Posts Tagged ‘Stock Option Trading’

Online Stock Trading for Beginners-7 Starter Tips

Financier who contract for at some stage in the basic of the lathered supplies take a turn for the better are at the present make afraid or criticize themselves. None action beneficial an investor or dealer estimate perpendicular. Beneath are small hint in buy and sell with the present sell bad times.
 
If you [...]

How To Triple Your Stock Market Returns Using Options

The key to using options to increase your stock market profits is that you must be able to correctly predict both the direction that the stock will move, and the approximate time frame in which the move will take place. If you miscalculate on either of these values, you will either break even, or [...]

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 [...]

Option Trading – As Risky As The Reputation?…

Options Trading has a reputation for being extremely risky, but this reputation is in large part undeserved. True, option trades are extremely risky – even dangerous if you have no idea what you are doing. However, that is true of all forms of offline or online trading, and trading in options is no exception.
While options [...]

Stock Options Trading Overview

The concept of Stock option trading was introduced in the 1970’s, and it became popular in 1980’s. However the market losses of 1990 caused a stop in this type of trading, the recent concept of electronic trading (online trading) made them again popular to the public.
Stock options are options, which use stocks as the [...]

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 [...]

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 Options Trading – Portfolio Measures and Trade Performance Metrics

The Reward of Profit and the Risk of Losses for retail option trading needs to be managed at 2 related levels of performance: Portfolio and Trade Specific.At the Portfolio level for online options trading, there are 3 types of Targets that must be set, even before you trade.Maximum Return Target: complete achievement of the “ideal” [...]