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Probably the most important thing about being a successful stock trader is their state of mind. That shocks a lot of people to hear because most of them like to focus on the characteristics and indicators of a given stock.

Cheap/value stock picks are the only focus for many day traders because of the profitable volatility behind them. It’s just common sense that it takes less outside trading influence to directly impact and affect the price of a cheap stock versus a greater priced stock.

No one ever said that stock market trading is easy. Nothing worth doing is easy, right? If you want to be successful at anything, you need to learn how it’s done.

Regardless of the economic environment, or which way the market is moving, trading stock options creates winners and losers every day. If you’re coming out on the losing side more than you are on the winning side, it’s not the market; it’s your stock option strategies.

When we hear the word investment, all that comes to our mind is money that grows. Anyone who invests money wants the risk to be less and wishes that the money grew faster.

It has been a proven fact that when the market witnesses an all-time high at a stretch, there are chances of a collapse. And even in the up market if you still wait and watch, thinking that the best is yet to come, you are wrong.

Somewhere between day trading, and long-term buy and hold trading, lies a potentially profitable niche called swing trading. Swing trading involves the buying or selling of a stock, commodity, or other market-traded investment at some point where the instrument’s price has experienced some volatility. Swing trading investors look for a upward or downward price movements, or “swings”, indicating that it’s time to exit the trade. Whether the trader exists on an up or downswing depends upon whether they are in a Call or Put contract, in the case of options, or long or short in the case of equities or indices.

It sounds like a Chinese Export company, or some new video game, but iron condor is actually a very powerful option trading strategy that works very well under specific market conditions. The principle value of iron condor trading is that it provides a trading strategy limiting risk while returning a small profit almost every time. But it only works when the underlying security has a perceived low volatility. In essence, the iron condor strategy is a carefully executed bull spread combined with a bear spread.

Even some experienced traders shy away from option trading because they don’t understand how the process works. Other, less experienced traders, confuse equities option trading with futures and commodities trading. That is an entirely different subject.

What Is Stock Options Trading? Rather than buying or selling shares of a company directly, which is what equity trading is all about, stock options trading is about buying the right to buy or sell an underlying company’s shares, but not actually having the requirement to follow through. You may already be familiar with the basic theory of stock options if you’ve ever worked for a company that had an employee stock option plan.