Stock Option Trading | Options Trading Strategies

Many study, few listen. 

With trading education, retail traders willingly pay for courses; but, fail to retain that gained in 2–3 days.  You need to reinforce structured learning everyday.

Our ears are often an underused resource. Especially, when the eyes are occupied with sight-oriented tasks, the ears do little. Get an earful of meaningful lessons from these free podcasts. Also, free inside the iTunes US store (under Categories – Business) to sync with your iPod.

❑  Dorsey Wright & Associates Technical Analysis, for deep insights into the use of P&F charts & Relative Strength. Each episode is about 30–45 minutes. No interruption with ads.

❑  The Index Investing Show (Ron DeLegge), the only weekly program dedicated to the major stock, bond and commodity Indexes and financial products that track them. Serious live discussions with industry veterans. ~45 minutes per episode.

Also, you can load up your iPod with the voice files from  

❑  ThinkorSwim Chat Archive for serious retail-based techniques adapted for off-the-floor trading by floor experts.  Listen to the voice files without videos, dating back to 2003/2004.

We have collected our fair share of literature ... from phone-book candlestick compilations to build a doji pyramid the Mayans would have been proud of ... to financial risk-engineering manuals with symbolic squiggles that NASA would need another hangar to house ... did NOT improve the consistency of trading results ... :O(

Still, what works is to reduce practical literature that can be translated into techniques that fit into 2 hours of live trading each day. Specific acknowledgements to the authors of these books (some are available as eBooks – linked below; all, are available at Amazon – see pagelet on left), that I have incorporated into the Home Trading Process and Home Trading Plans:

❑  Point and Figure Charting: The Essential Application for Forecasting and Tracking Market Prices. (3rd Edition). Thomas J. Dorsey (a.k.a Tom).

❑  The Definitive Guide to Point and Figure.  Jeremy du Plessis.

❑  Option Volatility & Pricing. Sheldon Natenberg.

❑  The Bible of Options Strategies: The Definitive Guide to Practical Trading Strategies.  Guy Cohen.

❑  McMillan on Options (2nd edition).  Lawrence G. McMillan (a.k.a Larry).

❑  Intermarket Analysis.  John J. Murphy.

❑  Trading Risk: Enhanced Profitability through Risk Control.  Kenneth L. Grant.

For P&F converts, du Plessis is more complete and precise in his treatment of the mechanics of the methods; while, Dorsey's notable forté is in the use of P&F charts with Relative Strength.  One complements the other without conflicting content.

I'd also suggest retooling the basic numerical skills with (links below are to eBooks; all, are available at Amazon, see pagelet on the right above)

❑  Math Magic: How to Master Everyday Math Problems. Scott Flansburg. 

❑  Basic Math & Pre–Algebra for Dummies. Mark Zegarelli. 

❑  The Complete Idiot's Guide to Statistics. Robert A. Donnelly Jr.

Book reviews of the above literature on Amazon are adequate, without the need for more elaboration here.

Once you reach another milestone in L–earning, drop the "L" plates and enjoy Earning!

Other useful references:

❑  www.indexuniverse.com  for an entire world on Indexing and ETFs, provides an Advanced Search page to search on Asset Class(es) and chosen performance criteria.

❑  www.seekingalpha.com consistently reviews the less conventional products.  For e.g.,  UltraShort ProShares Inverse EFTs that track TWICE the INVERSE of a Sector's daily performance.  For optionable tickers, click here.

... "If you pay to learn experiences compressed for you by someone else, make sure you learn what you bought faster, than when your trading tutor was a newbie buying education. And apply it with more efficacy.  Then, teach your insights to someone faster than when you were taught and support them to find their own edge.  It's not your loss.  You've evolved."  ... 

Home Options Trading Crew, always self–directed.