Little Known Ways To Successfully Paper Trade Options

paper trade options

Let’s face it, paper trading is a necessity for any options trader these days to be successful. The term Paper Trading simply means that you are pretending to trade financial instruments such as stocks, options, and futures using their current prices as would-be buy and sell prices. No real money is put at risk, instead…

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What Can I Realistically Make My 1st Year Trading Stocks And Options?

stock options

The only reason anyone starts trading stock options is to make money, and one of the most common questions people ask is “What can I realistically expect to make in my first year of trading?” It’s a critical issue, but you probably won’t like the answer very much. I don’t know. There is no set…

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Writing Covered Calls In Bear Markets – 4 Rules For Generating Profits During Market Declines

covered call income

Writing covered calls is a popular and generally conservative strategy that many investors use to generate a relatively consistent stream of income from their portfolios. In a nutshell, an investor who owns 100 shares of an optionable stock may elect to sell someone else the right to buy those shares from the investor at a…

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14 Characteristics Of Highly Successful Option Traders

successful option traders

There are many lists out there of what makes people successful in life, and they always include character traits such as dedication, focus, passion, single-mindedness, determination, and confidence. Of course, this is true and these qualities, when applied correctly, can certainly help you to achieve success. But if we want to become successful option traders,…

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Analyzing New Trading Strategies – An Example Of One That Didn’t Go So Well

trading strategies

I’m always testing and analyzing new trading strategies. Well, maybe not new strategies per say but at least new techniques, entry points, risk management, etc. For the past 2 months I’ve been testing a new strategy with a small trade that hasn’t gone as well as I’d like and I wanted to share it with…

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How You Can Profit From The History Of Candlestick Patterns

candlestick patterns

Japanese candlestick patterns have been around for centuries. Originally they were used by merchants to help them predict and profit from rice trading. I guess you can say that they have really passed the test and are a “seasoned” tool for any financial market. If they weren’t somewhat reliable then they would have faded away…

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Are We In The Early Stages Of A Social Media Tech Bubble?

tech bubble

What’s up with all these social media companies filling for IPO’s lately? I guess the spark was lit with LinkedIn which went public just 2 weeks ago now. Since 2 other major social media tech companies have filed the paperwork for additional IPO’s – both Groupon and now Zynga. Coming Social Media Bubble? I hate…

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Are Wealthy Investors Always The Most Intelligent Investors?

Pretty heavy question here, but one that needs to be asked…Are wealthy or rich investors always the smartest or most intelligent investors? With the likes of Bernie Madoff these days who have wrecked lives, it would be hard to quickly answer YES. Sure it depends on what we are talking about here. I mean you…

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How Can A Call Option Decline In Value When A Stock Rises?

call option

I’m sure we have all traded a call option that declined in value when the stock was on the rise. I know I have done it many times before I started focusing mostly on option selling strategies. We all know that stocks and options are completely different investment vehicles. What’s hard about the question above is…

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Rebalancing Your Portfolio To Control Risk Exposure

rebalancing

Rebalancing your portfolio and adjusting it for risk and reward can be a daunting task for some traders. As with most things in trading, sometimes it just simply looks harder. To start there are many schools of thought with regard to rebalancing and allocating a portfolio – none of which are correct since they are…

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