As much as I like to write about all aspects of Forex trading in my articles, my favorite kind of lesson topics are when they deal with actual events that have happened recently in the market.

To paraphrase Newton's first law of motion, "An object in motion will stay in motion unless acted upon by an outside force." We see this all the time in nature (try jumping and gravity pulls you down), but did you know that it can apply to the markets as well?

For years, anytime my career comes up in conversation, people insist that trading is nothing more than gambling.

Several groups of option strategies have defined maximum rewards that are approached as a result of the passage of time, changes in implied volatility (IV), and/or movement or failure of movement in price of the underlying.

In this week's post, I would like to address a couple of fundamental topics to help explain why the market is behaving like it is.

Long before we had computers to chart price, traders were making a living and doing it by watching price movement.

During our developmental years, we are taught/conditioned to think certain ways whether we realize it at the time or not.

Most traders, when trying to determine if a market is overbought or oversold, rely on an indicator.

When a trade goes wrong, a trader is presented with two choices: The trader could take responsibility for the trade going against their initial plan, or the trader could attempt to pass the responsibility onto someone else.

How about this volatility in the Futures markets that we are experiencing? Some point to events like geopolitical and natural disasters for causing this elevated volatility.

Over the last few weeks, I have pointed out on several occasions that Iron Condors look like a nice trade.

One infrequently discussed topic important to understand in becoming familiar with the mechanics of option trading is that of the various settlement mechanisms.