Trade Deep in the Money Calls to Generate Monthly Income

Trading deep in the money calls offers investors a way to take advantage of the subtle movements in a stocks price by capitalizing on the volatility of the option. Purchasing a call option on a security gives you the right, but not the obligation to purchase shares of the underlying security on or before the expiration date for the contracts strike price. While purchasing the stock is a choice you can choose to make, the concept of deep in the money calls trading is to purchase the options contracts and then sell them for a profit prior to the expiration date.

Here are the steps required to trade deep in the money calls that will allow you to generate monthly income.

Currency Trading

Identify Stock - Use a stock screening tool to identify a list of stocks to monitor. When a stock on your list gets beaten down by macro conditions, it is important to take advantage by purchasing calls. Select Call Contracts - When a high quality stock gets beaten down, you should have identified call contracts that have an expiration date three to six months in the future. Also look for call contracts on the underlying security that are well below the current share price. Deep in the money calls are useful because you are well below the strike price. Monitor Contracts - Once you have purchased your deep in the money calls, be patient and wait for an opportunity to sell them at a profit. Be sure to have an exit strategy in case the stock continues to trend downward to limit your loss. Sell Contracts - Once your stock and corresponding deep in the money calls have risen above a certain percentage that you have defined - put in a sell to close order to make your profit.The steps noted above are very high level. Trading call options are very dynamic and can allow you the financial freedom that can change your life.

Trade Deep in the Money Calls to Generate Monthly Income

Why Currency Correlation Is Important in Forex Trading

Currency correlation as it pertains to currency pairs can have major consequences on a forex trader's trades. If the trader isn't up to date about various correlations among currency pairs, then he may experience lower profits, or he might take on further risk.

What is Currency Correlation?

Currency Trading

Currency Correlation means that there is a relationship that can be measured statistically between two financial instruments. With regards to the forex market, it would refer to the relationship between two pairs of currency.

The relationship correlation between these pairs are referred to as positive or negative. They will either move together in a positive direction, or they will move together in a negative and opposing direction.

"Correlation Coefficient" refers to the measure of the correlation. It ranges between -1 and +1. +1 means 100 percent positive correlation. On the other hand, -1 means 100 percent negative correlation.

Examples of a Positive Relationship Correlation

If you look at EUR/USD, and GBP/USD, you will see that these currency pairs have a positive correlation. In fact, they are almost identical, particularly over a long period of time. This means that over a period of time, the correlation between the pairs will be highly positive. This will be more apparent over a long time period, and not necessarily over a short period of say, a few days.

The reason for this is because the Euro (EUR) and the British Pound (GBP) are European currencies. As such, they are based upon the same fundamental principles. So both of these will behave similarly in relation to the U.S. dollar (USD).

Some Basic Guidelines

Here are some general rules for clarification:

The correlation between two currency pairs becomes more significant when viewed over a long period of time. With respect to the Correlation Coefficient, the higher the number either positive or negative, the stronger the degree of correlation. It's key to get a correlation at the 0.9, or 1.0 level, positive or negative. This represents the strongest correlation. If the value is below 0.5, then there really isn't any correlation.

How Is This Important to Forex Trading?

If the trader knows in advance the correlation amongst various currency pairs, then the trader can take better positions and avoid undue risk.

If the trader opens positions in two positively-correlated currency pairs, then he would be doubling his risk. On the other hand, if he were to go with two negatively-correlated currency pairs, his risk would be lowered, but so would the profit margin potential.

In the end, Forex traders do themselves a favor by having knowledge in advance about strong currency correlation pairs.

Why Currency Correlation Is Important in Forex Trading

Forex Trading With The Kiss Strategy

Find the right strategy and you will never look back in the world of trading. A great forex trading strategy is what separates the wishful thinkers who dedicate themselves to losing money everyday while the professional and successful traders with the right strategy dedicate their time to making money every trading session.

Forex is not something you should enter without the proper education. The more information you have about what forex is about and how the currency markets behave the closer you will be to becoming a successful trader. And as you already know, that means more money in your pocket.

Currency Trading

As you surely know, markets are open the whole day during six days of the week, with the desirable consequence of allowing traders a huge flexibility when it comes to knowing when to enter end exit a trade. Due to the constant buying and selling of currencies in the market, as long as they are kept open the prices will be constantly fluctuating and reacting to the world news and market conditions. All this activity can be easily seen by looking at a forex chart. And is thanks to this fluctuations that traders can have the potential of profitable trades the whole day. Here the secret is, again, to find a successful system with the right strategy.

For example, with the Forex KISS strategy you can easily duplicate your account capital in less than three months without having to worry about losing much money from your account if you apply the rules of the system as you are told to do. Understand how to implement the KISS and you will be kissing good bye to sad losing trading days.

Forex Trading With The Kiss Strategy

Currency Arbitrage

A very simple meaning of arbitrage would be getting something from just nothing! If you are surprised then don't be, for that's what arbitrage is. Technically, however, it can be defined as a synchronized purchase and sale of a security which will derive you with a profit from a price difference between the two.  

Here is a small example to show how it works. Let's imagine that the price of a stock on the NYSE is per share, but the price of the same share is per share in the Frankfurt exchange. Now the difference of a could mean an instant profit for you requiring zero investment.  

Currency Trading

So let's suppose the arbitrageur therefore sells on the NYSE and buy at the same time on the Frankfurt exchange. And as the transactions are a simultaneous action theoretically, there will be a direct and instant gain of per share. The same concept is applied for currency arbitrage.  

There isn't any limit on the amount of shares an arbitrager would like to buy and sell, the gain being guaranteed by the discrepancy in price. In the above example a quick 10 million share if purchased by the arbitrager along with a simultaneous selling of 10 million share will help him net a profit of some million.  

Now this new concept of making some fast bucks is a kind of trading which is emerging as one of the most interesting online entrepreneurship. It is gradually gaining popularity as many are not aware of it as yet.  

Furthermore, the concept of arbitrage is not limited to financial instruments alone. The entire practice could be applied to almost any and every kind of a circumstances where there arise an immediate opportunity to buy and sell simultaneously at particular price differences.  

Internet is the best place to carry the currency arbitrage. You will come across various sites selling similar things for different prices. So what you can do is buy from one site and sell through another site at the particular price difference and pocket the profit.  

Currency arbitrage seems to be a very lucrative trading business but one needs to be very careful while proceeding with such affairs.  

Currency arbitrage is simple but one must be careful because you never know when it gets noticed and the price differences gets equal closing the opportunities. So if you want to try it out, just get set and go. Here's wishing you happy arbitraging!

Currency Arbitrage

Who Offers the Best Currency Trading Training?

Currency trading training can be found in a ton of different venues. Ever since forex has become the popular and less expensive alternative to day trading stocks, traders have been looking for currency trading training. The problem is that there are so many trading courses online. How can one possibly decipher the reputable training programs from all the garbage that's out there? It seems like everybody has a trading system. How do you know which ones are worth your time and money?

First off, if you see a trading system that requires a lot of indicators (stochastics, MACD, etc...) to use, run the other way quickly. If you go to free forex forums, you can find literally thousands of trading systems that use basic indicators. Its nothing new. And not to sound cynical, but they are all pretty much the same. You are using technical indicators, which represent past information, to guess which way the market is going to turn. How can you trust a seller who trades the market with these tools? It's kind of like being taught how to ride a bike from somebody who is still using training wheels. It just doesn't make any sense.

Currency Trading

Also try to find currency trading training that offers a money back guarantee. Let's face it, no matter how good the training might be, it just may not work for you, for whatever the reason. You want to know that you can request your money back. No questions asked. No harm, no foul.

Who Offers the Best Currency Trading Training?

Automatic Forex Trading Robot - Advantages of Automatic Currency Trading Software

Forex trading is an incredibly lucrative way to make money. However, due to the great changes you get in forex trading, it is not easy to beginners to determine when to place and stop trades.

Many experienced traders takes years of experience and understanding of the forex market to be able to profit from the currency trading market.

Currency Trading

However, with ever increasing powerful computers, it is now possible to delegate some of the more mundane tasks of monitoring the forex market to forex trading software. Thus came the existence of automated robots that helps to monitor and alert you of any major changes in your forex trades.

The computerised process algorithms in these forex trading robot software are amalgamation of successful minds in the fields as diverse as Mathematics, Psychology, Forex market etc. This enables the software to act impeccably in all conditions. Further more, the Automatic Forex Trading does not require constant human supervision. Tuned to match all situations,it can even trade on your behalf.

Automated forex trading robots are now commonly used thanks to its ability to decide as per the market scenario and analysis of market history. It takes in account the analysis, strategies and speculations, which fall beyond what most ordinary people can do. It computes on behalf of the user to optimise the profit in the economic conditions.

With automatic forex trading, you can trade in parallel, or along with the top leaders. Endowed to match their calibre it can live up to expectations. As it is pure logical process, there is no scope for emotional errors. The user can be anxiety free even in the toughest situation. It has proved to be competitive and reliable over the years, around the globe.

The ability to interact in multiple markets also gives it a edge. It is compatible with all formats of trading, hence removes the user's restriction to personal domain. Automatic currency trading software assists you in grabbing the opportunities when and where they surface. Being active 24x7, it can help you monitor the forex market when you can sleeping.

Nowadays, most automatic software are easy to use and user-friendly. It is suitable for people new to forex trading as well.

Automatic Forex Trading Robot - Advantages of Automatic Currency Trading Software

What Do the Best Day Traders Do to Make Money? An Inside Look at Cashing in With Day Trading

Day trading can be an excellent method for making a profit, if you have the stuff to do it. However, no matter how others may pitch it, it's not a smooth ride. You have to put a lot of work into it to succeed.

Day trading stocks and commodities is really a highly lucrative job. Just like a regular job, it needs you to have a number of traits in order to succeed, as well as a number of firmly ingrained habits.

Currency Trading

The first thing you'll absolutely need is a good sense of time. The kind of person who's not good in the mornings or needs that morning jolt from coffee will only make themselves miserable trying day trading. That's because the best time to decide how you'll be playing the market today is right before opening bell. That's at nine in the morning in New York and six in the morning in California. If you're living in Hawaii or Alaska, it's five am. Of course, just being an early riser isn't enough. You'll also need to have a good internal clock and a solid scheduling system.

Habit number two that you'll need is having a good set of skills for quantitative thinking. You'll make or lose money in day trading just by operating on gut instinct. Making informed decisions, on the other hand, requires you to be able to look at numbers and understand them completely without even thinking about it. This means that numeracy and the ability to deal with numbers in your head is vital if you're going to tell whether something's a blip or a trend, and deal with it correctly.

I should point out that you don't have to be a mathematician to do this. You can learn how to analyze the numbers correctly, even if you're not fond of math. There are quite a few numerical skills that can turn into second nature, as long as you get well into the game.

Successful day traders also have to have patience and skills of observation, and combine them with a short memory. This can be pretty hard to learn, since you have to avoid feeling disappointment when you don't catch a stock at the top, or when you lose money because the short you're intending just never shows up. Don't get caught up in things when you lose, and don't allow winning to take over your life, either.

Dedicated research is also a must. Day trading doesn't require you to devour accounting statements like long term investing usually does, but you do need to constantly be able to deal with the flow of data and make analyses. You also have to be proactive about shares that you're buying or selling, and make snap judgments that you act on fast. The only way you'll know these judgments are the right ones are through the right research. However, don't let this desire for good research paralyze you.

You should also keep in mind the fact that much of this analysis isn't directly done by you. The best traders always keep lots of tools available, and can quickly access a number of different data and research services.

If you're thinking about getting into day trading, you'll also need to build up a support network. That requires dealing with a broker, as well as finding investors who will help you apply leverage to the market. You have to understand that this is work, and that this kind of work requires intelligence, focus, and a strong will.

If you believe you've got what's needed to be a day trader, it could be a great way to make a significant income. This is a job you can seriously call fun, if you have what it takes, and it could be pretty enriching, too.

What Do the Best Day Traders Do to Make Money? An Inside Look at Cashing in With Day Trading