When it comes down to any kind of trading, be it Technical, Fundamental or a mixture of both, the serious speculator would be lost without charts.
Why Conventional Hedging Methods Fail
I am discussing the problems with conventional portfolio hedging methods because if widely-known conventional methods are suitable, then there’s little reason why anyone should consider a novel method.
Selling Puts: Naked Or With A Fig Leaf?
One of the bullish strategies in the armamentarium of the options trader is that of selling puts. The sales can be accomplished either as naked sales (aka selling "cash secured" puts when cash is set aside for potentially buying the stock in the event of assignment) or as one of two legs of a vertical credit spread (aka a bull put spread, a put credit spread, or for "those in the know" simply selling a put spread).
The Problem with Small Profits
There's an old saying that you can never go broke by taking profits. I believe that statement to be true, as long as the profits outstrip the losses by a ratio of at least five-to-one.
Derivatives of Derivatives
In this article, I will look at the E-minis, which are a derivative of the S&P Cash Index, and at the options on the E-minis, which would in turn be a derivative of the derivative. I will explain how they each work in isolation, which will help demystify how the other one functions as well.
Different Ways to Trade Forex: Part 2
Following on from last week's article, now is the best time to continue with our explanation of the different tools with which we can take part in trading the currency markets.
Divergence and Trend Issues
There is no doubt that the markets have been trying to move higher and higher recently. The questions on most traders' minds are: "How high can the indexes go?
Is the Globex Session Worth Trading? Yes!
In an effort to give some perspective to the often asked question of whether to look at the overnight price chart (otherwise known as Globex), or stick to viewing only the day session information, in this piece, I'm going to show the different ways to look at both sets of data.
Importance of the Financials
This article will elaborate once again on the crucial importance of the Financials. In order to lay down my case, I will break the article into three segments and each will build on the previous one.
Different Ways to Trade Forex: Part 1
When most of us think about the Forex markets, we typically focus our attention on the area of Spot pairs trading. However, while the Spot arena accounts for the vast majority of all currency trading in the world today, we should also be aware that this is not the only way for traders and investors to take part in this highly liquid and popular market.
Expiration Week: Butterflies Get Jiggy
One of the major differences in option trading as opposed to equity trading is the impact of time on the various trade vehicles. Remember that quoted option premiums reflect the sum of both intrinsic (if any) and extrinsic (time) value.
Chart Term Misconception & What Price Closes a Gap
Having been around the trading arena for many years, I have seen many changes to the world of trading. One of them has been how many new technical indicators and chart patterns have been introduced.
