Tag Archives: wealth building

Stock Trading

Overlooked Truths About Stock Trading

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New traders often have extremely high expectations on what to expect. And that is to be expected with all the hype in the market staring that people can double their money in a month and turn their measly savings into a large fortune in a year.

There are, however, a few things that new traders tend to overlook when entering the market.

1. There are Bumps in the Road

Most people listen to the guru’s talk about how they are making 100% of returns in the market for just a couple minutes of research per trade. The problem here is that people assume that making 100% of return is a realistic ground to start off on. It really isn’t.

A great trader can make 20+% on their investment in a year. To simply expect that you will come into the industry making several 100% of percentage points return over the course of a year unrealistic. It is kind of like someone just learning to swim entering the Olympics in the 440 yard breaststroke and expecting to beat all the professionals who have been practicing for decades.

Trading in the stock market is a game and if you want to get good at it you are going to have to practice.

2. Losses Occur Too

People are shocked when they see a stock trading guru showing them trades that made 300% or so returns in just a couple of days or weeks. But one thing that is overlooked here is that there are also losses that do occur as well.

Out of that 300% return it could be that 2/3 of it was simply recouping losses and when everything is said and done they may just be a little up for the month.

3. Not Everyone Will Be a Great Trader

Over 90% of businesses fail, the same can be said with trading stocks. Most of the people who enter the stock market with the goal of making a large return will actually fail at it. While most people are capable of doing it, the only ones who really can see everlasting success tend to be the ones who put the time and effort into it and keep learning whenever they fail.

For more stock market tips or other information on stocks visit Shaun’s site on the stock market basics. This article, Overlooked Truths About Stock Trading is released under a creative commons attribution license.

Stock Trading

The Iron Condor Option Trading Strategy – The Most Account-threatening Weekly Options Trade In The Entire World

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For all the investors out there who can’t pick market direction to save their lives, here is a good trading strategy worth considering: it’s called the iron condor Option Strategy. This trade is ideally suited for non trending markets, however it can also product great results in a moving market just as long as the investor who is trading this strategy understands it thouroughly and has been properly educated on how to work the trade and most importantly how to correctly adjust.

The iron condor is a trade that benefits from the reality that options are a wasting asset – an investment vehicle that slowly drains value as time passes by. These trades will profit just as long as the strikes which have been sold remain outside the range that has been created on the iron condor profit graph when the trade was first initiated. And these trades can kick off a good and solid return on investment in quick periods of time.

Two individual credit spreads make up an iron condor. Each credit spread is placed above and below where the stock or index being used is presently trading at. Above the underlying is a bear call spread. Below is a bull put spread. This trade can be initially placed either as one whole iron condor spread – all four legs together – or as separetly placed credit spreads.

Ideally, the stock or index that is being traded will remain within the range created by the two separate credit spreads. These are usually placed far enough away from where the underlying is currently trading where as to give the underlying room to move around on the chart without breaching either one of the spread positions on both sides. If the underlying does move so far as to threaten either credit spread, the iron condor trader will need to have a plan in place to protect the position by managing and making adjustments to the position.

Most of the time, iron condors can be profitable as they offer a high probability of success. That being said, it is extremely important for the newer iron condor trader to understand the potential danger of these trades as the reward/risk ratio is very poor. One losing trade can completely destroy a trading account and eliminate many months worth of gains. This is why it is so important to have a solid iron condor management and adjustment plan in place before getting started trading this strategy. These can absolutely be profitable over the long run IF one knows how to correctly place, manage and adjust.

Many iron condor traders grow over confident because they win for a number of consecutive months using this trade. Then they are woken up as the inevitable problem month comes along and destroys a significant portion of the their trading account. This could have been averted if they had only properly prepared before hand and learned how to correctly place, exit, manage and adjust these trades.

Had I first learned just a few of the simple iron condor adjusting tips, tricks, and simple management techniques found at this iron condors website, I could have remained profitable even with the rest of the market crashing all around me.

To discover these ‘tricks’ to trading the iron condor , to over to this iron condor website and see my free video. It will depict an very down-to-earth idea for suitably placing, managing, and ADJUSTING these types of trades.

Forex Trading

Does The Currensee Trade Leaders Forex Investment Program Work?

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Institutional currency traders and big investments banks have been making substantial profits from the Forex (Foreign Exchange) marketplace for decades yet only until very recently has the foreign exchange market been available to smaller investors and people.

The “retail” Forex market broke out into the mainstream several years ago and in addition to it came mobs of questionable Forex brokers, internet marketers, and phony Forex gurus, flooding the marketplace with hundreds of trading classes, Forex robots (Expert Advisors) and so called automated trading systems all promising quick wealth in the foreign exchange marketplace.

The sad truth is the fact that a lot of traders and trading systems fail to earn one dime. In reality most traders and trading strategies in fact lose money. Quite a few investors seeking to build passive income have turned to managed trading accounts. Nonetheless, as you quite possibly know, finding high quality managed trading accounts is like looking for a needle in a haystack. Currensee, a Forex trading firm with its primary corporate office situated in Boston, MA, certified by the National Futures Association (NFA) as well as the Financial Services Authority (UK) has launched a currency investment and trading model connecting investors with some of the world’s best Forex traders and Automated Trading Accounts.

In 2009, with CEO, Dave Lemont leading the company, Currensee created and unveiled the world’s first global social network for foreign currency traders and money managers and in 2010 they introduced automatic traded Forex accounts to a completely new level by introducing their Currensee Trade Leaders Investment Program.

The Currensee Trade Leaders Investment Program provides investors with all levels of experience the opportunity to leverage the expert knowledge and real life working experience of a few of the very best and most profitable Forex traders, even while permitting the investor to keep complete control of their investment account.

This new strategy of foreign currency investing provides you the amazing capacity to observe and instantly make the trades of the most profitable Currensee traders, which they call “Trade Leaders.” Currensee Trade Leaders are the best of the best and each are hand selected from a pool of literally thousands of foreign currency traders in the Currensee Forex trading network.

Basically as an investor you get to employ a number of the most profitable and successful currency traders in the world. Sounds great but the real question is does the Currensee Trade Leaders Investment Program essentially deliver actual profits?

In my own experience as a Forex trader and with various managed trading accounts and automated trading systems as well as personal advice from friends and fellow investors gaining from the Currensee system I must say that the Currensee Trade Leaders Investment Program is absolutely the real deal and it is a breath of fresh air in the industry of Forex investing.

So How Does the Currensee Trade Leaders Investment Program Work?

After the Trade Leaders are picked and thoroughly investigated for consistency, profitability, historical performance and even more importantly their risk management, the Trade Leaders Investment Program platform then permits you to follow and add the very best performing Forex traders to your own custom automated trading portfolio.

After this you sit back and keep track of their overall performance with a variety of custom performance metrics which measure the overall performance of each trader in your account using a proprietary algorithm called the Currensee Trader Authority Index (TAI) score, which monitors and measures every traders overall performance in the aspects of earnings, cumulative returns, risk, trading style and experience.

Once you’ve chosen the Trade Leaders you wish to use, each time the traders execute a trade on their personal accounts the Currensee platform will automatically carry out the very same trade in your own live trading account.

Currensee Key Benefits

The ability to build truly hands free passive income by having top Forex traders increase your income for you is incredible by itself, but what’s truly remarkable is the fact that as an investor following the Currensee Trade Leaders you get a level of professionalism and openness that up until now has been practically unheard of.

Your success is actually directly linked to their success. They only profit if you profit. However, you receive the additional advantage of remaining in full control of your account all the time.

To get a more thorough Currensee Review and more details on the Currensee Trade Leaders Investment Program then check out this free report and Currensee guide now.

Stock Trading

Weekly Option – Using The Option Spread To Magically Create Weekly Options Cashflow

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A neat strategy for Weekly Options traders who reckon that the underlying instrument they are working with will be range bound for the next 2 to 4 days or so of time is the butterfly trading strategy.

This theta positive derivative trading approach creates profits when the stock or index that is being traded remains within a trapped area on the graph or ends up on weekly options expiration day at or near the sold strikes of this trade.

Here is an representation of a weekly options butterfly spread position:

Buy 5 contracts of QQQQ forty four put. Sell ten contracts of QQQQ 46 put. Buy 5 contracts of QQQQ 48 put.

These trades can create rapid gains for the weekly options trader due to the fact that the short strikes of the trading position (the strikes which are sold) create so much premium into the investors account for the reason that they are being sold ‘at the money’ – which are the strikes that have the largest amount of time premium in them. Again, these options that are chosen exactly where the underlying is trading at frequently offer the most amount of option premium available.

Although you will notice a lot of versions of the butterfly technique, the two most frequent are the standard butterfly option spread trade which is set on for a debit, as well as the iron butterfly, which is put on for a credit. It is true that these two unique variations of the butterfly spread are certainly dissimilar, if you would look at the risk graph of one and then compare it to the other, they would come across spot on the same, and they actually act the same as well.

The weekly options butterfly option strategy is a ‘delta neutral’ method, meaning that derivative traders who apply this strategy either don’t have an view on marketplace direction or believe that the underlying stock being played will linger in its general location on the price chart for the period of the trade.

With the right understanding, Weekly Options can be a profitable, low stress, and pleasant investment means that doesn’t necessitate one to be chained to their computer screen worrying over every single tick of the marketplace all day.

Ted ‘The Spread’ Nino is an option selling zombie – particularly obsessed with riding the Weekly Options . Stop by his Weekly Options Training Site to catch more about his First-rate Uncomplicated Way to maneuver the weeklys for ongoing gains.

Stock Trading

The Double Calendar Options Spread Trade – Innovative Sandbox For Iron Condor Option Traders

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A good option trade for iron condor traders who are seeking to build up their option trading repertoire is the Weekly Options Double Calendar spread.

What exactly is this trade?

The double calendar is simply two separate calendar spreads located on the same stock or index, usually placed on either side of wherever the underlying is presently trading at.

What exactly is a calendar spread?

A calendar spread is the sale of a closer month option (many times the closest month option) sold at a particular strike price – and the purchase of a farther out month option (many times the next month out option). The farther out month option is purchased at the same strike price as the one that was sold.

Following is a sample of a calendar spread on an underlying we will call XYZ.

Sell 1 April 20 Put Buy 1 May 20 Put

The way this spread generates profits is from the variances which will arise in the volatility stages of the 2 different strike options, as well as from the fact that the front month option will without a doubt decay at a swifter rate than the deeper further out month option.

A calendar spread creates a rather narrow profit tent over the current price of the underlying, while two calendar spreads (a double calendar spread) creates a profit tent that is quite a bit wider and protects a larger area around the underlying current price. This is one reason why iron condor traders find these trades attractive.

Following is a sample of a double calendar spread with XYZ trading at 30.

Sell 1 May 15 Put Buy 1 May 15 Put Sell 1 May 25 Call Buy 1 June 25 Call

A benefit of the double calendar spread when put up against other option income strategies such as the iron condor trade or the credit spread strategy, is the reality that the double calendar spread can handle big violent moves in the stock market much better than other option trades. When one looks at the risk graph of the double calendar trade and then looks at risk graph of a similar iron condor trade, it is very apparent that the double calendar can withstand a quick big move with less pain then if the same move were to occur to an iron condor trade.

Furthermore, soaring volatility rewards the calendar trade, basically pumping further gain into the position. So in a situation wherever the market suddenly tanks and moves downward, what might be a disastrous scenario for an Iron Condor trade could turn out to be a great circumstance for a correctly setup Weekly Options double calendar position.

Looking to be trained more about how to trade Weekly Options, then visit www.weeklyoptionstrading.org to obtain the most amazing free tools and training on Weekly Options .