How To Identify Explosive Stocks To Trade

Written by Peter Lim, CFP

Continued from page 1

Many traders have found it is very profitable for them to detect stocks that have undergone a surge in volume of around 50 times its average volume ofrepparttar past 25 days, but with only a slight increase of around 7% in price.

When you have a situation like this, traders have observed thatrepparttar 150405 stock's price will soon moves up followingrepparttar 150406 oubtreak inrepparttar 150407 stock's volume.

Tweak this technique to your stocks or your trading vehicle and customize it to suit your risk tolerance.

You will find this to be one profitable arsenal that you can add to your box of trading tools!

As always, trading carries risk. So consult your broker, private client adviser or financial planner if you wish to trade.

For more trading ideas, visit Peter Lim's website at

Peter Lim is a Certified Financial Planner and the author of the ebook "Swing Trading for Gigantic Profits". You can have free access to a swing trading course and trading articles from his site Permission is given for you to reprint this entire article provided there are no changes and this signature box is kept intact.

Option Trading Tips - How To Get Paid For A 'Promise!'

Written by James Thomas

Continued from page 1

Because you receive this $0.50 per share, your overall purchase price (should you be assigned) is lowered by $0.50 to $9.50.

Shouldrepparttar stock fall and you be forced to buy it, a great way to keep this cash flowing and atrepparttar 150404 same time continue to reduce your risk is to simply turn around and start writing covered calls on it.

That being said, it's never a good idea in my opinion to write naked puts on a falling stock. Always look at a stock's chart for:

1) Moderate uptrends.

2) Sideways trends, especially 1-2 months AFTER a steep sell off.

If you go to: and pull uprepparttar 150405 QQQQ chart forrepparttar 150406 first quarter of 2003, you'll find a great example of this second pattern.

During this time I began writing naked puts onrepparttar 150407 QQQQ and then when I was eventually assigned I then wrote covered calls onrepparttar 150408 QQQQ profitably for a number of months.

In sideways or rising markets, writing naked puts to potentially aquire stock (and be paid while you wait) and then writing covered calls onrepparttar 150409 stock when and if you are exercised, may well berepparttar 150410 ultimate strategy for generating a cashflow income fromrepparttar 150411 markets.

Also, considering that a large majority of options are never exercised, much ofrepparttar 150412 time you may never even be required to buyrepparttar 150413 stock.

When it comes to writing naked puts, you often get paid for a 'promise' that you don't end up having to keep. Now that's what I call leverage!

Happy option trading and investing!

James Thomas is a successful private option trader and has created http://www.option-trading as an informative, no-nonsense resource full of useful tips and information designed to help option traders and investors to become more profitable.

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