Branden Turner - Options Trading: High Income Strategies for Investing, Understanding the Psychology of Investing ,and How to Day Trade for a Living.

Options Trading

High Income Strategies for Investing,

Understanding the Psychology of Investing ,and How to Day Trade for a Living.

By: Branden Turner

Introduction

C ongratulations on downloading Options Trading, and thank you for doing so.

The world of options trading is growing increasingly chaotic, and downloading this book is the first step you can take towards actually doing something about it. The first step is also always the easiest. However, the information you find in the following chapters is so important to take to heart as they are not concepts that can be put into action immediately. If you file them away for when they are really needed, then when the time comes that you actually use them, you will be glad you did.

To that end, the following chapters will discuss the primary preparedness principals that you will need to consider if you ever hope to really be successful in the investing world. This means you will want to consider the quality of your optionsincluding the potential issues raised by their current value, how they can be best utilized in an emergency case to drive in quick cash, and how to operate with them properly.

With stock selection out of the way, you will then learn everything you need to know about trading in a wide variety of markets including stocks, forex, and commodities (using the options instrument in each market). Rounding out the three primary requirements for successful options trading, you will then learn about crucial risk management principles and what they will mean for you. Finally, you will learn how investing is the quickest way to reach financial freedom.

There are plenty of books on this subject on the market, thanks again for choosing this one! Every effort was made to ensure it is full of as much useful information as possible, so please enjoy!

Chapter 1: Understanding the Stock Market

L et's start this book by taking a look at the dynamics of what we will be the foundation of our discussion: the stock market. When we are talking about swing trading with options, in fact, we implicitly refer to the stock exchange. Therefore, having a clear understanding of what goes on in this market, is the first step to become a successful trader.

Everyone or almost everyone has already heard of the stock exchange or its most popular assets, such as the MIB 30 and other indexes or shares of major global companies.

But few among the non-professionals really know the meaning of these often-technical terms and that they are (wrongly) considered reserved for the most aggressive traders.

In fact, the Exchange is a market accessible to everyone, whether through banking products, such as securities accounts, accumulation plans, or through an online trading platform.

The Stock Market

C ontrary to what one might think, the history of the stock exchange is quite old, even though its concept has largely evolved over time. Indeed, the stock exchange made its appearance in the fourteenth century in Brussels, Belgium.

Today, even if the stock market is always a place of exchange, it is first and foremost a large market in which financial securities are exchanged. These financial securities may relate to the shares of large companies, bonds, currencies or even commodities such as gold or oil.

However, in this case, it is not a matter of exchanging physical products or merchandise, but only of securities that represent a certain evolutionary value.

General Operation of the Stock Market

S tocks could, therefore , be defined as a market in which buyers and sellers meet. But, unlike the traditional market, it is not the sellers who decide the price of their securities but the buyers.

It is then the order book that accounts for the prices decided in this way.

Ultimately, the more the securities of a stock market are required by the buyers, the higher the price goes up. On the contrary, when demand is weaker, their price falls.

The stock market on which securities can be traded is also called the "primary market. It is therefore on this market that companies can issue what are called "shares," that are then bought by investors, private individuals or professionals.

Thanks to these purchases of securities, companies can obtain the money necessary to make investments.

But the shares are not the only assets traded on this market since there can also be bonds or financial securities.

Investors' interest is speculative given that they buy a security at a price considered lower than the price that could subsequently reach for a gain or receive what are called "dividends" according to the economic performance of the issuing company of these securities becoming " shareholders.

Thanks to this system of securities and the advent of new technologies, the stock market has strongly developed on an international scale. Today there are almost as many stock exchanges as there are capitalist countries, although in most cases this market is virtual and does not include physical "trading rooms," the latter replaced by complex computer networks.

To better understand the importance of the stock exchange, know that in the single financial center of Milan, billions of euros are exchanged every day.