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Here’s my attempt to simplify stock options by way of an example. The subject confuses people, but options offer high profit opportunities to those who learn how to play the game. I hope this helps you get a handle on these derivatives that have become so popular.

What you’re looking for in quality online stock market games, is the ability to buy and sell stocks at actual real time prices, and hence be able to learn from what the market is actually doing. Don’t get started and invest your time in a game that only allows you to buy and sell stocks at end of day prices. This will not help you to learn how to trade the market as realistically as possible in today’s stock market.

If you’re looking to make money as a day trader you need to understand what type of stocks to buy. There are tricks that people use when they make a living purchasing and selling penny stocks. You can make a lot of money once you learn the secrets to buying and selling these types of securities. The biggest advantage in trading penny stocks is you have a lot of leverage. What happens is you can purchase a large amount of stocks with a small investment so when the price per share goes up you make a lot of money. Using this leverage can be a great way for you to build a wonderful yearly income…

Options trading can be quite a daunting subject, especially if you are a beginner to it without any or much knowledge about doing investing, or do not understand the financial markets. While all types of investments bring with them certain degree of risks, they can also be good opportunities to make money if you are armed with the right strategies and mindset of a successful investor.

When we tell people that we are options traders, very often some of them will ask one same question: “What is Options Trading?” We wish to take some of our time now to explain what is Options Trading in layman terms so that everyone can understand.

If you are a totally new beginner to the stock market, mostly likely you are unfamiliar with the stock market terminology being used by the market. Maybe you have always heard about them on the TV news or newspapers but do not know exactly what these terms actually mean. We will give you some simple explanations on such market terminology below so that you can better understand the market.

We will discuss more about the basic terminologies used for options trading in this article. If you are a beginner to this, make sure you grasp a good understanding of these terms related to option pricing.

Today I will explain more about the various terms often used in options trading so that as a beginner, you can understand options better before learning about more advanced option trading strategies. In my previous article, I have mentioned that options premiums can be further broken down into intrinsic value and time value. If you can recall, an option premium is the price of the option, it is the price you pay to purchase the option.

A bear market is characterized by a downward trend in stocks and stock valuations over a prolonged period. In the last century a total of 50 years was spent in bear market conditions. That’s half the century. An eighteen-year bull market in stocks ended in 2000. And after every bull market in the last 200 years there’s been a bear market. But that’s just history, and doesn’t mean that future bear markets will be longer or shorter than 18 years.

As I learned how to trade stock options it was hard for me to find a good lesson on charting stocks. I kind of just figured it out on my own. Since options are derived or come from stocks, it’s essential to know how the price of the stock is behaving as this will greatly affect your options value. Charting stocks can protect you from big losses and help you further your option trading gains. In order to fully take advantage of what the chart is telling you, you must first understand the basics of reading stock charts.