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...
by Ray Frazier There are two investment vehicles that you can use to make money in the markets. The first is to buy the stock that you feel will make a big price movement, and the second is to buy an option on the stock that has the potential to make a big move. There...
by Jea Yu Anytime the price chart is too tight, either scale the chart to your screen or trim down the number of days of historical data. Stocks that have had a big range can end up looking too tight on the moving average charges. We usually want to have at...
by Keith Cotterill In the commodity Futures market a picture could actually be worth thousands of pounds in the right hands! Price Charts are essential for gaining a trading edge in the Futures market. If you were to trade just using the prices listed in the...
by Don Wellenreiter There are three basic types of spreads: the intra-market, the inter-commodity, and the inter-market spread. The intra-market spread, also known as an inter-delivery spread, is by far the most common spread. When using this type of spread, the...
by Peter McKenna For many years, full-service brokerages had it easy. They charged individual investors hefty commissions for recommending stocks and executing trades. The bull market put an end to their dominance as discounters entered the fray. The...
by Jon Najarian The options plays you execute will depend largely upon two things: your risk tolerance and your portfolio goals. Risk and reward are directly proportional – the higher one is, the higher the other is as well. If you have a high risk-tolerance and your...
by Duane Davis Several years ago, after returning from a trip to the Far East, I was standing in line at a large regional bank waiting to exchange some left over Japanese Yen back into U.S. Dollars when an argument broke out between the lady in front of me and the...