Wednesday, December 9, 2009

What Do you Think Of The Options University?

By Breandan Dean

More and more people in the marketplace are starting to understand that options are an excellent tool for maximizing profitability, as well as safeguarding capital and assets with effective hedging.

In fact Options are often known as the only true way of hedging. While this can be correct, it's just now that individuals are actually beginning to appreciate the potential benefits of options, the problem is that they are still badly understood and basically used the wrong way by traders within the market.

The method to make certain that a trader totally understands the way to make use of options in a way to maximize profitability for his or her trades or business, is through sensible education and preparation. This can be the one most vital factor that a trader can do in their career.

But, there is a frequent issue with this, in that the majority of the options trading companies teach options the wrong way round. This means that they teach basic options strategies to their students and then leave them to get on with trading live within the marketplace.

This is the point where the Options Uni comes into its own. They have the philosophy that the real method to be able to trade options properly, is initially by having the ability to find opportunities where Options will be used effectively.

They coach their clients to be able to search out these opportunities and once a trader is comfortable in doing this, they then continue on to coach the most effective strategies and techniques for every different scenario.

Options University offer a full range of courses from the beginner level thru to advanced and mastery programs.

The company is run by experienced options traders who trade full time in the marketplace. This means they have the abilities and expertise to effectively teach what traders need to know. They also offer live trading events and seminars, where traders can be taught and make trades in real time with their coaches.

No other options trading company currently uses the same approach, or offers the same opportunities to trade and learn next to successful professional traders.

But, if a trader is committed to realizing the full potential of options then they must go further than just visiting the options university.

To be a profitable options trader an individual must be prepared to be one hundred% committed to the program and training.

An example of what's potential when fully committed Options University was demonstrated two years ago when Ron Ianieri, one of the founders of the company and a very well respected options trader within the industry, took a group of twelve inexperienced traders through an intensive 3 month course that brought them by the hand and led them all thru to a complete options mastery level. - 23309

About the Author:

Forex Trading Tips - The Risk Management Samurai

By Mark Green

When you trade in the forex market without strict rules to manage your cash-flow, you are not trading but in fact gambling. From time to time traders may fall into the trap of buying or selling way too much of a currency pair and risking way too much of the money in their accounts based solely on hunches, also known as 'feelings'; but this is a sure way to accelerate disappointment in the market. When you start out as a beginning trader it is important to devise a method of calculating how much risk (by default) you would be willing to risk on any position.

Money management rules such as the 2 percent rule are designed to protect us in the long run. You are probably wondering how, and I will explain that in a moment, but first an example. Case and point, Mark decides to make only 10 trades a month, he is what you would call a conservative trader. Mark has a simple rule that stipulates that if he makes four consecutive losses in a row he would pull out of the market until the next month; and for every profitable position he closes, he will risk only a third of his profit in the next trade that he makes; fairly simple rule and very effective in the long run in ensuring that his gains remain consistent.

So what rule can you apply in your trading strategy or how should you go about managing risk? Choosing the right means to protect your capital depends a lot on your style of trading, your account size and even your own personal tolerance for market speculation.

While using a reduced lot size is a good way to start, it will not be very helpful if you have a number of open lots. You must understand relationship between the currency pairs of the forex market; if for example you were to make a short trade on GBP/USD and a long trade on USD/JPY, you are unduly exposing yourself twice to the USD. This equates to having 2 lots of USD in a long position. If the USD price drops, you would lose...twice! Try to keep the lot numbers to a minimum and this is especially encouraged for beginning traders. You can also consider placing only 2 percent of your forex account at risk as mentioned earlier for any opened position, a common technique used by many traders.

Here is an example I hope will show you practically and in a different angle what we have covered here today. With a newly opened forex account 1000 dollars, I risk only 2 percent of that in every trade that means each position is worth 20 dollars of my account. I plan to have only 10 trades a week with a target of 100 dollars profit after all trades; this means I would have to endure the risk of losing 10 trades to suffer a maximum of a 100 dollar loss on my account. Naturally, I do not expect to lose 10 trades consecutively nor lose over 100 dollars in my account, and as fate would have it, I make 6 winning trades but lose 4. The following week I use the gains of my previous trades as risk and consistently repeat this cycle. This example shows you how you can keep your capital safe, and work more on growing your profits and choosing winning trades, I how you found these tips informative. - 23309

About the Author: