Option trading can be quite exciting and profitable. If you have never done it before, let me explain option trading and how simple it can be.
Buying or selling an option, is buying or selling the “right” to trade a stock. Your are never obligated. You purchase an option to give you the right to do so if you desired. There are several reasons why one would trade options instead of
There is an old and true saying, “When the markets go down, 75% of stocks go down”.
I never recommend going short on a stock. In a down market I recommend going to cash, buying puts, or if you must invest, buy stocks that will not cave in to the markets pressure. Easier said then done, but I will attempt it here.
In this video I show how you can use moving averages to determine proper buy and sell points. I use a one week time frame (which means, every Friday after the market I look at my stocks chart to see if I will buy or sell). I prefer a 50-Day and a 100-Day Moving Average for determination of buy and sell points. Feel free to experiment with other averages.
BTW.. this is my first attempt at making a video and the quality leaves a lot to be desired. You may have to turn the sound up.
