Articles

There are two types of options - calls and puts. These can be bought and sold by traders. In this article I am going to go back to basics and explain how a call works using an analogy far from the financial markets.

The last two weeks on our Australian Financial Markets have been very interesting for both long and short traders. For the people who have been holding long positions, it''s been the perfect opportunity to do some selling and take some well earned profits. For short traders there have been a number of fantastic short setups against the overall upward trend that have been highly profitable.

In Trading Tutors Issue #150 published on March 24 2006 we looked at a possible double top setup in the Composite Soybean Oil (NBO-SpotV) futures market. The price of Soybean Oil dropped to the level of the 50% Pressure Point highlighted below in Chart 1, before rallying strongly back up through the level of the double tops.

Every so often it is good to revisit the economic Ferris wheel to assess where we are headed in this confusing economic world. It helps us make some sense of the wild melee – and may possibly instil some calm!

What are excuses? They are lies we tell ourselves. Lies to stop you and me from doing what we really have to do, and what we really want to do.