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Every trader has tried to force trades at one point or another.  They make trades because they feel they need to.   However forcing trades can be the fastest way to lose money in the stock market.

                Every trader has tried to force trades at one point or another.  They make trades because they feel they need to.   However forcing trades can be the fastest way to lose money in the stock market.

                Anyone who has ever been involved in the stock market has had one of those I wish moments.  I wish I would have bought Microsoft, I wish I would have got into stock XYZ before this big jump, we all  get them.

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Keeping your losses small is a very important part of trading.  Small losses can easily be overcome by large winners.  However many traders gain let their losses run wild.

                Keeping your losses small is a very important part of trading.  Small losses can easily be overcome by large winners.  However many traders gain let their losses run wild.

                Too many traders will not exit there trades when they start to turn against them.  They will hold onto their stocks and hope it turns around.  They might even turn this short term trade into a long term trade.  Bad idea, if you enter a trade as a short term deal you cannot switch it to be a long term trade all of a sudden.  That mistake can be the death of most traders.

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Leaps have many advantages over other strategies in the stock market.  This is because they give the buyer both high leverage and a long term approach to the market.

                Leaps have many advantages over other strategies in the stock market.  This is because they give the buyer both high leverage and a long term approach to the market.

                Leaps like options give the owner the right to buy a given stock on or before a given date.  But unlike options however the date at which it expires is farther out.  Instead of an option contract which might give you a couple months before it expires, a leap will give you a year or two before it expires.

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Trading is a marathon not a sprint. Often time’s new traders allow one bad day to alter not only their trading styles, but their emotions as well. In order to be a successful trader you have to learn to put tough trading days in their place. Do you think every game Michael Jordan lost; he then went home and changed his entire style of play. When Tiger Woods has an off day, do you think he immediately calls his swing coach to develop a new swing strategy? Set Daily Limits

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You can select low-priced puts—ones that are out of the money—but that means you require many points of price movement to produce a profit. In other words, those puts are low-priced for a good reason. The likelihood of gain is lower than it is for higher-priced puts. When you buy in-the-money puts, you will experience a point-for-point change in intrinsic value; but that can happen in either direction. For put buyers, a downward movement in the stock’s market value is offset point-for-point with gains in the put’s premium; but each upward movement in the stock’s market value is also offset, by a decline in the put’s intrinsic value.

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