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It's
been more than 20 years since I first entered the
financial services business as a broker. I still
remember my first speculative trade; it was a futures
spread trade involving Live Hogs (all of my friends
in the business were farmers). Soon after entering
the finance business, I moved away from the brokerage
side to the analysis side where I really wanted
to be. I must have been doing something
right,
because I promoted to Director
of Research at the nation's largest options-only research
boutique. In 1993, I left that firm to start my own
company to focus strictly on volatility.
During my first decade
as a trader and analyst, I was introduced to a strategy
that had an extremely high probability of profit.
I wanted to understand the mathematical reason for
the extraordinary success. It was then that a friend
of mine uttered the words that changed my life and
ushered in a period of groundbreaking research. My
friend Pete said, "It has something to do with that
bell curve thing." From that point forward, I have
used my mathematical skills to discover unique and
profitable trading systems.
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| OUR
AUTHOR TEAM |
Adam Oliensis
Andy Chambers
Brian Schad
Chuck
Hughes
Darrell
Jobman
Dave
Caplan
Gary
Wagner
George
Angell
George
Fontanills
Glenn
Neely
Jack Schwager
Jon
Najarian
John
Weston
Larry
Connors
Larry
Williams
Lawrence
McMillan
Lee
Gettess
Mark Fisher
Murray
Ruggiero
Paul
Forchione
Peter
McKenna
Ray
Frazier
Russell
Sands
Scott
Krieger
Ted
Tesser
Tom
DeMark
Tony
Catalfamo
Welles
Wilder
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Our
edition
of
Inside
Trading
this
week
features
Don
Fishback
who
provides
a
video
presentation
discussing
the
four
steps
to
successful
options
trading.
Next,
Lee
Gettess
tells
us
what
he
expects
from
both
the
S&P
and
bond
markets
for
the
coming
week.
Then,
we
hear
from
Jack
Schwager
on
why
traders
prefer
futures
markets.
Last,
the
editors
at
TradeWins
Publishing
explain
a
directional
options
strategy
called
the
diagonal
time
spread.
Enjoy!
Adrienne
LaVigne
TradeWins
Publishing
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| Four
Steps to Options Trading Success |
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By: Don
Fishback
The following is a clip taken from Don Fishbacks's
Options
Trading as a Business
Believe
it or not, the biggest secret to getting rich with
options trading isn't learning how to get lucky more
often. (That's only one part of it.) The biggest secret
in Options Trading as a Business is learning how to
keep trading without giving all that profit back to
the market. In this clip from Don
Fishback's
"Options Trading as a Business", Don
discusses the four key steps to options trading success.
Watch
movie
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| Lee
Gettess' Market Sense |
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Lee
Gettess is a top trader who is excited to bring
you his new video newsletter. Each week, Lee will
share his predictions on what he anticipates from
the bond and S&P markets.
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Why Traders Prefer Futures Markets
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By: Jack
Schwager
The
following is excerpted from Jack's national bestseller
Market Wizards: Interviews with Top Traders
The essence of a futures market is in its name:
Trading involves a standardized contract for a commodity,
such as gold, or a financial instrument, such as
T-bonds, for a future delivery date, as opposed
to the present time.
For example, is an automobile manufacturer
needs copper for current operations, it will buy
its materials directly form a producer.
If, however, the same manufacturer was concerned
that copper prices would be much higher in six months,
it could approximately lock in its costs at that
time by buying copper futures now.
(This offset of future price risk is called
a hedge.)
If copper prices climbed during the interim,
the profit on the futures hedge would approximately
offset the higher cost of copper at the time of
the actual purchase.
Of course, if copper prices declined instead,
the futures hedge would result in a loss, but the
manufacturing would end up buying its copper at
lower levels than it was willing to lock in.
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By: TradeWins Publishing
Editors
What
is a "time spread"? You create a time spread (also
known as a calendar spread) when you sell a call
and hedge it by buying a call in a deferred month.
You also create a time spread when you sell a
put and hedge it by buying a put in a deferred
month.
The
time spread becomes a "diagonal" time spread if
the short option has a different strike price than
the long option. It will be bullish, bearish or
neutral depending on the strike prices you choose.
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Don
Fishback's
Options Trading
as a Business
"Options
Trading as a Business will teach you solid and proven
trading techniques that will help you manage your
trades like a thriving business."
You
may have heard people compare option trading to
gambling or a lottery. They say that option trading
is too risky, and if you win it's just dumb luck.
For many investors, that statement is absolutely
true! But for an investor educated by Don
Fishback,
that statement couldn't be further from the truth!
Option trading can be a dog-eat-dog experience for
the uneducated trader. But with even a little education,
it can become a thriving business that makes consistent
profits.
Learn
more about Don Fishback's Options Trading as a Business
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