An investor who wants to go long a security can buy that security, or buy a call option. A call option gives you the right to buy the stock at certain price. The big advantage of call options is the fact that it requires much less capital than buying the stock. For example, you will need about $77,000 to buy 100 shares of GOOG).
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.
It is one thing for a trader to state that he anticipates that the markets will become more volatile and it’s another to create a plan to earn money when that volatility prediction turns out to be correct. For example, the immediate question becomes: What is the source of the profits?
Peter Brandt was named as one of the 30 most influential persons in the world of finance by Barry Ritholtz’ web site, The Big Picture in 2011. And rightfully so. Peter has immense experience in futures and proprietary trading. I have been following Peter for years, and would like to bring some of his gems to SteadyOptions readers.
I must say that I don't like the word guru in general. One of my favorite quotes is "Our world needs less gurus and more teachers. Gurus are about helping themselves become successful-- Teachers are about helping others become successful."-- Joseph C. Kunz Jr.
Question from a reader: What about trading the weeklies (naked puts and calls)? The time span is very short and if you are more conservative, you can skip the weekends and start on Monday and bet on about 4 days. You can still get about 10% return per week with very little risk.
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.
There is more than one way to look at every situation. My individual perception may be different from yours. Part of the time there may be room for interpretation because the ‘facts’ are soft and may be considered from different points of view. At other times, the facts are undisputed, but people have different interpretations. Here is one example.
Margin trading is a way to magnify your buying power by borrowing money from your broker. The amount that can be borrowed varies over time, but the current number is 50% when trading stock. Translation: When a trader buys shares of stock that qualify for margin, she may borrow a maximum of one-half of the cost from her broker.
Steve Burns has been investing in the stock market successfully for over 20 years and has been an active trader for over 14 years. He is the author of six books all published by BN Publishing. I have been following Steve for years, and would like to bring some of his gems to SteadyOptions readers.
According to CBOE, The CBOE Volatility Index® (VIX® Index®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. Since its introduction in 1993, the VIX Index has been considered by many to be the world's premier barometer of investor sentiment and market volatility.
I came into excellent article by Peter Brandt on Drawdowns and Scammers. Peter explains why most long-term profitable traders spend the vast majority of their trading careers either in a drawdown or recovering from a drawdown. Any slick promoter who tells you different is not dealing from a full deck.
.thumb.jpg.51cb1aa79a56809478723dc353589218.jpg)
