Recently there has been much discussion in the media about the new "fiduciary rule" Obama imposed through SEC regulations. Despite the industry outcry, this actually is a great thing for consumers and could go to end many of the practices that I find deplorable which are common in the investment advisory industry.
There is a subset of option traders who seldom, if ever, are willing to pay cash. All initial trades, all adjustments, all rolls – must be made at a net cost of zero or less. The only exception occurs when exiting a trade and collecting a profit. Can it always work?
Reading as much as we can about trading always helps us to improve and become better traders. I'm pleased to share some of the best trading articles, podcasts and videos from some of my favorite traders, bloggers and educators. If you came across an interesting article please share it in the comments section.
Options are instruments that are ideal for traders who prefer to trade with limited risk but want to enjoy the luxury of unlimited profits. Though this prospect seems unreal at first glance, options do indeed provide you with that luxury though things aren’t so straight with this instrument.
A butterfly spread options strategy is a combination of a bull spread and a bear spread. It is a limited profit, limited risk options strategy. There are 3 striking prices involved in a butterfly spread and it can be constructed using calls or puts, which are virtually equivalent if using same strikes and expiration.
The U.S. Commodity Futures Trading Commission (CFTC) filed a civil anti-fraud enforcement action charging Joseph Dufresne (aka Joseph James) and Megan Renkow (aka Megan James), and their company, United Business Servicing, (UBS), doing business as SchoolofTrade.com (SoT), with fraudulently marketing commodity futures trading strategies and systems.
Options Trading can be very exciting and rewarding. But you should not be trading options before learning at least some basic facts about options. Options are very different from stocks. This article presents 10 basic options trading facts that every options trader should know. Don't start trading of you don't understand them.
One of the most amusing "investor" types to emerge as a result of the Fed's 7-year-long attempt to centrally plan the market, has been the infamous 17-year-old "hedge fund" manager, who while not actually trading, was happy to advise others of his paper trades on twitter or via newsletters, and collect a fee for such "services."
Reading as much as we can about trading always helps us to improve and become better traders. I'm pleased to share some of the best trading articles, podcasts and videos from some of my favorite traders, bloggers and educators. If you came across an interesting article please share it in the comments section.
Trading is a difficult endeavor. It takes experience and a sound process to help you understand when to get into a trade. And when to get out of a trade. But perhaps even more important is the mental discipline it takes to follow your experience (gut) and process. Here are some great insights from Steve Burns.
People desperately want to make money in the stock market with little or no risk. Unfortunately this is just not possible. If you want big returns, you need to be prepared for big drawdowns along the way. For example, Warren Buffett’s Berkshire Hathaway lost over 50% from June 1998 to March 2000.
I often refer to selecting a proper position size as the easiest and most important risk-management technique for the individual trader. It is always tempting to trade bigger size, especially when confident. Big size can produce big profits. Traders believe that earning bigger profits is the path to wealth.
