Expert strategies and insider tips to maximize your options trading success
Check with cnn.com in the morning before US markets open to see how stocks are doing in Europe. If they are strong there, they will most likely be strong here.
Check the pre-market stock prices as a good indication of where a stock will open.
When you want a periscope into what's really happening with a stock, look at the real-time level two trading action. You will see if the stock is really strong or weak and how long it might remain that way.
At least lurk (read without writing) in the stock bulletin boards. You will get some idea of the sentiment and maybe even some new strategies. But only trade on your own research.
Each stock and option trade passes through the hands of a market maker. They each have their own personality and you will see it in the trade execution. Some will buy faster. Others will wait for the price to come down. Learn stock trading tricks by watching how they work on your frequently traded positions.
If you notice a trade pop up on your account that you didn't make or that you made in error, call your broker immediately. They can reverse the trade. Don't do it too often.
Spend the money to get the tools that you need. A faster computer or Internet connection. The right book. That essential data service (like PowerOptions). These investments will pay back many times.
Make backups of all your computer records daily. Spreadsheets, research, trading logs, etc... Your computer will crash some day and your backups will save you.
Push your broker for better commissions. He probably doesn't want to lose you and you won't get the better rates without asking. You will save thousands a year.
Talk to successful investors to learn their options trading tricks and how they made money.
Start your free trial and access our options search, trade management, rolling tools.
