Covered Call Writing - Beware Of The Pitfalls
Wednesday, March 12th, 2008While there is much interest in trading equity and index options, it is also a well-known fact that the vast majority of these options expire worthless. By most estimates roughly 80% of these options expire worthless. With odds like that it is no wonder that thinking of being a seller of options is so enticing. But do they really give money away that easily on Wall Street, or in the case of most options, on LaSalle Street? What about the other 20% that don’t expire worthless? With a big chance of success but small profit objective, or a small chance of loss with essentially unlimited loss potential, the problem becomes evident. The risk reward on an outright option sale, or short option position, has an out of balance risk vs. reward ratio.
Learning How To Trade
Saturday, March 1st, 2008Do you want to learn how to trade profitably?
If you’re considering trading as a means of making money, or if the idea of Trading for a Living appeals to you, there are some things that you might want to consider before starting.
The idea of trading for a living is very appealing. The fact that you have no one to report to, you can work from home, there is the potential of unlimited profits, and the dream of becoming a millionaire makes trading a very attractive business.
7 Things to Know Before Trading
Learning How To Trade
Thursday, February 14th, 2008Do you want to learn how to trade profitably?
If you’re considering trading as a means of making money, or if the idea of Trading for a Living appeals to you, there are some things that you might want to consider before starting.
The idea of trading for a living is very appealing. The fact that you have no one to report to, you can work from home, there is the potential of unlimited profits, and the dream of becoming a millionaire makes trading a very attractive business.
7 Things to Know Before Trading
Learning How To Trade
Monday, February 4th, 2008Do you want to learn how to trade profitably?
If you’re considering trading as a means of making money, or if the idea of Trading for a Living appeals to you, there are some things that you might want to consider before starting.
The idea of trading for a living is very appealing. The fact that you have no one to report to, you can work from home, there is the potential of unlimited profits, and the dream of becoming a millionaire makes trading a very attractive business.
7 Things to Know Before Trading
Your Online Trading Guide
Monday, January 21st, 2008With the introduction of the internet, more and more people are starting to trade online. Traditionally, most people will trade via their own brokers.
For newbies you will be overwhelmed with all the jargons used on trading but you can start slowly. Good to network with people who are already trading online and who be able to share their knowledge with you. No one knows everything, you need to start somewhere and everything comes with experience.
Before you embark on trading online there are a couple of things you need to be clear about:
Learning How To Trade
Monday, January 21st, 2008Do you want to learn how to trade profitably?
If you’re considering trading as a means of making money, or if the idea of Trading for a Living appeals to you, there are some things that you might want to consider before starting.
The idea of trading for a living is very appealing. The fact that you have no one to report to, you can work from home, there is the potential of unlimited profits, and the dream of becoming a millionaire makes trading a very attractive business.
7 Things to Know Before Trading
The Goal Of Consistent Trading Improvement
Friday, January 18th, 2008Do you find yourself wanting to be a successful trader immediately? Are you envious of how some traders you know seem to be making money week in and week out? Do you get frustrated with yourself at your seeming inability to consistently pull profits from the markets?
When you see how some traders can be consistently successful, you know that it can be done. The challenge that you face then is how you can be consistently profitable as well. And even if you were given the methodology, you may be uncertain at your personal ability to accomplish consistent trading profitability.
Surviving The Commodity Markets, Part 2 - Trading Guidelines For Different Account Sizes
Tuesday, January 15th, 2008Of all the important skills in trading, survival is number one. For unless we make it through the inevitable bad times, we won’t be around to capitalize on the good. I’ve laid out some trading account guidelines that specify the account size required to conduct various commodity futures and option trading activities. Stick within these guidelines and you will have an edge on most of the commodity trading public.
When buying commodity options, I usually think in terms of them expiring worthless. This is the worst-case situation and will keep us honest about the real risk. With a $10,000 account buying a $500 option, this would permit us to make 20 losing trades in a row. The chances of trading this poorly are remote, but it’s still possible.