From time to time we here at INO.com come across someone in the industry that grabs our attention. Recently we saw a post from Guy Cohen about a trade and how he had called the breakout for sometime in advance. How he caught the breakout was intriguing and we asked him to share a bit about the trade with traders blog readers.
Guy Cohen is a bestselling author of several trading books, and the creator of the OVI Index, Private Traders Club, and Flag-Trader. His clients include NYSE Euronext, The International Securities Exchange (ISE) and FT Prentice Hall.
Guy is also holding a special webinar for Traders Blog readers tomorrow Thursday 9/22, for more information click here.
Continuing with our options theme this week we have brought in, J.W. Jones, the primary analyst and moderator of OptionsTradingSignals.com. Today J.W is going to share with you his take on the recent silver market, and how volatility and options have presented him great opportunities in markets where traditional investors are running for the hills. Be sure to comment with your thoughts and visit J.W at Options Trading Signals.com.
Take calculated risks. That is quite different from being rash.
– George S. Patton -
Last week silver was the focus of incredible price swings which left many licking their wounds and shaking their heads at the trading losses they had incurred. This sell off was likely triggered by the increase in margin requirements for futures contracts, but the stunning price decline extended to all vehicles like exchange traded funds use to trade the glimmering metal.
I recognized the potential opportunity early in the week, and began to look at various position structures using options on Tuesday morning. In order to understand the thinking behind this trade, it is necessary to understand the concept of implied volatility of an option contract. Implied volatility, together with time to expiration and price of the underlying security, form the three primal forces that rule the world of option pricing. This measure of volatility is best described as the collective opinion of traders as to the future volatility of the price of the underlying. Implied volatility is the variable which determines if options are priced cheap or overvalued. Continue reading ""Take calculated risks. That is quite different from being rash.""→
As part of INO.com’s ongoing effort to bring solid educational information for investors, we are pleased to offer you free access to one of the most sought after grain traders in the industry. Grain floor trader Matt Pierce shares his Monday grain report with us for free. If you would like to receive this report via email for free each week, simply visit Grainanalyst.com and tell them INO sent you.
Trade management and discipline is an essential part of successful trading. It is easy to loose focus of your initial trading plan and make knee jerk decisions when you are in a position, but sticking to a proven plan is an easy way to control risk and trade consistently. Today we have invited Forex expert Casey Stubbs, a man with a trading plan, to share with you how he adds to a position. Be sure to comment with your own tips and visit Casey at Winners Edge Trading.
I have found that trade management is one of the most important tools a trader can use to improve their trading profitability.
There are many trade management techniques that may be implemented. For the scope of this training I am going to focus on adding to a position. The technique helps to leverage my trades for increased profits.
I was recently talking to James Mound, Founder of Futures Press Inc. We started talking about current market conditions and why he thought a majority of the "predictions" he was hearing were pretty far off base. I must admit he had some good points and I asked if he would do a guest post to address some of the issues. Take a look and be sure to comment with your thoughts. If you like what you see be sure to visit James here.
I apologize in advance if this particular report offends any analysts or traders as it is not my intention. I am here to tell it like it is, and right now many of the pundits have it DEAD WRONG about the future of the stock market, the dollar, bonds and commodity prices.
The world’s financial industries – currencies, interest rates, stocks, real estate and commodities – are all being driven by one critical issue. That issue is confidence. If you can predict the future track of investor confidence you might be able to forecast these critical industries and that is what I am going to do right now. Continue reading "What is this confidence thing all about?"→