What is an ETF? To state it simply, Exchange Traded Funds (ETFs) are funds that track indexes such as the S&P 500, NASDAQ, Dow Jones, Russell 2000, etc. When an investor buys shares of an ETF, they are buying shares of a portfolio that tracks the yield and return of the related index. ETFs have been around since the early 1980s, … [Read more...] about A Little About ETFs
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…
Winning traders don't underestimate the psychological part of trading. Although you certainly cannot trade profitably without adequate capital or reliable trading strategies, your personal psychology also plays a significant role. Consider what master traders have said in interviews: Mike emphasized how the markets often expose your … [Read more...] about Remember the Basics
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
We all know the U.S. Presidential Election is on Tuesday, November 8th, just a few days away. We've seen how the S&P 500 has had nine straight days of losses, which hasn't happened since December 1980. The S&P 500 Let's take a look at the S&P 500 chart: The decline has been fairly orderly, with the 14-day Average True Range … [Read more...] about How the U.S. Election Will Effect the Markets
In the United States there are three types of margin trading accounts which are widely used. They are Regulation T margin, Portfolio margin, and SPAN margin. Portfolio and SPAN margin accounts usually offer lower margin requirements, which can allow the possibility of larger leverage to your trading account. Today we will discuss … [Read more...] about A Brief Overview of Three Types of Margin: Regulation T, Portfolio, and SPAN Margin.
Most traders follow a certain routine in preparation for the trading day. For example, one of the first things I do after turning on my computer and logging into my trading platform is to check to see what futures are doing for the various indices. This gives me an idea of what I might expect at the open. There is a further barometer … [Read more...] about Fair Value – What it Means for Options Traders