Many brokers have reported over 90% of new traders fail to make money. Like in most professional endeavors the majority of people that start are not successful. Whether it’s professional sports, law degrees, or medicine if you start from the beginning you will see that few finish the journey to the end. Trading is not …
The most popular two moving averages on daily charts are the 50-day and the 200-day moving averages. They are the default settings on many charts. When these two crossover on the charts of stock indexes like the S&P 500, NASDAQ, or Dow Jones Industrial Average this is even reported on the financial news. The Golden …
For price action traders, the movement of price itself is their primary signal for taking entries and exits. They let momentum, the trend, and movement filter their trading decisions. A price action trading strategy is a process for using new incoming and evolving price action data to make buy and sell decisions on a watch list …
I have studied all the most successful traders in history along with the more modern market wizards and trend followers. Here are six of the qualities that I have found in common with all of them. FOCUS Ability to focus their thinking into an edge. Rich traders can have different mental skill sets whether it’s …
Trader Psychology: Every Elite Trader Has These Six Qualities Read More »
The options market presents both great opportunities for gains but also the potential for the risks of losses. Here are ten things that I learned quickly through experience that all new traders should understand before they start trading options. 1. Short options have unlimited risk when they have no hedge. It’s important to understand the …
Options Trading Tips: Ten Things I Wish I Knew Before I Started Trading Options Read More »
There is a big difference between saving, investing and speculating with money. Savings is putting money away safely for future use in a low interest account. Investing is putting capital into an asset of value for either potential cash flow or appreciation. Speculating is betting on an asset increasing dramatically in value mostly due to …
The Difference Between Saving, Investing, and Speculating Read More »
Linda Bradford Raschke has been a full-time professional trader for more than 40+ years. She was the principle trader for several funds and also the Commodity Pool Operator for her own hedge fund she opened in 2002. Her trading records were verified and she was included in Jack Schwager’s best selling book, The New Market Wizards …
There are two types of directional option contracts: calls and puts. Call options are contracts that move higher in price when the underlying stock moves higher. Put options are contracts that move higher in price when the underlying stock moves lower. To enter an option position you can either buy to open a long option …
Covered calls are an income strategy for traders and investors to earn money on stocks they hold. Covered Call Writing Covered call writing is an appropriate strategy in a bull market or one that is trading inside a repeating price range. Creating a covered call option play is when a trader or investor sells out-of-the-money …
Option contracts represent a bet on the directional price movement of an underlying stock in a defined time period. Option contracts represent 100 shares of a stock and are written on time frames of weekly, monthly, and yearly. The price of an option contract is based on the probability of it being in-the-money at expiration. …
