Jason Ng's Articles http://www.articlealley.com en-us editorial@articlealley.com Options Trading: The Importance of Entry Timing Entry timing is an important stock trading art made critical in options trading. If timing your entry is critical for stocks which you can hold perpetually, all the more it is critical for options with a finite lifespan. Entry timing means finding the ... http://jasonng.articlealley.com/options-trading-the-importance-of-entry-timing-2173726.html 07th April 2011 5 Options Trading Mistakes To Avoid So many options traders have lost their shirts in options trading that almost all investment advisors would advise you against taking a dip into it. However, options trading continues to be one of the most powerful money making method available to the ... http://jasonng.articlealley.com/5-options-trading-mistakes-to-avoid-2102799.html 09th March 2011 5 Keys To Successful Options Trading The last decade saw explosive growth in the options trading market all over the world. Options are now available on almost every imaginable asset, from physical to financial assets. In fact, there are now more and more classes of options available for... http://jasonng.articlealley.com/5-keys-to-successful-options-trading-2051862.html 20th February 2011 5 Reasons Why Options Trading Better Than Stock Trading Options trading has been the centre of much debate of recent years. Is options trading dangerous? Can we go bankrupt on Options Trading? Indeed, options as a form of derivative instrument is far more complex than the stocks that they are written based on ... http://jasonng.articlealley.com/5-reasons-why-options-trading-better-than-stock-trading-1798438.html 18th October 2010 Problems with Swing Trading Using Options Swing trading is one of the most common ways of trading in the stock market. Whether you know it or not, you probably have been swing trading all these while. Swing trading is buying now and then selling a few days or weeks later when prices are higher, o... http://jasonng.articlealley.com/problems-with-swing-trading-using-options-1745768.html 15th September 2010 Can You Lose All Your Money In Options Trading? One of the greatest and most talked about risk in options trading is the fact that you could lose all your money in options trading very quickly. Well, many people lose all their money in stock trading too, so what makes losing all your money in options t... http://jasonng.articlealley.com/can-you-lose-all-your-money-in-options-trading-1734786.html 07th September 2010 How To Choose An Options Strategy? Options trading is as simple as buying call options for rising stocks and put options for falling stocks. However, once you go beyond the initial stage of call and put buying, the whole universe of thousands of options strategies open up before you. Fo... http://jasonng.articlealley.com/how-to-choose-an-options-strategy-1616458.html 23rd June 2010 Why Options Are Better Than Futures For Hedging Futures trading can be used for two main purposes; Speculation and Hedging. While most retail traders get involved in futures trading for the purpose of leveraged speculation, it cannot be forgotten that the true purpose of futures contracts is for the pu... http://jasonng.articlealley.com/why-options-are-better-than-futures-for-hedging-1478013.html 30th March 2010 The i-Ching of Options Trading If you are reading this article, chances are that you might have come across or have some kind of knowledge in the term "i-Ching". You must be wondering, how in the world is a five thousand years old classic related to modern options trading? Well, the tr... http://jasonng.articlealley.com/the-iching-of-options-trading-1451553.html 17th March 2010 Pros and cons of Futures Trading for Stock Speculation Futures contracts were originally designed as hedging tools or "insurances" for the trading of commodities like wheat. As the production of wheat takes a long time and prices may change for the better or worse during that year those wheat takes to grow to... http://jasonng.articlealley.com/pros-and-cons-of-futures-trading-for-stock-speculation-1437911.html 09th March 2010 How People Lose Their Shirts In Options Trading You must have heard horror stories surrounding options trading before. Stories such as how some people lose their whole account within a few days and even stories of options traders going bankrupt in express time. These stories have no doubt cast a sha... http://jasonng.articlealley.com/how-people-lose-their-shirts-in-options-trading-1414973.html 24th February 2010 1 Biggest Options Trading Mistake Ever Recently, I have been answering options trading questions posted by options trading beginners at my website and it amazes me to find that MANY of these questions surround a single theme. Some of these questions are like: "I just bought a call option, h... http://jasonng.articlealley.com/1-biggest-options-trading-mistake-ever-1307941.html 21st December 2009 23 Tips For Profitable Options Trading 1. Read Optiontradingpedia.com. Make sure you know everything about options BEFORE putting down your first trade. 2. Completely understand your trading interface. Most beginners make their first losses through incorrect trade placement due to not being... http://jasonng.articlealley.com/23-tips-for-profitable-options-trading-1269523.html 02nd December 2009 Play Bookmaker Writing Put Options If you have ever placed any bets, you would know that the person who wins most of the time is the bookmaker. Do you know that you too can be a "bookmaker" in the options market by writing put options? Not only can you play "bookmaker" by writing put optio... http://jasonng.articlealley.com/play-bookmaker-writing-put-options-1220228.html 05th November 2009 Put Options for Down Markets The worst recession and stock market crisis of recent history hit the world late in 2007, taking the Dow Jones Industrial Index down from a high of 14000 points in October 2007 to about 6400 points in March 2009. Yes, more than 55% of stock market value e... http://jasonng.articlealley.com/put-options-for-down-markets-1191783.html 21st October 2009 Profit In Up and Down Markets with Options Trading Do you want to be a stock market millionaire? Do you want to make millions trading comfortably from your home? If you do, then apart from profiting when stocks are up, you must be able to make a profit when stocks are down or sideways as well! That's righ... http://jasonng.articlealley.com/profit-in-up-and-down-markets-with-options-trading-1144250.html 02nd October 2009 Options Trading and Technical Analysis Recently, almost no options trading seminar is without some mention or introduction to technical analysis. In fact, almost all of the options trading blogs out there in the internet use technical analysis as their main basis of decision making. Why is tha... http://jasonng.articlealley.com/options-trading-and-technical-analysis-1066224.html 04th September 2009 Why Most People Fail At Options Trading Have you or your friends ever attended an options seminar, learned how "simple" it is to make a high income from options trading but yet when you did it for real, you failed to make any money consistently? Indeed, from my observation in this industry ... http://jasonng.articlealley.com/why-most-people-fail-at-options-trading-1002848.html 29th July 2009 Covered Call Regret Most beginners to options trading starts out with something known as the Covered Call. Covered Calls are simply writing out of the money call options on stocks that you own. This gives the buyer of those call options the right to buy the stocks from you w... http://jasonng.articlealley.com/covered-call-regret-963018.html 02nd July 2009 Options Trading and Risk Is options trading risky? This is one of the most popular questions that options trading beginners ask. In fact, my clients ask me this same question all the time. I would then ask them "What do you mean by risky?". The usual answer would be "Can I lose a... http://jasonng.articlealley.com/options-trading-and-risk-941449.html 18th June 2009 Swine Flu and Options Trading The recent global spreading of the Swine Flu has brought back fearful memories of the avian flu. In fact at this point in time, other than Mexico, USA, Canada, some parts of Europe, Hong Kong, New Zealand, Australia, Israel, Brazil, Colombia, France and t... http://jasonng.articlealley.com/swine-flu-and-options-trading-884291.html 11th May 2009 Options Extrinsic Value as a Stock Indicator I bought DNDN shares last month at about $4.00 and less than a month later, I sold it for $21. Is that pure luck? How often has that happened to you? What if I told you that luck has nothing to do with this and that I bought DNDN shares knowing that it wi... http://jasonng.articlealley.com/options-extrinsic-value-as-a-stock-indicator-862782.html 17th April 2009 Risk Appetite and Options Trading ing, swing trading and position trading. Options trading is well known for its leverage and versatility. Through its hundreds of options trading strategies as well as countless ways of exploiting its leverage, options trading can be adapted for any tradin... http://jasonng.articlealley.com/risk-appetite-and-options-trading-847695.html 05th April 2009 One Simple Tip To Improve Your Options Trading Options trading is risky. This is what you hear about all the time. However, above all, Options Trading is STRESSFUL! Yes, most beginners lose money in options trading not because they cannot choose the correct stocks (most professionals cannot consistent... http://jasonng.articlealley.com/one-simple-tip-to-improve-your-options-trading-828155.html 17th March 2009 Options Trading: Losing Before Winning Most options traders were disappointed when they put on options positions expecting to see profits quickly. In fact, almost 90% of the time, your options position would make a significant loss before eventually profiting… if it profits at all. Does that... http://jasonng.articlealley.com/options-trading-losing-before-winning-812497.html 09th March 2009 Why Trading Stock Options is Better in a Recession The 2008 recession and stock market crash is the worst financial and economic crisis since the great depression. By Feb 2009, the Dow has dropped almost 50%, erasing all its gains since 1998. In terms of absolute points, the Dow has dropped over 7000 poi... http://jasonng.articlealley.com/why-trading-stock-options-is-better-in-a-recession-804824.html 03rd March 2009 Balance of Risk and Reward in Options Trading You don't need to be a trader or an investor to know that the higher the risk, the greater the reward. This concept is true in all aspects of life and business. The more risk you are willing to undertake in life, the more life returns to you. Indeed, risk... http://jasonng.articlealley.com/balance-of-risk-and-reward-in-options-trading-773746.html 31st January 2009 Delta Neutral Trading For Volatile Markets The market crash of 2008 introduced levels of volatility that has not been seen for decades. Stocks and options traders alike suffered from a ton of bull and bear traps set on its long way down. Matters got worse when the market lapse into an extended neu... http://jasonng.articlealley.com/delta-neutral-trading-for-volatile-markets-756285.html 16th January 2009 2008 Market Crash Recap 2008 is over at last. It has been an extremely turbulent year and everyone's swept under its currents such that it was hard to see what actually happened, so, here's a recap of what happened in the stock market in 2008. Summing up, the Dow lost a total... http://jasonng.articlealley.com/2008-market-crash-recap-741234.html 07th January 2009 Rich Options Trading, Poor Options Trading After reading the book "Rich Dad Poor Dad" by Robert Kiyosaki, I came to realize that not only is there a rich and poor path in life but also a rich and poor path in options trading as well. Many options traders experience defeat in their options trading ... http://jasonng.articlealley.com/rich-options-trading-poor-options-trading-723963.html 16th December 2008 How Might The 2008 Market Crash End? The stock market crash of 2008 is the worst that the world has ever seen in terms of the number of points erased from the major indices. At its lowest point to date, the Dow Jones Industrial Average has lost a historical 6749 points! To put this into pers... http://jasonng.articlealley.com/how-might-the-2008-market-crash-end-712332.html 04th December 2008 Options Trading In Extremely Volatile Markets The recent stock market crisis (2008) not only rocked the financial system and the world economy but also the pockets of countless options traders all over the world. Options traders who used to profit in the years prior to this market crisis broke their ... http://jasonng.articlealley.com/options-trading-in-extremely-volatile-markets-695777.html 26th November 2008 Are Futures Riskier Than Options Are Futures Riskier Than Options Let's face it, derivative trading is risky. Period. Derivatives such as futures and options are leverage instruments and by virtue of being leverage instruments, derivatives inherently carry more risk and exposure ... http://jasonng.articlealley.com/are-futures-riskier-than-options-628742.html 08th September 2008 3 Reasons Why Stocks Move For years, I have been asked this same question over and over again, "Why does stocks move?". For most people, the reason why stocks move has been a mystery. In fact, there are people who believed that someone is controlling these movements behind the... http://jasonng.articlealley.com/3-reasons-why-stocks-move-478450.html 21st February 2008 Financial Technical Analysis Using Volume Financial Technical Analysis Using Volume I wonder if you have realized this… All the data you get daily from the stock exchange in financial technical analysis charts are nothing more than: 1. Price 2. Volume That's right. Only the price a... http://jasonng.articlealley.com/financial-technical-analysis-using-volume-127674.html 09th February 2007 5 Golden Qualities of A Millionaire Option Trader After more than a decade as a professional option trader and hedge fund manager, I've had the honor of knowing many great option traders all over the world as well as the opportunity to learn from the mistakes of thousands of broke option traders. Fro... http://jasonng.articlealley.com/5-golden-qualities-of-a-millionaire-option-trader-119099.html 11th January 2007 Interesting Stock Market Trivial As a professional, full time trader and hedge fund manager, I am always looking for interesting trivial in the US stock markets. Here is a list of 10 of the most interesting ones that I have collected so far. 1. Chances are better than 2 to 1 that in ... http://jasonng.articlealley.com/interesting-stock-market-trivial-116582.html 04th January 2007 Stock and Option Millionaire Psyche If you are like most of us, we have all lost our fair share of money in the stock markets using strategies written by so-called gurus and experts costing thousands of dollars. Have you ever wondered, how does these stock and options trading experts de... http://jasonng.articlealley.com/stock-and-option-millionaire-psyche-112098.html 14th December 2006 Newton's Laws of Stock Market Trading This revelation had me surprised too. I was idly flipping through my old physics textbooks yesterday when it suddenly struck me. I was amazed to realize that Sir Issac Newton's laws of physics points to so many profound and important rules in the stock m... http://jasonng.articlealley.com/newtons-laws-of-stock-market-trading-103161.html 16th November 2006 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 trad... http://jasonng.articlealley.com/option-trading--developing-an-option-trading-system-70526.html 07th July 2006 Option Trading; Is it truly invincible? Option Trading; Is it truly invincible? Option trading is fast becoming one of the hypes of this generation. Option trading has been and still is being taught all over the world as the definitive investment instrument for entry to the fast track. Popul... http://jasonng.articlealley.com/option-trading-is-it-truly-invincible-63932.html 16th June 2006 Stock Market Trading Styles Defined Have you ever heard of the terms Scalping, Swing Trading, Trend Trading and Momentum Trading? Wonder if you are any of them? Wondering what suits you? Here's a quick definition. The different forms of trading are actually better differentiated by time ... http://jasonng.articlealley.com/stock-market-trading-styles-defined-48543.html 30th April 2006 Online Trading and System Trading Online Trading and System Trading Find Out How To Succeed In Online Trading With System Trading! Indeed, online trading has revolutionalised the way common folks like you and me trade in the capital markets. Online trading has its pros and co... http://jasonng.articlealley.com/online-trading-and-system-trading-40670.html 01st April 2006 Investment Series - Short Term Trading Battles Long Term Trading Many people have this wrong perception... that short term trading strategy is risky and long term trading strategy is safe. Now, let me put this in an analogy. The capital markets is like a huge ocean and your trading strategy is like a boat on this ... http://jasonng.articlealley.com/investment-series--short-term-trading-battles-long-term-trading-39309.html 28th March 2006 Investment Series – Investor Versus Trader Many people have mixed up the terms " Investor " and " Trader " to mean the same thing. They can't be more wrong. It is exactly the mixing up of these 2 very important terms that led to many people starting on the wrong foot in the capital markets. An ... http://jasonng.articlealley.com/investment-series--investor-versus-trader-38236.html 23rd March 2006