How to match Trading Strategies with Option Trading Strategies

There are generally four different strategies employed by stock traders, each of which has implications when applied to options:

Position Trading
Traders buy a stock and hold it for long periods of time, based on good fundamentals of the company. They will often wait for a stock to reach really good value, and then watch for institutional or insider buying before making a move. As the stock price increases, they look out for other buyers to step in a move the price even further.
BUYING CALLS AND PUTS is NOT appropriate, because you pay large premiums for time value, most of which will be wiped out over time even as the stock gains in price. TIME DECAY is your enemy.
Selling COVERED CALLS each month in the option cycle on the stock you already own can significantly reduce the cost you paid for the stock in the first trade. Even if the stock goes down, you can still come out a winner!

Momentum or Trend trading

Once a stock has made clear move or breakout, the Momentum traders step in, and ride the stock up along a trend to its first major reversal. They hope to make shorter term profits from a rapid move in the price. Holding periods of six weeks to six months.
APPROPRIATE OPTION STRATEGY
BUYING CALLS AND PUTS is NOT appropriate, because you pay large premiums for time value, most of which will be wiped out over time even as the stock gains in price. TIME DECAY is your enemy with Momentum Trading.
SELLING CREDIT SPREADS is a good strategy, and in fact can be very profitable, because as you sell spreads on the opposite leg from the stock's direction of momentum, you can repeatedly buy back the spreads for minimum cost and sell another spread closer in. This is where my ACTIVE CREDIT SPREAD TRADING concept kicks in. While I average about 15-18% profit on a given stock each month, I have sometimes made 70% in a month as I ride the trend. Time Decay is your secret weapon for trading this strategy.
Selling Naked Puts is a good strategy, and can be even more profitable than selling credit spreads. However, it leaves you a position of possibly having to buy a lot of stock if the trade goes against you, and so your broker requires you to have a lot of margin.


[Claim Your Bonus In ForexGen]

Special Promotion for New Clients

Free cash bonus when you open your new live account withen the next 30 days. You will recieve a FREE cash bonus which will be added to your trading account. The cash bonus depends on the account type you open.

Account Type
Mini Account
Free Cash Bonus
10% of your deposit maximum $250

Account Type
Standard Account
Free Cash Bonus
10% of your deposit maximum $500

To be able to withdraw your free cash bonus, you need at least to open 20 trading lots in period not exceeds 3 months.For more information about our current and future promotions, contact one of our [customers support] agents at promotions@forexgen.com

Gathering Trade History From Your Online Broker

There are many problems faced by active traders in calculating their capital gains and losses from their online broker’s trade history. Let me start by saying that...
Most brokers do not make it easy for their clients!There are absolutely no standards for trade history reporting from one broker to the next. This presents a real challenge for any trader who wants to analyze his or her trade history.
How does one get their trades into some sort of trade analysis software or spreadsheet? How can this be done for several different brokers?

What do they provide?

Some brokers provide simple trade history reports while others provide very complex statements or reports which have so much HTML formatting that it makes it virtually impossible for any one to copy and paste the information into a personal spreadsheet! Few provide a comma or tab delimited text file or Excel file download, and even these differ greatly in column formatting.
A few brokers have interfaces to personal finance software programs such as Quicken or MS Money or popular tax software programs such as TurboTax and TaxCut. But these programs were never designed to handle the volumes of trades made by the active trader, and most have serious limitations when it comes to properly matching these to IRS requirements.
And NONE of the above mentioned software programs calculate wash sales which is part of the IRS tax law and required for filing a proper schedule d.
Active traders need to analyze their profits and losses.
Trades must be imported and matched. Profits or losses must be accurately calculated and adjusted for wash sales. This needs to do be done simply and regularly if you are to ever get a handle on your trading gains and losses.
This may be the most overlooked problem facing active traders today.
There are many companies and individuals out there offering you trading systems that promise to be the real thing and that will teach you how to earn tons of money. But you must be aware that not all of them are sincere and you should be ready to look for some specific characteristics good forex trading systems must have.

1. They must be willing to let you know part or the basics of their system for free. It is a good sign if they have a free course or seminar describing their methodology so you can decide if it's for you before you give them any money.

2. They must have a no questions asked guarantee of your money back; if at the end they fail to deliver on their promises.

3. They should offer some forms of continuing support and education after you make your purchase. It is a very good sign if they provide an online/email forum so that their clients can interact with one another and the developer of the trading system. Another good sign would be if they have a support phone number where you can reach them at during regular business hours.

4. You should be able to make an appointment to talk on the phone with the developer of the system if you wish. If you're paying good money for the system then you should have the right to speak to the developer. If not, go somewhere else for your trading system needs

5. The trading system they offer you should be recession-proof and go beyond the traditional linear models that are based mostly on past results. Ideally, the forex trading system you get should allow you to go with the market direction, wherever it's going, instead of hoping and believing it will go one way or another, and then find out it was all wrong.

6. The system should be given to you with software that performs the complex math behind it making it simple for you to use at any time and without strange formulas.

7. They must enthusiastically listen to your concerns about trading, what you wish to accomplish and answer your questions to your satisfaction. If you suddenly feel they are in the business only for your money, then you better move on. You want to make sure that the people selling you a Forex trading system is actually interested in a mutually beneficial, long-term relationship with their clients

[ForexGen Promotions]

As ForexGen believes that its success depends totally on its client's satisfaction and success, ForexGen is sharing its growth and new site release with wonderful promotion packages.

*[Claim Your Bonus]
* [Live Account Contest]
*[ Demo Account Contest]
* [Refer A Client]
* [Scalping enabled Account]

Trade FX with Confidence!

we offer online forex trading with our business partner MIG Investments, which is a fully regulated Swiss forex broker that gives you direct access to the world’s Foreign Exchange (FX) market. Its competitive online trading conditions includes 2 pip spreads on five pairs, leverage of up to 200:1, no commission on all trades, streamline dealing for up to 20 million and no maintenance margin!

MIG also offers Institutional spreads from 1 pip on EUR/USD and USD/JPY and no commission for accounts from 500 000 usd!
MIG is ISO 9001:2000 certified broker for its Quality management best practice. In year 2009 MIG is planning to obtain Swiss banking License

[ForexGen Demo Accounts Contest]

Win Cash Prizes

[ForexGen] has the pleasure to announce the launching of the Demo Account contest on the first of every month.

Interested clients who wish to participate in this event shall send an e-mail request on demo.contest@forexgen.com including the following information:
- Full name: - Phone number

Also provide us with the following identification document:
" Certified copy of the information pages of account holder current valid passport or government issued photo ID"
After we receive your request we will provide you with further details and with your [demo account] login information which will be used in the trading contest.

By the end of each contest:

1. All participants that manages to open at least 20 lots will be awarded a Live Account with $50 credit 2. All participants that manages to open at least 20 lots and keep their demo account initial balance will be awarded a Live Account with $100 credit 3. The highest 5 accounts with the highest profits (including the floating P/L) will be awarded a Live Account with $250 credit.

The contest starts on the first Sunday of each month at 10 pm GMT and ends on the last Friday of that month at 10 pm GMT.

For more information about our current and future promotions, kindly contact one of our customers support agents at promotions@forexgen.com

Hedging with Currencies

Forex trading can be used as a hedge one of the great things about currencies is that they can be used as a hedge against other investments.

If you are concerned about the stock market, you can invest in currencies to help balance that worries out.
Additionally, you can use other investments to hedge against your forex trading positions. Investing in bonds can help you hedge your currency trading positions.
There are many opportunities right now in investing, but with market volatility, having a hedge can be a good thing.

[ForexGen Customer & Trading Support]

ForexGen Customer Service seeks to achieve the highest level of customer satisfaction.

[ForexGen online trading services] are available 24 hours a day from Sunday at 6:00pm EST to Friday at 2:00pm EST to support and offer the help needed by all ForexGen's clients through answering any questions they may have.
ForexGen provides full time assistances to support clients during the usage of [ForexGen platform], whenever our clients face any problems during downloading or installing the platform ForexGen experienced stuff will help to overcome it.

ForexGen provides clients with full scale demonstrations and help for the technical issues.

Dealing Rooms.

ForexGen dealing desk representatives are available during trading hours - 24/5 from Sunday 6:00pm EST to Friday at 2:00pm EST.

You are encouraged to contact the dealing room by phone ONLY in these situations:

* If you are not able to access the internet.
* Failing to receive a confirmation on an online order.
* Failing to connect to ForexGen server.

SBA Expands Emerging 200 Initiative to 15 Cities

WASHINGTON--(BUSINESS WIRE)--The U.S. Small Business Administration’s innovative Emerging 200 initiative will be expanded in the spring of 2009 to include five new cities –
Detroit; Dallas; Denver; Jacksonville, Fla.; and Portland, Ore. – SBA Acting Administrator Sandy K. Baruah announced today.

The announcement comes as 200 executives of inner-city small businesses in the first Emerging 200 class are graduating in 10 U.S. cities – Boston; Philadelphia; Baltimore; Memphis, Tenn.; Atlanta; Chicago; Milwaukee; Albuquerque, N.M.; New Orleans; and Des Moines, Iowa – over the next few weeks.
“We launched the Emerging 200 initiative to identify and support inner-city small businesses that have substantial potential for growth and provide them with high-level training, networking, and other resources necessary for success,” said Baruah. “By helping them prepare for the challenges of today’s economy, SBA is tapping into the power of local entrepreneurs to transform their communities, generate new jobs, and make real and lasting changes.”
Small business executives in the Emerging 200 initiative participate in an intensive and comprehensive program, draw from each other’s experiences and expertise, develop connections with local capital providers, and complete a growth plan by the end of the program.
“I cannot say enough about how valuable this class has been,” said Kelly Sargent, president of Brainstorm Marketing in Des Moines, Iowa. “This class has given me the knowledge, courage, and access to experts and 19 other CEOs who face the same challenges I do. I highly recommend e200 to any business owner regardless of the size of the company or longevity.”
The growth of small businesses in underserved market is a prime focus of the SBA. Increasingly, the delivery of SBA products and services to inner-city entrepreneurs has become a high priority for the agency and part of a long-term strategy to sustain and stimulate economic activity.

In October 2007, SBA commissioned the Initiative for a Competitive Inner-City (ICIC), led by Harvard Business School Professor Michael E. Porter, to identify the nation’s largest inner city areas (40,000+ inner city jobs) that have experienced flat or negative compound annual job growth rates in recent years.

Based on this study, SBA selected a representative cross-section of these cities to participate in the Emerging 200 based on the cities’ interest, demonstrated support from the local community, and capacity to the support the effort with SBA District office staff and in-kind support from resource partners. After identifying these inner city areas, SBA also collaborated with ICIC and its network of economic development researchers to establish criteria for the types of businesses that would benefit most from Emerging 200.
“Clearly, small businesses are the ones creating employment opportunities in inner city communities throughout our country,” said Jeffrey R. Andrade, associate administrator, Office of Entrepreneurial Development. “With the leadership of the Emerging 200, SBA is helping to build a sustainable network of dynamic growing companies in areas that have not experienced job growth for several years.”
[Why ForexGen]


1. Lowest spreads in the market with 0-1 pip spread in 10 pairs, no commissions, no swaps and instant account Activation.
2. Scandinavian quality with Swiss precision, funds secured and local agents in 18+ countries.
3. ForexGen offers Forex trading in the major currency pairs and crosses.
4. Low capital start, with $250 as a minimum account size.
5. Liquidity and 24/5 availability are the characteristic factors of the Forex market compared with other financial markets.
6. [ForexGen] offers a free trial Forex [demo account] that allows you to test your skills and practice without risking real money.

ForexGen | Becoming A Successful Day Trader

There are two types of day traders - scalper and momentum traders. The scalper buys and trades stocks within minutes, whereas a momentum trader buy stocks that fluctuate from high to low during the day. But at the end of the day, the ultimate goal of a day trader is to buy stocks and sell them at the highest possible value.
A forex day trader should be knowledgeable in paper trading and risk management. Traders keep themselves updated by reading stock exchange periodicals. It is essential for a day trader to absorb the relevant information completely and regularly. New York Stock Exchange and the National Association of Security Dealers impose minimum margin requirements for forex day traders.
A day trader's world is full of risk, where fortunes can change by the minute, depending on unpredictable market swings. Besides luck, the profit of a day trader depends upon how vigilant and fast they are. The trader's analytical, as well as risk management skills also determines success. The element of unpredictability is evident in every aspect of their work, ranging from holding positions on long trades that involve purchasing the stocks at a low rate and selling it later at a higher rate, to short selling that involves the reverse of long trades. This involves selling the stock at high rates in anticipation to compensate it when the prices fall, to speculating without being bothered with the fundamentals and technical aspects of the trade.

Characteristics Of A forex Day Trader
-Believe in their efforts and do not pay heed to rumors.
-They have a sharp analytical ability.
-They are strong-headed people, who are not affected by the prevalent market trends.
-They employ a mathematical approach.
-They work towards understanding the latest regulations related to trading fees and taxes.
-Day traders are not affected by the fluctuation of financial indicators such as NASDAQ and DOW JONES.

Anyone can become a day trader by opening a trading account with a brokerage company or a stock exchange or bank, provided it allows trading. You need to fulfill certain legal and commercial formalities, before initiating trades. You can become a day trader in any one of the following categories:
-Stock, bonds and securities.
-Foreign Exchange Currency
-Commodities - such as metals and food grains.
In order to be a successful day trader you need to be very cautious about every step you take, since a single mistake can turn successes into failures. You need to respond to liquidity and volatility quickly. Though a forex day trading is a lucrative career, you need to keep in mind that you do not become an experienced day trader overnight. It requires time and rigorous practice. If you want to pursue day trading as a career, then you need to practice on a trading website to gain confidence in the application of new techniques and implement them in your career.

ForexGen Customer Support
We provide a full time assistance service to support our customer in dealing easily with ForexGen trader software. Even if you face any problem during downloading or setting up the software, we will help you overcoming it.
We provide the trader with full scale demonstrations and troubleshooting for technical problems

Calling the dealing room is restricted to placing orders, no support or help desk issues are permitted to be placed through the dealing room numbers. These numbers are extremely busy and only attended by dealers who will not handle any other kind of issues.

ForexGen | Become A Day Trader To Go Long On Profits

In stock market
Parlance, forex day trader refers to buying or selling shares and squaring up the bought or sold positions on the same day. However, sometimes, day traders carry forward their positions for one day at the most. Individuals who participate in this activity are referred to as day traders.
It is easy to become a day trader, but many forex day traders do not stick to prudent, common sense financial principles, which is why you must have heard that day traders lose a lot of money. In reality, this is not true - forex day traders most often make money because they have access to sophisticated stock price forecasting tools, the latest news and most of all, they do not take any positions home and hence are not subject to vagaries of company announcements, economic indicators, commodity prices, the sub-prime mess, and so on.

Having said that, let us also add that to become a successful forex day trader, you need to follow sound financial tenets and get a basic grip on the stock market.

Basic issues faced by day traders
1. Newbie day traders regard day trading as a glamorous, hotshot job - it is anything but that. Day trading is about acting swiftly while purchasing/selling stocks at a price and squaring up positions at a profit. Forex day traders have to be street-smart and nimble to survive.
2. Forex day traders must understand the stock markets and different indices - for example, if the utilities indices fall, then day traders can go short on the weakest stocks in that category, and so on.
3. Day traders need to work with adequate working capital. Brokers registered with the New York Stock Exchange will insist of a deposit of $25,000.
4. Online day traders also have to invest in a high-speed broadband connection and subscribe to a sophisticated, proven website that doles out technical recommendations at regular intervals every trading day.
5. Forex day traders must use their judgment wisely when it comes to booking profits or cutting losses.

Day trading problems and how to overcome them
1. Many forex day traders do not book profits or cut losses quickly - they wait to gain some more out of the trade. The result is that many times profits evaporate and losses build up. As a day trader, you must learn to snake in and out of your positions quickly and be content with small profits or losses.
2. Some forex day traders do not cut losses at all - instead they take delivery of the security (if they have gone long on it). The result is that they have very little or no capital left because of which they are not be able to trade daily, and that might frustrate them.
3. Forex day traders should trade within their financial capacity and at no time overextend themselves. Overextending yourself amounts to gambling, not trading.
4. Sometimes Forex day traders get emotional about the stocks they deal in and feel like holding their position/s for a while. On the other hand, some traders act in haste after watching the price fluctuations on the stock ticker. These are dangerous mistakes no day trader can afford to make because it is an unwritten rule that a Forex day trader should only deal in, and not marry, any stock and he should always stick to his profit/loss no matter how the prices on the ticker move.
5. Day traders must be wary of dealing in stocks of suspicious companies even though such stocks are riding the momentum wave. Typically, day traders must stick to trading in liquid and reputed stocks and try to avoid the mediocre ones. Having said that, some rare opportunities in mediocre stocks can be taken advantage of by these traders.
6. Day traders must read financial papers and listen to the experts on TV. This information can clue them on in their trading.
This is what you need to know if you want to become a day trader. So, go ahead, organize enough capital, use your judgment and then play the game to go long on profits. Good luck!

ForexGen Live Accounts Contest
Trade, Compete, and Win - Begins the 1st of Every Month!
ForexGen has the pleasure to announce the launching of its first monthly Live Accounts contest,