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How To Buy Gold On Pullbacks

How To Buy Gold On Pullbacks | Options Time | Scoop.it

For the past decade, gold has been in a steadily rising bull market. However, it has been very volatile in the recent months. Trading it was very tricky. After the recent pullback, it is 15% off its August highs.

 

There are many fundamental reasons to like gold. In times of uncertainty, gold is considered a “safe investment." According to Terry Hanlon, president of Dillon Gage Metals, “Gold’s long-term prospects remain strong as demand continues to rise, while growth in world supplies should remain limited. Uncertainty about U.S., European and other economies will clearly keep investors interested in precious metals in 2012.”

 

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When Is The Best Time To Sell Call Options?

When Is The Best Time To Sell Call Options? | Options Time | Scoop.it

Many income investors use the covered call strategy for monthly income. This is a simple strategy of buy 100 shares of a stock then selling a call against the stock you own.

 

The premium received from selling the call is the income portion of this trade. However, the premium prices can vary from one period to the next.

 

So when is the best time to sell call options?

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Can the S&P 500 Break Its 200-Day?

Can the S&P 500 Break Its 200-Day? | Options Time | Scoop.it

The S&P 500 today finds itself once again testing key resistance at its 200-day moving average.

 

This is now the fourth attempt to break and stay above the 200-day over the last three months.

 

A break above really puts the market in a position to make a nice run higher in the near term.

 

Another failure would certainly make bulls unhappy heading into the Christmas holiday weekend.

 

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How to Create Your Ideal Day in Work and Play

How to Create Your Ideal Day in Work and Play | Options Time | Scoop.it

Take a moment to imagine it: your ideal day. At work or at play. Big events or routine tasks.

 

Imagine how you’d feel as you yawn, stretch, and step out of bed. What your first action would be. Your second.

 

What you’d eat, what you’d do, and how you’d spend your time. The lightness of happiness as you ease (or not, if that’s your pleasure) from one activity to the next. Your ideal day, start to finish.

 

Just imagine.

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Trading Psychology 101

Trading Psychology 101 | Options Time | Scoop.it

This is one of those neverending debates among newer traders - role of psychology in trading.

 

Some claim it's all there is to trading. Some argue it's nothing but red herring, and one just needs to follow his signals (system, indicators, whatever one fancies) and no psychobabble will ever be needed.

 

Yet some say psychology is important and assign some weight to it - "80% of trading is psychology"... or 95%... Not sure how they measure it, I personally like 76.364%.

 

Two things must be said about this.

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Three destructive habits every trader must avoid. | traderhabits.com

Three destructive habits every trader must avoid. | traderhabits.com | Options Time | Scoop.it

Three destructive habits that will kill your trading day, week, month, or career.

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Will the Dollar Ruin the Santa Claus Rally in the S&P 500?

Will the Dollar Ruin the Santa Claus Rally in the S&P 500? | Options Time | Scoop.it

According to this week’s advisor sentiment numbers, advisors who are bullish advanced to 47.4% from 44.2% last week. Bearish advisors dropped to 29.5% from 30.5% from the previous week. The 29.5% bearish data point matches a level that has not been seen in nearly 4 months. Bullishness has clearly become the leading expectation in the marketplace.

 

Only one asset has the opportunity to be “The Grinch” and ruin Christmas on Wall Street. If the U.S. Dollar rallies sharply, risk assets are certain to get hammered lower. In addition to the bullish tenor of market participants, most market pundits and gold bugs believe strongly that the U.S. Dollar is doomed fated for lower prices.

 

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The Four Key Seasonal Trends for 2012

The Four Key Seasonal Trends for 2012 | Options Time | Scoop.it
Craft an effective approach for the year ahead armed with knowledge about these proven seasonal patterns, which commonly affect equities, commodities, and currency markets.
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Know When to Really Bet Your Hand

Know When to Really Bet Your Hand | Options Time | Scoop.it

As I mentioned previously, one of my hobbies is playing poker and I can do it for free online. When I visit a casino and play poker, I usually make money.


However, I used to have trouble making money when I’m playing with a lot of bad players. The problem is that they all stay with me and one of them often gets a good draw (because there are so many of them) that I get beaten.

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Trade of the Day -- Enbridge Energy Partners LP | InvestorPlace

Trade of the Day -- Enbridge Energy Partners LP | InvestorPlace | Options Time | Scoop.it

Enbridge Energy Partners, L.P. (NYSE:EEP) – This limited partnership owns the U.S. portion of the world’s longest crude oil pipeline. In addition, the acquisition of the East Texas System in 2001 gave the partnership entry into the natural gas business.

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Biased thinking at work is a dangerous thing

Biased thinking at work is a dangerous thing | Options Time | Scoop.it

The problem with the human brain is that it is built for a primitive era that does not exist anymore. In modern times we have to use brains that are geared toward survival and reproduction in a complex workplace environment.


It is no surprise that when we are faced with problems in a fast-paced modern workplace environment, we tend to go back to our default thinking and behavioural rules that got us out of trouble thousands of years ago, says Dr Lee Newman, a behavioural science expert at IE University in Spain.


This biased and ‘dangerous' thinking can, over time, harm one's business and career.

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The Benefits of Mindfulness « The Emotion Machine

The Benefits of Mindfulness « The Emotion Machine | Options Time | Scoop.it
A complete list of benefits that have been scientifically linked to mindfulness.

Via Howard Rheingold
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Santa Claus Rally Around the Corner?

Santa Claus Rally Around the Corner? | Options Time | Scoop.it

The months of November and December are the second strongest back to back months for the financial markets historically — this November has obviously been weak thus far. Many traders and investors use this time of the year to reap big gains as they close the year out.


The fact that most traders and investors are now sitting in cash and underweight stocks in their portfolios leads me to believe a Santa Claus rally is just around the corner. Reason being is everyone has cash on hand to buy stocks because they are selling their positions in this pullback we are in right now.

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A Bearish Spread on Wal-Mart Stores (WMT)

A Bearish Spread on Wal-Mart Stores (WMT) | Options Time | Scoop.it
Wal-Mart Stores (WMT) recently hit a 52wk high and technically it seems to be breaking out from a psychological price point at $60.
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10 “Must-Have” Option Skills for 2012

10 “Must-Have” Option Skills for 2012 | Options Time | Scoop.it

These ten characteristics are among the skills and competencies that allow traders to thrive in the world of options.

 

They make for worthy focal points for traders hoping to further develop and succeed in 2012.

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Overcoming Fear and Trading Indecision

Overcoming Fear and Trading Indecision | Options Time | Scoop.it

In trading, and in life, those who are not afraid to push their abilities to the limits in order to continually learn and improve—even if it means experiencing failure along the way—achieve the greatest success.

 

Speculating in markets is a difficult challenge that can test your emotions more than you can imagine; there is a reason for this. From birth, we gravitate towards things that make us feel good and run from things we fear.

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How to Trade Triangle Patterns

How to Trade Triangle Patterns | Options Time | Scoop.it

Depending on the type of triangle present, it can have certain tendencies that may aid traders in predicting the ultimate breakout direction.

 

When a breakout does occur, the pattern provides an entry point and stop loss for the trade.

 

How far the breakout pattern is likely to go can be estimated by using a profit target, attained by taking a measurement from the triangle.

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How To Use Price Target Alerts To Be A More Productive Trader

How To Use Price Target Alerts To Be A More Productive Trader | Options Time | Scoop.it
Setting and managing price target alerts through your broker's platform can help you be a far more productive trader.
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20 Truths About the Stock Market

20 Truths About the Stock Market | Options Time | Scoop.it

1. Stock prices run in cycles. Periods of re-pricing are usually quick and powerful and then they are followed by trendless consolidation.

2. Stocks are very highly correlated during drastic selloffs and during the initial stage of the recovery. In general, correlation is high during bear markets.

3. Bull markets are markets...

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The Low Fear Selloff

The Low Fear Selloff | Options Time | Scoop.it

Steven Place of Investing with Options has a video post up this morning, Options Market Does Not Care About Selloff, in which he discusses how the implied volatility in various asset class volatility indices (VIX, GVZ, EVZ) are showing a very muted reaction to today’s selloff in stocks.

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Unusual Volatility and Three Trade Ideas

Unusual Volatility and Three Trade Ideas | Options Time | Scoop.it

In the embedded video, I look at some interesting volatility phenomena in USO options, SPY volatility skew, and VIX and VSTOXX futures.

 

I record a short video every week for TheStreet.com, and you can find those videos along with other articles I’ve written there at this author archive page.

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3 Psychological Stumbling Blocks That Kill Profits

3 Psychological Stumbling Blocks That Kill Profits | Options Time | Scoop.it
Investors' self-defeating decisions have contributed to their market woes. Recency bias, herd behavior and fear are the culprits.
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Update on the 20 Period Monthly | chessNwine

Update on the 20 Period Monthly | chessNwine | Options Time | Scoop.it

Over at least the past two decades, the 20 period monthly moving average on the S&P 500 has been an excellent reference point for bull and bear cycles.


When it is rising, you should generally be a bull for the foreseeable future, while you should be bearish when it is declining.


When it smooths out, you should grow cautious and wait for resolution. As with all moving averages, it is important to note the slope of the reference point and not just whether price is above or below at any given time.


Too often, traders completely ignore the former aspect, while getting caught up in the latter to their detriment.

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Why I'm Buying LEAP Call Options On Ford, Alcoa, Citigroup - Seeking Alpha

Why I'm Buying LEAP Call Options On Ford, Alcoa, Citigroup - Seeking Alpha | Options Time | Scoop.it

While I am for the most part a short-term options trader, I occasionally buy long-term LEAP call options (also known as Long-Term Equity AnticiPation Securities) on a company that I feel represents great value.


I am especially cautious when I go this route as I must have complete confidence going forward that the stock will have a considerable move upward within a full year time-frame. Some of the names that I currently hold long-term options with are EMC Corp (EMC), Cisco (CSCO), Apache (APA), and Apple (AAPL).

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How To Make 23% On Cisco In 2 Months

How To Make 23% On Cisco In 2 Months | Options Time | Scoop.it

Here is a simple strategy that pursued for my own portfolio today that can yield 22 percent in two months with low risk:


I sold five contracts of a January 17.5 put at 77 cents, collecting $385.

I bought five contracts of a January 15 put at 21 cents, paying $105.

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