Trading Basics

Trading Basics 

 

 Options Trading - is a form of trading in which a buyer obtains a "contract" that gives them a choice to buy or sell shares in a particular company, at an agreed price, on or before a set date. 

The reason why this form of trading is growing in popularity is that Options only cost a fraction of what it would cost to buy the underlying stock itself and a small move in the price of the underlying stock, creates a much larger movement in the price of the option by 10 times to sometimes 100 times.

There are two types of options, CALLS, and PUTS. Call options give you the right to BUY shares in the underlying stock. PUT options give you the right to SELL shares in the underlying stock. CALL options increase in value when the underlying stock goes up and PUT options increase in value when the underlying stock goes down.

Ideally what you want to do is buy CALL Options when you think a stock is about to go UP in price and buy PUT options if we think the stock is about to go DOWN in price. If you're right and the stock moves in your predicted direction you will make money.

As hard as it may seem to believe Options provide you with the opportunity to make money regardless of what direction the market is moving. Thus, by trading the options instead of the stock it is possible to make far greater returns and at the same time risk only a fraction of your capital.
Options Trading.

Don Fishback - Is a financial analyst and avid stock trader credited with developing the ODDS system of trading. Hi serious of books, seminars, and software has been used by many to improve their trading proficiency...

George Fontanills - Is most known for his strong role in the trading education company Optionetics. George Fontanills has developed a reputation as an authority on options trading education, some even call him the dean of options trading...

Optionetics - Is a seminar-based financial training course that offers free nationwide seminars in which Optionetics’ reps entice prospective traders with options lectures and demonstrations of their trading system...

Options Hotline - This is a subscription-based trading advisory service developed by Steve Sarnoff and his father, Paul Sarnoff. Over the years Steve has earned the reputation of the master of candlestick charting...

Futures Trading
Futures Trading - has a reputation for being one of the riskiest forms of trading and usually reserved only for the experienced traders. However, with proper education, this market can be immensely profitable. 

With Futures or Commodities trading you do not actually own anything that you are doing is speculating on the future direction of the price of a given commodity. You are basically wagering that the price will either go up (if you are a buyer), or it will go down (if you are a seller).

There are three types of traders involved in the Futures market, Hedgers, Speculators, and Floor Traders. The majority of those involved in this market are speculators, which is similar to standard stock trading in the sense that you're trying to make a profit from price fluctuations of the underlying commodity.

When you speculate in a futures trade, there is always someone who is taking the opposite position, or betting against you. It's important to learn as much as you can about commodities and how to safely trade futures.

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