From the category archives:

Weekly Option Tips

Weekly Option Tips #4

February 25, 2010

Plan The Trade, Trade The Plan.
There’s nothing more critical to your success than being able to execute the above sentence. Trading according to your gut, or your “feelings” won’t bring you consistent performance. You can trade this way if you want, and sometimes you’ll be right. But you won’t consistently earn money. That’s simply no [...]

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Weekly Option Tips #3

February 18, 2010

Don’t use market orders when opening a new option position. Options, unlike stocks, can have a very high bid/ask spread. This spread can really cut into your profit if you end up buying the ask and selling the bid. Suddenly, something that looked so good on paper doesn’t measure up in the real world. It [...]

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Weekly Option Tips #2

February 11, 2010

Avoid trading during the first 30 minutes when the market opens.
As a retail trader we have a lot of choices that the guys (and girls) on the floor don’t have. We get to choose what to trade and when to trade. We should use that to our advantage.
That first half hour at the open can [...]

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Weekly Option Tips #1

February 4, 2010

This week I’m starting a new theme. Every Thursday I’ll be posting a tip on option trading, hence the title Weekly Option Tips.
Weekly Option Tips #1 – Paper Trade First
I know, I know. Everyone’s always in a big rush to start making money as quickly as possible. No one ever thinks that they may lose [...]

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