Archive for September, 2009
http://www.tradingoptionslab.com/track/go.php?c=tbtn1of5
Overview: While the majority of traders hope to make a profit trading options, we take a more business like approach and hope has nothing to do with it.
Trading options to us is entrepreneurial. We take advantage of market opportunities, build positions, manage a portfolio and generate profits trading options based on:
1. fundamental business principles and
2. market truths
We are not investment advisers or financial planners, we are retail investors like you. We do not not manage money and we do not make recommendations on any stock or option investment. We trade our own accounts.
Our purpose for establishing our training program and this website is to provide education to retail investors like us who want a smarter, simpler, less stressful and more profitable way to trade even with limited capital.
Business Principles:
We pursue opportunities in the market and then manage those opportunities based on the numbers.
All successful businesses manage their activities based on certain numbers: key ratios, profit and loss, conversions, overhead and more. That is what we do: manage our investment business by the numbers.
When a number is off we dig deeper into our business activities to see where the problem lies and make adjustments to our portfolio so that we generate the maximum amount of profits for the capital we invest, just like any good and successful business.
The only thing that matters in business is ROI (return on investment). In our type of business, we regard ROM (return on margin) as our ultimate goal. That is the name of the game and we never deviate from it because the numbers never lie.
The Only Truths of the Market:
For stocks there is only ONE Absolute Truth:
1. All stocks fluctuate in price.
For options there are only TWO Absolute Truths:
1. All options fluctuate in price.
2. All options expire.
The top traders in the world learn to respect these rules because they are the only truths of the market.
You might think there are other truths but there are not – everything you hear about the market outside these 2 rules is hearsay, opinion, commentary and even complete fantasy.
We are investing as entrepreneurs – we watch for opportunities, create a plan for trading activities based on solid business principles, plot our expected ROM (return on margin) and then manage those trades by the numbers.
How Do We Trade This Information?
We take these Market Truths and design a trading strategy which means taking advantage of market opportunities and building positions and portfolios around them. As we know its impossible to predict the future and that the market can be irrational and cause large losses at times for the average retail investor So instead of predicting market behavior we create fluid positions that are managed and adjusted according to market conditions so that we are always allocating capital as new opportunities present themselves.
The one art most retail investors are not taught is how to adjust positions once they are placed. Learning the art of adjusting trades is the insiders edges over retail investors- but not any longer. Once you learn how to adjust a trade so that it makes money (instead of losing money) you will be amazed at the results.
All businesses have risks. In this business there are 4 risks but the risks can be managed. And, it takes 15 minutes – sometimes less – a day to manage these types of positions.
If you are interested in learning more about how we trade as a business and get information on our home study course we have developed, watch the videos that are available on our site – no email address or registration is required. And when you are ready to learn the EXACT way to trade for monthly profits and with total confidence go here to sign up for our course:
http://www.tradingoptionslab.com
On our blog, we will provide free videos on an occasional basis so if your are interested in getting notified when they are available sign up with our newsletter.
Duration : 0:9:33
Stock option basics and why trading stock options can be so powerful. Cuts through all the mumbo jumbo about stock options strategies. Part 1.
Duration : 0:7:45
How to trade stock options with covered calls and married puts p1/7
Duration : 0:9:40
Why Option trading? Compare stock trading to option trading.
Duration : 0:9:58
Options News Network (www.onn.tv) Pro Lesson: What’s Your Delta? In this video, Joe Troccolo helps us determine our delta. View more videos with options trading strategies at www.onn.tv
Duration : 0:4:42
Financial Markets (ECON 252)
Options introduce an essential nonlineary into portfolio management. They are contracts between buyers and writers, who agree on exercise prices and dates at which the buyer can buy or sell the underlying (such as a stock). Options are priced based on the price and volatility of the underlying asset as well as the duration of the option contract. The Black-Scholes options pricing model is one of the most famous equations in finance and offers a useful first approximation for prices for option contracts. Options exchanges and futures exchanges both are involved in creating a liquid and transparent market for options. Options are not just for stocks; they are also important for other asset classes, such as real estate.
Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses
This course was recorded in Spring 2008.
Duration : 1:7:51
Here’s a simple trading system using stock options during earnings season
Duration : 0:8:33
go me
Live online day trading in real time. Watch and learn from this video as I demonstrate tips and strategies during the trading day. I don’t use a trading system. I trade discretionary setups using software filters and Technical Analysis. How to best day trade for small consistent profits is my goal for this video tutorial. The information I give is for education only. Daytrading for a living is not easy. It is something that takes much training.
Duration : 0:10:26