Day Trade

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Candlestick chart History

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     The Japanese using technical analysis and some early versions of candlesticks to trade rice in the 17th century. Much of the credit for candlestick development and charting goes to a legendary rice trader named Homma from the town of Sakata, Japan. While these early versions of technical analysis and candlestick charts were different from today's version, many of the guiding principles are very similar. Candlestick charting, as we know it today, first appeared sometime after 1850. It is likely that Homma's original ideas were modified and refined over many years of trading, eventually resulting in the system of candlestick charting that we now use. In order to create a candlestick chart, you must have a data set that contains: opening price highest price in the chosen time frame lowest price in the period closing price values for each time period you want to display      The time frame can be daily, 1 hour, 5 minutes, or any other period ...
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Three Way to Use Options

This will introduce the three main options strategies: speculation income, or protection the advantages and disadvantages of each  There are two kinds of options, calls and puts. The first strategy we'll look at is speculation . Usually when a trader buys a call or a put, he is speculating on the stock price. If you think a stock is going to rise, you'd buy a call . If you think the stock is going to fall, you'd buy a put . The advantage of speculating with options, is that it allows you the potential to profit from a securities price movement with a small initial investment for the option contract. However option is significantly riskier than a stock. For example, let's say you're bullish and want to buy a particular stock. Because the stock is trading around $670 per share, purchasing 100 shares would require you to invest about $67,000. However, you can purchase a call option for the same stock for significantly less. Fro example, one contract recently traded for...
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Covered Calls

 We've all heard the saying, "the trend is your friend." This is true when the trend's moving in your direction. Over the course of holding stock, investors expect it to rise over the long term. But keep in mind that stocks rally, pull back, rally, and pull back over and over again. Obviously, if you own a stock, you won't profit when it moves down or sideways in the short term. So what can you do? The answer might be to sell covered calls. By selling a covered call, you could generate a small amount of income and help reduce volatility. In this short video, we'll discuss the basics of covered calls. You'll learn what a covered call is, how to analyze its risk profile, and gain a better idea of whether this strategy is right for you portfolio. Let's start by defining what a covered call is. A covered is when an investor sells a call option contract against an underlying stock position. When you sell or short a call option, you sell someone else the rig...
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