Articles

I just can’t stay away from a good seminar – yes maybe I am an addict but Optionetics is back in town so I am about to take to the classroom once again.

My article last week on the SPI200 has aroused the attention of some of the more dedicated Elliott Wave traders. This week I’ll carry out a further review of the analysis given last week, to help keep those in both the Gann and Elliott camps happy.

When traders first embark on studies in the market most begin with the study of Price. This could be said to be the first dimension in your studies. As your knowledge and real life trading in the market progresses, you may start to see that cycles in the market repeat on a regular basis and this may lure you into investigating the understanding of Time analysis or the second dimension.

Since all markets have the potential to fluctuate beyond their normal trend, it is essential to learn how to use strategies that limit your losses to a manageable amount. There are a variety of options strategies that can be employed to hedge risk and leverage capital. Each strategy has an optimal set of circumstances that will trigger its application in a particular market. Vertical options spreads are basic limited risk strategies and that’s why we tend to introduce them first.

Markets go three ways – up – down – sideways. No need to state the obvious that recently the move has been up. The choices from here are still the same – up, down or sideways. What is more likely?