Tag Archives: trading

Stock Trading

Playing Weekly Options – Riding The Butterfly Spread Trade To Bring In Weekly Options Profits

Leave a comment

One way to trade weekly options that could be considered ‘less risky’ – at least when compared to other similar ways of trading – is to go out and purchase a LEAP option – use that as the foundation for the trade – then start to sell weekly options against it – similar to how one might trade a covered call trade.

Trading LEAPS along with Weekly Options

When you break the word LEAPS down you find that it stands for: ‘long-term equity anticipation securities’. These trading vehicles can have life spans from a couple of months to many months and in some cases even years. Another interesting point regarding these particular trading vehicles is that in actuality they are not even ‘options’ – but in fact they are actually ‘securities’.

I once heard a professional option trader say that he thinks of LEAPS is that they are a way to ‘lease’ or ‘rent’ the underlying stock or etf being used instead of buying the actual stock. LEAPS are probably the closest thing you can find to benefit from the rise or fall in a stock without actually owning the stock itself – and you can do so with a great amount of leverage, at a far lower cost, and with a potentially much bigger return – or bang for your buck.

AAPL example using LEAPS and Weekly Options.

Let’s create an example where a trader decides to make a position in AAPL – but doesn’t have the amount of money needed to purchase the stock. What he can do instead is purchase an AAPL LEAP for far less that what the stock would cost – and still have the ability to take advantage of a move in the stock.

Another great weekly options strategy that can be used will LEAPS options is use them as a stock ‘surrogate’ for a covered call type of position. Instead of using the actual stock as the base position for a covered call play – a LEAP can be used – and then the option trader can sell weekly options against that leap – potentially every single week – bringing in premium much like a covered call type position only with much less capital at risk. Also, if you were to compare these two strategies against one another – you would most likely find that the return on investment is far greater when using the LEAPS weekly options version.

Teddy Baby is an option selling fanatic – mainly addicted about trading Weekly Options . Visit Weekly Options Website to find out more about his Undemanding Paint By The Numbers Design for riding the weeklys for consistent returns.

Stock Trading

Successful Vs Unsuccessful Traders

Leave a comment

There is a fine line between becoming a successful trader and becoming a trader who knows a lot, but can’t make money in the stock market. There are a few key differences that define these two.

Successful traders make their own decisions on how they want to approach the stock market and what qualifies as a good buy. This allows them to try out different strategies and work out a strategy that fits them best.

Traders who are not successful may learn a little bit about the stock market, but when it comes to trading they generally look for free stock tips on what to buy then invest their money into them hoping to get rich quick. And of course get rich quick hardly ever works.

The traders that are successful will create their own systems of trading and how they want to approach the stock market. They can then learn from any failures that they do have and try to stop them from happening again in the future. In this way they are constantly improving and becoming better.

Unsuccessful traders search the net for winning systems and switch strategies whenever they hit a rough patch. This stops them from learning anything new because they are constantly looking for the “holy grail” of trading systems that is never wrong. That system just doesn’t exist.

Successful traders will look for ways that they can control their emotions so that they do not start to panic when bad things happen or start to get greedy when good things happen. Emotions can interfere with logic and cause you to lose a lot of money.

Unsuccessful traders panic when they lose money and are swept up with greed when they make money. This causes them to make foolish mistakes just to satisfy their “fight or flight” instincts which makes them lose more money.

The traders that are successful are the ones that are always learning. They are learning how to improve themselves and their systems and over the long term this leads to some great performance.

Traders who are not successful do not want to work to become successful. They do not think about all of the preparation that it takes to get rich, they just want to be rich.

For more on the stock market visit Shaun’s aite which can help you learn stock market trading. Unique version for reprint here: Successful vs Unsuccessful Traders.

Forex Trading

The Best Forex System For Beginners To Trade

Leave a comment

All the forex systems which have been created over time do share a number of simple and basic traits. It is true that all different systems will have variations in their studies or indicators they possess, the common and basic rules of trading do not change. A well informed and experienced trader might have the potential to make profit boosting trades by doing nothing more than just following along with forex news about the market. Yet, the bulk of investors will need a clear understanding of the market and then apply the basic rules of smart trading. You definitely must take a short look at the rules offered forth and adhere to them as you gradually learn your own special trading style and you won’t lose sight of the notion the main systems are almost always simple in concept and are relatively easy to build on top of.

The very first thing you need to remain mindful of and invest a lot of time learning would be the ability to read a chart and determine the short-term and long-term trends occurring. By looking at the charts, you will discover the ability to ascertain repeated trends or those trends which may be considered seasonal and use such info to determine past success.

Secondly, a set of tools is an important part of your trading arsenal. Whether you subscribe to a particular Forex system or follow the Forex reviews of a guru, you must remember that these are both tools and tools cannot make the trade, they are there to make the trading easier. Thirdly, do not overuse the leverage that is afforded you in this area of investing. New investors get themselves into trouble very quickly by taking advantage of this leverage.

There is a fourth item to need to be mindful of and this would be the notion you must institute an easy to follow and understand strategy. A common way to do this entails using the common stop-loss tools your broker has made presented to you. Another area of critical concern will be the planning of the entry and exit points on the trade. Lastly, you will also have to add a bit of consistency to the equation along with confidence and patience since these traits will be needed for the long term in order to boost the odds your currency trading is time consuming.

Now that the rules are out-of-the-way, here is a very simple yet successful Forex system, that when employed correctly is 70 – 80% effective. There are 4 indicators that you will follow moving average, MACD, force index and Parabolic SAR. Trades are initiated only when these four signals are in agreement. These trades can be done on any time frame you choose but work most often on the 1 hour and 4 hour chart. Shorter time frames cause a lot of seesaw action and longer time frames require deeper pockets to absorb the small corrections.

If these following four things end up happening then you will need to go long or you will need to purchase the currency pair you have been monitoring

1.The moving average has dropped below the price and now moving up 2.It becomes obvious an MACD crossover beneath the zero line has occurred 3.The force index is moving in an upward direction 4.The parabolic SAR had dropped beneath the price

All of these indicators of these four items need to be in place or you should avoid trading. With a quality Forex system in place, you may also be able to profit from a marker that is trending down as long as you clearly follow these four rules

1.The moving average has gone beyond the price and is now heading downwards 2.The MACD will crossover beyond the zero line 3.A downward direction is where the force index is heading. 4.The parabolic SAR is now above the price.

You must always adhere to such rules and always be mindful that all four indicators are in clear agreement before you take the steps to open the trade.

Even though this particular Forex system is highly effective there will be losing trades at one point or another. No system can ever provide an alternative to educating yourself in how the market works. All you need to do is stay on top of trends and pay careful attention to Forex news reports. You can look for outside signals that will boost your confidence levels in your trades. Stay along with these rules and trade confidently as this will hopefully lead you do the proper profits.

Peddling within the boundaries of the forex trade arena is a highly dangerous game to play. Thousands of hopeful investors in the foreign exchange trading market are still peddling tirelessly.

Forex Trading

Why It Does Not Have To Be That Expensive When Learning Forex Trading

Leave a comment

A lot of people develop an interest in forex trading every year, and many people attempt to learn all the basics of this particular subject. However despite the fact that many people believe that you need to spend some money to do this, this isn’t necessarily the case, as I will hopefully demonstrate in this article.

It’s true that there are some very expensive forex courses you can buy, with some of these courses costing several thousand dollars. These particular products are generally home study courses that are delivered to your door, and can be studied at home in your own time.

These types of products can give you a comprehensive and thorough education. However you would hope that they would if you’re paying all this money. The problem is that they are not all as good as you might think, which is why you need to do a lot of research and read plenty of reviews before you part with your hard earned cash.

You may also like to attend a live forex event in your area. There are businesses that sell forex products who generally organize these free events. You may well learn a few of the basics of forex trading, but the downside is that these events often act as a sales pitch rather than a full training session.

The good news is that you don’t need to drag itself along to one of these events or invest thousands of dollars in a forex course. It is perfectly possible to buy a low end forex course that contains just as much useful information, and is just as educational.

In fact you could give yourself a complete education without paying any money at all. All you need to do is read through some of the trading forums that discuss every single aspect of forex trading.

Similarly you can visit various different websites and blogs and learn everything you need to know completely free of charge. Many sites provide lots of useful information without charging anything at all. So you may well want to take advantage of this and learn as much as you can.

So the point I want to make is that you really do not need to spend that much money on your forex education when you’re first starting out. There are plenty of free resources available, and even if you decide to buy a forex training course, you should find that there are plenty of decent ones available for less than $50.00.

I should end this article by stressing that learning the basics is the easy part. It is the next stage, ie trying to come up with a winning system, that provides you with your biggest challenge.

Click here to read a full Forex Profit Accelerator review and to learn how it generates winning trades, and to find out where you can buy the best forex course.

Forex Trading

Forex Trading Hours

Leave a comment

The foreign exchange market, or forex market for short, is open 24 hours per day during the business week. New York, Tokyo, London and Sydney are the four major trading hubs of the global currency trade and each market has its own hours of operation. These hours overlap at times and because trading at peak hours generally means a better chance of making a profit, it is important for every trader to know when the markets are open.

The hours which you will see listed below are all in relation to US Eastern (New York) time. The New York Forex market is open from 8 am – 5 pm, the London market from 3 am to 12 pm, Tokoyo from 7 pm to 4 am and the Sydney market is open from 5 pm to 2 am.

The lower the volume of trade at a given time, the less money there is to be made; in most market, the first few and last few hours of operation are when the most trades are made. This is because these are the hours before traders leave for work and when they return home.

However, the best times of all to trade are when different markets have overlapping hours of operation. For many traders, this is the only time that they consider worth trading during.

These overlaps include the periods where London and New York overlap between 8am and 12pm. Sydney and Tokyo overlaps between 7pm and 2am. London and Tokyo overlap as well. This occurs between 3am and 4am. Again, all of these listed periods are based on United States Eastern time. If you are not on the East coast, you will need to adjust these periods accordingly.

These overlap periods are the peak hours for Forex trading. Naturally, some of these overlaps happen when you are likely to be asleep. You can try to adjust your sleep schedule to take advantage of these times if this is possible for you.

If not, at least try to trade during the hours when people are at home, and thus increasing the overall trade volume. The value of a commodity will not move much if there is no one online trading it, and these periods are for the most part a waste of your time.

If you are new to Forex trading, then you should memorize the hours when the markets are open and remember the best times to trade. After all, the goal is to make a profit and this is most likely to happen when you trade during peak hours.

The uprising of forex techniques will always make things a little extra competitive to all. Whereas, you as a wise trader, must always look at the fundamental fx trading strategies.