Trade small and trade often

Can your portfolio handle a loosing streak of 4, or more trades? Every trader will experience that a few trades goes bad. Of course it doesn’t happen to you, but would your portfolio survive? Or would you be nearly broke if 4 trades went south. That is why a trader should always trade small. It costs a long time to recover […]

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Is Options Trading risky?

Whatever you do there is a risk. In some decisions there are more risk involved than others. This counts also for trading, whether you trade stocks or options. When you buy stocks all your money you bought the stock for is on the line. However when you buy an option it is in essence like an insurance.  Would you consider […]

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How to sells calls and puts

Traders sell calls and puts depending of their assumption. They will receive option premium upfront by selling options. In this yield-seeking environment, selling options is a strategy designed to generate current income. We sell options with high implied volatility. We want the option to expire worthless or we buy them back when they are much cheaper. If you the options […]

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How does dividends work

You probably have heart about dividends. What is it and how does dividends work. When a company earns a profit, it has several options. One of which is to distribute some or all of the cash to the owners (the stockholders) by mailing checks out from the corporate treasury. These checks are known as dividends. Have you ever wondered what […]

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Manage Risk in Options Trading

The market is hitting new multi-years highs and investors are flocking back in. All the new found euphoria represents a danger signal to me. Too say it otherwise, the tendency is to accept too much risk precisely at the wrong time in the market. No one knows when the exact top in the market will be reached.  Traders thinks that […]

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What are ETFs or indextrackers

For people that does not have a large portfolio ETF or exchange trader funds are very interesting. And or if you’re a long-term investor looking to build a portfolio, exchange-traded funds (ETFs) are worth a look. They have a number of advantages over mutual funds, and you can buy ETFs that focus on nearly any market you can imagine. However, before investing, […]

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Selling Covered Puts

Selling covered puts involves shorting 100 shares of stock, and selling an OTM put against it. This strategy is very similar to a covered call flipped on it’s axis. You can profit in a declining market by selling covered puts.  Put options give the option buyer rights to sell stock.  Puts are used when you think the stock’s price will […]

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