Archive for November, 2007
« Previous Entries Next Entries »Buying Options: Beware of Deep Out-of-the-Money Options
Tuesday, November 27th, 2007by Rick Thachuk
Many option traders, especially beginners, are drawn into buying deep out-of-the-money options. In this article, I’ll explore this strategy and show that, despite its apparent advantages, it is unlikely to build wealth in the long run.
A call option is said to be out-of-the-money if the strike price is above the market price of [...]
Taking Profits – A Logical Way
Tuesday, November 27th, 2007 by Neal Hughes – FibMaster
So much time is spent on entering a trade. Today I want to focus on some exit strategies. This is not a full Fibonacci course, so if you don’t understand the basics I suggest that you visit my website for help with those aspects.
Human nature makes trading very challenging. [...]
How Options are Treated in the Account Statement
Tuesday, November 27th, 2007 by Rick Thachuk
After the outright purchase or sale of an option, traders may be a little confused over how the option transaction is recorded in the account statement, particularly from day to day. For instance, if a customer buys an option for $700, then they may expect their total account value to decrease [...]
Trading for a Living – Part 1
Tuesday, November 27th, 2007There can’t be many traders who haven’t at least considered the idea of telling the boss what they think of him, throwing it all in and going off to trade the stock market for a living. It’s a big risk financially, and that uncertainty is what stops most from jumping ship. Is it really possible [...]
Essential Elements of a Successful Trader
Tuesday, November 27th, 2007Courage Under Stressful Conditions When the Outcome is Uncertain
All the foreign exchange trading knowledge in the world is not going to help, unless you have the nerve to buy and sell currencies and put your money at risk. As with the lottery “You gotta be in it to win it”. Trust me when I say [...]
What Time Frame Should You Trade?
Tuesday, November 27th, 2007by Mark McRae
On a recent lecture on trading I asked one of the audience whom I knew traded spot forex where the trend was for the Euro/Dollar this week. He immediately replied that the trend was up. I then asked how he knew the trend was up for all the traders who trade the Euro/Dollar.
You [...]
Pre-market Traps
Tuesday, November 27th, 2007The premarket game starts around 8:30am (EST) and lasts until 9:29am (EST) (on Nasdaq). Early in the session, MMs (marker makers) will start to gap their inside bid prices subjective to news or sector strength. We have constantly seen the premarket gap and traps take in many amateur traders. The rule of thumb here is [...]
5 Questions You Need To Have Answered Before You Back-Test Your Forex System
Tuesday, November 27th, 2007 by Ryan Sheehy
As 90-95% of new forex traders lose money within the first 3-6 months this article helps to guide new forex traders by asking 5 questions that the forex trader needs to know prior to back-testing their forex system. Let us jump right in…
1. What data type are you using (or going to [...]