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Wednesday, October 27, 2010

Trading Tools: Money Management and Options Trading (LINK and VIDEO)

A subscriber of mine, comosgato on YouTube, shared a couple of tools with me when he found them. I thought them both so important for new traders and new investors, that I wanted to share them with everyone here on the blog.

The first is a link. Be forewarned, it is to a commercial site. But the tool in and of itself, I believe, is critical to help people see just how important attaining healthy money management metrics will be to their trading and profitability; via a probability simulation.

The second tool, is actually an educational video, that has to do with the implied probability in determining option pricing. As I discussed in my "Options Playlist" (which is in serious need of being remade) ... options have different components that make up their price, and these components can fluctuate. Here is the link to the video that explains implied probability and options trading.

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 14 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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