How you pay for a contract matters. One of the many ways that options traders secure their position is through the use of spread trading. This technique helps offset the risks of taking an option position by selling off another one. From bulls and bears to ratios and boxes, there are many different types of … Continue reading Credits, Debits, and Trades
It is time to talk simulators but, we are sorry to say, not virtual reality. At least, not in the Star Trek sense. But in the financial sense… we are closer than you might think. You see, here is the situation. You have signed up for an account to buy and trade options contracts. You … Continue reading How to Use Options Simulators
It is a golden rule that investors should diversify their portfolios. From bonds and mutual funds to real estate, there are a lot of different ways to do that. Why should one of them include options? Ultimately, it depends on two factors: your specific goals and your capacity for risk. Just about every financial decision … Continue reading Who Should Trade Options?
Long term assets are tricky things. How you plan for an option contract depends, in large part, on how long you intend to hold it. A position that stays open for a few weeks can be built around one expected movement or momentary volatility. By contrast, over the course of a year, that same asset … Continue reading Should You Make It a LEAP Year?
In the early 1900’s police would periodically arrest people for setting tolls on the Brooklyn Bridge, after the would-be toll setters had been duped into buying the bridge from George C. Parker in the first place. Tulips once overtook and then sank the entire Dutch economy. And, of course, the Shake Weight exists. The point … Continue reading Five Mistakes to Avoid with Options Trading
In the trading world, there is a bit of jargon for just about everything, so is it any wonder that there would be a term for making trades in your pajamas. It is called end-of-day trading, and it might just be the single best thing you can do for your portfolio. What is it? End-of-day … Continue reading What Is the Advantage of “End-of-Day” Options Trading?
This blog has covered day trading and scalping, and of course it has covered the benefits of making long-term investments. What, though, about the missing middle? What happens to the trader who wants to move faster than months but who is not quite caffeinated enough for the life of a day trader? Welcome to swing … Continue reading What is Swing Trading and Is It the Right Options Trading Strategy for You?
Trading in options contracts takes knowledge. It takes practice. It takes research, seed capital, and the right set of tools. It also takes one more thing… a trading account. This is not a small decision. You will, hopefully, be moving a lot of money through this account, so you want to do it right. Here … Continue reading How to Open an Account for Options Trading Online
One of the lesser known tactics in the trader’s arsenal is market timing. Like any stock market tool, it has its uses and pitfalls, but a well-prepared trader can take advantage of good market timing to boost their portfolio. What is market timing? The idea behind market timing is that the stock market is, to … Continue reading What Is Market Timing Software and How Does It Work?
Mathematicians need their calculators. Lifeguards need slow-panning cameras. Professor Plum needed the candlestick in the conservatory (spoilers). Every practice needs its tools, and options trading is no different. To make the most out of your portfolio, you need the right data and market analysis. Sure that’s technically possible to get by hand, but why not … Continue reading Three Top Tools for Options Trading