Author: Juliana

How to Design a Binary Options Trading Strategy

Designing a trading strategy is an endeavor that is vital to your trading success.  A strategy is a business plan and it allows you to formally design a way to make money in the capital markets.  There are numerous pieces to this puzzle, which include analyzing your trading style, creating...

Market Conditions

Prior to jumping into a financial market, an investor should be aware of the many different types of market conditions that exist.  The goal of this article to inform a prospective trader of the different types of market conditions, and how to recognize what kind of market condition you...

Draw Down

The most important part of money management is the ability of a trader to avoid large draw downs.  A draw down is defined as a trade or numerous trades in which there is negative performance.  A draw down is a measurement of a recent peak period of capital to...

Money Management

One, if not the most important aspects of trading successfully is the ability of a trader to manage risk appropriately.  Well too often, a trader will come up with a solid trading idea and place a trade without thinking about when they will exit their trade, or how much...

Protective Put

A protective put strategy is a strategy that mitigates portfolio risk for investor that has positions in underlying instruments within the financial markets.    This strategy is employed by institutional investors as well as novice traders.   A protective put strategy is different from a put buying strategy in that the...

Collar

Have you ever wondered how you could buy a call or a put, but not take a big loss if the market stagnant or the market does not reach the strike that you purchased?   Well you can if you enter into a strategy referred to as a collar.   A...

Covered Call

A call writing strategy or a covered call strategy is when an investor or trader sells a call option to either enhance his portfolios earnings or to mitigate the portfolios risk profile.  This strategy is often used by both experienced investors and investors who are new to options trading....

Risk and Bet size

Risk/ Reward The essence of a trailing stop loss is that each time the market moves higher, the risk reward profile of the trade remains similar to the initial risk reward profit.  This is called maintaining the risk/reward profile.  A trader should avoid placing a trailing stop loss at...

Straddle

If you are a trader and you are interested in speculation on movement in the market as your main goal, there is a very efficient product that allows you to capture this particular trade.  A straddle is an investment where the trader purchases both a put and a call at the...

Money Management Trading

The plan Money management techniques are broken down in to a couple of specific areas.  The first is how much capital should a trader allocate to a trade, and the second is how much money a trader should be willing to lose on a particular trade.  Prior to entering...