Option Trading � Developing An Option Trading System
There are 2 kinds of option trading systems in general; Discretionary and Mechanical. A discretionary option trader follows no specific rules but chooses, enters and exits an option trade using all of his knowledge or gut feeling. A mechanical option trader is one who translates his knowledge of choosing stocks, entry and exit into objective rules. Such a system is commonly translated into a computer program in order to completely automate the option trading system. The advantage of mechanical option trading is obvious; the removal of human emotions in the trading process thereby reducing human errors.
I moved from discretionary to mechanical option trading years ago and only started becoming consistently successful in option trading after I developed my personal mechanical option trading system called the Star Trading System (http://www.mastersoequity.com).
So , what are the steps to be taken in order to develop your personal mechanical trading system for option trading? Here is a guideline…
1 . stock Selection
List down all the criteria you think must be true in order for a stock to qualify as an option trading candidate. Make sure all of these criteria are quantifiable. Example: a. Last close more than $10, b. Last price rising for the past 3 days c. PE must be positive. Finally, program a charting software with these criteria so that you can run a scan of all stocks that qualified within seconds daily. Technological advances have made possible to screen stocks within seconds. Traders used to have to spend hours going through each stock against a spread sheet in order to find trading candidates.
2 . Option Selection Procedure
Now that you have chosen your stock, you need to determine which option qualifies for your option trading system. Your personal option trading system may be based on OTM options or ITM options or even based on bullish or bearish spreads.
3. Entry Procedure
Now that you have determined what stock to watch and which option to buy, it is time to determine under what conditions to make that move to buy on. It may be as simple as to enter upon market opening or as complex as to watch the underlying stock movement for a pre-determined period of time before it qualifies for entry. Whatever it is, it must compliment your personal option trading style.
4. Exit Procedure
Now that you have an open position, you need to determine what must be true for you to take profit or to stop loss. There are 2 classes of exit procedure that you must establish; Stop Loss and Profit Taking. Stop loss in option trading can be simply based on a % loss of the option position or based on a % loss on the underlying stock. Profit taking can be based on the stock’s target price or a % gain on the option position. After you have done that, you would want to see how your broker can help to automate that for you. Commonly, people break their own stop loss or profit taking points due to emotional involvement, that is why many brokers have features which allow fairly complex stop loss or profit taking strategies to be automated. If your broker does not support such automation and you are the type who cannot properly enforce your own stop loss or profit taking strategy, then it may be good to consider switching to a broker that does.
Now, give that option trading system a name and paper trade it for at least 6 months. Do not expect to get it right the first time. Developing a profitable option trading system takes time, knowledge and experience and is something which cannot be rushed. My Star Trading System (http://www.mastersoequity.com) took me years of work to arrive at a stage where even complete amateurs can follow easily and make a consistent profit from.
So , have fun translating your option trading philosophy into an option trading system and to watch it in action. I am sure it will be an extremely fulfilling experience whether or not the system turned out to be profitable.
Selling Or Buying Domain Names For Revenue
If you are looking to make money online, you are possibly aware that it seems that everyday new ways are being presented on how you can achieve this. Flipping domains, on the other hand, is a proven opportunity to make money and sometimes quickly, although not everyone is aware of the market for this. In a similar manner as owning a website means you have an asset, this is also the case when you purchase a domain. How domains can be sold for a nice return is something we will now explore.
There are countless domains that made people prosperous who were in this market at the start and there are many of these who still trade domains as a genuine business today. The dot com extension is actually the most valuable and the one word kind of domains are long gone in terms of availability as they are for the majority of the others such as dot net and dot org. If you can instruct yourself about this market, you can still make healthy profits once you realize where the demand is.
Short domain names have the potential to make you some money and those with the least characters are most likely to be priced at the uppermost level. One of the underlying factors these can be attractive to prospective buyers is they may be seen as brandable particularly in these days of web 2. 0 sites that have short quirky names. Clearly, some will be more marketable than others and so you need to get a feel for what looks right. You should learn to get an instinct for what is right here and by looking into what actually sells and for what price, your understanding of what creates interest will increase.
If you look into niches as part of your internet marketing, you will recognize the next sort of domain that is dependent on specific keyword phrases. Google's keyword tool is used by many people for investigation in internet marketing and, in domaining, the exact match options are often used. The more occasions an exact keyword is searched for, the more valuable the domain could be to buy if you still can get it. The dot net and dot org extensions can be lucrative if you find that the more sought after dot com has already been registered. As you become more competent, you will get an idea as to what markets are the most profitable as this will have an effect on the price paid for domains.
A further area of escalating interest for domainers are extensions associated with particular international locations such as the UK and Germany. It is conceivable to unearth domains that you might not obtain for the main domain extensions and this could end up being profitable. If you keep an eye on the market, you will see that you are much more aware of where the value is. Sedo is one of the largest sites online for marketing domains so you need to see what goes on there and sign up for a forum like NamePros or DNForum.
Domain flipping can make you money online as long as you invest some hours gaining the wisdom you need to trade successfully.
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Debt Counseling - How To Deal With Creditors
Have bills being piling up lately and you are unable to make payments? Are you unable to make even the minimum payments on your credit cards? Are you not picking up the phone due to fear of the caller being your creditor? Does all of your debt problems lead to anxiety and depression?
Relax, there is hope.
Pick-up the phone.
Not picking up the phone is not the best of choices I would recommend. You never know, your creditor might be willing to reduce your obligations or slash down the late fees. Pick the phone and talk it out with your creditor and see what is in store for you.
Be calm and factual.
When you are calm, you can very well expect the other party to be calm as well. Be brief about not being able to make payments and be factual if there is any good explanation.
Convince the caller.
Convince the caller that you will start to make payments very soon. Create an impression that you are knowledgeable and trustworthy. The caller is just someone acting on behalf of your creditor and may very well not be your employer. Making his task easier will give you a breather. Give him a chance to respond better and before you know, he might recommend ways of getting out of the debt mess. More than your past history, your current calm attitude will go a long way in convincing the caller that you are more likely to cough up the money.
Explain your problems.
While explaining your problems be factual as far as possible. Give them events or dates when things started to get out of hand. Tell them the mistakes you had made and how you intend to pay them back. Do everything you can to improve your relationship with the creditor and avoid getting in hot water with them.
Suggest a time-line
Suggest a time-line during which you will start making payments and the amount you can currently afford to pay. Creditors will be more than willing to accept your time-line because frankly most of them do not have other options. Convince them you will stick to your schedule and cut out checks as soon as money is available.
Credit counseling.
If you think you will not be able to get out of your debt problems, contact a reliable credit counseling or debt consolidating firm in your neighbourhood. Consolidating your debts might be the answer to unlock the hidden equity in your home and free you from the debt burden. Even if you do not own a home, debt consolidators will still be able to help you with novel ways of reducing debt.
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