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UNDERSTANDING THE BASIC LANGUAGE OF OPTION TRADING "Anticipate the difficult by managing the easy." ~ Lao Tzu ~ The peculiar vocabulary and concepts inhabiting an options trader's thoughts are often the source of confusion to visitors to my world. I
Depending on how much of a sports fan you are, you may or may not have heard about NBA player Jeremy Lin. Well basically, in just over a week, this young man has become a global sports icon. Lin is
We often like to refer back to one of the all-time greatest books about trading, Reminscences of a Stock Operator by Edwin Lefevre. This book was originally published in 1923 and is basically a biography of the famous trader Jesse Livermore.
The process of creating a successful system takes discipline, precision and, time. All successful trading systems must survive BigTrends' rigorous benchmarks. In this report we will discuss the key components to creating a successful trading system. The process of creating
Bubbles Come, Bubbles Go. The chart below shows us the "classic bubble pattern". [BigTrends Editor's Note: You may be familar with this chart and our recent discussions of these types of 'burst bubble' patterns. But remember that bubbles don't occur
Back in October 2009, we ran an article that noted an interesting correlation between Seasonally-Adjusted Weekly Jobless Claims and the market. The jobless number peaked right before the famous March 2009 market bottom and headed lower afterwards, in line with
A look at Elliott Wave Theory The Elliott Wave Principle focuses on the behavior of humans and how that behavior impacts the stock market. Rather than acting in an unpredictable manner, Ralph Nelson Elliott (in the late 1920s) noticed that
Currencies are certainly an important part of the global financial machine. The purchasing power and export costs of an individual country or region are based on the relative value of their currency — and this makes a great impact on
Basics of Volume Indicators Let's begin this discussion with a basic definition of Volume, specifically stock volume — option volume is another interesting indicator and topic for another time. Simply put, volume is the number of trades made on a
We've been involved with options trading since the early-1990s and have seen the explosive growth of their usage. Despite mediocre global economic conditions and lower stock volume at some brokers, the leading options exchange (CBOE) reported some impressive numbers for 2011. We'll
The Art of Self-Management One of the easiest mistakes any trader can make is not a 'trading' mistake at all. Rather, the mistake is complacency with his or her trading skills and knowledge. Unfortunately, trading is not like riding a
Mind the Leverage… It might KILL your wallet… In this article I will show you why it's wise to be careful with leveraged products, such as ProShares Ultra ETF's and Direxion 3x ETF etc… as they might damage your portfolio! Leverage
Active investments – Know how it can help you to gain profits Active investments are the strategies that are opposite to those opted by passive investing. In this kind of investment strategy, an endeavor is made to out-perform the market
Treasury Departments Owe Their Livelihoods to Forex Options for Hedging Foreign currency traders often forget that their chosen medium is actually there to facilitate cross-border commerce, not to provide a speculative playground for day, swing, and position forex traders. The
Know Your ETF and its Holdings Exchange Traded Funds (ETFs) and options on ETFs have exploded in popularity in recent years. They offer mutual-fund like securities that trade like stocks — but are micro-focused in almost every sector in the markets
Another Reason for Stocks to Tank in 2012: Jobs Though nobody seems to notice, stock prices are correlated to employment, which is trending down. The Federal Reserve would have you believe that Monday morning ramp-and-camp and rumor-mill rallies in the
A Look at Fibonacci Numbers You may have heard the terms "Fibonacci" and "Fibonacci Numbers" — what do they mean and how are they incorporated into trading indicators? First things first, what (more specifically, who) is Fibonacci? Leonardo Pisano (a.k.a.
Beliefs of Successful Traders vs. Unsuccessful Traders What separates a long-term successful trader/investor from an unsuccessful one? One of the main components is "mental game", as well as being systematic and organized. These are some of the traits and practices
5 Tips For Your Option Trading 2011 has been a grinding, volatile year for stocks — the major market indices have made little in the way of net gains for the year (and in fact some are down). For many mutual funds,
6 Advantages of ETFs In feedback from BigTrends.com readers, we received significant interest in Exchange Traded Funds (ETFs). More specifically, people were interested in the prospect of ETF options which have exploded in popularity over the past few years. One
