Have you ever considered investing in the stock market? Even with the way the stock market is moving? With today’s economy, stock trading is extremely risky for beginners. If you don’t know what you are doing in stock trading, you can lose your investment very quickly.

There is an alternative that many new investors do not know about. It’s called “Binary Stock Option Trading.” Basically, Binary Stock Options only have two outcomes. Either you win a certain percentage of your initial deposit or you lose your initial investment, but when you lose, you still walk away with a small percentage of your initial investment.

The best part of Binary Stock Option Trading is that you are now able to do this online with a minimum investment of $30. If you are new to stock trading, Binary Stock Option Trading may be the way to go. You do not need to know much about the market or how to read complicated charts and graphs. Also, you do not need to download any complicated trading platforms, as there are easy to use online trading platforms that you can use directly online.

If you are interested in learning more about Binary Stock Option Trading, visit www.EZmoneytrader.com to learn some simple techniques that will guide you to making money online with Binary Stock Options. Investing can be extremley profitable when you know how to invest properly. The number one reason why new investers lose money is because they were never taught how to make it. Happy Trading.



By: Mike Edwards

About the Author:

We often hear people saying that trading or investing in options is very risky. Yes, it is certainly no mean feat to trade or invest, using options as your investment vehicle. But is it really that risky in the first place? If trading or investing in options is really risky, then why are there so many individual traders or investors who make money from it? The only possible explanation is that those people had spent a lot of time and effort to study, understand and learn all they can about options in addition to the basic technical knowledge of how the market functions. They would have learnt how to increase their probabilities in making a profit and also reduce their risk to the minimum.

So what actually are stock option greeks? Why is it important to understand how they can affect the profitability of your trade or investment? Stock option greeks are actually sensitivities of the stock option to risks characteristics. These risks are actually factors that affects the pricing of the option. By learning how the stock option greeks relate to risk characteristics in addition to other basic technical analysis skills such as identifying the market trend, knowing when to and not to trade or invest according to timing ( Eg. Not to trade during lunch hours ), interpreting technical indicators correctly, have a risk and money management system to assist in making decisions when trading or investing ( This helps to eliminate and not involve your emotions that affect your trading decisions ) …etc We are able to have certain control over our risk exposures to leverage, time decay, volatility and interest rate risks. Each option risk characteristics, is represented by a greek word and they affect the option pricing differently. It is important to know whether you are purchasing a stock option at a under or over priced value as this can be another factor that will affect profitability of your trade or investment. You do not want to be in a disadvantage position at all times when trading or investing as the majority of the factors are against you and you have absolutely no control over them. ( Eg. Interest rates )

Mastering each risk characteristics will certainly help to reduce risk tremendously when trading or investing in stock options, what’s more, there are lots of stock option strategies that can be utilized once you understand the mechanics of the stock option greeks and make them work for your trade or investment.



By: Ben Ang

About the Author:

2009 Hot Stock Picks >> Stock Market Tips .. Strategies for Making Money Day Trading Stocks Online

By.- http://www.StressFreeTraders.com

A beginner usually feels very attracted to the stock market while for example discovering a stock that’s being reported in CNBC or the news program and watching it rise steady fast and make new highs from $10 to $70 in just 2 months.

While learning about this successful news story he’s saying to himself “Oh boy if I was one of those lucky guys who bought that stock back when it was priced at $10 I easily would have tripled my money by now… That means my 10 grand would transformed in to a whooping 70 K! hassle free … I would have been able to grab one of those big HUMMERs on the spot and probably pick up a nice Rolex by the way!”

The stock market news constantly reports of hot stocks that are breaking out and making tremendous gains on the same day or doubling in price in just a few hours. Back in the bull market of the late 90’s you could easily see a good number of hot stocks sprouting out every week.

Those years surely made it look like every body could easily take LONG SHOTS and make a shiny pile of gold every day in the stock market. But today’s market is a different story. A totally different animal.

Some say that the stock market has gotten more realistic. Fantasy land is over and GAMBLING YOUR WAY TO RICHES is not an option anymore. You might get lucky a few times, but your constant loses can wipe you out sooner or later.

The fact that the bull market period has ended for now doesn’t mean that you can’t make a great deal of money in today’s market. A lot folks from many walks of life keep making excellent profits on a daily basis, pocketing hundreds & thousands of dollars by trading stocks online.

Success in stock trading starts by applying a wiser and REALISTIC methodology for choosing hot stocks as well as for getting in and out of them with profits in mind.

You need to look at the stock market more realistically. You got to learn that you can benefit when stocks go up and also when they FALL down.

You got to WORK SMARTER and get more selective about the hot stock trading opportunities that you choose. You need to embrace the nature of day trading and be fully prepared to take advantage of stocks that are poised for a BIG RISE on the same day.

The bottom line is you have to PREPARE YOUR SELF to be successful, just like you would do it in other areas of your life in order to achieve success.

Learn to choose among the hottest stocks and dramatically improve your trading results today at http://www.StressFreeTraders.com



By: Stock Trader

About the Author:

Do you believe buy & hold is safe? Or that selling short is risky? Read below the top 4 myths that are widely believed, and keeping people from their trading potential. When you properly understand these myths, you will be leaps ahead of everyone else.

Myth #1 Selling Short Is Risky

This trading myth comes from the fact that some stocks can trade down to zero while there is no limit to how high that stock can trade. So losses for long positions are limited on the downside, but short positions can suffer unlimited losses.

But the belief that short selling is risky is preventing you from minimizing risk and preventing you making money. You see, selling short works just as well as buying long if done properly. The level of a positions risk depends on good money management methods.

A small percentage of traders have realized this and have developed a trading strategy to sell short and profit easily regardless of which way the stock market is moving.

Myth #2 Buying & Holding is Safe

This would have to be the most common trading myth, that stems from the belief that the stock market always goes up in the long run. This is true enough, but it can also take an extremely long time. Some markets have been known to drop dramatically, and not return for 25 years! Like the Dow Jones Industrial Average from 1929 to 1954.

It dropped so low during this time that no one would sit through it. Money managers who can duplicate the performance of the general market are very rare. You need an exit strategy that limits risk for every strategy, whether investor or trader.

A small percentage of traders are using a trading method that will actually apply to any market. This potentially gives them a winning edge. They aren’t simply buying, holding, and hoping like most traders do.

Myth #3 Trading is easy

If making money consistently from the stock market was easy, everyone would be doing it, and all be wealthy from it. Yeah, the physical part is easy enough, but many people have this idea that trading is easy, but they were never given the tools that make it easy.

It’s not that trading needs to be difficult, but it requires a solid trading method, and diligence on the traders part to stick with it. And unless you also trade with discipline and use good money management principals like the most successful traders, you can only hope to be less than successful.

Myth #4 The existence of the Holy Grail

I see far too many traders hopping from method to method, pursuing the next guaranteed thing only to be repeatedly let down. Newbies tend to think they should be able to win practically every trade. Thinking they should be having a straight line of wins without any major setbacks.

When armatures try something, they conclude that their system doesn’t work after the first few losses in a row. So they jump on something else. How can anyone expect to succeed this way. Unless you want to continue to suffer losing trades, and eventually give up, stop chasing this holy grail nonsense.

The holy grail of trading doesn’t exist. It would seem more than 90% of traders are wasting years of their life with this myth. Think of the progress, the money that could have been made, if they had spent that time and energy on a solid trading system, and a good trading method.

Where to go from here:

Well first, simply understand and clear your head of the above stock, and trading myths. Free yourself from these beliefs that restrain your potential as a trader. This will automatically put you in front of most traders.

There are a few traders however, less than 1%, who understand the above and more. who are quietly making a killing from the stock market, and are spending no more time trading than you. A lot of them keep their winning system and their successful trading secrets to themselves, but there are a few who will share this information with the public

Just remember, none of these super traders are born geniuses. And they don’t have a crystal ball forecasting the stock market. They simply have found a winning system that isn’t restricted to any time frame or market. The most successful traders are nobody special, apart from the stock market secrets they learned and diligence to put them in action.

Regardless of whether you trade Stocks, Options, Futures or Forex, or your level of experience, you can’t afford to keep buying and hoping. Stop leaving your success to chance when you can take control. It isn’t necessary to keep wasting all this time and money on the common trading methods. Even if you are ahead, the average trader could trade far more efficiently.

You too can become one of the very small percent of traders. Seriously, you just need to learn how to properly, plot the chart, the right setup conditions, the best entry point, stop loss point, and place your profit target point.

To learn how to do the things listed above, and for actual insider trading secrets on how the most profitable traders really do it - Read on.



By: Peter Bosch

About the Author:

While we may be talking about how profitable and consistent money can be made by selling options, some traders have popped the most fundamental but yet critical question on what type of options to sell.  Our context here refers to stock options, ETFs options or futures options.

Most options sellers may be familiar with the concept of selling options against equities which can include stocks or ETFs, but selling options against futures contract may be a totally new ground to them.  The basic principles may remain generally the same, but one must be aware of certain aspects which could make one more appealing or fearful than the other.

ETFs options work very much the same as stocks options. They are treated like just normal stocks except that while stocks can crash to zero value, the possibility of ETFs crashing to zero is extremely small, which I will not commit to saying zero.  Something very drastic must have happened to the market to cause this to happen since ETF like SPY comprises of some of the strongest companies listed in the exchange.  And for that reason, I generally prefer to sell put options on ETFs. Of course, that’s just my preference and I believe you have yours too. 

I have heard of some traders who did options selling on stocks and I mean on big companies which failed.  Depending on the risk management approach that was taken, disastrous to the trading account could have been avoided or minimized then.

The risk associated with selling options on stocks may therefore be perceived as relatively higher and thus lead to a possibly higher margin.  Premiums obtained from selling stock option and future options differ.  Margin requirement from selling stock options can be 10, 20 times higher than the premium collected while that for future options can be just a few times higher.  The return on investment is thus viewed as better for doing options selling on future contracts. 

Strike price consideration is also a critical factor when deciding between stocks and futures options.  For futures options, it is possible to sell very far OTM options and yet collecting a reasonable amount of premium for it.  However, for stock options, one would have noticed that after just a few strikes OTM, the premium to a miserable amount which might not be worth the risk to do so.

With a lower margin and possibility of getting a substantial premium for very far OTM options, futures options seemed a much choice than stocks options at this moment.  However, one must be aware that futures come with contract dates which they mature or expire.  They are unlike stocks or ETFs which one can hold upon assignment on the expiry dates.  Risk management for futures and stocks options selling hence differ.  Futures contracts like the E-mini S&P (symbol ES) also come with different contract dates, e.g., the September, December contract etc.  ES options expiring in the months of October, November and December are associated with the underlying future contract which expires in December.  Such knowledge can be important to a trader who is trading these options though the price difference between the various future contracts can be small.

Hope this article has been helpful to you if you are thinking of embarking on the futures options selling track.

Good luck!



By: uktank

About the Author:

Have you ever considered investing in the stock market? Even with the way the stock market is moving? With today’s economy, stock trading is extremely risky for beginners. If you don’t know what you are doing in stock trading, you can lose your investment very quickly.

There is an alternative that many new investors do not know about. It’s called “Binary Stock Option Trading.” Basically, Binary Stock Options only have two outcomes. Either you win a certain percentage of your initial deposit or you lose your initial investment, but when you lose, you still walk away with a small percentage of your initial investment.

The best part of Binary Stock Option Trading is that you are now able to do this online with a minimum investment of $30. If you are new to stock trading, Binary Stock Option Trading may be the way to go. You do not need to know much about the market or how to read complicated charts and graphs. Also, you do not need to download any complicated trading platforms, as there are easy to use online trading platforms that you can use directly online.

If you are interested in learning more about Binary Stock Option Trading, visit www.EZmoneytrader.com to learn some simple techniques that will guide you to making money online with Binary Stock Options. Investing can be extremley profitable when you know how to invest properly. The number one reason why new investers lose money is because they were never taught how to make it. Happy Trading.



By: Mike Edwards

About the Author:

Do you believe buy & hold is safe? Or that selling short is risky? Read below the top 4 myths that are widely believed, and keeping people from their trading potential. When you properly understand these myths, you will be leaps ahead of everyone else.

Myth #1 Selling Short Is Risky

This trading myth comes from the fact that some stocks can trade down to zero while there is no limit to how high that stock can trade. So losses for long positions are limited on the downside, but short positions can suffer unlimited losses.

But the belief that short selling is risky is preventing you from minimizing risk and preventing you making money. You see, selling short works just as well as buying long if done properly. The level of a positions risk depends on good money management methods.

A small percentage of traders have realized this and have developed a trading strategy to sell short and profit easily regardless of which way the stock market is moving.

Myth #2 Buying & Holding is Safe

This would have to be the most common trading myth, that stems from the belief that the stock market always goes up in the long run. This is true enough, but it can also take an extremely long time. Some markets have been known to drop dramatically, and not return for 25 years! Like the Dow Jones Industrial Average from 1929 to 1954.

It dropped so low during this time that no one would sit through it. Money managers who can duplicate the performance of the general market are very rare. You need an exit strategy that limits risk for every strategy, whether investor or trader.

A small percentage of traders are using a trading method that will actually apply to any market. This potentially gives them a winning edge. They aren’t simply buying, holding, and hoping like most traders do.

Myth #3 Trading is easy

If making money consistently from the stock market was easy, everyone would be doing it, and all be wealthy from it. Yeah, the physical part is easy enough, but many people have this idea that trading is easy, but they were never given the tools that make it easy.

It’s not that trading needs to be difficult, but it requires a solid trading method, and diligence on the traders part to stick with it. And unless you also trade with discipline and use good money management principals like the most successful traders, you can only hope to be less than successful.

Myth #4 The existence of the Holy Grail

I see far too many traders hopping from method to method, pursuing the next guaranteed thing only to be repeatedly let down. Newbies tend to think they should be able to win practically every trade. Thinking they should be having a straight line of wins without any major setbacks.

When armatures try something, they conclude that their system doesn’t work after the first few losses in a row. So they jump on something else. How can anyone expect to succeed this way. Unless you want to continue to suffer losing trades, and eventually give up, stop chasing this holy grail nonsense.

The holy grail of trading doesn’t exist. It would seem more than 90% of traders are wasting years of their life with this myth. Think of the progress, the money that could have been made, if they had spent that time and energy on a solid trading system, and a good trading method.

Where to go from here:

Well first, simply understand and clear your head of the above stock, and trading myths. Free yourself from these beliefs that restrain your potential as a trader. This will automatically put you in front of most traders.

There are a few traders however, less than 1%, who understand the above and more. who are quietly making a killing from the stock market, and are spending no more time trading than you. A lot of them keep their winning system and their successful trading secrets to themselves, but there are a few who will share this information with the public

Just remember, none of these super traders are born geniuses. And they don’t have a crystal ball forecasting the stock market. They simply have found a winning system that isn’t restricted to any time frame or market. The most successful traders are nobody special, apart from the stock market secrets they learned and diligence to put them in action.

Regardless of whether you trade Stocks, Options, Futures or Forex, or your level of experience, you can’t afford to keep buying and hoping. Stop leaving your success to chance when you can take control. It isn’t necessary to keep wasting all this time and money on the common trading methods. Even if you are ahead, the average trader could trade far more efficiently.

You too can become one of the very small percent of traders. Seriously, you just need to learn how to properly, plot the chart, the right setup conditions, the best entry point, stop loss point, and place your profit target point.

To learn how to do the things listed above, and for actual insider trading secrets on how the most profitable traders really do it - Read on.



By: Peter Bosch

About the Author:

The recent stock market crisis (2008) took the stock market down by more than 30% in less than a year. This has a lot of traders thinking that big money can be made simply by buying put options on stocks that will move down with the market, especially high beta ones. Nothing can be further from the truth. Most amateur options traders who did that either failed to make any money, make very little money or outright lose money even though the stock moved down a lot as predicted. Why is that so?

Volatile market conditions are especially bad for buying stock options due to 2 reasons. Firstly, the extreme volatility resulted in extremely high implied volatility which increases the extrinsic value of options dramatically, depressing its profitability. Secondly, extreme volatility leads to extreme speculation which encourages market makers to open up the bid ask spread to an unreasonably wide level in order to fill their own pockets.

Extrinsic value is the price one pays to the seller of stock options in order to justify the risk undertaken by the seller for giving such a right to the buyer. This price is arrived at in theory by options pricing models such as the Black-Scholes model. Extrinsic value directly affects the profitability of the options as the higher the extrinsic value of an option, the more the underlying stock needs to move in order to breakeven or profit. For example, if two options based on the same underlying stock, the same strike price and expiration month have different extrinsic values (of course this cannot be the case in reality), the option with the higher extrinsic value will make lesser money in profit than the option with the lower extrinsic value when the underlying stock moves by the same amount when held to expiration.

Extrinsic value is affected mainly by the level of implied volatility of the underlying stock. If the underlying stock is expected to make big moves, implied volatility goes up and the extrinsic values of its options go up as well. In times of extreme market volatility, extrinsic values go up dramatically across the board, depressing the profitability of options. In fact, one could end up losing more money than usual if the stock does not move according to expectations due to the higher extrinsic value paid. This is why a lot of amateur options traders who simply bought put options recently failed to make much money or any at all. This situation is made even worse by the wide bid ask spreads provided by the market makers.

Market makers are whom options traders really trade options with. When you buy an option, you are really buying directly from market makers who hold an inventory of those options and when you sell options, you are really selling back to these market makers who want to maintain an inventory of those options. Market makers buy and sell options in the exchange, ensuring the liquidity of all options contracts and profit primarily from the bid ask spread that they provide, buying at the bid and selling at the ask. They function exactly like used car dealers, buying at lower prices and selling at higher prices. Typically, the more actively traded the options are, the closer the bid ask spread tend to be due to competition between market makers, however, in times of extreme volatility where there are a lot more buying and selling on panic and more than enough business to go around for all market makers, they usually open up the bid ask spread in order to make even more profits. That is why we saw unusually wide bid ask spreads in this recent crisis. Wider bid ask spreads result in larger upfront losses which again depress the already depressed profitability of stock options due to the higher extrinsic values.

The higher extrinsic value and wider bid ask spread makes profiting from simple stock options buying extremely difficult and are the main reasons why amateur options traders fail to make money buying put options during the recent stock market crisis. Conversely, writing options are an extremely profitable way to trade options during a volatile market where extrinsic values are high. Naked writes and Credit Spreads are really the way to go in a volatile market condition and are what most beginner options traders do not know about. Selling options instead of buying them turns the table around and creates an extremely profitable position during times of high extrinsic value. Learn more about credit spreads at http://www.optiontradingpedia.com/free_debit_credit_spread.htm now.



By: Jason Ng

About the Author:

The recent stock market crisis (2008) took the stock market down by more than 30% in less than a year. This has a lot of traders thinking that big money can be made simply by buying put options on stocks that will move down with the market, especially high beta ones. Nothing can be further from the truth. Most amateur options traders who did that either failed to make any money, make very little money or outright lose money even though the stock moved down a lot as predicted. Why is that so?

Volatile market conditions are especially bad for buying stock options due to 2 reasons. Firstly, the extreme volatility resulted in extremely high implied volatility which increases the extrinsic value of options dramatically, depressing its profitability. Secondly, extreme volatility leads to extreme speculation which encourages market makers to open up the bid ask spread to an unreasonably wide level in order to fill their own pockets.

Extrinsic value is the price one pays to the seller of stock options in order to justify the risk undertaken by the seller for giving such a right to the buyer. This price is arrived at in theory by options pricing models such as the Black-Scholes model. Extrinsic value directly affects the profitability of the options as the higher the extrinsic value of an option, the more the underlying stock needs to move in order to breakeven or profit. For example, if two options based on the same underlying stock, the same strike price and expiration month have different extrinsic values (of course this cannot be the case in reality), the option with the higher extrinsic value will make lesser money in profit than the option with the lower extrinsic value when the underlying stock moves by the same amount when held to expiration.

Extrinsic value is affected mainly by the level of implied volatility of the underlying stock. If the underlying stock is expected to make big moves, implied volatility goes up and the extrinsic values of its options go up as well. In times of extreme market volatility, extrinsic values go up dramatically across the board, depressing the profitability of options. In fact, one could end up losing more money than usual if the stock does not move according to expectations due to the higher extrinsic value paid. This is why a lot of amateur options traders who simply bought put options recently failed to make much money or any at all. This situation is made even worse by the wide bid ask spreads provided by the market makers.

Market makers are whom options traders really trade options with. When you buy an option, you are really buying directly from market makers who hold an inventory of those options and when you sell options, you are really selling back to these market makers who want to maintain an inventory of those options. Market makers buy and sell options in the exchange, ensuring the liquidity of all options contracts and profit primarily from the bid ask spread that they provide, buying at the bid and selling at the ask. They function exactly like used car dealers, buying at lower prices and selling at higher prices. Typically, the more actively traded the options are, the closer the bid ask spread tend to be due to competition between market makers, however, in times of extreme volatility where there are a lot more buying and selling on panic and more than enough business to go around for all market makers, they usually open up the bid ask spread in order to make even more profits. That is why we saw unusually wide bid ask spreads in this recent crisis. Wider bid ask spreads result in larger upfront losses which again depress the already depressed profitability of stock options due to the higher extrinsic values.

The higher extrinsic value and wider bid ask spread makes profiting from simple stock options buying extremely difficult and are the main reasons why amateur options traders fail to make money buying put options during the recent stock market crisis. Conversely, writing options are an extremely profitable way to trade options during a volatile market where extrinsic values are high. Naked writes and Credit Spreads are really the way to go in a volatile market condition and are what most beginner options traders do not know about. Selling options instead of buying them turns the table around and creates an extremely profitable position during times of high extrinsic value. Learn more about credit spreads at http://www.optiontradingpedia.com/free_debit_credit_spread.htm now.



By: Jason Ng

About the Author:

FACT: 95% of forex trader do not know what is forex options, 4% of forex trader know what is forex options but they think that forex options was too complicated for them and only 1% use forex options for trading.

Why Forex Options? Options allow you to have the right but no obligation to either buy a call option or sell a put option which is an asset at the certain price as known as the strike price on the certain date too. Right in buying or selling the underlying asset, you will pay a premium upfront to the seller of the options, whether you choose to use it or exercise the right. It is all dependent upon the market movement at the time the options exipres.

I will show you What is Forex Options in 7 Easy steps….

What is a Call Options?

Call Option give the options holder, in return for paying a premium, the right but not the obligation to buy the underlying asset at a specified price within a specifie timeframe.

What is a Put Options?

Put Option give the option holder, in return for paying a premium, the right but not the obligation to sell the underlying asset at a specified price within a specific timeframe.

What is a Strike Price?

Strike price is prices at which an options holder cab buy or sell underlying instrument. Strike price are also called the exercise price.

What is a Value Date?

Value date is the date when the settlement of funds for a trade transaction will take place on your account. In Forex, the value is usually two banking days from when the trade is executed.

What is an Exercise Date?

You will exercise an option when you invoke the right to purchase or sell the underlying asset at the price stated in the option contract.

What is an Expiration Date?

The expiration date is the day which the option expires. Options that can only be exercised on the expiration date are called European options.

What is Forex Vanilla Option?

Forex Vanilla Option is an ordinary option with no special features unlike stock or future options.

As a Forex Options Trader myself, it is easy to take the advantage on the forex market. Even if the market move up or down, you will be able to profit from that. Different strategy will get different amount of premium.

As a saying…

Past different from present, present different from future.

Market undergoing change.

Profitable strategies become detrimental.

But Forex Option Trading always stay.



By: Timothy Stevens

About the Author: