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I Loved Iron Condors Until…

February 8th, 2010 No comments

Hi all and welcome to this article by San Jose Options Mentoring. The purpose of this instructional writing is to warn beginning and intermediate option traders about the risks involved in trading Iron Condors. Although Iron Condors can produce monthly income, they can also produce catastrophic losses to your trading account if you do not trade them correctly. Now, unfortunately most books and most option courses that teach how to trade the Iron Condor, push that the Iron Condor should be traded near expiration. This strategy will work for a few months in a row, but then when the market wants to wake up, the trader using this option strategy will also wake up to find most of his trading capital gone.

If you have a few minutes, I would recommend watching the video that we have included with this article. You will see an Iron Condor on the SPY which demonstrates the type of Iron Condor that can wipe out your entire trading capital.

This is the strategy that is taught by 99% of the courses on the Internet. Don’t be misled, and don’t fall into the trap. Take a look at this video and see firsthand the stress and the risk involved with this option strategy. [youtube:VE4AF6hf9Q8;Be Warned about the [link:Iron Condor];http://www.youtube.com/watch?v=VE4AF6hf9Q8&feature=related]

As this option spread gets closer to expiration it becomes more volatile and more risky. Even though the trade might be yielding a profit, the option trader can lose all of the profit and more in one single day. This is because of the option Greeks. The Gamma is extremely high which causes the Delta position to change in an uncontrollable manner. Please watch the video at the six-minute mark to understand better what I am talking about.

Well, to wrap things up, I would like to say thank you for reading this article and watching the video that goes along with it. I hope you have learned some of the things about the risky Iron Condor. Now don’t get me wrong. The Condor is not a bad strategy. The problem that I see is that most people trade this option spread too close to expiration, and this is a serious problem. There is a much better way to trade this strategy. If you would like to learn how to do it safely, then I highly recommend that you visit San Jose Options because they teach the best Iron Condor that I have ever seen.

Learn the Secrets to Trading the Iron Condor at San Jose Options Trading Course. You can get a unique content version of this article from the Uber Article Directory.

Automated Forex Software Can Help Investors Make Clever Decisions

February 7th, 2010 No comments

One of the distinctive things about the forex market as opposed to markets like the New York Stock Exchange is that it operates 24 hours a day. The forex market covers the whole world, all 24 time zones, so no matter what time it is, currency trading is taking place.

Because of this, lots of traders have found it advantageous to have forex software on their computers. These programs enable users to stay up to date about the very latest prices and to trade currencies 24 hours a day.

Forex software also helps the online firms that deal in retail forex trading. Without the software, clients would have to log on to the site to conduct their dealings. But with the software installed on their computers, customers can handle their transactions without having to log in and possibly overload the company’s server.

Most retail forex companies offer some kind of software for their customers to use, and most programs are about the same. They give up-to-the-minute values of currencies, allow customers to make transactions, and provide for transferring balances. Basically, this software lets you do the things you once had to do online without actually having to log in to a Web site.

There are also third-party companies that offer forex software, programs that aren’t pegged to a particular retail dealer but that offer users a way of keeping informed and conducting business. Many of these softwares also give video instructions and practice runs, to help new clients learn the ropes before getting into the real thing. Such practice is extremely valuable, as forex trading is complicated and can be dangerous to a novice trader.

Another advantage of forex software is that many softwares do analysis, too — that is, they’ll look at the data over a specific period of time and recognize trends and patterns. Have certain countries’ currencies been gradually declining recently? Does one currency habitually grow stronger at a specific time every year? Will the U.S. dollar be stronger or weaker right about the time of an election?

All of this data can help you, the trader, in deciding which currencies to buy and sell. Nothing is certain in speculative markets like forex, as there are simply too many factors and variables that influence exchange rates from day to day. But forex software can help you make educated decisions, which is priceless to an investor in a chaotic marketplace.

Don’t spend any money on automated forex trading software before you take some time to learn about the many forex robot out there.

Avoid These Mistakes When Trading Penny Stocks

February 6th, 2010 No comments

Penny stocks can be a great investment. Their low price makes them perfect for most people trying to get their foot in the door to trading.

But care must be taken to avoid several common mistakes. Because penny stocks are so inexpensive, there is a temptation to invest in these stocks without first researching them. It is critical to do the research first to determine if the company you’re buying into is a good or a bad investment. Since penny stocks are not listed on the main stock exchange, the companies offering them may not be well established. Never invest in stock until you have taken the time to investigate it first.

Also be careful of your information supplier. Many online websites provide free hints and recommendations regarding the best stocks to buy and the ones you should sell. Always be cautious of their motives in giving you free advice. Put more faith in your own intuition and facts. This brings us back to the importance of first researching the company; this facet of trading penny stocks is vital if you are to profit from your investment.

Making money out of penny stocks is not straightforward. You should expect to make some losses as you go along. It may just make you your fortune, but stocks are fickle never think it is simple.

Brokers are available to help but it is better if you do not rely on them. Be sure to know the facts about companies and follow your instincts before taking any advice from brokers.

But the worst mistake you might make is to purchase stocks when you are not able to spare the money. This can lead to calamity. Keep in mind always that buying penny shares entails a risk. It is as easy to lose your total investment as it is to make a profit. So before investing in a company, be sure you can well afford to lose that money in case of a mishap. Save your money first to build up a stockpile you can spare – and never bet your bottom dollar on trading penny stocks.

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