Buy 40 Contract(s) of the 20.00 Call on SOLF (QFG ID) at Market Open price
At a premium of $2.45 per share (100 per contract), the value of of this transaction is estimated at $9,800.00, plus commissions of 89.99, for a total of 9889.99. This value may however change with MarketOpen Price when exchange opens on next business day.
so does this mean my break even point is $22.45?
how do i make money with options… if it goes to $25 what percentage gain would that be?
this is just an example… i will study & use a practice account for the next 6-12 months before i rally take a go at it
Yes, if
(1) you hold the position until expiration and
(2) you ignore commissions.
<<
If you hold it until expiration and the stock is at $25 at expiration your options will be worth $5.00 per share, giving you a profit of $2.55 per share, or a little over 100%.
<<
You should study and use a practice account, but do not commit yourself to starting at a set time unless you are comfortable that you understand options at that time.
————–
In my answers I specified “at expiration” because prior to expiration the option premium consists of two parts, the intrinsic value and the extrinisic value. (The extrinsic value is also sometimes called the time value.) At expiration the extrinsic value will be zero and the exact value of the option is known. Prior to expiration the extrinsic value will be greater than zero, but exactly how much greater depends on the implied volatility of the option. (The implied volatility of the option is essentially the amount of volatility expected in the stock price.) So, prior to expiration your breakeven price will be less than $22.45.
———-
I strongly encourage you to read at least one or two good books about options as part of your course of study. There are some excellent web resources, such as
http://www.cboe.com/LearnCenter/default.aspx
and
http://www.optionseducation.org/
I suggest you check if you haven’t already, but they do not teach you as much as a good book will. They may, however, teach you enough to pick out a good book.
-MACD histogram
-RSI Index
-bollinger bands
-AROON Oscilator is a good one too
- the intraday Chaikin Oscilator is ur best bet tho
For more information on a wide number of Technical Indicators visit http://stockcharts.com/education/IndicatorAnalysis/
Happy Trading
-Paul
It is about 3 months that I'm studying hardly forex. I have a good underestanding cause my previous job was "pragramming C#" and I left it to enter to trading world. but unfortunately I have not come up with a trading system that really works and make profits.
I'm in stress cause I should start my real trading as soon as possible. I prefer my positions be open for several days or more cause I don't want new stresses. Please elaborate me your system that you have experience of working with it.
I am 37 and I want to open my real account with about 2,500 US $.
Please introduce me a trustable broker in advance cause this is second problem that has confused me.
European brokers are much preferred. I let you know my experience in future and will send you post cards to appreciate your useful answers.
You can really help me
You're probably wanting to do it for the money, not for the process of trading. Or maybe you're good at analyzing the markets and setting up the computer to analyze and evaluate, but that doesn't make a trader.
If you're just doing it for the money, you will not approach the market properly, you will be impatient, and you will tire easily. Really, there are lots of better ways to make money. You probably already expect to earn an income from such a small investment of $2,500. If these are true, you have unrealistic expectations, and you will not succeed.
PremiereTrade is one of the best trading platforms for the Forex beginner, because they have such a great community of others to help you get going. It costs $3,000. But they will tell you up front to paper trade in the Demo Account for a year before you actually commit money.
Neither does a brain surgeon walk out of school and pick up a scapel and begin operating, or an engineer walk out of class and begin building skyscrapers. And you have not even begun to learn, let alone apply the rules of trading, or to master your fears and emotions, or even know what they are.
I think most people come to trading expecting to "Get rich quick." Doctors and lawyers are the worst traders in existence, because they are used to being in control. Almost all professionals do poorly at first, because they have succeeded elsewhere, and expect it to be easy.
Trading is the most difficult challenge you will ever face. If it were easy, we would all be rich. But instead, 80% of all traders blow out their account within the first year.
Personally, I have lost everything three times, trading the stock market index futures. Now I have finally settled on Forex, and am doing quite well after 17 years of learning.
If you buy PremiereTrade, they will charge you $100/mo for the data feed. For one year, that is another $1,200. You can trade a simulator for free here and learn as you go:
http://www.expertworx.com/pm/Forex%20Market%20Educational%20Game.htm
Here is the broker I use:
http://fxdd.com/
so how excatly does it work, is it as simple as buy it when its low, and say the share price triples, can u sell it for quick payoff when ever you please? or is it more complicated.
Start by reading the book Master the Trade by John Carter and then read Winning the Day trade game. Those'll give you a primer on which to build and will allow you to better ask your next round of questions. 
You can also visit sights like eSignal and Kwikop to see some of the charting tools/indicators there are out there that you'll be needing once you do get started.
Hope that helps!
Assume this individual would be working with total capital of approximately $100k and would work from his home office.
Assume this individual could devote several hours per day if necessary.
Realistically, is there a reasonable way this individual could master getting in and out of investments in a way that leads to a significantly higher return than the general market?
I am pretty well versed in the efficient market hypothesis, and I generally think that short-term trading is little more than flipping coins with transaction costs. But there clearly are entire firms set up that apparently make money trading the market, and there are individuals who do make significant income trading. These successful traders are likely like any business person who found a profitable niche: they do all they can to not publicize how they're making money.
Thanks.
Your first dollars should be spent on getting educated on investing. You don't have to train to trade them professionally, but we are talking about your future here. So the more you learn, the more it'll help you! So let's start there.
You ask a very broad question, so be prepared for a pretty long answer. Just take it in chunks!
How to invest depends on what you already know. We'll assume that you're beginning since you say you want some books for beginners!
A good primer is How to Make Money in Stocks by William O'Neil. You can get it cheap just about anywhere. It’s widely available new or used.
Another good one is one of Jim Cramer's books (he’s got a few).
Once you finish those, read Mastering the Trade, by John Carter
But books will only get you so far. At some point, you'll also want to get at least a little training. There are some great education companies if you want to make the investment. Investools.com or optionetics.com are both very good companies as is tmitchell.com
For free, you can start by visiting thestreet.com and investopedia.com. That'll get you a pretty good primer so at least you'll understand what the markets are and what a stock is, etc.
If you get a chance, watch Mad Money on CNBC. Don't trade any of his picks until you track many of them over time. Just use the show to get you to understand some basics and get a feel for the market itself.
Next, subscribe to something like Investorsbusiness daily or something like that that can help you identify good stocks.
Once you understand stocks, go to 888options.com. It's a website that'll help you understand options (what they do, how they work, etc). You don't need to trade them, but the more you know, the more you'll see how options can really be the safest way to invest (once you're educated).
For discipline (which is crucial to successful trading), probably Trading in the Zone by Mark Douglas or Mastering the Trade by John Carter
I know that’s a LOT to absorb. Just take it one step at a time for now. Start with a book or two to give you an idea of where to begin. Take your time, and let it seep in.
As you get up to speed, you should papertrade to practice (highly recommended). This should help reduce your losses in the beginning as you get used to buying/selling.
You can practice for free on almost any reputable broker site (optionsxpress, scottrade, thinkorswim, etc).
Start slow, then as you figure things out, you can buy more shares.
Congrats again on getting started. If you have any questions, please let me know.
Hope this helps!
For example, sell if it goes down 10%; sell stock in the first hour of the trading day; buy stock in the last hour of the day; use covered calls; buy puts; etc.
Thanks. Hopefully this info can be helpful to others as well.
http://www.vanguard.com/VGApp/hnw/planningeducation
http://www.fool.com/school.htm
http://sec.gov/investor/pubs/assetallocation.htm
http://www.diehards.org/readsites.htm
http://finance.yahoo.com/education/begin_investing
http://finance.yahoo.com/funds/basics
5pasia.com
ICICIdirect.com
Sharekhan
HDFC Sec `
Motilal Oswal
Reliance Money
Religare
Geojit Sec
Kotakstreet
Karvy
Have fun
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is it a smart way to start of
http://www.stockmarketresources.blogspot.com
http://www.picktherightbroker.blogspot.com
I have been studying the market for about 2-3 hours a day for maybe 5 months now, and I have developed some guidelines. Just so you know, a few weeks is considered swing trading. But there is no "quick money" and here's why:
Investing in mutual funds should require about 20 hours of research
Investing in stocks – 100 hours
Trading – 250 specialized hours
What I mean by specialized is that if you trade stocks, you need to be studying stock price movement and trading strategies EXCLUSIVELY for 250 hours. Personally, I have, at the least, around 350, and I have spread my knowledge around to stocks, options, general education and investing, futures, financial info — everything. I haven't even started paper trading my strategy, and I expect to be another 150 hours from trading, which I expect to start in July.
The smartest way to start off is to sit on the sidelines and educate yourself until you feel you're ready for whatever you decide to take on. I hate it sometimes, but I know the profits from my learning will be more than worth it. Best of Luck!
Btw, if you cut corners, you will regret it! There are plenty of people who either give up or cut corners and fail. It takes a special kind of person in this field. Email me with any questions if you like.
Some strategies you can research are:
Trend Following
Scalping
Momentum Trading
Range Trading
News Trading (buying/selling on news or anticipation thereof)
All but news trading involve some form of Technical Analysis which I would advise you to read about as well.
I would also recommend you start looking into an ECN (electronic communication network) to use as your primary trading platform.
Wiki has a lot of information you can use, but I would always recommend reading independently and doing research online. Some authors you can look up are Alexander Elder, Michael Covel, Curtis Faith and John Murphy to name a few.