It is common to see web site banners or other advertisements similar to the title of this article, touting the benefits of options trades with probabilities of success of 85-90%. Technically, these trades indeed have a high probability of success, i.e., if you placed a trade with the same parameters every month of the year, you should see about 10 or 11 trades per year be successful and one or two be losers. And the longer you traded in this way, the more likely your results would conform to these averages. (more…)

Many people enter trading, whether it be stocks, options, commodities or other markets, after having been very successful in their primary occupation. Many of these new traders are perfectionists by nature and driven to be successful. This often leads to a couple of fatal flaws in trading: 1) The novice trader stays with a losing trade too long because of a reluctance to admit the original analysis was incorrect. His or her ego and sense of success are intertwined with the trade. (more…)

The share trading market instantly conjures up pictures of wealth being created and lost. A “share” makes its owner a part owner of the company. Various types of shares, also sometimes referred to as stocks, have different rights associated with it. The main objective of share trading is to make a profit. If you are able to sell your share at a higher price than what you had paid for it, you make money. (more…)