In essence, there are three basic calculations that you should be making prior to entering a trade and should form part of your trading plan.
1. How much of your total portfolio will be used to enter a trade. For the purchase of regular blue chip shares, I would suggest between 10-20% no more. [...]
Getting into the trading world has never been easy. Once having got there, keeping your head above the water is even more difficult since there is capital and currency involved! Whether you are an investor or a broker, you are under constant stress. Hence, stock trading strategies play a pivotal role in [...]
Welcome to the wonderful world of equity options. You may have heard that option trading is high risk, and indeed it is, for much the same reasons that spread betting is high risk. The instruments themselves are derivatives from the cash markets, and are highly geared, but options themselves were originally introduced to the US [...]
Option is a legal agreement between buyer and seller to buy or sell security at an agreed price in a certain period of time. It is quite similar to insurance that you pay an amount of money in order that your property is protected by the insurance company. The difference between these two is option [...]