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How to Tell If an Option Trade Is Worth Your Money

Investors' growing concerns are driving the markets right now. And this uncertainty can turn that winning option trade of yours into a huge disappointment – in a matter of seconds.

But I have some great news for you: You can predict just how much a stock will move in the future before you spend a penny on your next trade. And it's easy. Here's how.


The One Indicator You Need to Find Winning Options Trades

Of all the indicators that are out there, only volume reigns supreme. Many traders and investors misuse or flat-out ignore volume because they don't understand it or simply undervalue it.

But it's absolutely crucial to finding winning options trades, and there are four reasons why...


How to Minimize Risk by Trading Options

You can probably imagine why the NYSE's decision to eliminate stop orders next week is causing traders to worry…

But we're going to talk about the one reason they shouldn't worry at all – and it's called options.

The beauty of trading options is that it offers a way to profit off of stock moves without having to shell out lofty amounts of cash to buy the stock itself.

Let's take a look at why...


These 6 Signals Tell You When to Enter or Exit Your Options Trades

You don't need a degree in finance to trade options – all you really need to know is when to jump in and when to get out. And it's shockingly easy to do.

The key to making money trading options is timing. Otherwise, you might as well be gambling with your money.

Today, you're going to learn when to enter and exit your options trades. As you'll see, there are just six signals you'll need...

Trading Strategies

How to Use Breakouts to Plan Successful Options Trades

Stocks often trade between support and resistance for sustained periods of time. When this happens, the underlying is said to be in a channel.

Channels are helpful tools for planning options trades because they allow you to predict how a stock will behave and pick your options accordingly.

While channels can and do last for weeks and months at a time, all assets will eventually break out of a given channel.

But how do you know when an underlying is about to break out? And - more importantly - how can you profit? Let me show you...

Trading Strategies

How to Survive the Markets Without Stop-Loss Orders

Starting next year, three of the biggest exchanges in the United States will no longer allow investors to place stop-loss orders on their trades.

So what are you – the average retail investor – to do? How are you supposed to protect your capital and your profits?

Let me offer you a few considerations that will help you (and the capital in your account) survive this move by the major exchanges.

Let's get started...


The One Options Trading Lesson They Don't Want You to Learn

In options trading and investing, as with any business you're in, you want to turn a profit.

When things are going great and profits are coming in, the business is thriving. When things take a turn for the worse, your winners come less frequently, and your profits become smaller.

That's when things can get really ugly. But just like in any business, it is how you deal with losses that matters.

Today, I'm going to show you the best way to deal with losses. But to do that, you're going to have to change your whole mindset...

Trade Management

The "How to Get Rich" Lesson I Learned on the Trading Floor in Chicago

Here's the uplifting story of a market master's first day of trading. Back in 1982, he was a clerk for a big market maker on the floor of the Chicago Board of Options Exchange (CBOE).

And his first day was a disaster.

But it was when he learned from an early mistake that he figured out how to get rich...

Wall Street

The Real Story Behind JPMorgan's Infamous "Whale" Trade

Here's an insight for you – along with a trademark indictment, of course.

Take it with a grain of salt, because it's just an educated guess on my part.

It's about how the infamous London Whale may have been harpooned by spawn from his own pod.

For those who haven't heard, the London Whale is one of the latest traders to make the headlines. Bruno Iksil was the top trader at JPMorgan Chase's Chief Investment Office (CIO) in London.

He got the nickname "the London Whale" for the outsized bets he became known for.

But this is no fish story…

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Five Ways to Consistently Bank Gains and Manage Winning Trades

Most investors become so focused on their losers that they have no idea how their winners are performing…until they become losers and start paying attention to them.

As far as I am concerned, that's bass-ackward.

What they should be doing is figuring out how to harvest their winners, especially now that the six-week rally we've enjoyed appears to be losing steam.

If you've been raised under the old axiom of "cut your losses and let your winners run," this may seem counterintuitive.

But, if you really want to succeed in today's markets, you have to consistently sell your winners. That way, you continually cycle your capital into brand new opportunities.

It's not much different than what regularly happens in the produce department at the grocery store. Places like Safeway Inc. (NYSE: SWY) always replenish the tomatoes and the like to keep them fresh.

You should do the same with the "inventory" in your portfolio because if you let your stocks sit on the shelf too long, they'll eventually go badjust like fruit that's past its expiration date.

Here are some of my favorite tactics to help you lock in profits instead of letting irrational behavior and emotion take over when the markets suddenly have a mind of their own.

    1.) Recognize every day is a new day

This one is very simple. If the original reasons why you bought something are no longer true, ditch it – win, lose or draw.

You can't risk falling in love with your assets any more than you can let them rust – yet that's exactly what most investors do. They buy something then assume that it will somehow plod along on autopilot.

This is a variation of what I call the "greater fool theory" as in some greater fool is going to come along at a yet-to-be-determined point in the future and pay you more for a given investment than you paid to buy it.

I can't imagine what these folks are thinking.

Today, more than ever, you've got to continually re-evaluate your investments to ensure that they stand on their own merits and are worth the risk of continued ownership.

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