So, you’ve read this great piece – an article in a magazine, a blog post, or email newsletter in which an experienced options trader, a so-called options trading ‘guru’, shares a trading strategy that has worked well for him or her. And, you wonder – how much can I trust this article? If it were really that good, would he more »
The White Coat Investor: A Doctor’s Guide to Personal Finance and Investing, published 10th February 2014, is a book written by a James Dahle, an active practicing Emergency Room physician in Utah. The book’s targeted audience is high-income professionals like physicians, dentists, and other highly educated professionals who often have spent many years training to do what they do, but, more »
The only reason any investor or trader is in the stock market is to make money. Historically, gold has always been a great investment, as people love gold and it stood the test of time. Recently however, over the past couple of years, it seemed that gold had fallen out of favor, and the popular gold indices fell and stayed more »
Volatility scares investors, as it usually rises sharply when the stock market is falling.However, savvy investors and options traders love volatility as they can profit faster from the stock market’s random movement. There are many ways to profit from volatility, and pure stock investors might take the opportunity to buy undervalued stocks cheap when the market falls irrationally on news more »
In recent days, financial markets around the world have seen much turmoil, and market indices have dropped dramatically. Many wonder how long the ‘correction’ will last or whether this is the start of another bear market. While stock investors are understandably worried, such market uncertainty is what options traders live for. Increase in volatility of the markets means more opportunity more »
In my previous post, I discussed how stock options can help protect investors from the uncertainty of the stock market. We reviewed the basic types of stock options, and how owning puts gives stock investors peace of mind knowing that no matter where the stock opened each morning, the put guaranteed that the stock could be sold at a given more »
In my last post, I congratulated Indian investors and traders for considering the use of stock options as part of their investing strategy. While this might have seemed at the time a hollow comment, the global market action in the last two days exemplify why options trading should be a vital part of every investor’s toolbox. In the ‘old days’, more »
TRENDS ARE YOUR FRIEND The ‘Trend is your friend’ adage has been used often; however, many newbie investors and traders struggle to identify trends. Successful traders, who learn to identify trends early, often benefit from the folly of less experienced investors and traders. Technical traders attempt to level the playing field by the use of indicators, such as MACD (moving more »
TREND IS YOUR FRIEND ‘Trend is your friend’ is an adage that many beginning investors and traders hear often. However, learning to recognize and use a trend and profit from it is more an art than a science. Successful traders learn to recognize a trend early, and then hop on for the ride until the trend ends. Since major investment more »
GMCR EARNINGS TRADE – STRADDLE PLAY Earnings season is upon us, and publicly traded companies will be reporting their earnings for the past quarter. Earnings announcement season is a much anticipated and recurring occurrence every quarter, and options trading around earnings announcements can be both predictable and profitable for savvy options traders. Hence, I thought it only appropriate to review more »