
Professional athletes are often told by their coaches that their attitudes on the field can affect whether they win or lose. That's even more true in trading.
Novices considering currency trading will read that Forex brokers charge no commissions and cheer.
Choosing a good Forex broker can be as complicated as Forex trading itself. For that reason, investors should do their homework as diligently as they would for a trade.
Trading shares of stock has become as common as surfing the Internet. But, like any financial investment, trading stock is risky.
Options are frequently used in hedging. A hedge is an investment made to offset the risk incurred by entering another investment.
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Posted on 04 December 2007
Because the actual calculation, and sometimes even the discussions, of volatility involve some fearsome mathematics, novice options traders often forgo learning about it. Those traders are at a disadvantage compared to their more intrepid competitors. And unnecessarily so, since the concept is not only useful but simple to understand. In essence, volatility is a measure of [...] Continue Reading
Posted on 04 December 2007
The title points up an important difference between forex and stock investing. When buying stocks you’re making an investment in a company. Buying shares is short for ‘purchasing a share of ownership’. By contrast, no one is making an investment in Japan by buying yen. We leave aside politically motivated actions by large central governments. Currency [...] Continue Reading
Posted on 04 December 2007
Trading options is risky. While the risk is limited to the cost of the option (the ‘premium’), that isn’t necessarily small. A Google June 400 call can cost around $2800. The premium may be only 28, but an option contract is a commitment for 100 shares. Hence the figure is multiplied by 100. Of course, for [...] Continue Reading
Posted on 04 December 2007
Some people think of bankruptcy as an easy way to offload a crushing debt burden, and it’s sometimes the first method they reach for. Well, it may well relieve the burden, but it’s far from easy and should be the very last thing you use to do so. While the law has made it relatively easy [...] Continue Reading