E-mini day trading - Day trading for beginners - Stock market timing software

Written by kigo kare

Do Not Perform Brain Surgery With a Plastic Fork I mean it when I say that. While plastic silverware is fine for picnics and parties, it is totally inappropriate in a surgeon's hand with an open brain in front of him. Not only are plastic forks built incorrectly to perform delicate surgery, their cheap construction may actually cause further injury torepparttar patient. I don't know about you, but I sure wouldn't want someone prodding around inside my head with one of those things!

Ok, I'm joking. The truth ofrepparttar 150419 matter is that you already knew that plastic forks were not meant to be used for brain surgery. It was obvious. In fact, it was so obvious that it seemed silly when I told it to you.

You might have even laughed.

But what if I told you that - right now - you are doing almostrepparttar 150420 exact same thing as a surgeon operating with a plastic fork? Something just as inappropriate and just as harmful from a financial point of view. I'm not joking any more. Let me tell you what I mean.

Your current charting software probably has a bunch of technical indicators built into it. Moving averages, RSI, Stochastics. There are hundreds of them. Thousands of traders rely on these tools every day to help them make investment decisions. (And thousands of traders blow out their accounts each day, too.) What these traders probably don't realize is that if those tools were people, they would be dead by now.

Option Trading Tips - Why Would Anyone Trade Options?

Written by James Thomas

Beyond allrepparttar 'hype' what is it that makes option trading so good?

This is a question that I wish more people would ask, butrepparttar 150407 thing is not too many people know they even exist!

The main reason that I love option trading is that options providerepparttar 150408 opportunity to turn a small or modest amount of money into a large amount of money quickly!

How is this possible you might ask?

Well before I get intorepparttar 150409 'how' that let me show you exactly 'what' options are.

Options are simply 'contracts' that giverepparttar 150410 buyerrepparttar 150411 right or choice (but notrepparttar 150412 obligation) to buy or sell shares in a particular company, at an agreed price, on or before a set date.

Nowrepparttar 150413 thing is, as an option trader I am not interested in buying or selling stocks, I am only interested in buying and sellingrepparttar 150414 options on stocks.

I want to buy an option for one price and then onsell it to someone else for a higher price and make a profit beforerepparttar 150415 option expires.

Now whether or not I am able to do this depends on two main things:

1) Whetherrepparttar 150416 underlying stock (the stock thatrepparttar 150417 option is concerned with) goes UP or DOWN in price.


2) The type of option that I have bought.

Now, there are 2 types of options, CALLS and PUTS.

Call options give usrepparttar 150418 right to BUY shares inrepparttar 150419 underlying stock.

PUT options give usrepparttar 150420 right to SELL shares inrepparttar 150421 underlying stock.

As I said before, we are not interested in buying or sellingrepparttar 150422 underlying stock, only in making a profit by buyingrepparttar 150423 options (on a stock) and then onselling those options to someone else for a profit.

However,repparttar 150424 only way we can make a profit is ifrepparttar 150425 option itself increases in value.

So What makes options go up or down in price?

CALL options increase in value whenrepparttar 150426 underlying stock goes UP.

PUT options increase in value whenrepparttar 150427 underlying stock goes DOWN.

This may sound confusing if you are new to option trading, but basically what we want to do is to buy CALL options on a stock when we think it is about to go UP in price or buy PUT options if we thinkrepparttar 150428 stock is about to go DOWN in price.

If we are right andrepparttar 150429 stock moves in our desired direction, UP for CALLS or DOWN for PUTS, we will make money.

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