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How to Create a Credit Spread

Credit Spreads allow you as a trader to profit by selling options and letting those options expire worthless. It also allows you to limit your max risk because you not only sell an option but buy another option.

Using the Option Delta

The Option Delta is a great way to predict how much an option will increase or decrease as the stock moves one way or another, but how do you use it? A delta is a number between 0 and 1 that estimates how far a stock option is likely to move for every 1 point move in the stock. Every option has a different delta because of things like time value, and strike price.

Trading Psychology For Investing in Stocks

How the same system means different things to different people? Why results are not the same under similar market conditions? The difference is in the trading psychology of the investors.

Making Money Quick Because Everyone Thinks Incorrectly That the “Stock Market is Dead”

The stock market has indeed fallen. But, do not incorrectly conclude that the stock market is dead. This is actually the exact right time to buy.

Time Frame and Goals in Stock Investment

What are the essential factors that you need to consider achieving your investment goals and the related time factor? One is the amount of money that you intend to accumulate. This amount is linked to the time frame. Whether your goal is short-term or long-term?

Timing the Market For Profitable Stock Investment

It is a fact that we can use the market’s trend as an ally in the buying and selling of our stock positions. This is possible because the market signals when it is starting a new bullish trend or a new bearish trend. You can know whether or not the market will support you if you bet on a stock rising, or on a stock declining. Investors can learn to time the market profitably.

A Fan of Hedging

I used to be a fan of hedging. A hedge gives you the ability to protect, and in some cases, profit from adverse market directions than you predicted. I believe in hedging still from an academic standpoint. Hedging is often thought of as insurance against adverse market conditions. But could it be that hedging gives us a “security blanket” from which we are less willing to take risks?

The Effect of Tough Economic Times

To understand the effects that tough economic times have on the stock market, it is important to speak about what is an economic slowdown or “recession.” As defined, recession is the decline in the gross domestic product (GDP) growth of a country for two or more consecutive quarters of a year.

Managing Stocks

There are two important aspects to stock trading: choosing stocks and managing the stock portfolio. Choosing of stocks is indeed a tough task. But the work of an investor does not end with it. He/she should be able to constantly maintain the stock portfolio and manage the risks associated with investments.

Know the Stock Market Secrets That Will Bring Consistent Profits

Even with the internet facilities that give trading information, research data, analysis statements, trading advice at breakneck speed, the desire to make constant profits and no losses remains only as a dream for an investor. The weird ways of the stock exchange and its volatility, baffle even the experienced investor. If making money in the exchange were that easy by commissioning the various software firms that make claims to assured success, every investor with the computer would have been a millionaire.