Archive for category Day Trading Options
Fast Times in Forex Trading and Binary Markets
Posted by Barry Livingstone in Day Trading Options on July 27th, 2009
So we’ve had a lot of movement in forex trading and binary option trading in the last week. The Dow Industrials Index settled over 9000 for the first time in months and the dollar remains relatively weak against the euro and Yen but holds fairly steady against the pound.
It looks like the 2009 recovery is well along the way as the markets reacted favorably to positive earnings results from a number of companies (although Microsoft took a pretty big hit on theirs). For my own part I continue to day trade. I know the long-term investors out there think it’s best to buy and hold but for heaven’s sake! We live in a short term world where short term results are vastly more preferably to long term results. I very much doubt anything will change until someone decides to radically alter the tax code against day trading again.
I mean even with the substantial tax penalty for day trading there still is a huge incentive to cash out your short term gains because the long-term downside risk is too large (mainly due to mismanagament and corporate malfeasance). Why Boards of Directors haven’t caught on to this is beyond me but frankly they’ve shown themselves to be in cahoots with executives who steal from shareholders so there isn’t any incentive for them to crack down on bad executives is there?
At any rate – the message is clear – keep day trading: don’t buy and hold.
Day Trade Binary Options Here
Day Trade Forex Here (with Software)
Other Articles on Day Trading Forex and Binary Options:
Easy Forex Option Trading
High Turnover Options Trading System Makes Money Fast for the Bold Trader
Forex Trading Software – Java Based Program Works for Mac or PC
Binary Option Trade with Call and Put – Straddle Your Way to a Double Up in Binary Options Trading
The Basics of Foreign Currency Lingo
Posted by Be Wise in Day Trading Options on July 18th, 2009
Editorial Comment: I frequently write about topics about which I assume the reader has a reasonable amount of knowledge however I do tend to leap ahead from time to time. My recent forex trading articles definitely fall into that category. I went looking for an article that I thought would cover the basics for me and found this one which covers at least some of the basic terminology of forex trading similar to what I talk about in my forex trading tutorial. You’ll note that when Harold starts talking about the spread and what you pay in terms of commissions to your broker you’ll see why I typically opt to trade binary options (which at my binary options broker are commission free).
Currency Trading Tutorial – Forex For Beginners
By Harold Hsu
What Is A Currency Pair?
A currency pair refers to the two currencies that are involved in a foreign exchange trade. For example, if you want to buy the Japanese Yen using U.S. Dollars, you would look at the quoted price for the USD/JPY currency pair (USD = U.S. Dollar; JPY = Japanese Yen).
Basically, the currency pair you should be looking at depends on the currencies you wish to trade in.
What Is A Base Currency?
A base currency is the currency that is first mentioned in a currency pair. In the USD/JPY currency pair for example, the base currency is the USD. In the EUR/USD currency pair (EUR = Euros), the base currency is EUR.
The base currency is the currency with which the quoted price refers to. For example, the quote USD/JPY 110.00 means that one unit of the base currency (i.e. USD) is worth 110.00 JPY.
To clarify, here’s another example: EUR/USD 1.4600.
This means that 1 unit of EUR is worth 1.4600 units of USD. To buy 1 EUR, you’ll need to trade in 1.4600 USD (i.e. sell 1.4600 USD).
What Are Bid And Ask Prices?
The base currency is traded at 2 different prices at any one time, depending on whether you want to buy or sell it. For example, if you want to sell the USD/JPY currency pair (i.e. sell the USD and buy JPY), you’ll receive 110.00 JPY. However, if you want to buy the USD/JPY pair, you may need to pay 110.03 JPY.
Notice how the buying price is higher than the selling price. This difference between the buy and sell price is known as the ’spread’. If you first buy a currency pair and then immediately sell it, you’ll incur a loss equal to the spread.
The spread is what you pay to your broker as transaction fees.
To learn more, Click Here to download my free 26-page guide, Forex Trading Traps!
Harold Hsu is the owner of ForexSystemProfits.com where he provides premium Forex trading tips and resources.
Article Source: http://EzineArticles.com/?expert=Harold_Hsu http://EzineArticles.com/?Currency-Trading-Tutorial—Forex-For-Beginners&id=1067111
Ed (con’t): After reading this article by Harold I hope you have a better understanding of what I’ve been trying to teach you about making money trading foreign currency. There is plenty of opportunity with the right software and broker.
Previous Post: Learning to Trade Foreign Currency Made All the Difference
Learning to Trade Foreign Currency Made All The Difference
Posted by Barry Livingstone in Day Trading Options on July 16th, 2009
When I was learning to trade foreign currency I was being trained not just to understand the movements of the currencies back and forth between countries but also learning about the human condition and psyche. I have long enjoyed the benefits of a superior financial education than most of the people around me, and having this knowledge has always allowed me to have a deeper understanding of how individual human decision making impacts economics and global finance.
Forex Trading Plays on Inequities in the Market
It wasn’t until I learned to trade foreign currency that I began to understand how people with real money take advantage of the basic needs and desires of individuals and use forex trading to take advantage of the opportunities in the market. It used to take large amounts of capital and small teams of traders to take advantage of the movement of money around the world but now many automated trading programs have sprung up allowing individuals with smaller amounts of capital to play and succeed in the market where only the big fish once played.
Now I Trade Forex Too
Now instead of watching all the highly capitalized players in the market play – I get to play and make my money too. With the cool robot programs I use (linked to my broker), I don’t have the stress of constantly monitoring results either.
More on Foreign Currency Trading:
Learn to Trade Foreign Currency – Examples of Forex Trading Opportunities to Exploit
Learn to Trade Options – The Basic Put and Call Options Explained
Learn to Trade Binary Options – The Fastest Way to Make Big Money in the Market
Prior Post: Forex Trading Systems That Work 24/7 Good Times and Bad Times
Forex Trading Systems That Work – 24/7 Good Times and Bad Times
Posted by Barry Livingstone in Day Trading Options on July 9th, 2009
I’ve really been hooked into forex trading and I had been looking for forex trading systems that work and I have to tell you there are a couple of pretty cool systems on the market. Automated forex trading is making some smart people some big bucks with very little to start out with.
The problem most people have with investing is that it usually takes a significant amount of capital to overcome the transaction costs associated with high frequency trading. The way for a small player to get around this initial capital hurdle is to use the power of leverage to amp up gains. Margin accounts are more risky, but when paired with an automated trading software platform the software combined with the margin leverage can level the playing field for the small investor. An investor who sets up forex trading systems that work for him while he’s away doing other things can reap considerable extra monthly income from those trades.
One thing that is required of this type of automated forex trading system is the connection between your brokerage account and your software. If you have your software stored on your local computer then you’ll need to have you computer hooked up to the web 24/7 to make money all the time. A Java, or web based software system is hosted remotely on a server. Users access their accounts via the web. The advantage of this type of link up is that users can shut down their computer or web connection whenever they want but the software continues to run because it is hosted on a web server (this software is available either as web-based or local based and works with most brokers… what? no broker? Find one here and get the bonus cash for new deposits).
See Other Day Trading Articles:
Good Stock Options to Buy: Learning Strategies That Work
Binary Option Payoff: Breaking the Bank When Your Hand is Best
Binary Option Strategies: Staying Active While Waiting for Your Set
Prior Post: Forex Binary Options Broker Cheap to Start and Commission Free
Forex Binary Options Broker – Cheap to Start and Commission Free
Posted by Be Wise in Day Trading Options on June 19th, 2009
Forex Binary Options Zero Commission Broker
I had trouble finding a forex binary options broker online, but now I can trade binary options on most of the major forex cross rates I want, whether it’s Dollar/Euro, or Yen/Dollar, or Dollar/Pound. I am very pleased with the informative articles at the trading binary optionsblog as well. (See a comparison of the two leading retail binary options broker platforms)
Trade Binary Options on Any of the Following Forex Cross Rates
Here are the currently trading forex binary options at my broker:
- US Dollar/Canadian Dollar
- Euro/US Dollar
- US Dollar/Pound
- US Dollar/Swiss Franc
- Yen/Pound
- Yen/US Dollar
- Yen/Euro
- Australian Dollar/US Dollar
Any of the above forex option cross rates can be currently traded commission free.
Other Binary Options Trading – Stocks, Indices, and Foreign Stocks
Other securities on which binary options are presently trading include securities and indices such as:
- General Electric
- Microsoft
- Nasdaq Index
- BMW
- DAX Index
- Volkswagon
- Siemens
These stocks plus several other well known, highly liquid securities are trading on the binary options exchange every day. Nearly all the binary options have both an hourly expiry binary option or an end of day expiry binary option.
Binary Options Trading is Cheap!
It’s cheap and easy to open a binary options trading account. My broker charges no commissions on trades and it only takes a hundred bucks to open an account. Last I looked they were even offering a bonus of $100 on a $500 initial deposit. How cool is that when they give you a hundred bucks just for trading with them?
Find a Forex Binary Option Broker Today
Other Information Available About Binary Options Brokers:
Broker Binary Options: Trade Options with Just $100 to Start
Binary Options Trading: The Puts and Calls of Binary Options
Binary Options Trading Tips: The Hedge and Double Strategy
Free Options Trading for Beginners
Why Not Use Currency Option Trading to Make Extra Money?
Posted by Be Wise in Day Trading Options on June 14th, 2009
Currency option trading can be a great way to make extra money if you have some concept of how money flows throughout the world. With a few well placed trades on a daily basis a good trader can net easily between $300 and $1000 a day because certain types of currency option trading turns over hourly… meaning a good trader can turn his capital over very rapidly on a daily basis.
I’ve had a lot of great success trading the US Dollar / Euro cross rate, but don’t let that limit where you trade. Oh, and the million dollars of collateral you used to need to open a currency options trading account? You can leave that at home because you can open a currency option trading acount with all of $100.00
I hope your investment returns are awesome this year, lord knows we need a serious bounce back after last year’s collapse. Check out all the info you can on currency option trading because it’s becoming a great market for the educated little guy.
Binary Options Trading System – Hedge and Double Strategy
Posted by Be Wise in Day Trading Options on June 11th, 2009
I recently saw a binary options trading system that really mitigates a lot of the risk associated with this type of high flying trade, while preserving your capital in the meantime. Hence it was appropriately named the Hedge and Double Options Trading System. It works only with binary options trades, and presently it really is best suited for options traded on Nasdaq stocks (which payout a small return of capital even on ‘out of the money’ options).
Day trading options is extremely exciting and lucrative, but it can also be very risky, as many have found out the hard way. The most awesome thing about day trading binary options is that small capital players like me can have access to both sides of the trade, both put and call, putting intelligent but under-funded traders like me on a level playing field with better capitalized traders. I’d made a few bucks trading standard options but I’d always had to be on the buy side of the action – calls only. I didn’t even have enough capital to buy covered puts! Needless to say it’s hard for a trained trader to make money in investing without all the weapons at his disposal. Not anymore.
At least on the most liquid stocks and the most traded currencies I now have the ability to use options trading systems such as the Hedge and Double binary options trading system to work on a level playing field – which allows me to use my experience and training properly. If you want to get in on the action, right now this broker is offering a $100 bonus if you open an account with $500. Learn how to make $300 a day trading options while playing on a level playing field. You won’t regret it.
Option Trading Tutorial – Binary Option Trading
Posted by Be Wise in Day Trading Options on June 11th, 2009
So I ran into an option trading tutorial online the other day and thought I’d share it with you here. This covers a relatively new field called binary option trading. It’s a cheap way for smaller capital investors to make some big gains in a short period of time. If you know what is stock options trading already, then this binary options trading primer comparing the similarities and differences between binary options trading and standard options trading will get you up to speed quickly.
Having said that, it is a great time in America to be getting into this market. Because of the de-leveraging all the banks had to go through in the last several months, trillions of dollars of equities and currency options trading positions had to be unwound, particularly in the highly liquid stocks in the binary option trading area. Right now new brokers are aggressively going after new business.
I suppose I should talk a little more about the option trading tutorial. It goes into what sort of stocks are covered (virtually all are household names, plus the major US dollar/forex options trading of exchange rates), it talks about what sorts of positions you can take (basically call and put), and it also has an interesting options hedging strategy as well on one of the related links.
Binary Options Trading – Exciting New Opportunity for Small Investors
Posted by Be Wise in Day Trading Options on June 11th, 2009
Binary options trading is a relatively little known field in the world of investing however it affords individual investors short on capital the ability to get in on the action in the lucrative world of option trading. It’s really quite cheap to get in on the action – all it takes is $100 to open an account. Trades are made on the most highly liquid securities as well as the major US Dollar / forex option trading exhange rates.
That’s another issue altogether, currency option trading I mean. That field used to require millions of dollars in collateral just to enter the game, now everyone is playing. I’ve only been doing binary options trading for a short while now but it is totally exciting to be playing on the same field as the big names in currency options trading like George Soros and others. These are very exciting times.
I would be remiss if I didn’t mention my binary options trading broker is offering a special $100 bonus for signing up for an account and depositing just $500. See more details here.
Making a Killing Trading Options on Financial System Weakness
Posted by Barry Livingstone in Day Trading Options on May 1st, 2009
This has to have been one of the most lucrative periods in history for individual options traders to make money day trading. With the way banks and institutions have had their hands tied for several quarters since the Lehman Brothers collapse, those who did continue to have access to credit have been fortunate indeed. If you don’t know much about options or don’t want to manage a portfolio you can still use something like an option advising service to do it for you (read more about automated options trading). If you have excess capital to day-trade, there probably is no better time in history than now due to the ‘house’ – the banks – has it’s hands tied and is unable to enter the market freely to take on risk.
It remains to be seen whether the Dow will ever dip below 7,000 again (don’t hold your breath) but there have been NUMEROUS good option picks to trade on the dips. I’m not sure how much longer banks will be un-winding their leveraged positions and sorting out the credit-default swap mess but every time they are forced to dump shares on the market to ‘raise capital’ that is the moment to strike again into the options market for calls (see a basic call option example).
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