Trading techniques
Is leverage trading risk-free? Simple answer – No. Nothing in investing and trading is without risk. Leveraged trading just amplifies your potential gains and your potential losses. So why use leverage for trading? There are many possible answers to that… Continue Reading
What is the best charting method for stock trading? A simple answer could be – The method that best suits your trading style. But that answer is as good as useless so here is a better answer. The best charting… Continue Reading
Have you been wondering how to read point figure stock charts? Or have you dismissed them as an old-school traders’ technique that belongs to the past? Whatever your impressions may be, point figure charts have been used by traders and… Continue Reading
How do I trade using daily weekly and monthly charts? Use daily candlestick charts going back a few weeks to find entry and exit points for swing trades of a few days or more. Look for classic price reversal or… Continue Reading
Did it come to a point in your stock trading history where looking back you can say, – I realized that I kind of suck at picking stocks? Well maybe, just maybe that marks a point in time when you… Continue Reading
What is negative divergence in the MACD? Negative divergence in the MACD is when the price of a stock or ETF is making higher highs but the MACD is making lower highs. It is a bearish indicator in a price… Continue Reading
When you start trading or investing with stock options, very quickly you will find that understanding the implications of the stock option’s delta is key. Delta is key to getting the leverage, risk-reward, and protection in the underlying stock or… Continue Reading
What is the stock replacement strategy? The stock replacement strategy involves taking long positions in deep-in-the-money call options in stock that you would otherwise own. It works best with stocks that you want to hold for the intermediate to long-term,… Continue Reading
This article, bear put spreads explained, does just that. We’ll take a look at some examples of bear put spreads, understand how they work, the risks and rewards, and under what kinds of circumstances they work the best. A bear… Continue Reading
In this article we look at some bull call spread examples as a way to understand how the bull call spread works and what are the best circumstances for using them. This article explains some basic concepts of how to… Continue Reading
Understanding implied volatility of options is something all options investors and traders will need. Volatility is an important measure for options traders because it is the volatility that gives opportunities for profit. When you are looking to open an options position,… Continue Reading
In an earlier article, we looked at selling covered call options. In this article, we will be looking at how to sell naked calls. Selling naked call options means selling someone else, a buyer the right to buy from you… Continue Reading
Welcome to selling covered calls explained. Of all the options strategies an investor and trader can use, selling or writing covered calls probably carries the lowest risk. At the same time, selling covered calls is a straightforward way to use… Continue Reading
Sometimes, in discussions about investing with friends and acquaintances, I am stunned at how so many people have strange and negative attitudes towards stock options. To try and rehabilitate options from the bad rap they have been getting, here is… Continue Reading
Many investors and traders who are building their knowledge and experience with investing and trading will wonder whether to get into swing trading for a profit and just how profitable swing trading can be. First, we need to define swing… Continue Reading