Stock options can make you huge amount of money with just a small investment. Just keep in mind few things in mind while trading in it , this wud definately fetch you good returns : The time premium. As the expiration date on a stock option draws nearer the cheaper the option will become. This way you are able to buy even more calls and puts on the stock of your choice. … [Read more...]
How to Have Rules in a Stock, Futures or Forex Trading Plan
Once you start trading the stock or forex markets you need to stick with a trading plan and a set of rules to trade by. You need to stick with your plan and the rewards will follow in profitable trades. To make consistence profitable trades you need to be flexible in your trading plan and adjust it as the need arises. You need to think about what kind of a trader you are and … [Read more...]
Predictability and Trends in stock market
I often hear people swear that they make money using the rules of technical analysis. Do they really? The answer, , is that they do. People make money and profit indeed by using all sorts of strategies and techniques . The real question is: Do they make more money than they would investing in a blind index fund that mimics the performance of the market as a whole? Do they … [Read more...]
How does Stock Market functions?
The expression ’stock market’ refers to the market that enables the trading of company stocks (collective shares), other securities, and derivatives. Bonds are still traditionally traded in an informal, over-the-counter market known as the bond market . Commodities are traded in commodities markets, and derivatives are traded in a variety of markets (but, like bonds, mostly … [Read more...]
Chaikin Volatility Indicator
The Chaikin Volatility Indicator uses the percent change of two moving averages of a volume weighted accumulation-distribution line to determine the volatility of a financial data series. Chaikin quantifies volatility as a widening of the range between the high and the low price of a security. This does not take trading gaps into account as Average True Range does. As shown … [Read more...]