CARRY TRADE AS A TOOL OF PROFIT MAKING
Introduction
First, let’s take a look at the carry trade. In short, the carry trade is used when an investor or speculator is attempting to capture the price appreciation or [...]
Ok, so you want to dabble in the stock market. Unfortunately, you don’t know how and where to begin. So what do you do?Well, the first relevant thing to do is ask the basic question of what is a stock and its significance.A stock symbolizes ownership of a company. Some view stock as certificates. So [...]
Many people enter trading, whether it be stocks, options, commodities or other markets, after having been very successful in their primary occupation. Many of these new traders are perfectionists by nature and driven to be successful. This often leads to a couple of fatal flaws in trading:
The reality of the trading business is that [...]
Many conservative income generation trading strategies depend on the time decay inherent in options pricing. When I establish an iron condor well OTM (out of the money), I am selling option spreads and expecting those spreads to slowly lose value as the underlying stock or index trades within a channel. Other traders may use butterfly [...]
Many people think of options trading as very risky and suitable only for the “high rollers”. In this article we will demonstrate one of the ways options can be used in conservative financial portfolios.The basic definition of a put option is that it gives the owner the right, but not the obligation, to sell 100 [...]
One will commonly hear or read the following “rule of thumb” for trading:Only trade positions with potential profits of at least three times the potential loss.This sounds like a reasonable rule, risking a little to make a lot. However, it ignores the probabilities involved. Buying a lottery ticket for $1 to potentially make one million [...]
Many people think of options trading as very risky and suitable only for the “high rollers”. This article briefly surveys how options can be used in conservative financial portfolios to boost the income from your stocks.For the purposes of this article, let’s assume we have a stock portfolio of conservative stocks, e.g., IBM, GE, etc. [...]
The latest News can affect all Markets- All Traders know this
So it is very important that we get the latest news, and as it happens.
This why the wall street journal is the first tool that every trader needs.
The wall street journal is arguably the most important trading tool that any trader can [...]
As a professional options trader, there are two things I will remember most as I look back at this bear market of 2008, and that is; a.) How covered call writing investors are receiving substantial option premiums to take risk and; b.) How the certainty of a “buy and hold” approach of a well diversified, [...]
Let us accept that investment trading is not for all. Brokers , like lawyers and doctors have their own language, such that it can leave you with nothing to say when you hear them speak.
Yet through these brokers, we also heard how one can make the most of its revenues through investment. But it would [...]