Today we've asked Preston James of Trader's Edge Network to share one of his simple yet effective trading strategies. Preston is a self-professed “stock market linebacker” who is proud of the notion that the only reason he graduated college was due to his football scholarship. His interest in trading began at a young age, actively trading his own accounts since 1996.
As with trading any financial product, there are many strategies to choose from. One strategy isn't necessarily better than another and many times the strategy that works best for you simply depends on your trading style.
Today's guest blog post is from Elizabeth Harrow of Schaeffer's Research and she is sharing 2 different options strategies that revolve around playing dividends. Enjoy the post below and leave a comment on the blog. If you like this article and wish to receive 6 months free Option recommendations, please click HERE.
As you may or may not be aware, dividends are one of the many factors that influence an option's price. Because dividends don't have as big an impact as other variables, such as time decay and implied volatility, they're generally not a topic that I dedicate a lot of time and analysis to. However, every option trader worth his or her respective salt should know that dividends create trading opportunities (even if only so that he or she can break out this tidbit at particularly boring cocktail parties). So, in today's column, we're going to take a look at two common ways to trade around dividends.
Many MarketClub members trade or at-least keep an eye on the Forex market, and for good reason, it is THE largest market in the world. We do however hear many misconceptions daily about the Forex Market and many traders still have the mind set that it is not for them. That may very well be the case, but as with everything it is best to fully understand all aspects. I've invited Forex Pro, Jason Fielder to shed some light into the world of Forex and why he likes it so much. Be sure to check out his article below and grab a copy of his new report for more on Forex.
The Forex Market is the largest financial marketplace in the world...The Bank of International Settlements estimates that average daily turnover in the FX Market is around $4 trillion. In comparison, the New York Stock Exchange turns over about $75 billion a day. That means the FX Market is over 50 times larger than the NYSE!
Position size, or the number of shares you purchase, is a subject often overlooked by many traders. How many of us have an actual method that we use and stick to, or are we arbitrarily using the same number or percentage with each trade? Today, Chuck LeBeau, who is soon to be inducted into the “Traders' Hall of Fame," an INO TV author, and exit strategy specialist has stopped by to introduce a positioning method that can be introduced into any portfolio.
Read his strategy for determining position size below and leave a comment to let Chuck, and other Trader's Blog readers, know what you think. Also, check out Chuck's newest endeavor at SmartStops.net.
Deciding how many shares to buy on each trade is easy – once you know how!
How many shares should you buy when you enter a new position? Most investors are creatures of habit and buy the same number of shares each time, usually some nice round number or dollar amount. Others are a bit more sophisticated and invest a certain percentage of their portfolio value. If your portfolio is $100,000 and you add a new position you might invest $10,000 or 10% of your account size or maybe you just buy your usual position of 100 shares. If any of these procedures sounds familiar to you, you need to learn more about how to correctly determine the correct number of shares to buy. The pros refer to the correct procedure as “position sizing”. Continue reading "Size Your Positions Like the Pros Do"→
Consistent, successful trading requires a systematic approach that you are 100% confident in. When talking to today's guest blogger and INO TV author Gary Wagner of "Forex Gold Forecast" a few days ago about recent trades, it amazed me how confident he was in his own technical analysis. I thought it would make a good article for the Trader's Blog so I had him write down a few thoughts on trading and how he has utilized his own system.
Effective trading is a science, but it is also an art. Choosing the scientific models (technical indicators) you wish to combine to create your trading methodology requires a journey. A journey over time, through which by trial and error you will arrive at an approach that is successful. You need to assemble a toolbox of technical indicators like an artist assembles brushes. Just as each brush creates a different effect, each technical indicator reveals distinctive information about the market. Knowing which technical brushes to use and when to use them is essential. It will provide the trader with the tools needed to create an effective systematic approach. Continue reading "Candle Sticks, Gold and a Trader's Journey"→