by Keith Cotterill In order to buy and sell Futures contracts you have to open an account with a registered broker and deposit funds. In futures trading this is known as a “margin” account. Unlike everyday business where companies allow credit, trading...
by Ellie Taft From a practical standpoint, only the highest rated economic reports draw much attention. The rest of the reports can hold less or greater weight, depending on global circumstances at that time. Let’s take a closer look at a few of the more...
by Dave Caplan A trader’s expectation of volatility must dictate his or her strategy, since the flat-price outlook can be traded from either a long or short volatility perspective. What beginning option traders often fail to realize is that, more often than not,...
by Ray Frazier Below is a chart of AOL (America Online). The chart shows a great indicator to use in determining exit points for your options positions (and stock positions). I have plotted two indicators. The first is the 21 bar exponential moving average and is...
by Andy Chambers If you happen to own at least 100 shares of stock, the Exchange will allow you to sell one Call Option for every 100 shares of stock that you own. The advantage of selling a Call option is to increase your earning potential if the market trades...
by Dan Keen Sometimes a stock price may drop significantly before you have time to catch it and react. The best choice in this situation may be to continue writing covered calls but with lower strike prices than you would like, and to get a decent premium....
by Thomas DeMark An option contract holder is bestowed with three choices – exercise the option, let the option expire, or trade the option. But how does a trader decide which of the three alternatives to choose? A large portion of this decision is...
by Oliver Velez The Long Term Timeframe The long term timeframe consist of yearly and monthly charts. A yearly chart is a chart where every bar represents one year of trading. The yearly chart is used primarily for cyclical analysis and sometimes for...
by Rob Roy Technical Exits Technical exits refer to points on a chart where the trader would exit the trade regardless of profit and loss on the options. Once the stock has reached either the bullish or bearish target it would be wise to close the trade – win,...
by Darrell Jobman Let’s say that you wanted to divide your $200,000 investment portfolio into two portions. First, let’s invest $180,000 in Dow Jones Industrial Average (DJIA) stocks to take advantage of the index basket concept without having to worry about...