Archive for the ‘Option Trading’ Category

MARKET TRANSPARENCY : PART 1

For the Purpose of this discussion, the term market transparency will be used to refer to the ability of market participants to observe the information in the trading process. Despite the simplicity of this definition, the issue of transparency is remarkably complex.
One difficulty relates to exactly what information is observable. For the purpose of [...]

The Forex Market: Opening An Account

Opening a Forex trading account is not a complicated procedure, but there are some decisions that need to be made before you open the account. First you should decide how much capital you are willing to use to open the account, and then investigate brokers until you find one that you are comfortable with. Most [...]

Smart trading for gaining a competitive edge

Investors as well as professionals from the finance sector are well aware of what currency futures are, role of stock brokers, stocks market intricacies, profitable market shares, and related regalia. Novice investors who are completely new and have not yet started their investment venture will do take some time in understanding the nuances of trading. [...]

Facts and Fallacies About Risk/Reward Ratios

One will commonly hear or read the following “rule of thumb” for trading:Only trade positions with potential profits of at least three times the potential loss.This sounds like a reasonable rule, risking a little to make a lot. However, it ignores the probabilities involved. Buying a lottery ticket for $1 to potentially make one million [...]

Weekly Binary Options Analysis May 3-7

Indices
U.S. stocks lost ground in the past week as concerns deepened that Europe’s debt crisis may derail the global recovery. These, along with proposed legislation that may hurt the financial sector, overshadowed a string of positive earnings and pledges by the Federal Reserve to keep interest rates low.
 
For the week, the S&P [...]

Call Option Put Option Tips

Dow Nasdaq U.S.Stocks Technical Analysis By Bullet Advisory Bullet Advice for Indian Stocks-U.S.Market Trend DOW (10067.30) and NASDAQ (2147.30) closed 1.0% and 2.6% down respectively last week.Support for DOW is at 9980 and NASDAQ 2115.Resistance for DOW is at 10220 and NASDAQ 2200. Trend Of Major Indices and Stocks Symbol Trend No. of Days WeeklyTrend [...]

Key to Options Trading Success

Lately, I have been asked about what I think is the single key that determines if you would make it as a rich man in options trading.
This is an extremely interesting question as I am not someone inclined to believe that any single reason constitutes to the success in anything at all. However, that got [...]

Currency Fx Trading Tips

It has always been very difficult to constantly make money trading Currency Fx. The basic rules of trading are very hard to stick with. Normally new (and not so new  Traders) make these mistakes:
·         Trade too often. It is not the number of trades but the success of your trades that is important.
·         [...]

Two by One Call & Put Spread

This is one of the simplest techniques in derivative trading virtually nullifying the capital risk. In simple words this is a technique in which the trader used to buy two near ‘out of money’ call/put option of same strike or different strike and sell one ‘in the money’ or ‘at the money’ call/put option resulting [...]

What’s better 90% Probability or 70% Probability Index Iron Condors and Credit Spreads Options?

There are many index iron condor & credit spread options advisory newsletters on the market today.  The index iron condor options strategy is popular because it’s relatively easy to understand, it doesn’t require options analysis software to visualize the trade, and it generates an excellent monthly income of 6% to 10% ROI per month.  Most [...]