January 2006

Jan 31: The Simple Basics of Stock Trading – Trading with the Trends – IPOs

January 31, 2006

IPOs are the simple basics of stock trading and a part of the market that always generates a great deal of interest, along with stories of fabulous profits and spectacular losses. But, there are a ways to reliably profit on IPOs. Look for the trends that they cause and trade with them.

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How Collar Strategy Works With Future Options In Different Scenarios? (part 2)

January 30, 2006

How Collar Strategy Works With Future Options In Different Scenarios? (part 2) Looking at the collar in the stagnant scenario, the future options price would be unchanged thus neutral in terms of return. Therefore, the potential profit or loss would come strictly from the debit or credit of the two options.

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Set Your Trailing Stop Order Below Support

January 27, 2006

Set Your Trailing Stop Order Below Support The one fairly specific rule in a trailing stop order – the science part – is that you should not set them either right on the positions support level or just above support. Instead, unless the support level is so low that setting the trailing stop order there […]

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Time / Diagonal Spreads & Future Option Trading (part 1)

January 24, 2006

Time / Diagonal Spreads & Future Option Trading (part 1) To be able to calculate the volatility of the spread, we must equalize the volatilities of future option trading. First, lets move the June calls by moving Junes implied volatility down from 40 to 36, a decrease of four volatility ticks. Four volatility ticks multiplied […]

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Time Decay & Commodity Options

January 22, 2006

Time Decay & Commodity Options Time decay, also known as theta, is defined as the rate by which a commodity options value erodes into expiration. The value of the commodity options over parity to the stock is called extrinsic value.

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Sound Money Management

January 19, 2006

Sound Money Management One of the most difficult qualities of being a successful trader is learning good money management. It’s completely possible – and actually pretty common – to see people turn out to be right on a high percentage of their trades and still lose money. How is that possible? If you don’t use […]

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Jan 18: Experts Prove Two Out of Three Traders Commit These 4 Deadly Commodities Trading Sins

January 18, 2006

Everyone knows the seven deadly sins: pride, envy, gluttony, lust, anger, greed, and sloth. But did you know there are commodities trading sins as well? Sins that are surprisingly similar to the seven sins, and that can be just as deadly to your commodities trading career. The commodities trading sins are: pride, envy, greed, and laziness. I`m sure there is a way to work in the other three if I really try, but let`s stick with these four, since they cause many traders a great deal of difficulty.

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Stop Orders Explained

January 17, 2006

Stop Orders Explained Stop orders are not complicated. When we use the word stop, were referring to stop orders. This is an order that directs your broker to sell a position you hold long if it drops to a specified price. If you’ve sold short, you can place a stop-loss buy-to-cover order to get out […]

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Jan 16: Discover 3 Secrets Tips that a Trader On line Already Knows About Setting Up Effective Stops

January 16, 2006

Any trader on line needs to set stops. But there are no hard and fast rules to follow. You,need to develop a system that fits your trading style. This means you need to follow your trading plan. However, there are a few tips I can share with you about stops that you might already know. Keep these in mind as you practice and cultivate the skill of setting stops.

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Time Decay & Commodity Options

January 14, 2006

Time Decay & Commodity Options Time decay, also known as theta, is defined as the rate by which a commodity options value erodes into expiration. The value of the commodity options over parity to the stock is called extrinsic value.

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