Tag Archive | "Options Trading"
Understanding Bonds
There are certain things you must understand about bonds before you start investing in them. Not understanding these things may cause you to purchase the wrong bonds, at the wrong maturity date. The three most important things that must be considered when purchasing a bond include the par value, the maturity date, and [...]
Continue reading...Day Trading 101
Thursday, August 14, 2008
A successful day trader or share market trading requires couple of disciplines and following requirements - 1) PC with internet - If you need to do it yourself then you need to have a PC or else you can do it in internet café also. A PC with good internet connection speed. The internet connection should [...]
Continue reading...Why Buy Stocks on Margin?
Thursday, August 14, 2008
Buying on margin means that you are buying your stocks with borrowed money. If you are buying stocks outright, you pay $5,000 for 100 shares of a stock that costs $50 a share. They are yours. You’ve paid for them free and clear. But when you buy on margin, you are borrowing the money [...]
Continue reading...Can Non-British Purchase Premium Bonds?
Thursday, August 14, 2008
Premium bonds is the most unique way of saving money in Great Britain . In increments from a hundred pounds to up to thirty thousand pounds, the government will secure your money. The government will use your money for civil projects and in return, the bond numbers on your bonds will be put [...]
Continue reading...Getting Started in Options
Thursday, August 14, 2008
The first thing that you have to do when you are looking to begin trading in stock options is to read everything that you can find on the topic. Stock options are not stocks, and trading in stocks does not qualify you to trade in options by default. If you want to be successful, see [...]
Continue reading...Day Trading Pros and Cons
Wednesday, August 13, 2008
Day Trading Buying and selling of shares on daily basis is called day trading. This is also called as Intra day trading. Whatever you buy today you have to sell it today OR whatever you sell today you have to buy it today and very importantly during market hours. Advantages of Day Trading a) Margin trading [...]
Continue reading...The Leveraging Power of Margin
Wednesday, August 13, 2008
Buying on margin can be an extremely powerful method that can help you leverage your money when trading in the stock market. Let me ask you a simple question. You want to make $100. Would it be easier to make $100 from $500 or $1000? Definitely $1000. If you make $100 from $500 [...]
Continue reading...Options Trading 101
Wednesday, August 13, 2008
If you’re trading stocks or bonds, there are a whole range of strategies you can follow, which range from the long term buy and hold, right through to day trading using technical analysis. Options trading is very similar. Understanding exactly what an option is one of the trickiest things to understand when you’re starting out. Here’s [...]
Continue reading...Understanding the Risks of Margin Trading
Tuesday, August 12, 2008
The growth in the number and size of margin accounts for stocks especially among day traders suggests that many people foolishly neglect these simple truths. From 1996 to 1999, margin debt rose nearly fivefold at on-line brokerage firms and doubled among NYSE member firms. During the decade of the 1990s, margin debt [...]
Continue reading...Options Trading Terms
Tuesday, August 12, 2008
Just are there are terms associated with Stocks Trading, there are specific terms associated with options trading. But first, you must understand that options is an investment instrument that stems from stocks, and the fundamental principle of its function is to confer a options holder the right to buy or sell shares from the options seller [...]
Continue reading...Options Trading | How Call Options Work
Tuesday, August 12, 2008
Understanding how Call Options work and your choices in various scenarios relating to the fluctuation of the related stock prices are the fundamentals of Options Trading. This article gives an overview of Call Options and how you can make money through purchasing and selling Call Options. A Call Option gives its buyer (holder) the right to [...]
Continue reading...Options Trading | How Put Options Work
Tuesday, August 12, 2008
Understanding how Put Options work and your choices in various scenarios relating to the fluctuation of the related stock prices are the fundamentals of Options Trading. This article gives an overview of Put Options and how you can make money through purchasing and selling Put Options. A Put Option gives its buyer (holder) the right to [...]
Continue reading...Options Trading | Options Strategies
Sunday, August 10, 2008
If you are interested in options trading, you need to take an interest in option stock trading strategies. To understand stock options better lets see a simple dictionary definition. Strategy can be defined as a skill in managing or planning, especially by using stratagems. The words managing or planning using stratagems to achieve a particular end or [...]
Continue reading...Options Trading | Options Straddling Strategies
Saturday, August 9, 2008
The straddle strategy is an option strategy that’s based on buying both a call and put of a stock. Note that there are various forms of straddles, but we will only be covering the basic straddle strategy. To initiate a Straddle, we would buy a Call and Put of a stock with the same expiration [...]
Continue reading...Common Day Trading Mistakes You Should Avoid
Wednesday, July 2, 2008
The rewards for day trading can be great and the prospects of getting rich fast is tempting. But as with all things related to a fast buck, the risks are great too. To minimize your risks and to maximize your opportunity of making money through day trading, here are some common mistakes of day trading [...]
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Thursday, August 14, 2008
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