Download
1 / 8
80 likes | 351 Views
Dr. Sean began his career as a medical physician until a chance conversation with the nephew of a fellow physician led to his discovery of the kind of profits that can be made trading in the stock market.
E N D
∞ Chinese stocks under pressure∞ Oil continues to confuse traders ∞ Options as an alternative investment
Chinese stocks under pressure • Stocks such as bidu, sina, and sohu have been heading south lately as they seem to be in an overbought condition from a technical basis. • Investors have made significant profits over the last few months. • For bidu, it has been a couple of years as our team has mentioned this stock back in 2007, and reiterated the stock many times over the last few years. • Bidu recently reported in quarterly earnings as it was in line with expectations.
Chinese stocks under pressure • However, since that time the stock has been gradually sold off as investors were looking for more. • We have also had negative sentiment regarding the Chinese sector and the broad market in general which has also contributed to the decline. • The weekly 20ma is at 125.87 and this level should be examine to see if bidu can hold this level as it has not broken it since march 2009.
Oil continues to confuse traders • Should I be long or short? This question a trader must answer on a day to day basis when trading oil as the sentiment on this instrument changes on a day to day basis. • That is why it may be better to trade this vehicle on a shorter term basis as the risk will inherently be lower if one trades on a short term basis. • The key would be intraday to find key reversal patterns that allow on to trade for fast profits.
Oil continues to confuse traders • Remember one needs to watch the dollar to make educated decisions about which direction oil will move and sometimes the correlation is not always there. • Trading requires patience and understanding the mechanics of a trade.
Options as an alternative investment • Options need to be understood completely in order to deal with the risk which exists in the market. • As you may know options can be used for speculative reasons, hedging one's portfolio, and reducing exposure to another market. • More sophicated option traders are employing butterflies, condors on weekly options to reduce their exposure in the market.
Options as an alternative investment • Theta is the Greek which needs to be understood in order to perform well with these strategies. • Been able to sell time instead of being right on direction is an easier way to trade with lower risk. • Very few traders employ these advanced concepts through lack of education.
