2008 is over at last. It has been an extremely turbulent year and everyone’s swept under its currents such that it was hard to see what actually happened, so, here’s a recap of what happened in the stock market in 2008.
Summing up, the Dow lost a total of 4488 points this year, down 33.84%. The [...]
Like futures trading, an option gives a trader the right, but does not obligate him, to buy the underlying stock at whatever the specified price on a preset time in future.
You make profits if the stock value ends up higher than what you purchased at. On the flip side, if the prices drop, then you [...]
We can classify trading strategies followed by all types of traders into two broad categories as directional trading strategies and non directional trading strategies. Both strategies require different types of approaches, different levels of market knowledge and different trading requirements. Directional trading strategies are trading strategies which include taking long and short positions in market. [...]
An option can be simply defined as a contract between a seller and the buyer that allows the right to purchase or sell shares of stock with a specified timeframe. A solid education of the stock market is crucial for success in the options trading arena. After that, the main focus of your options trading [...]
You’ve heard it said, “One man’s demise is another man’s opportunity”, haven’t you?Well being one who lived and was trading the markets during the October 1987 Crash i.e., Black Friday and Monday, I’m here to tell you there is money to be made, big money. While the Wall street guru’s occupy your time trying to [...]
When it comes to options trading, most people have been mystified by what seems like a lot of mumbo jumbo. This article will explain the investment terminology for Call Option in everyday terms that anyone can understand and appreciate.
To illustrate the concepts, let’s go on a shopping trip.
You’ve been thinking about buying a [...]
All year long, as I guided my subscribers into the intermediate-term rallies and then the subsequent corrections, I said in these columns that the rallies would be worth going after but should be sold into as they failed, and downside positions should be taken, as our work called for “the market’s low for the year [...]
It’s true – you can own your favorite stocks at no cost or at deepest discounts! Learn the highly guarded, secret Option trading strategies professional investors use to make steady profits, year after year, no matter what the financial markets do. This article will show you the step-by-step process of using Options to get the [...]
Tom Williams book “The Undeclared Secrets of the Stock Market” has often been referred to as “Wyckoff on Steroids”.
Now it’s time to revise the the concept of Wyckoff’s “Composite Operator” or “Smart Money” into a better working definition. Then introduce Tom Williams’ Two Principles of Volume Spread Analysis.
First is to subtract out what can be [...]
When it comes to option trading, the most important lesson to retain is an understanding of what’s actually being traded. The real commodity in any option trading strategy isn’t the underlying stock itself, and it has little to do directly with phrases such as implied volatility, net debit, net credit, strike price, or expiration date. [...]