Are your options moving on the opposite direction of what you expected? Are they now out of the money and the expiration date fast approaching? Or are they exceeding your expectations and are behaving better than you expected and you want to earn more? In these cases, you may have enough reason to believe that […]

Fibonacci Retracement is a popular tool used by many investors around the world in predicting the reversal levels of stocks. Since stock and option trading revolve around the basic concept of “Buy low and sell high” in order to make a profit, knowing when a stock would likely fall after bullish price movements and knowing […]

Have you ever wondered how the value of an option is computed after an option is bought? Has it caught you by surprise when an option’s value rises steadily by a certain amount day after day then just suddenly plummets? Well, this article will not try to teach you the math involved. Your Option Trading […]

Due to the volatility in markets, traders always look for tools to reduce the uncertainty in estimating market outcomes. Technical indicators are used by traders, investors and analysts to anticipate this changing field. One of these technical indicators is the Stochastic Oscillator. What Is Stochastic Indicator? Stochastic Oscillator was developed by financial analyst George C. […]

Relative Strength Index (RSI) is a valuable technical indicator developed by J. Welles Wilder for analyzing the momentum of stock prices. Momentum refers to the speed and direction of price changes at a specific time interval. RSI determines overbought or oversold conditions by watching over the changes of closing prices within a recent trading period. […]

Currently, the stock market is flashing an enormous yellow caution light. It isn’t saying “run for the exits” quite yet, but caution and prudence are well advised. The Great Rally of 2013 has been nearly parabolic with almost no sell offs or meaningful pullbacks. As a long time veteran of the securities industry this alone […]

  Like Stock Trading, Option Trading involves risks and rewards and it is in every trader’s interest to limit the risks involved and increase the rewards. One way of conveniently allowing a trader to limit his risk and keep the small profits to keep on accumulating when a stock is moving in a trader’s favored […]

In our previous article we discussed that buying an Option gives the holder the “choice” to either exercise the Option or just let the Option expire. However, those are not the only choices an Option Holder can make. Most buyers of Options sell the Options before the expiration date. So that’s an additional choice on […]

What is the MACD? The Moving Average Convergence Divergence (MACD) is a technical indicator that uses the difference between short-term and long-term price trends to anticipate future stock price movements.  It was developed by Gerald Appel in the 1960s, and is now considered as one of the simplest and most effective momentum indicators available.  What […]

  You can earn money in the stock market in several different ways. Some investors buy huge amounts of stocks of corporations in the hopes of high quarterly dividends. Some investors buy and sell stocks and profit at the difference between the selling and buying price. Others engage in forward contracts and future contracts. However, […]