With the advent of online trading, many new investors are drawn into the world of stock market trading. Fortunes can be made and lost without leaving the home. However, before embarking on this new life, any investor should consider their strategy for sound investment and not gambling to help protect themselves from what can be [...]
Some of the most profitable investment tools accessible to traders today are stock options. The vast majority of people are reluctant to explore option trading for fear of the fact that they might be too risky. Most stock market investors like stocks, because they believe them to be safer than most other investments. Those individuals [...]
I am an active trader of option credit spreads on the SPX, NDX and RUT broad based stock indexes. I am very conservative and only enter into trades that have a very high probability of being profitable. I write OTM Bull Put Spreads first. During months when the market is moving sideways or [...]
Let’s face it, derivative trading is risky. Period.
Derivatives such as futures and options are leverage instruments and by virtue of being leverage instruments, derivatives inherently carry more risk and exposure than pure and simple stock trading. Leverage instruments are risky because leverage allows you to do more with the same amount of money than you [...]
Are you looking to outperform the market and optimize your profits but are not sure how to pick the right stocks? Has investing become a chore? Do you find yourself investing in hot stocks after they have made their big move? Would you like to learn how I increased my portfolio by over [...]
Stock trading is one of the last true meritocracies. All that matters for your investment success are your own decisions. Stock trading is a precision-based activity and one tiny mistake in judgment could send you plummeting right to the bottom and result in a huge loss.
Likewise, the opposite could happen. You may make a great [...]
People in this trading business generally have the most important question is how to make good buck from these available trading options. Many traders have the strategy to make a data base regarding the market, which will be peripheral to the market data, just like the weather report and also they will make data on [...]
Even though trading in the market is, in many circles considered gambling, it appeals to people for a wide variety of reasons. All of the reasons preferably lead to only one conclusion, making money. Whether you’re interested in just trading part time, you must treat it as your own business. You don’t need a lot [...]
Have you or your friends ever attended an options seminar, learned how “simple” it is to make a high income from options trading but yet when you did it for real, you failed to make any money consistently?
Indeed, from my observation in this industry over the past decade, I have noticed that the chances of [...]
Options are riskier to trade than stocks. That’s fairly well known. And we’ll get into why.
Since options have an expiry date the investor has to make a choice within a relatively short time frame. This adds risk and complexity to the trading scenario.
Also, since options are derivatives, they have no inherent worth. Their value is [...]