by Peter McKenna A great benefit of event trading is that it sets you free from the expense of relying on the so-called market experts, the analysts, brokers, pundits and commentators who assure you they can pick the right stocks to buy and tell you where the market...
by Don Wellenreiter A basic approach to futures trading is to either buy off of support lines or sell off of resistance lines. This is especially true in a non-trending market. A support line is an area where the market has traded down to previously, held at that...
by Jon Najarian The most basic way to price an option is to start with a strike price. If IBM is trading, for example, at $90 a share, and you decide to buy a call – or in Wall Street parlance, to go long a call – at the $95 strike price, you are buying the...
by Lee Gettess Many of you will have come to know the M.O.C. order we use to exit as standing for Murder On Close rather than Market On Close. There are times when it is better to exit prior to the close. Here are things to look for: Three o’clock (15:00)...
by George Angell The key advantage of option spreading is that of limited – and predetermined – risk. To understand how important managing risk in options trading can be, you have to remember that both option buyer and seller can lose considerable portions of...
by Russell Sands The 3-I day is a very reliable short term indicator, works equally well on both the short and long sides, and can be used either as a stand alone system, or a low risk place to add to long term possibilities that are already moving in your favor. The...
by Kathy Lien Any trader can attest that interest rates are an integral part of investment decisions and can drive markets in either direction. FOMC rate decisions are the second largest currency-market-moving release, behind unemployment data. The effects...
by Duane Davis Extreme openings usually only occur a dozen or so times a year and when they do, they present the day trader with some interesting opportunities. The 5-day average range is an important tool used to measure the markets current volatility. We used the...
by Keith Cotterill Every business revolves around the principle of buying at a low price and reselling at a higher price for a profit. From a corner shop to national chains of supermarkets, all buy in at a low price and then hope to sell at a higher price for a...
by Dave Caplan As the market begins to heat up, opportunities to use the “ratio spread” are presented to us. This option strategy has numerous benefits over just a net long or short position. We all know the benefits of buying an option or futures contract that...