Analytics

Wednesday, November 16, 2011

Excellent Investment Strategies For Beginners

These days, people are looking for ways to invest their money and make it work for them, instead of the other way around. With corporate downsizing and home based businesses on the rise, many are realizing that company and government pensions may not be there for them. Luckily, there are alternate methods of ensuring a comfortable retirement and investing for beginners strategies.

Real estate is an investing option, but it can be expensive, and requires a hefty down payment of at least 10% of the purchase price. If you have tenants, you could be in for a bumpy ride if you need to evict them, or they keep calling to report problems with the furnace, plumbing, air conditions, etc. Fixing up a property or 'flipping' can also get quite expensive and not give you the return you're looking for.

A better investment is stocks and options, as they don't need a big outlay of capital and can offer quite a lucrative and stable return if you choose them well. You can choose the stocks yourself, or you can hire a stockbroker to make informed choices for you. If you hire someone, keep in mind that they will likely charge a fee, and that fee will come out of your pocket.

You will save money if you invest in stocks that you choose yourself. If it seems a little intimidating, don't worry. With some knowledge and education, it doesn't have to be. Anyone can learn to invest in stocks and become successful at it.

If your investing knowledge is limited, it's best to buy some books for beginners, written by successful investors. There are many how-to books on the subject by some of the world's best investors, such as Derek Foster, Warren Buffet and Peter Lynch. Their books include strategies and tips on how to make smart investing decisions. They are also easy to read and understand.

Do some online research on your own to check out some companies you may be interested in. Learn all you can about what they do, their earnings, their customers, etc. If you can't find the information on their website, contact them and ask them directly.

Once you have decided on a few companies to invest in, the next step is to put some 'fake' money into it. This means either trade on paper for a month or so to see how it does, or you can open a trial account online. This way, there is no risk with your own capital and you will get a feel for how the stock market really works. Trial accounts online will also give you tips and strategies and education on how best to choose and trade your stocks.

Now that you have a good idea of how to trade, what companies to look for and how you make money, you are ready to invest with your own funds. If you are still a bit nervous, start with a small amount until you become more comfortable with the process. Soon you will have a diverse portfolio and you will be at ease knowing your retirement fund is growing. Investment for beginners is not that difficult at all.

Author: James Glisson

For those people in this world that wonder about free virtual stock trading, we have some good information for you. We would like to tell you more on investing for beginners and help you right now.

categories: free virtual stock trading,free virtual option trading,online investing for beginners,online investment for beginners,investing for beginners,virtual stock trading,virtual option trading,investment for beginners,stock trading,option trading,stocks

Sunday, November 13, 2011

Affluence is to be Achieved with Online Investing

Fashioning wealth for self-directed investors requires a platform that incorporates and facilitates technology, performance and profitability to realize goals. Self- directed investors could find that platform by way of "Online Investing".

Investors, who want to generate income, manage risks, and take control of their online investing, might take in these multiple steps to smart online investing with options:

Create a suitable online trading Account. Find a reputable discount broker, with small fees and large benefits. Look for a broker that has Free Virtual Stock Trading, extensive tools, research and is noted for options. Apply for a level of permissions that will allow options trading.

Pursue stock and options instruction. Across-the-board trading education screening investing fundamental principles and multifaceted trading strategies to match your feeling is essential. Subscribe to a free options trading newsletter.

Become a master of all broker trading tools for additional training. Leading online investing tools will help find, analyze, and monitor options trading strategies, investments and their achievement.

Guard your portfolio with diversification of positions. A mix of options strategies will enhance your portfolio so that it can make money in Bull Markets, Bear Markets, and Sideways Markets. Implement options strategies to give yourself extra time for trades to develop. If a trade gives great profit early then sell, change, or re-arrange the trade structure. Go long for improving sectors and go short for declining sectors.

Profit generation is the key to consistent returns. Trading Options can produce cash from stock assets in varying market conditions. Covered call or put writing is an options strategy used for income against stocks and is actually more cautious than just purchasing a stock.

Investigate all available option-trading strategies. Calls, puts, covered calls; spreads, vertical spreads and back spreads extend many varieties for successful option strategies. You should begin with old school options strategies to gain experience.

Envision market expectation and direction. Market outlook and direction is relevant to investment success. Study 5 articles each week from professional newsletters, brokers, fiscal advisers, and other experts.

Choose top stocks in each market sector. Create a list of heavy criteria to match investment goals. Include items like debt ratios, Price/Earnings ratios, Price/Sales ratios, profit margins, and growth rates. Manage regular scans to find the eminent 5 companies for each sector.

Hand pick unspeakable stocks in each market sector. Scan for blackball fundamental criteria. List the worst possible companies in declining sectors, tough in debt, with high P/E ratios, declining sales, and so on.

Absorb technological terms and analysis. Assess securities by analyzing statistics produced from market natural action, past prices and volume. Technical measures reveal patterns and indicators that help predict future stock accomplishment with technical terms like Bollinger Bands, MACD, Overbought, Oversold, RSI, and SMA.

Make use of all broker tools and advice. Traders want the advantage of compelling online trading tools, dedicated resources and service that online brokers give options traders. Advantages include ideas for portfolio protection, income generation, less costs, thorough trading education, and more.

Predetermine your alerts for top stocks and the worst stocks. Also, set up market-triggered alerts to monitor your lists and as markets move, the communication will come ready and advantageously.

Acquire by reading the charts. Innovative charts give power to recognize technical patterns, insure potential trading strategies and allow the use of dozens of technical studies to mix and match those strategies to suit trading approaches.

Money management techniques are essential for successful options trading. Money management is critical in options trading to prevent overexposure and preserve assets. Place limits on the trade size equal to a percentage of the total capital you have to invest. An instinctive mistake is to raise trade amounts during a losing streak but lower it during a winning streak. Therefore, cut losses short and let profits run.

News, market commentary and key upcoming dates are critical. Look for news, market commentary and upcoming dates before trading. Regretful news or commentary can adversely involve the direction of the trade and further result in losses.

Be knowledgeable about market analysts and their upgrades and downgrades. Market Analysts make a living following company stocks and the markets. Negative public statements can adversely affect a trade position.

Advanced notifications of earnings and economic reports are critical. Sometimes companies announce their earnings early for a soft landing or to control public response. Should the rules or economic picture change, look out!

Test fundamentals and assess. Be knowledgeable about your companies both internal and out. Study their business organization, product lines and competitors. Stocks along with the best products in the best sectors and no competitors are great long-term investments. Quite the opposite, stocks with a dying product line in a waning sector with too much debt and too many competitors, may be great candidates for a put option.

Use a corrected approach. Stock options can move quickly because of their volatility. A corrected approach can keep you from acting on emotions. If your option strategy is based on sound fundamentals, you have a better probability of trading success.

Instigate your investing with FREE Virtual Stock Trading. For the best way to learn, practice your online investing with Free Virtual Stock Trading. Learn options trading without the risk of today's stock market investing. Even experienced traders can benefit from practicing their complex options strategies before placing large amounts of capital on the line.

Following the methods above can only help self-directed investors find direction in options trading. Investors who personify these multiple steps will have a better chance of success when their online investing includes options.

In conclusion, online investing can be very successful!

Author: James Glisson

Learn more about online investing. Stop by James Glisson's site where you can find out all about free virtual stock trading and what it can do for you.

Wednesday, November 9, 2011

Choose the Right Online Trading Forum for Trading Benefits

Do you trade regularly? Trading has become one of the latest trends of almost every country. A good trader can always make profits from the market. But if you are a beginner in this field then it is very important to make sure that you first learn how to trade and then enter into this field.

You must always remember that the market probes a certain amount of risk. If you do not know how to avoid the risks and play safe you would not be able to make it big.

There are lots of experts on trading present in the market. These experts can provide you with some of the best tips on trading. It is your duty to take up the right kinds of tips and strategies to play in the market.

A huge amount of people these days show interest in stocks and forex trade. They want to make quick money with the help of this trade. But if you do not know the right pattern then you might end up losing all your money.

The first thing that you can do is start studying books on stock and forex trading. You should always choose the books which are written by the market experts. Nobody can help you learn about the market better than them.

You can read books on economy, finance, world trade as well as international relationship. If you are interested in forex trading then international relationships will matter for you. If you have the right kind of knowledge about the market you can emerge as a winner at the end.

The two major things that you need to learn is when to buy and when to sell. The day you start predicting the market correctly you are into the right track. You need to learn the tactics of buying the stocks or currencies with lesser price and selling them at a much higher price.

You might also be aware of the various forums present on the internet regarding which can help you follow the right path to success in the market. They will also help you discuss various important topics regarding the market.

You will get some specialized tricks and tips to become a good trader at the end of the day. It is your duty to accumulate as much information as you can, regarding this market. It is true that the market is very much unpredictable.

There are is certain methodology which is followed in the stock and forex trade. You need to learn this methodology and follow it. If you consult a market expert you will also come across certain rules and regulations that are important for the success in this complicated market.

A good research on the market can help the traders perform well. You should always have confidence in yourself. You must always remember that the market is not consistent so you need to be very careful while trading. These days you get certain software to help you trade better.


Author: Silas Reed

TradersLaboratory.com is the ultimate destination to find all latest forex market updates, share market and equity market in a comprehensive fashion. You can get maximum benefits through spot FX tips.

Friday, November 4, 2011

What Is Live Currency Trading?

Before you start live currency trading you will have to open an account with a brokerage firm. If you search on the internet you are likely to come up with a list of more than a thousand such firms. Each may offer different prices, conditions, and systems.

It is important to take time to study what is on offer. By choosing the right broker you will be able to maximize your profits in a quicker amount of time.

For currency trading you will need to use a software or electronic system. This is why it is essential to find the best broker; different companies will give you different platforms. It is vital that the system does not have any inherent slippages. The price that you see on the screen in front of you should be the price that you are getting, you do not want to find out after you have already clicked and sent the trade that the price has changed. The software platform should be easy to use and not over technical.

When making trades the most important consideration is the spread. This is difference in value between the buying price and selling price, the spread can also be referred to as a PIP. A PIP may be as high as 5 or as low as 0. 5. It is much better for you to find a system or broker that offers live currency trading with the lowest PIP possible. Check whether every trading account has the same spread. Your broker should make money on these trades and not charge a commission.

The foreign currency exchange market is a truly global phenomenon. Any live currency trading system should be operational any time of the day or night and should cover all the main currencies.

Technical analysis such as charts and market trends should be on offer through the software that is downloaded. This helps to make the right decisions when carrying out live currency trading.


Click here for more info!: forex broker and Forex Introducing Broker


Author: Aggie Montana

Wednesday, November 2, 2011

Butterfly Spread: Churning Out Monthly Cash Flow

A great system for option traders who feel the underlying instrument they're working with will probably be range bound for the next 2, 3, or 4 weeks of time or so is the butterfly spread .

This theta positive option strategy produces profits when the stock or index that is being traded remains within a contained range on the graph or ends up on expiration day at or near the short strikes of the trade.

Here is an illustration of this tactic:

Buy 5 contracts of SPY 100 calls. Sell 10 contracts of SPY 105 calls. Purchase 5 contracts of SPY 110 calls.

These trades can generate quick gains for the investor as a result of the short strikes in the position (the strikes that have been sold) providing so much premium into the traders account. This is because the strikes that are usually sold in these trades are the 'at the money' strikes - or the strikes that reside closest to where the underlying is actually trading at when the trade is first put on. The 'at the money' strikes always contain the most amount of time premium, which is what option traders are looking to benefit from when trading these type of income positions.

While you can find numerous mutations of the butterfly spread, the two most popular are the standard butterfly distribute which is traded for a debit, and then there's the iron butterfly, which is put on for a credit. It is true that these two individual versions of the butterfly spread are indeed different, if you would look at the risk graph of one and then compare it to the other, they would look exactly the same, and they actually perform the same as well.

The butterfly option strategy is a 'delta neutral' strategy, meaning that investors who use this technique do not have an opinion on market direction or believe that the underlying being traded will remain in its general location on the chart for the duration of the trade.

With the proper knowledge, the butterfly spread can be a lucrative, low pressure, and pleasant investing system that doesn't require one to be glued to their computer screen stressing out over every tick of the market all day.


To find out more about this strategy, visit this Iron Condor Training Website for tons of free training videos, examples, reports and easy step by step instructions on how to trade the Butterfly Spread to generate a consistent income.




Author: Ted Nino

Monday, October 31, 2011

Gamma Scalping - Cashflowing Volatility

Many option income traders think that when markets are volatile they need to stay out of the game. Not so. Enter Gamma Trading. Here is a little known option trading strategy that can provide consistent profits from markets that seem too wild and choppy to use the usual strategies like iron condors, calendars, and credit spreads.

This strategy is initially set up to profit no matter what the market winds up doing. If the stock or index being used immediately goes up or down, a gain should be realized either way. Then, using the gamma scalping adjustment technique, the trader can lock in those gains, capturing the profit, and then immediately 're set' the trade to once again make a profit no matter what the stock or index being used winds up doing.

Similar to a straddle, when using this strategy, we don't care what the market ends up doing. We are properly set up to profit either way. Up or down, it doesn't matter. The underlying just needs to move.

After a predetermined profit has been realized from a move in either direction, a quick adjustment is made to the trade to lock that profit in forever. And, this same adjustment re sets the position to kick out even more gains no matter what the stock being used ends up doing, even if it just moves right back to the same spot it started from when the trade was first put on. The best part is that this simple technique can be used over and over again on the same trade - constantly chipping out cash from the same position.

If you have ever put on a directional trade, actually started to make a profit, then watch your stock promptly turn around and head right back to where it started from erasing your gains, gamma scalping is a strategy you should look into.

Trading this way takes so much stress out of trading - and actually makes it quite enjoyable. Gamma scalping allows one to not have to be right about direction and still have the ability to be very profitable. Wether the market heads up or falls down - we don't care. Either way we can make money.

During wild crazy times, especially like the extremely volatile markets we are currently experiencing in the markets, Gamma Trading should be considered a 'must have' method for option traders to learn how to use correctly.

And last but not least - it's a really fun way to trade as well.



Want to learn more about gamma scalping ? Then visit iron condor to find the best option trading free tools and training.

Author: Ted Nino

Saturday, October 29, 2011

Double Calendar: What Goes Down Must Go Up

Even though Double Calendar Spreads can be utilized in various stock market circumstances, they function finest in low volatility situations. Increasing volatility levels help these trades, while sinking volatility winds up hurting them.

Mainly because calendar spreads churn out profit the fastest at neutral to rising volatility levels, some calendar spread traders will wait to make a trade right up until an underlyings volatility either reach the lowest level of their average range, or until they move into the lower third area of their normal volatility range.

By waiting for these lower ranges, the calendar spread trader is increasing his or her odds that the volatility levels will either remain wherever they're and not go much lower which could wind up hurting the trade, or will start to rise back up which could put their calendar trade into significant earnings pretty swiftly.

Typically volatility levels move down because the marketplace heads upward and volatility levels go up because the marketplace moves down. This is why calendar traders will usually put on calendar spreads when they have a bearish view on the stock market or on the underlying asset they are trading.

A popular method for option investors with a bearish outlook is to place a calendar spread slightly below where the market or stock is trading at, with the expectation that as the market or stock does head downward, not only with the underlying move directly into the sweet spot of their calendar position, but the volatility will also rise, super charging their calendar trade into a very good profit.

This method can also be used with double calendars, and in fact many option traders would argue that it would be preferred. Using a double calendar could increase the probability of taking profit from the trade as it could be placed with a skew that would not only create a wider sweet spot inside the profit tent for the underlying to get caught in, it could also supply an extended profit tent coverage over the area where the underlying is trading at when the trade is first initiated, providing a safety net if it turns out that the traders speculation on direction turns out to be incorrect.


To find out more about double calendar , visit Ted Nino's site on how to correctly enter, exit, manage and adjust a calendar spread trade for consistent income.


Author: Ted Nino

Sunday, October 23, 2011

The Basics of Stock Trading

Stock trading is something that is not everyone's cup of tea. Whoever has told you that is wrong. Let me tell you something I know for sure. I'm a journalist and I had no clue about commerce up until five years back. At that point I had heard that a friend of mine had managed to make herself a million dollars just by stock trading.

And I thought, WOW! That is some amazing source of income out there! I need to know how to do it. And guess what? I learnt how to! But I can tell you this. In order to find out how stock trading is done, and how to do it right, more importantly, you need to have a whole lot of patience.

Stock Market

The first thing you need to know about stock trading is the stock market. What really, is a stock market? It is basically a forum which allows you to facilitate exchange of security between buyers and sellers and therefore also reduces the risk of making investments. I mean think about what a hard time you would have trying to sell shares if you had to go from door to door, looking for a buyer?

Now the market is divided into two sub markets. The primary market and the secondary market. The primary market is basically where the securities are created by means of an IPO and the secondary market is where investors trade in previously issued securities - all without any involvement on the part of the issuing companies of course. It is the secondary market that we have come to understand as the stock market and it is here that all the stock trading takes place.

Methods of Stock Trading

Now the next thing you need to learn is how you can trade stocks. There are basically two methods to exchange stocks - one is on the floor and the next - a more recent development - is by electronic means.

Basically trading on the floor, in the New York Stock Exchange is what we have come to understand thanks to a million movies - there are images of hundreds of people rushing about, waving at each other and shouting figures at each other and of course looking up stuff on their computers. What trading involves is a sequence of the following steps:

* You direct your broker to buy a certain number of shares of a certain company.
* This order is sent to the floor clerk (from the broker's firm) who is at the exchange.
* The clerk then goes about looking for someone who has a hundred of the desired shares to sell.
* The two negotiate the price of the shares and then shake on it.

That's just about it!

Electronically of course things become much simpler; you just need to use electronic markets to find a buyer and seller match, rather than the via media process of using a trader. This process brings you one step closer to the stock trading process and is much more efficient. So what form of stock trading are you going to choose?


TradersLaboratory.com is the ultimate destination to find all latest forex market updates, share market and equity market in a comprehensive fashion. You can get maximum benefit through spot FX tips. Get now.

Author: Silas Reed


Tags: Stock Market, Stock Trading, Forex Market, Equity Market, FX

Saturday, October 22, 2011

Two Major Types of Brokers

If you have made your final decision to start your forex trading business, the next task to do will be searching for the right broker to partner with. There are two kind of brokerage service out there that is known widely by most traders. They are market makers kind of broker and Electronic Communication Networks kind of broker. The right broker will depends on your own trading strategy.

First of all, let us discuss about the market maker broker. This type of broker sets their own bid and ask prices that they got from the inter-bank or third party provider such as big hedge fund companies, banks, institutional companies etc. By being a client of market maker, it means that you are trading against the broker itself and not some other traders on the other side of that computer screen of yours. There are some advantages and disadvantages from using this type of broker. The advantages from using this brokerage service is that you are guaranteed to have your price go through and it go through with some fixed price or spread that you are getting from within your trading platform. The disadvantage is that you will not have the best spread price on each of the trades you make.

Now the ECN (Electronic Communication Networks) broker allowing you to have your trade with the best spread, meaning that you are getting the best price for each of your trade because you are trading directly from the inter-bank market where you are trading against other traders out there. The downside of this brokerage service is that there is no guarantee whatsoever of your trades will go through.

You have to be able to pick the right kind of brokerage service that is suitable with your trading style, market maker is the kind of brokerage service that is suitable for those long-term type of trader while the ECN is the kind of brokerage service that is suitable for short-term type of trader that trades intra-day trading or scalp trades.

There are many important decisions you should make if you are serious about trading the forex market. One of them is choosing the right broker that is suitable for you. You need to try to narrow down your choices from bunch of forex brokerage service you find out there and choose one from two types of brokerages that I mentioned above that is best and suitable for you based on your own trading strategy.


Should you are still new to the whole world of forex trading, you surely have to be partner with the best forex broker and use the most sophisticate forex trading software to help you get your trading better.

Author: Titiek Puspa



Keywords: Forex Trading, Trading Strategy, brokerage service, market maker broker, ECN, Electronic Communication Networks

Friday, October 21, 2011

Iron Condor - How To Lose Your ENTIRE Trading Account Quickly

I HAD to post this. Read on and you will see why...


Author: Ted Nino

The Iron Condor is perhaps the most dangerous option strategy around.

The thing is, when rookie option traders first hear of this strategy (perhaps from a late night infomercial or free hotel seminar conducted by slick salesmen touting it as the greatest thing since sliced bread) - very few seem to able to resist the temptation to jump right into trading them head first - with actual real hard earned money on the line - and usually way too much of it.

And it seems that a good percentage of them - if not most of them - promptly wind up getting their groins kicked in, their heads ripped off, their eyes poked out, and getting hurt really, really bad.

Now wait -

Before you start to get the wrong impression, please, let me clarify something here.

I absolutely LOVE iron condors. ALOT. In fact, the iron condor is right up there as one of my favorite trading strategies.

I think the iron condor really IS a great trade.

And yes, I absolutely believe all those stories and claims you hear swirling around about iron condors generating ten percent plus monthly returns and providing trades that have the probability of winning somewhere in the range of eighty to ninety percent. In fact, I KNOW those stories are true because I see it happen all the time in my very own trading account.

The problem is - there is something big that is being left out of all those claims and stories - and this something is causing way too many fresh new doe eyed option traders to misunderstand this strategy right from the beginning and blindly jump into them with completely wrong expectations.

See, while it may be true that the iron condor and credit spread strategies can kick off yields of over ten percent monthly and that they favor the trader by offering high probabilities of winning (in some instances as high as 80 and 90 percent) - what isn't being talked about is the risk to reward ratio of these trades - which can be as high as 10 to 1.

10 to 1! That means that in order to try and make just one dollar, you need to be willing to risk ten. Or, put another way - in order to make 100 dollars, you need to risk 1,000 dollars. Or - risk $10,000.00 to hopefully make just $1,000.00!

And as my dear old mammy used to say: 'that smells a lot like an awful bad egg'. Which in fact it is. That risk to reward ratio is nothing but a low down, no good, smelly rotten deal!

Even with the ten percent monthly returns and the high probabilities - all that needs to happen is for a problem month to come along (and it WILL, believe me) - and the next thing you know you'll be staring at a gigantic loss and a zero balance account!

However...

There is still hope...

Like I said before, I LOVE the iron condor trade.

And - I consistently make money from it.

So apparently, even with that atrocious risk to reward quandary, there must be a method to generate consistent income with this trade.

And there absolutely is.

It all has to do with the management of the trade.

As long as you learn the correct way to initially place these trades, then combine that with a super simple management technique and a few easy adjustment tricks - this risk to reward issue can be completely eliminated and no longer presents a problem.

Once you possess the correct iron condor knowledge and know how - and understand how to apply a couple super easy to implement adjustment tricks - you'll know exactly how to exterminate any problematic market threat that comes your way, allowing you to experience the iron condor trading strategy for all that it's 'actually' cracked up to be.


To learn these 'tricks' to trading the Iron Condor , go to this Iron Condor site and watch my free video. It will show you an extremely simple method for properly placing, managing, and ADJUSTING iron condor trades.

Friday, September 16, 2011

Forex Robot: Learn How To Select The Best Forex Robot in The World!

An Article by Martin Russell

Automated Forex Robots are software tools that happen to be used widely by prominent and successful traders. When you consider automating your foreign currency trading business you should be careful in choosing a program. A lot of Forex systems are scam and do not deliver the results as per their aims. As a trader you should be highly careful when dealing with such automated Forex robots.

The reason why these Forex trading robots are popular is because of the successful results. Once you decide on a profitable automated system, your currency trading enterprise will stand a superior probability of increasing high return on investment (ROI). These software programs are made to make profitable trades thus making your business to be profitable. These systems use algorithm script which is useful to conform using the Forex market policy thus creating your trading approaches in agreement with rules and regulations.

As a newbie trader, you need to consider identifying automated Forex robot reviews that will help you choose the best Forex software. There are many ways how to locate and review software robots with high returns. Let's discuss how and where you can identify system reviews for much better results.

Here are tips that you should consider when choosing the best Forex robot:

a) Visit Forex related forums

b) Browse through Forex trading blog reviews

c) Go to Alexa.com and check the "feedback section"

d) Search on Google and Yahoo.com

e) Check testimonials and customer reviews

Most of Forex Robot software products are utilized by day traders to trade different products which are simply because they have a built-in meta trader. The aim and roles of meta trader is to make profitable `PIPS. From my personal experience you can utilize an automatic system which will turn your business into a profitable venture.

Before investing in software you may request to free forex robot from the software developer so as to training Forex without losing any money. Free Forex software can determine your purchasing power thus lessening risks.

Let's look at some benefits of choosing the ideal Forex robot for trading foreign currencies.

a) These software robots can auto trade all of your trading process from the moment each day trading around the final session at this point you will get less human intervention because you would've set the device to trade on autopilot.

b) The software can assist you determine the best and most profitable trades to complete. They normally have an in built feature which allows it to find the top trades to order and sell.

c) The system can invest any Forex broker trading platform. There are some brokers who don't allow the use of automated robots, but for a profitable system bot, you may use any trading platform without knowledge of the Forex brokers.

d) Most system trading have an in built signal that predict the market condition in terms of exchange, This feature moves on the market and analyze and come returning to let you know the perfect time to buy and sell.

e) Automated Forex trading software can be simply downloaded and then you install it and view how income is made. It's merely a plug and play. Within 5 minutes you would have downloaded it and you also start your own personal trading currency business.

The above points are a couple of benefits of the said automated software. If you want to learn how to trade Forex, stock and other commodities a trading bot will be of much help.

An additional advantage is the valuable information in forums where you can post and ask questions you desire in regards to the system. Most forums have experienced traders that are ready to help and provide support.

One and only thing that I hate concerning the Forex trading robot is because they don't possess a no-cost trial to provide their customers but to sum up the system is a lot more profitable. If you need to improve your trading business income, then you should trade Forex with an automated Forex trading robot.


To get the best Forex Robot today, please visit Automated Forex Robot.

Saturday, September 10, 2011

Forex Research Site

I have been working on a new blog that is dedicated to FOREX trading. The site is Forex Research Site and is loaded with free tips and information.

FOREX is a complete entity all by itself and to include it in this blog would be overwhelming to the reader. So I made the "Executive Decision" ;-) to just make a whole new blog on the topic. Thus my absence from this  blog. FOREX is a truly remarkable way to invest money, and with our technology the way it is, there are automated tools available which significantly make the process of trading currencies more successful and much less time consuming.

If you are truly interested in FOREX at all or just curious about how it all works, please, check out Forex Research Site.com and enjoy all the free information available.

That being said, let's see how our S&P 500 index option is doing.


Requirements

Total Cost ($50.00)
Initial Requirement $1,816.25
Maintenance Requirement $1,453.00
Total Requirements $1,816.25
Estimated Commission $12.99

The underlying FUTURES contract.


Option SPU11
FUTURES
1174.90
Last
0.00
Change
1174.90 (0)
Bid
1174.90 (0)
Ask
0
Vol
11:52:44 AM ET
Time
Wish List


The "GEEKS" of it all.

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
SPU1900P 0.00 0.10 0.00 0.00 0.00 0.00 0.00
Net 0.00 0.00 0.00 0.00
NBBO 0.00 0.10

Thursday, August 4, 2011

Thursday S&P 500 Futures Option Report

With the Futures Markets still looking a little gloomy, my 900 PUT option is higher on the margin/maintenance requirements. Obviously Wall Street isn't happy with Capitol Hill's solution to the debt crisis. Maintenance Requirement $1176.00

The "Geeks" of it all: 

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
SPU1900P 0.40 0.55 40.99 0.01 0.00 -0.10 0.05

 The underlying Futures contract is at:

SPU11
FUTURES
1245.10
Last
-9.40
Change
1245.00 (1)
Bid
1245.20 (1)
Ask
2,461
Vol
7:55:14 AM ET
Time

Tuesday, August 2, 2011

Tuesday S&P 500, 900 PUT Option Report

This morning we find the S&P 500 down again. I had previously made the comment that it would drop to between 1275 and 1250. It would appear the forecast is coming true. It is now the time to do a little more shopping. I'm thinking of SELLING another 900 PUT option. Perhaps in the same month, September. Margin/maintenance is under 1K and time is on my side. The vote on the new budget deal has passed the House and is now in the hands of the Senate. It's not much of a "Deal" and I believe the markets are reflecting their opinion also. But it is what it is. I think IF the Senate votes positively on the "Deal", the markets will rebound again and keep climbing to around 1400. That is unless another "Monkey Wrench" gets thrown into the gears. That being said, here's today's numbers. Margin Requirement $959.00

The "Geeks" of it all:

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
SPU1900P 0.40 0.55 42.18 0.01 0.00 -0.10 0.04

The underlying Futures Contract is at: 

SPU11
FUTURES
1269.40
Last
-10.30
Change
1269.40 (1)
Bid
1269.60 (1)
Ask
3,795
Vol
8:39:55 AM ET
Time

Monday, August 1, 2011

Monday Morning S&P 500 Option Report

This morning we find a possible agreement in our Nation's Capital concerning the "Debt" crisis. The markets are rebounding on the news but my 900 PUT option has not traded so the numbers on margin/maintenance are still high. It will take a while for the options in the underlying S&P Futures contract to settle back down. Currently my margin/maintenance requirement is at: Maintenance Requirement $1044.00.

The "GEEKS" of it all:

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
SPU1900P 0.00 0.00 47.94 0.01 0.00 -0.14 0.07

The underlying Futures contract is at:

SPU11
FUTURES
1303.30
Last
+14.90
Change
1303.60 (3)
Bid
1304.00 (22)
Ask
2,038
Vol
8:13:45 AM ET
Time

Friday, July 29, 2011

Friday's S&P Option Report

With our Nation's focus clearly on the debt crisis, the markets also are staying negative. The margin/maintenance requirement on my 900 PUT option has gone up some more today. It currently is at: Maintenance Requirement $969.00.

The "Geeks" of it all:

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
SPU1900P 0.40 0.55 41.89 0.01 0.00 -0.10 0.04

The underlying Futures Contract is at:

SPU11
FUTURES
1290.60
Last
-6.20
Change
1290.60 (1)
Bid
1290.70 (1)
Ask
1,548
Vol
8:15:47 AM ET
Time

Thursday, July 28, 2011

Thursday S&P 500 Futures Option Report

With the S&P still falling on worries of our Nation's debt crisis deadline getting closer, I find the margin/maintenance requirement on my 900 PUT option has gone higher. It is now at: Maintenance Requirement $933.00.

The "GEEKS" of it all:

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
SPU1900P 0.40 0.55 42.19 0.01 0.00 -0.10 0.04

The underlying Futures contract is at:

SPU11
FUTURES
1297.90
Last
-1.00
Change
1297.90 (18)
Bid
1298.20 (4)
Ask
2,493
Vol
8:28:47 AM ET
Time

Wednesday, July 27, 2011

A Recent Article I Wrote

How to Make Money Trading the S&P 500 Index

Not For Beginners

The method of trading described below is an advanced trading technique and is definitely not for beginners. Although the technique is relatively simple in design, if one is not knowledgeable in all of the different aspects of options trading and the repercussions that can occur, bad things will happen. That being said, let's move on.

Enlightenment

I had been trading Commodities for about 15 years when I accidentally stumbled upon this strategy being used in a large investment firm with dozens of professional investors using dozens of strategic maneuvers to lure investors into their firm. One of the trading techniques stood out like no other. Although I made a few modifications to his strategy, the principal is basically the same.

Fact

We all know how NASDAQ, the DOW and S&P work. Follow the charts and they go up and down on a regular basis. If you took an overlay of all 3 and laid them on top of one another you would see they all follow the same paths similarly. Economy goes up, the chart goes up. Economy goes down, chart goes down. The part of the fact I like is as the charts go up and down, it is almost steadily climbing upward. This gives the trader an opportunity to prosper.

The Idea

What we want to do is pick a low point in the S&P 500 where it hasn't been in quite some time. A point that has some higher volumes of trading going on in the options chains and has a low initial margin/maintenance requirement for selling PUT options. Currently the S&P is at 1334 and moving. We want to be WELL low of where it currently is.400 points out of the money is a good place to start your search. We also want to be about 60+ days into the future. There we start pricing PUT options that we are going to sell.

Research


Now we know what we are looking for. Let's look at a current chart and see what we can see. I am sure if you are an active trader you have resources of your own for checking charts, graphs and pricing options. If not, I like using this chart because it goes back to 1960.

http://stockcharts.com/freecharts/historical/spx1960.html

Now to find an put option that meets our criteria. If you don't have current resources, try this:

http://www.cmegroup.com/trading/equity-index/us-index/sandp-500_quotes_globex_options.html?exchange=XCME&foi=OPT&venue=G&productCd=SPU1&underlyingContract=SP&floorContractCd=SPU1&expMonth=201109

The 900 PUT option falls into the criteria we require for a successful trade. Again, your brokerage firm should have the calculations or calculator to find the initial margin/maintenance requirements.

The Trade

Entered Trade



Sell-1 (SPU1900P)
Price:------------------------------ 0.45
Cost:--------------------------($112.50)

Requirements

Total Cost--------------------($112.50)
Initial Requirement---------- $811.25
Maintenance Requirement $649.00

Total Requirements--------- $811.25
Estimated Commission------ $12.99

Breakdown

What did I just do?
Sell-1 (SPU1900P) = Sold one S&P 500, September 2011, 900 Put option.
Price-0.45 = The cost of the option = $250.00 X 0.45 = $112.50.
Please notice that the total cost is in parenthesis. This usually means a negative but since I sold it, It now becomes a double negative which makes it a positive.
Initial Requirement $811.25 = Money I needed to have in my account to place the trade.

Maintenance Requirement $649.00 = Money I need to maintain the trade. Cannot have less than that amount in my account.
Estimated Commission $12.99 = The cost to place the trade.
The final total of this trade is = I just made $99.51 on less than $1000.00.

Now What?

The option I just sold will expire on September 16th, 2011. If the S&P does not drop to 900 in the next 60+ days, the option expires worthless and I do it again. If the market moves up, the cost of that option moves down, along with that is the time value. It gets worth less every day as it gets closer to expiration. Most of the time even if the market moves down towards the option, the margin remains the same due to the devaluation of time. You can also buy the option back at any time if you wish to close the trade. Say the "Doomsday" report just came out. Of course, we're ALL in trouble then.

Summary

Well that's it. Actually pretty simple, pretty basic. If you have access to all the tools required, paper trading is always the best way to start. The way I do it now is to wait another 30 days and put another trade into place. It is better to wait until the market is on a down swing when doing this for you may pick up a few more dollars or you can move down farther in the option chain and make the same amounts. Either way, it works.

Tuesday, July 26, 2011

Tuesday S&P 500, 900 PUT Option Report

Not much happening yet this morning. Almost like everybody's waiting for Congress to do their thing. My margin/maintenance requirement on the 900 PUT option is up just a bit. Maintenance Requirement $632.00.

The "Geeks" of it all:

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
SPU1900P 0.40 0.55 44.01 0.01 0.00 -0.09 0.04

The underlying Futures Contract is at:

SPU11
FUTURES
1336.10
Last
+2.60
Change
1336.00 (2)
Bid
1336.30 (5)
Ask
1,402
Vol
8:25:19 AM ET
Time

Monday, July 25, 2011

Monday Option Report

This morning the S&P 500 is down a bit. It will be interesting to see what happens as we move closer to our Nation's debt crisis deadline. The margin/maintenance requirement is at: Maintenance Requirement $534.00.

 The "Geeks" of it all:


Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
SPU1900P 0.40 0.55 43.20 0.01 0.00 -0.10 0.04

The underlying Futures Contract is at:

SPU11
FUTURES
1331.50
Last
-9.50
Change
1331.30 (3)
Bid
1331.60 (15)
Ask
1,915
Vol
8:28:24 AM ET
Time

Friday, July 22, 2011

Friday's Option Report

Today we find the S&P 500 up a little more. It's just kind of bouncing around the 1340 range. The volatility has diminished some and the margin/maintenance requirement has also been subdued. Today's maintenance requirement is at:
Maintenance Requirement $570.00

The underlying Futures Contract:


SPU11
FUTURES
1341.30
Last
-1.20
Change
0.00 (0)
Bid
1340.70 (0)
Ask
23,449
Vol
12:24:52 PM ET
Time

The "Greeks" of it all.

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
SPU1900P 0.00 0.00 41.17 0.01 0.00 -0.08 0.03

Thursday, July 21, 2011

Thursday Futures Option Report

The 900 PUT option I sold has a little higher margin/maintenance requirement today, even though the market is still moving slowly up. Today's maintenance requirement is: Maintenance Requirement $773.00

The underlying Futures contract is currently at:

SPU11
FUTURES
1327.30
Last
+6.00
Change
1327.60 (10)
Bid
1328.00 (5)
Ask
3,726
Vol
8:30:11 AM ET
Time

Greeks / NBBO

Symbol Bid Ask IV Delta Gamma Vega Theta
SPU1900P 0.40 0.55 41.25 0.01 0.00 -0.10 0.04                                   
 
      

Wednesday, July 20, 2011

Wednesday Morning Trade Update

With a little bump up in the S&P 500 we see that the margin/maintenance requirement has gone down again. It now is currently at: Maintenance Requirement $746.00

The underlying futures contract is at:

SPU11
FUTURES
1322.70
Last
+1.50
Change
0.00 (0)
Bid
0.00 (0)
Ask
12,300
Vol
10:02:31 AM ET
Time

Monday, July 18, 2011

Monday Option Report

The S&P 500 is down a little more today. But because of the loss of time value, my margin/maintenance requirement has stayed the same. I would expect if the Equity Indexes continue to drop more tomorrow or even possibly for the rest of this week, the numbers will go higher. But, for right now, it is the same:
Maintenance Requirement $857.00
The underlying futures contract is at:
SPU11
FUTURES
1302.10
Last
+1.70
Change
1302.40 (9)
Bid
1302.80 (3)
Ask
107
Vol
8:27:33 PM ET
Time
 

Saturday, July 16, 2011

Weekend Option Report

My maintenance/margin requirement on the 900 PUT option that was sold is now at: Maintenance Requirement $857.00.

The underlying futures contract is at:

SPU11
FUTURES
1314.90
Last
0.00
Change
1312.60 (0)
Bid
1314.00 (0)
Ask
0
Vol
5:53:43 PM ET
Time

Thursday, July 14, 2011

July 14th Option Update

The S&P 500 is down a little more today. After examining the charts I would guess that it will bounce around on it's way down until it gets to anywhere between 1250 and 1275. Just a guess. We'll see. The margin/maintenance requirement for our 900 PUT option today is: Maintenance Requirement     $887.00.

Although the cost of this futures option is now at $200, (I could have MADE a few extra bucks) we can now see that I should have waited (patience being the key word) until the market has dropped. But what would have happened if it kept going up??? You see you really can't tell. That's why we want to make sure we are way "out of the money" when we put these type of trades together.

Another good resource book that has basic and a few advanced techniques is Starting Out in Futures Trading. It is an older book published in 2001 but it contains valuable information that the futures trader will require. That's all for today. See ya in the pits!