I began building my proprietary trading models in 1998, analyzing about 2,000 records per day.
Today, that database, which I designed and coded from scratch, analyzes a staggering 700,000 records per day.
But today I want to introduce you to something simpler.
I've developed 10 easy-to-follow, must-know "commandments" that could save you years of trial and error.
Today, I'd like to tell you about a number of ways to lower your risk by using options.
With these strategies, you can potentially spend less money upfront, make more on the return, and profit no matter which way a stock moves.
When you have an options trading strategy - a predetermined set of rules to follow - you'll increase your chances of profiting on as many trades as possible.
It'll keep you disciplined when entering and exiting the market.
So, how do come up with a trading strategy? Let us show you...
Options trading is full of interesting names and terms, but don't let that fool you.
The right options strategy can in fact save you headaches - and make you lots of money.
Take, for instance, a collar options strategy.
The options collar is a strategy to protect gains in a stock that has already had a nice move higher.
It is better than selling the stock to lock in your profits, because you still get to participate if the stock moves up a little more.
Some Wall Street analysts make a career out of being bearish.
These "Chicken Littles" of the investment world are always worried about something.
Politics, economics, China trade, an aging bull market, the weather - you name it, they always have something bad to say.
But we're entering December, what could be the most profitable month of the year.
And there are options trading strategies you can use to take advantage of that.
Hearing phrases like "iron condor options trade" might be intimidating at first.
But it's really just a fancy name for another simple options trading strategy.
An iron condor is an options strategy that pays you if the underlying stock does absolutely nothing.
And if the stock does happen to start moving in either direction, the iron condor trade limits your risk.
Options trading can seem intimidating from a glance, but it really is easier than you think.
All you need is a few options trading basics and a little time to get comfortable.
After that, you will be ready to take the plunge. Just make sure it's consistent with your own goals and risk tolerances.
No matter what your investment goals may be, options can help you reach them.
And you don't have to become a day trader to learn how options trading works.
It's actually quite simple.
An options contract gives the holder the right, but not the obligation, to buy or sell a specific amount of an underlying stock for a specific price and by a specific date.
When you buy an option, you do not buy the underlying stock.
But that does not mean you won't profit if the underlying stock moves in price.
Options trading can be one of the fastest ways to make serious money on a stock.
And choosing the right options strike price can yield triple-digit gains in a matter of weeks.
For a relatively low price, the right options trading strategy can multiply the gains possible over simply buying or selling the underlying stock.
The secret is knowing the right options trade.
And that involves choosing the right options strike price to use.
Trading options can be one of the most lucrative ways of playing the stock market, but it can be confusing if you're just getting started.
That's why we want to help you get the hang of options trading and learn how to make real money with tested options trading strategies.
November is almost here, and that means we're nearing the start of Christmas shopping season.
We have our eye on a top retail stock heading into November.
But you could fare even better with options in this situation.
In fact, this stock's performance might make it one of the best options plays heading into Black Friday - the Friday after Thanksgiving.
Options chains are the visual presentation of all the available options for a given underlying stock and a given expiration date.
This gives traders a birds-eye view of their choices when trading options.
And options trading is more accessible than ever today.
We'll get to that in a minute-but first, a little about the options chain.
Some unique profit opportunities come around every earnings season.
And Money Morning's options trading specialist, Tom Gentile, has a great way to find them.
Bitcoin options trading is much like trading stock-based options, but there are a number of key differences.
For investors who want to explore this alternative way of investing in Bitcoin, Money Morning has put together a comprehensive guide.
This is everything you need to know about trading Bitcoin options...
A major difference trading options vs. stocks is that an option can make you a huge amount of money compared to a small movement in stock price.
While options prices usually do not move dollar for dollar with their stock price, the good news is that due to their much lower purchase price, the percentage moves can be huge.
That is what makes them so attractive.
