The origin of moving averages can be traced back to 18th Century Japan, and are now used by the majority of traders in some form or another. Those who have studied the early use of moving averages have the understanding that simple moving averages (SMA) were used long before exponential moving averages (EMA). The reason is believed to be … [Read more...] about Technical Indicators 101: Simple vs Exponential Moving Averages
The decisions of millions of investors and traders affect the price movements in the options market. There are many useful statistics in addition to price movement that indicate what other market participants are doing. This article will focus on two factors many traders consider when trading options; daily trading volume and open … [Read more...] about Option Volume and Open Interest
With the New Year upon us, this is the time of year that many of us take a bit of time to reflect on the past year's accomplishments, and renew our goals for the current trading year in order to strive for greater success. This week's article will cover some considerations to put into your plan as you develop your trading goals for … [Read more...] about Effective Goal Setting
Tips On Planning Your Trading Business; Basics You Should Know. Do you have a business plan for your trading activities? Do you know how you will structure your business to achieve your trading goals? This article will touch on some important elements to consider when developing a business plan for your trading activities. As defined … [Read more...] about Tips On Planning Your Trading Business; Basics You Should Know.
Call Options, Put Options, Standard Options and Mini-Options As stated in last week's article "How an Option is Similar to an Insurance Policy, " the definition of an option is: "An option is a financial derivative that represents a contract sold by one party (option writer) to another party (option holder). The contract offers the … [Read more...] about 4 Core Concepts…
Emotions are a by-product of what we expect from life in general. If good things are expected, we are usually full of optimism and energy. If bad things are expected, anxiety usually takes over. If we feel success will not come our way, we may feel discouraged. On the extreme end, if perfection is expected, we will be constantly … [Read more...] about Toxic Trading Assumptions – What They Are and How You Can Avoid Falling Into Their Trap
Large players, such as investment companies, at times will use dark pools to execute their securities trades. Many times these large money managers want to hide their securities orders. These large players may not want others to see their activity. They are keeping their trading in the "dark". The reason they may decide to hide their … [Read more...] about Dark Pools – What Are They?
American and European Options: An Overview There are two types or styles of equity options. One is an American style option and the other is a European style option. What are some of the similarities and differences in the two styles of options? If you buy a European or an American style option, what rights do you have to exercise … [Read more...] about American vs. European Options
As a follow up to the article published on November 24, 2016 on Scorekeeping which can be found here: Scorekeeping Part I, this week I will cover some additional tips about scorekeeping for your trading business. If you are feeling a bit overwhelmed by the amount of data you need to truly track and understand your trading business, it's … [Read more...] about Tips to Improve Your Trading Success by Tracking Your Results – Part II
You will likely find it very difficult to reach your trading goals if you do not "keep score." Keeping score is more than just tracking your profits and losses on a regular basis. Said another way… keeping score means being aware of how you're performing, and how this compares with your historical performance. Keeping score makes … [Read more...] about Tips To Improve Your Trading Success by Tracking Your Results – Part I