The New Sell and Sell Short: How To Take Profits, Cut Losses, and Benefit From Price Declines

April 9, 2011 by  
Filed under Books

Product Description
A detailed look at one of the most underestimated aspects of trading-sellingIn The New Sell and Sell Short, Second Edition, Dr. Alexander Elder explains how to exit a stock at the right time and how to initiate a short position to profit from a stock that is showing weakness. Often overlooked, selling properly enables a trader to cut losses and maximize profits. Moreover, short selling in a weak market can generate big profits and should be a part of every tr… More >>

The New Sell and Sell Short: How To Take Profits, Cut Losses, and Benefit From Price Declines

Swing Trading – A Simple and Easy to Learn Currency Trading Strategy for Triple Digit Gains!

October 25, 2010 by  
Filed under Currency

If you want to make money at Forex trading with a method which is exciting and fun and generates huge profits in just 30 minutes a day then, swing trading is the perfect currency trading strategy. Here we will look at a simple swing trading strategy which can help you enjoy currency trading success. Swing trading is based on the fact that humans are emotional beings and when greed is present they push prices to far to the upside and when fear is present they push prices to far to the downside and you will see this on any currency trading chart in the form of a price spike. These sharp price spikes though never last long and prices soon come back from overbought or oversold levels, as prices return to fair value. Forex swing trading is simply a method where a trader looks for a short shapr price spike to occur and then sells into greed or buys into fear. Below, we will give you some simple tips on how to make money from these price spikes and our example, is based on selling into greed but the same logic is also applicable in a bear market. – Once a price spike has occurred you need to see how overbought the market is and for this you can use some momentum oscillators which will show you this. There are numerous momentum indicators but the best for Forex swing trading in my view are – The MACD, the relative strength Index and the stochastic. There very easy to learn and when you see a currency is overbought, you can use them to enter your trading signal. – To generate your trading signal, simply wait until the momentum indicators you are using turn down, while the price of the currency is still rising. This is known as divergence which warns of a trend change and when divergence occurs, you can open a short position. – As soon as you place the trade, enter a stop above resistance and set a downside target and this should be above a major support level. You never want to wait for the level to be tested in case, prices bounce back up against you and eat into your profit. Don’t be greedy, take your profit and get out and wait for the next trade. – When swing trading, always trade levels that are near or at, historical overbought extremes on the chart. The more overbought a market is the harder the fall will be when greed peaks, so be selective with your swing trades. So there you have a simple swing trading strategy which makes big gains and even better, it will only take you 30 minutes a day to apply. Swing trading is a great way to trade and will always work, because human nature will always push prices to far up or down which creates, trading opportunities which will allow you to build a great second income.

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Options Trading Mastery: Getting Out or Rolling the Position

August 14, 2010 by  
Filed under Option Trading

The selection and management of a vertical spread are only two-thirds of the game. Closing out, rolling or morphing the position has to be analyzed and implemented with due diligence that was used in the selection and management processes. As for the closing of an extension called vertical, we find that there are three possible outcomes to be addressed. The spread can finish off the money-and void. For an extension call, this situation occurs when the action begins at or below the lowest strike spread. In this scenario, in order to close the spread, one would expire. Both options finish out of the money so no residual position will be left over. If the spread fully finished in the money, (to its maximum value) is, with the two options in the money, then the options are exercised. You exercise your long call and short the call will be assigned. They cancel each other out and was left with no residual position. This situation occurs when the stock price closes lower than the lower call strike involved in the deal. The scenario is difficult when the population is closed between the two strikes of the spread. This scenario, the closing share between the two strikes created a situation in which a strike by the winds being in-the-money, while the other end off-the-money. If both options expire in-the-money, both are exercised, a creation of a stock option during the creation in a short position against each other. This is not the case here. In this case, an option which is in the money “will leave a residual value position from the other option is off-the-money, may not compensate for the residual stock position created by the ending in money “option. There are two possible actions. Option number one involves the spread trade on expiration Friday shortly before closing. Because the purchase and sale of two options, you will probably have to cede some of their profits in order to close the position. Giving up a part of the benefits may be the best thing to do in order to avoid the risk naked, without limits. If only trade off the option in the money, “runs the risk (albeit short-lived because you are doing this late on due date of expiry of the month) that the population shakes and out-of -la-option suddenly becomes money-money. If that happens, now naked residual stock position. Of course, if there is still time, you could always trade off the option below, but it is too risky. However, if the population is a relatively safe distance from the out-of-the-money you may want to close only the option in-the-money and let the out-of-the option will expire worthless on money. The two factors to be considered are: the combination of the distance from the strike price of shares in connection with the short period of time for the stock to get there, and the amount of money saved by not buying out again of-the-money option. Remember, this is done by the end of expiration day. These options are only minutes of life left. So, knowing this, the risk is somewhat mitigated, but still nothing less. The problem is the proximity of the population outside-the-money option. If the population is close to the out-of-the-money option would be best advice for trading the spread at all. Again, as noted earlier, if the stock closes, either with the full spread-the-money, or totally out of the money, the position is adjusted through the process of exercise without leaving the residual position. If the stock price ends up between the two attacks, there will be a residual position. We discussed how to trade this position. Your second option is to trade and allow yourself to go through the process of revocation. You must remember that if you are going to accept a residual stock position, you should be able to afford it. So if you have July 10, 1950 calls the exercises and you will receive 1,000 shares at $ 50. 00 per share. Therefore, you must have $ 50,000. 00 in cash and / or margin in your account to receive the material. If you do not have enough cash and / or margin to accept delivery of the shares, then you should trade out of position before it expires.

Ron Ianieri is currently chief options strategist at Options University, an education company that teaches investors how to profit consistent with the options and limit risk. For more information, contact the University Options at http://www. optionsuniversity. com or 866-561-8227

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