Gavin McMaster

Stochastic indicators are a very useful technical analysis tool. Let's analyze what they are and how you can use them to profit. The stochastic oscillator was developed by George Lane during the 50′s and shows the momentum of the market by evaluating the location of the closing price relative to the recent high-low range. The stochastic indicator helps traders identify overbought and oversold levels.

Learning how to trade volatility is a key concept for new traders to learn when starting out in options trading. Implied volatility is one of the key pricing inputs in the Black Scholes option pricing model and while I won't detail all the calculations now, it is based on various inputs, of which implied volatility is the most subjective (as future volatility is not known, we have to make a best guess).

Learning how to options trade successfully takes time. It won't happen over night, and despite what some people will tell you, you won't be able to learn everything you need to know from a book. Trying to learn how to options trade through self study is fraught with danger. A book might be able to tell you what a call option is and what a put option is, but it won't tell you how to develop a trading plan, risk management rules, how to spot trade opportunities or how to set stop losses and profit

Options trader interviews are a great source of learning for anyone starting out in options trading. It takes a while to learn enough about options trading in order to be successful, so it makes sense to find mentors and learn from people who have gone before you and been successful. Interviews are a great way to get an insight into the minds of great traders, and learn what it is that has made them successful.

Out of all the main options brokerages, Options House is the new kid on the block. But that does not necessarily mean you should not think about switching your account over to them. Like most brokerages they have a sign up offer, in this case it is 100 free trades. I have found them to be an incredibly good broker for options trading and they are who I recommend most of my options coaching students to use.

When searching for options trading tutorials for free, there is a place you can look that you might not immediately think of. There are many places to find free information these days, especially with the spread and ease of access of the internet. One great place to find free instructional videos is YouTube.

Today, I want to talk about how to trade credit spreads, some of the risks involved and also how you can manage those risks. With this option strategy you are looking to make small monthly gains while avoiding any large losses.

This article details the basic functions and characteristics of options. Also included are some hypothetical examples.

Delta neutral options trading involves using options to remove the directional bais from a trade. For example, if you sell puts (positive delta) you can also short the underlying stock (negative delta) to get to a delta neutral position.

Below is a list of the top traits of successful investors and options traders. They Are Properly Capitalized - A very easy mistake for beginner traders is not being properly capitalized. Beginners see the leverage option trading offers and think they can turn $1,000 into $10,000 in a matter of weeks.