from the stocks and options markets while saving them considerable fortunes by trading on their own.
The best trading newsletters encompass all the fundamentals of great trading in their service that in turn helps you form top-notch trading habits. Besides making money, forming great trading habits taught by professional trading newsletters (and not all newsletters are taught by professional traders) can be one of the most valuable things you pick up from your subscriptions.
And just for the record stock trading newsletters or option trading newsletters are also called stock trading advisories or option trading advisories, or stock pick newsletters, option pick newsletters, stock trading membership site or option trading membership site etc. you get the picture.
The question is, “How do you find a good Options trading newsletter or Stock trading newsletter?”
Well first all, what kind of trading style do you want to trade? Here are the varieties that are available:
- Swing trading stocks and options
- Intraday trading stocks
- Pivot point position trading on stocks and options that aim for explosive five day to one month moves with well-defined stop losses
- Trend trading that takes advantage of two to four week trends and three to six month trends – trading stocks and trading options
- Then you have the various options strategies, complex option combinations, credit spreads, covered calls etc.
The best services first focus on stock price movement. These top-performing services combine technical analysis, chart pattern set ups, anticipation of opportunities on the charts in addition to combining other price motivational factors such as earnings season cycles, stocks splits, seasonal runs, trends of the indices etc.
The best services have a decent track record. That said don’t get too caught up in a track record because some services may fake their track record. Bottom-line is that the philosophy of the service must make sense and must meet common sense. In other words their approach to capturing trading profits must make sense. Ultimately, if you like what you see, the best test will be to take a trial and paper trade their service. Don’t use real money but pretend like you’re trading in real time with real money.
When you’re testing a stock trading newsletter or option trading newsletter make sure you give it a fair shot. Remember, once you find a good service that service could make you a lot of money. In fact, through known acquaintances that wish to remain anonymous, some subscribers to certain newsletters say they have made millions of dollars trading stocks and options through those particular newsletter trading ideas. So keep positive about the potential of some of these trading newsletters. There are actually good newsletters out there.
Really, the key to finding your Stock trading or option trading newsletter ‘golden goose’ that lays the ‘golden eggs’, is to search in the search engines, search through blogs, forums and review sites. Often when you read review, that person may be a little biased because they may be promoting a particular newsletters affiliate program but it’s worth checking out. Additionally there are many advisories listed in trader magazines you’ll find in your local bookstore.
The bottom line is that you see something that looks interesting you must give it a shot. Don’t trip over pennies on your way to thousands of dollars. If something looks good sign up, receive their updates and paper trade. This way we’ll be doing complete research and you won’t leave behind something that could have even provided you financial freedom.
Paper trading, which is pretending that you are really trading but without the use of real money, is definitely the best way to get started with any trading service, especially if it is in active trading service. Using real money can cloud your judgment because real money pulls strong emotions into your evaluations.
Start doing your research for your ‘golden goose’ stock trading newsletter or options trading newsletter today. Imagine the possibilities if you find one!

Finding or Creating Your Own Options Trading System That Works

admin — Sat, 28 Nov 2009 02:46:30 +0000

Stock Options are wonderful! This clever derivative of the equities market has to be one of the most ingenious inventions of modern times. For the trader who can learn how to win at trading options, there are many luxuries in life that can be experienced.
Success in options trading requires a consistent approach for long-term success. This statement is not meant to be some grandiose, idealistic comment made by some ‘trading theorist’. Rather, it is a statement born out of the hard knock and success experiences of the author and many other long-term, successful trader contemporaries.
A “consistent approach” to options trading can also be called a “trading system”, or an “options trading system” in this case. The term “trading system” is not necessarily confined to a series of computerized “black box” trading signals. A trading system could be something as simple as “buy an option on a stock in an uptrend that breaks the high of the previous bar after at least two days of pull back down movement that make lower lows.” A trading system is simply an organized approach that takes advantage of a repeated pattern or event that brings net profits.
Since an Option is a “Derivative” of the stock you must derive your options trading system from a stock trading system. This means your trading system must be based around actual stock price movement. That said, your trading system doesn’t need to work for all stocks it just has to work for certain types of stocks, certain volatility of stocks and certain price levels of stocks – So focus your trading system on certain stocks that have price behavior that is predictable to the net results you wish to abstract from a stock.
You can develop a trading system, a trading approach, and a trading methodology by identifying a price movement pattern (or lack of price movement pattern) or some event that occurs on some sort of regular basis. This means you can trade price behavior patterns on price charts such as: traditional chart patterns, trends, swings, pivot points, boxes – or you can trade events that motivate stock price such as earnings runs, post earnings runs, stock splits, or seasonal factors. Bottom line to make the maximum profit in options trading you want your stock to move in your favor fast and you want it to move far. Just a relatively small movement in the price of a stock can double your money in options!
There are so many different strategies and combinations that you can trade with options. You can buy calls and puts for directional trades. You can employ call spreads and put spreads to trade directional movements with a buffered risk, and profit. You can sell or purchase spreads to receive the credit of the premium decay by options expiration. You can trade straddles and strangles if you expect a big move but are not sure in which direction. You can also get into ratio back spreads, condors, and butterflies. And if you’re really feeling crazy you can sell ‘naked’ options (just better use a stop loss or you’ll end up like one of my old trading buddies who ran an account to $20 million then gave it all back selling naked options.) You can go to cboe.com for more information on options trading.
Directional options trading systems are the best. Keep it simple, buy calls for and upside trade or buy puts for a downside trade. But this means you need a directional stock trading system in order to trade directional options.
Here are a couple of different approaches for directional systems:
Develop an options trading systems that trades the swings in stock price movement. There are many good swing trading systems available today. We suggest you obtain one. Bottom line with swing trading is that you want to swing trade with the trend. Options brokers these days have advanced order technology that will allow you to enter swing trades based on the price movement of the stock so you don’t have to watch this stock all day. That huge advancement to swing trading options.
Swing trade the day bars. Most swing trading systems are based on daily bars on the stock price chart.
Swing trade the Intra Day Bars! Their other fantastic systems based on intraday charts that pin point swing trading entries.
Develop an options trading system that trades three to six month trends. This is where the big money is. Trading the large trends is where many are able to place larger sums of money to develop their net worth.
Develop an options trading system that trades pivot points. Pivot point trading is arguably the best way to trade options, because price action usually is explosive, and happens quickly in our direction when a trade works.
This is good because you can use shorter-term options and leverage yourself a little better. And it’s also nice you can make great gains in five days to four weeks on average so time decay issues become less of a worry.
There are many different directional trading methods you could use to trade options. You need to pick one, work it, and never use more than 10% options position size per trade on small accounts 1% to 5 % max position size on larger accounts. This methodical way of money management trading options is the fastest way to potentially rapid account growth, helping you avoid needless setbacks.

Strangle Options Strategy » Stock Trading Newsletter

How To Make Money with A Stock Trading Newsletter or an Options Trading Newsletter

Finding or Creating Your Own Options Trading System That Works