This isn’t a trick or secret tip by any means – but maybe you just haven’t though about commissions like this before. You see, all of us have done the searching online for the “best” commissions. I know I still look around now and then to make sure I’m getting the best deal I can ...…
Options trading involves opening and closing positions all the time right. And since the markets can turn on a dime, there are many times when exiting a position quickly becomes necessary. But before you can even be comfortable getting in and out of orders you have to know what tools you have at your disposal. ...…
If you truly want to make more money trading options then you need to start thinking now about the options you trade now. Liquidity should be combined with other metrics as you perform your market research but some traders overlook its advantages. In this post I wanted to share some of reasons why an option liquidity ...…
You’ve decided that you want to really do all this trading stuff. Now you have to set up your stock charts so that it’s easy and simple to analyze the markets. A little time up front correctly setting up your charts now will save you time and money down the road. The key is to ...…
Placing your first option trade is not as hard as it may seem. You’ll never learn until you do it so let’s walk through placing your first trade step by step right now. At the end of this quick tutorial, add your comments and let me know if you think this was helpful in getting ...…
Many traders lose simply out of ignorance – as bad as this sounds it’s completely true. Honestly I throw myself into this category as well somethings when I see something I know I should trade on and I don’t. You see most investors base their trades on hunches, news, or tips from friends which we ...…
The “Max Pain” theory, also sometimes called the Strike Price Pegging, as it relates to options trading refers to the changes in the price of an underlying stock as it gets closer to its option expiration date. According to the theory, most traders trading options are likely to experience painful losses on average over time. ...…
This bull market run has been tough to stomach considering how over-bought the market continues to be each day. So in the video below I wanted to go over some of the technical indicators to watch as we continue higher in the stock market. I’ve always been a big believer in trying to remove your ...…
When I’m explaining financial markets to someone that is unfamiliar with them, I like to explain difficult concepts using analogies. One of my favorite analogies is comparing financial markets to vehicles. I use cars in particular because everyone knows what a car is and has either driven a car or ridden in one. Each vehicle ...…
The moneyness on a single option contract is a fundamental concept to master when trading. I’d even say it’s a requirement before you put real money into the market that you completely understand these relationships. It only gets more difficult as you add complex options strategies. Because of an option’s moneyness, the option can be distinguished ...…
These past two weeks have been tough as an options trader. Differentiating between trading an a possibly irrational market or bull market trend is sometimes very difficult to assess. We all know that the stock market can push us to extremes and then, just when we “give up” and “give in” the turn happens. Timing ...…
For many people who are beginning options trading, they make the mistake of investing too much of their money in the new business. And since I get this question a lot from new traders I wanted to take time to cover it in more detail. A key part of a financial education is understanding the ...…
Casinos are built on odds and probabilities and to a certain extent, so should your trading system when it comes to the stock market. As traders we know that we are never going to be right in picking the direction or magnitude of a stock market move all the time. So why don’t we take ...…
In addition to the variety of monthly contracts available, many underlying stocks are beginning to offer weekly options. These weekly options can be employed in various trading strategies to manage both the theta and delta risk associated with options expiration. Overall, the growth in weekly options can provide a richer strategy platform that should not ...…
When most traders get started they come into the market with one thing on their mind; make money fast! Return on capital becomes more important than return of capital. Risk management and protecting your portfolio becomes an after thought to making money and earning a high rate of return. How poor and ignorant this thinking ...…
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