If you are a long premium options trader, volatility is a necessary element to be successful. If volatility is lacking, time decay (Theta) will make this financial instrument a challenging (or even more challenging) one. These days, volatility is not lacking. In fact, volatility is thriving. For a long premium options trader, there is nothing [...]
Owning stock has only two, maybe three, possibilities. The stock goes up. Or the stock goes down. Or, as a third possibility, it does a little of both. If you buy a stock, all you want it to do is go up.
If you sell a stock short or close a position (or consider buying it [...]
The issue of direct access is an important one and it becomes more important the more short term your trading is. The market can change from a state of seeming paralysis to one of shocking volatility and activity in a flash. The length of time it takes between you deciding to enter an order and [...]
The Euro continues to climb as the Dollar continues to weaken. This market movement is mirrored almost across the board as every other asset class continues to strengthen. Essentially repeating the trend of 2009. But what will happen to the Dollar? The Chinese administration probably sees little need to change its economic policy just yet. [...]
As the world slowly recovers from the credit crunch and we look back at what went right and what went wrong, people are increasingly looking to take control of their finances.If we were to be honest with ourselves, then we should probably accept that we can improve on at least a couple of the following; [...]
The Federal Reserve were busy this week, first cutting interest rates by .25% on Tuesday, and then proceeding to announce a novel approach to injecting money into the banking system, as it struggles to combat the severe credit crunch that threatens to drag the country into recession.
The Fed said it would conduct two auctions next [...]
If you are trading the forex markets then a big concern will be growth forecasts and indications of when the various central bank stimulus packages will end. Growth has returned to the US, mainland Europe and is expected to return soon to the UK.Looking the forex markets, the US Dollar has been out of favour [...]
Stock trading is nevertheless one of the most profitable markets today. This is no doubt because investors, even beginners, can make money out of it. But of course, knowledge of how the market works is the key to succeed in this market. Profitable traders employ powerful strategies like option strangle. Almost always, the simplest strategy [...]
Companies, exporters and importers are also very much involved in the forex market as buying and selling of products takes place all over the world thus buying and selling of currencies to facilitate and complete all these transactions are needed. An exporter in the USA might have sold his products to a company in Europe [...]
If stocks can be compared to five-speed automobiles, stock options are F-16 fighter jets. In order to qualify for an options account, you have to state your level of experience, candidly reveal your level of liquidity, and pretty much accept that it’s your fault if you go bankrupt.
There is a reason for this. You [...]