When used properly, options have many benefits over buying or selling stock shares. Less capital required and potentially greater returns make option purchases the choice for smart money traders. A deep in-the-money call or put will act like the underlying…
Have you ever looked a chart on your favorite stock or commodity and noticed a space between yesterday’s closing price and the next day’s open price? These spaces in the charts are called gaps. They happen frequently and if you know what…
The term investing has a certain tone of seriousness and long term financial planning in the minds of most people. People invest for retirement, to send a child to college, or to save up to buy a home. The psychology of…
Mutual Fund managers make it easier to manage the required mix of stocks and bonds as you approach your retirement. Simply put, a higher percentage of monies are put in stocks with the longer the window until needed. For example, with…
Getting yourself in the position to take profit is the goal for investors and the major reason to trade the markets. Often, significant effort has been exerted in the selection and execution process for investing. The culmination of the research…
Most people who use technical analysis to predict the movement of a stock price are often times over complicating things. Worst is that price patterns may not be the predictor of performance that many believe it is. But more likely…
A fantastic analogy below directly from Investopedia describes the differences between fundamental and technical investment data. They are two separate approaches to evaluating the markets for both identifying opportunities and managing positions. In a shopping mall, a fundamental analyst would…
Admit it. Sometimes trades get away from us, right? That’s why controlling risk should be the primary focus when trading options. Thankfully, when buying options, the contracts have money management built in with the maximum loss limited to the premium…