Archive for the ‘trade stock option’ Category
Today we look at the sell off that broke the S&P channel, and how we played it short from both the XLF and BEN puts side, and the SPY puts side that were put on later that day. I added some GLD september puts in anticipation for a further move to the downside. Because not only the channel but a major support line was breached the next move could be another dump of stocks, there is however a potential for another small rise in stocks to form a more complete H&S formation on the 60 minute charts. It seems like there is a relatively clear path towards the 961 level on the S&P which is the neckline of the major inverse H&S that everyone has seen in the past. I also look at Gold (GLD), XLF, and BEN.
Duration : 0:5:1
Today I look at the SPY, GS, VIX, AAPL, AMZN and talk about some other charts as we end the month with a Doji candle and the day down with somewhat stronger volume. The action is still not bearish and is more neutral, wednesday and thursday will be incredibly important.
Duration : 0:8:38
I just finsihed reading Trading for Dummies and really want to learn more before I start trading in stock options, is there a course I can take online or something like that?
To be successful at trading options in the stock market, you’ll need practice. The best way to get practice is through paper trading, that’s where you follow a stock and pretend you are actually putting trades in and then taking them out, hopefully for a profit.
You can also find books on the subject, like on amazon or barnes and noble. You’ll need a good foundation on the basics. There are also different strategies when it comes to trading options so you’ll need to learn those first as well.
For more advanced ways on how to trade options, there are sites that offer guidance. The advantage with these sites is that they will take you beyond the basics and offer you a better chance at higher returns on your trades.
I’ve listed some sites below that you can check out, they are for information purposes only and not a recommendation. However, you will learn a little more than what you can get from reading books.
http://www.stockoptiontradingsystems.com
http://optionsexpress.stockoptiontradingsystems.com
http://tradeking.stockoptiontradingsystems.com
I think if you start your learning this way, you will be able to succeed in trading options. Others have done it so there’s no reason why you can’t learn how to do it too.
Hope that helps and good luck!
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Duration : 0:10:54
The importance of implied volatility to options trading.
Duration : 0:6:24
VISIT: WWW.STOCKTOCK.COM for intraday commentary Today we looked at the last week’s action and how shorting the stock market and buying cheap calls for protection is probably going to pan out very well. We also own JPM puts and SPY puts. We look at the longer term ramifications and how the charts are showing a lot of bearish patterns which can eventually take us to the 825-840 buffer zone and maybe even new lows down the road. While a lot of people think that this market is going to either move up or crash hard, we believe that the pace of the downtrend will begin very moderately but will speed up once the wedge support line is broken. We also look at the SPY, XLF, AIG and GLD.
Duration : 0:5:8
I recommend learning about options themselves first. The difference between calls and puts, how they work, and basic strategies as a starting point.
You could use the same training materials that a stockbroker-in-training would use, in preparation for taking the NASD Series 7 exam. (The Series 7 covers MANY different subjects beyond options but many of the study materials for this exam are very solid.) I recommend going to any bookstore for NASD Series 7 study materials.
Taking that one step further. The NASD Series 4 exam is specifically about Options and will get into the subject deeper than the Series 7.
Don’t waste your money with expensive courses or products that promise to make you tons of money. If it were that easy, everyone would be doing it. Get to know the basics first and most important, be careful because 80% of the people that trade options lose money!
http://www.tradingoptionslab.com/track/go.php?c=fourrisks
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 : 0:9:47
You should contact better trades and see if they have one coming soon. I bought the DVD’s and found them very informative — plus that way I can pause or go back to a section when I want to.
Today I look at the SPY in more detail, explain what I think is about to happen, and even though the market did make new highs today, CNBC should stop sugar coating the bearishness which still prevails. I talk about the longer-term ramifications of this market, and where it’s poised to reverse. I point out my trades of CM and BIDU and how i took them out pretty much flat out even despite the rally and my GS trade which i timed really well to take profits on yesterday. I also look at the Dow Jones and how it reflects chartology so well.
Duration : 0:3:44