How to Trade Stocks and Options

How I Would Approach Penny Stock Trading

It’s highly speculative and not every penny stock is a winner but it’s a fact that some penny stocks make explosive gains from 100, 200, to over 1000%, and if that’s not enticing, what is?

An Example of the “Extended” Options Trading Strategy

In a previous post to this website, we referred to and explained an extension of a basic trading options strategy but did not provide an example. So we are providing one now and the following example uses the real prices of a stock entry based on recommendations published in an advisory service I subscribe to, it is a while ago so don’t recall all the details but our records show:

Trading Options, an Extension of the Basic Strategy

A key element in choosing a stock option to trade is that the amount of financial risk is limited and known at the beginning, the most that can be lost is the cost of taking the position. If a trader picks a high priced expensive option and cannot afford to lose that much then the trade should not be opened – and there are always option trades on other less expensive stocks that are less costly, although never compromise by taking an at the money or out of the money option because it is less costly. Stay within the established rules, noted in the link reference below.

Trading Options As an Alternative to Trading Stocks

For the person who is already familiar with trading in the stock market, and who has been able to make money by trading common stocks, attention may turn to the possibility of trading options where the lure of much bigger gains can be enticing.

Four Rules – A Guide for Trading Options

A basic profitable strategy

There are dozens, of ways for trading options, some of them very complex, but we want to start with an effective basic strategy that can be shown to be profitable, easy to follow, and easy to implement.

Trading Options, Part 1 of 3 – Options Defined

The trading of options hold a special attraction for many traders due to the leverage they provide because they usually trade at only a fraction of the price of the underlying stock. And options can significantly boost profits on winning stocks.

How to Trade Stocks, Some General Advice

If you are an aspiring trader who want to know how to trade stocks, be warned, there is a lot to learn and the real world of stock trading is not kind to those who lack knowledge or make mistakes, in fact it can be very costly. So be prepared for a lot of reading, studying, and practicing, and even when you believe you are ready to join the throng and make your first trades, do so with caution, make sure you have a plan to follow and know how to manage risk.

An Introduction to this Blog

An introduction and where we go from here

Our objective is to explain, from the viewpoint of the trader and using a mainly technical approach, what is involved in assessing the stock market situation, how to interpret stock charts, at least at a simple level, and the ways to identify and select stocks to trade with some rules governing when to buy and sell.

How to Trade Stocks: The Objectives

Some basic things you need to know

The objective of this site is to introduce the reader to some of the factors that can be considered in the process of making a decision to buy or sell a stock or a stock option when operating not as an investor but as a trader. To learn how to trade stocks it is necessary to become familiar with, and to gain an understanding of, the daily market-related information and the sources from which it is readily available, often represented graphically. That is the objective.

Learn How to Trade Stocks With Paper Trading

The possible profits that can be made by trading stocks are a valid reason for wanting to be involved in the stock market. But as well as a source of profits, there are also possibilities of losing money in the stock market.