by Oliver Velez I have often said that no one knows with any certainty the long-term direction or duration of the stock market. The longer the time frame, the less certainty there is. Even on a day-to-day basis, there is no certainty. We often look to...
by Thomas DeMark For many years, I have observed a similar trading pattern for most newly issued stocks. I have been particularly sensitive to the trading activity of these new issues because I was in charge of trading these stocks when I first entered the investment...
by Adam Oliensis More extensive discussions of technical price patterns, support and resistance, and trending vs. trading markets are available elsewhere. But this discussion should serve as a reasonable introduction to the subject, and guide you toward the most...
by Stephen Bigalow An interesting concept is the synthetic stock strategy. This is the use of options to set up a position that acts exactly like a stock, but without having to trade in the stock. The synthetic does require collateral for a short option, but it allows...
by Dan Keen Price Range – Stocks above $20 are generally not going to give us the best return on our investment, since we have to invest much more money and premium prices will not necessarily be any higher. For example, buying 100 shares of a stock that costs $10 a...
by Kathy Lien There are many ways to interpret changes in volatiles, but one of the simplest strategies is actually a visual one and requires nothing more than a keen eye. Although this is a strategy that is very popular in the world of professional trading, new...
by Darrell Jobman Obviously, as a speculator who is trading corn or wheat or any of the other markets, you are not going to be buying the actual physical commodity. No, it’s much easier – and cleaner – than that. Futures traders buy and sell “contracts” of...
by Lee Gettess The Entries Here is how you actually go about locating your entry into a trade: Set up a chart for the market you wish to trade, utilizing whatever time frame chart you are comfortable with. The more active and volatile a market is, the more...
by Rob Roy The bid and ask prices are known as the “natural” prices of the option. The bid price shows what the option may be sold at right now, while the ask price shows what the option may be bought at right now. To explain this, think of the bid price...
by Andy Chambers Let’s look at how an options trader decides which of the many different strategies to use. The most important element in trading options is your ‘outlook’ on the particular market you’re about to trade. If your outlook is ‘bullish’, then...