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Archive for the ‘Stock Market’ Category

Stock options are one of the most profitable ways to make money in the stock market. Some say they are also the most dangerous but with some education and training, you can decipher negativities of stock options and decide for yourself, before losing your entire investment.
If you look into options trading, then you should know that there are four types of options traders. These include long-term traders, medium-term trader, short term traders and day traders. For each type of trader, there are different options and different trading strategies around the rules, strategies and ways of doing things.

Long-term traders are the ones who hold their shares for a year or more. This can include future and options trading requires a lot of patience on the part of traders.

Medium-term traders are the ones who hold their shares in anywhere from one to six months. These can include trade in realty and a good mix between long term and short-term trading strategy.

Short-term options traders tend to hold their shares for a week but have been known to hold them up to a month. This is a much more fast paced trading of options and you really have to stay on top of what’s happening in the market so you can make a quick decision if you end up trading this way.

If we compare the long-term and short-term options trading, then both have their own advantages. However, buying short-term options can be very useful because it provides more control. It’s very common that no predictions can actually make a very clear when it comes to trading stocks. It’s very difficult to predict what will happen at 3 months of stock on the road. Although it is sometimes easier to predict which direction the stock will go in just a few weeks as opposed to several months. Thus, selling short-term option allows capturing more premiums for a longer period of time.

Today of course the short-term options trading has gained worldwide popularity. It has become very money-making methods in the hands of veterans and newcomers to options trading in the current highly volatile market conditions.

Fed Governor predicts that U.S. economic growth will continue in the second semester of 2011, although there are currently no new policy that could encourage economic growth. Initially negative market reaction turned positive as they believe the predictions of the Fed governor, Bernanke that U.S. economic growth will continue.
As a result, stock prices on Wall Street on August 27, 2011 closed soared, the Dow Jones index rose 134,73 points (1.21%) to a level of 11.284,54. While the S & P 500 rose 17.53 points (1.51%) to a level of 1.176,8, and the Nasdaq rose 60.22 points (2.49%) to a level of 2.479.85
The increase was also driven by the Fed plans to conduct two-day meeting in September to discuss the steps in an attempt to push the U.S. economy to keep growing further.