Archive for Trading Strategies

Covered Call Writing Options

Sunday, February 22nd, 2009

I’m about to get involved in covered calls. I notice you prefer one month just OTM calls yielding 3-5%/month. I find this strategy offers very little downside protection and it would be easy to quickly slip into a loss position. I’m a novice but writing 6-12 month ITM or ATM Canadian bank calls with much larger premiums makes sense to me as it offers greater downside protection, more time to react to a downward movement, a greater opportunity to collect dividends and a greater chance of having my shares “called away” which to me is a plus as I only collect my maximum profit potential when that happens. I may even consider OTM calls if I think the share price has a good chance of going up. I would be happy if this strategy yielded 15-20% annually. Your comments would be greatly appreciated Anna. Thank you from Vancouver, BC, Canada

How To Start Trading

Sunday, February 22nd, 2009

Hello Anna, hopefully you may remember me my name is Marcus.  We spoke a number of times but not for sometime. Unfortunately due to the current economic climate I had to leave my current company. I am very interested in your site and learning as much as possible to see whether I could develop some form of income through trading. I must confess I really don’t know where to start. Could you suggest the best place and the best markets for a learner trader?? I thank you for your time and appreciate that this site is aimed at women so please say if I shouldn’t really be on here. Thank you – Marcus

Financial Spread Betting Market Rollover

Sunday, February 22nd, 2009

Hi Anna. For financial spread betting, if I choose to let my daily market bet roll over to the next day, will I incur any cost other than the “relative funding rate”, even if the stock price is unchanged? What I am worried about is that I will also be charged for half the spread. Example: say the stock quote is 100 – 105 and I choose to buy at 105. If the stock price doesn’t change at the end of the day (and I let it rollover) then will I also be charged the 2.5 points between the mid price and buy price? Hope this makes sense! Thanks, Mark

Volume Spread Analysis

Sunday, February 22nd, 2009

Hi Anna, I found your site because I was googling on Market Makers. Your articles on the topic was very helpful. It isn’t a topic that’s talked about much but it really deserves more attention. After all, any of us private traders are essentially battling against the MM. You’ve touched on a few examples and explain them from an MM’s perspective. I’ve not really thought about it in those terms even tho I’ve simply remembered the axioms like “higher prices on declining volume is bearish.” Do you have more examples covering volume and price synchronous interpretations? Is there a book perhaps you’ve come across that summarizes this topic? I look forward to learning more on this topic. Many thanks! Xin

Spread Bets Currency

Sunday, February 22nd, 2009

Anna, Fab site, first site I read when I got interested in trading earlier this year. I have now read many other sites, books and it seems to be paying off – finally in the black. I have been dipping my toe into FX trading using spread bets and so far I am showing a profit on short term trades. I have two questions (hope that’s allowed) – 1. You don’t mention the use of spread betting for currency trades much – I wondered what your opinion was? 2. I am using Sharescope primarily which is fine for longer term trades (use Plus version) I was wondering if you could recommend a site of package for shorter terms trades? Many thanks Wayne Toms

Trading Timescales

Sunday, February 22nd, 2009

Hi Anna…found your web on google…very informative…been trading for a short time now on indices…1m.5m.15m….but wish to try longer time frames…weekly or daily but the wider stops are off putting….need your advice…many thanks…..Alex

Comments (1)

Trading Currency Psychology

Sunday, February 22nd, 2009

Hi Anna, Thanks for sharing your experiences and insights. Your articles are very clear and helpful. At present, I am working through 2 books on how to trade currencies – 7 winning strategies (Grace Cheng) and a book in the Dummies series, and I will be taking some psychological tests such as Myers Briggs to determine how I can best use my personality traits to trade for a living. When I have completed the above I will start trading on a demo account with Interactive Brokers. Is there anything else I could be doing to prepare for rading for real? With appreciation and thanks,

Using Bollinger Bands

Sunday, February 22nd, 2009

Very nice site–and who is the prettyredhead. Well, my dear, hate to be prickly, but I’ve got to stand up forBollinger Bands. I don’t know what the textbooks insist on the matter,but BBs do work well, e.g. in outlining range and breakout areas;trades off the top and bottom bands (in conjunction with pivot points,etc.); price returning to the moving average mean, etc. No indicator works all the time of course, but because BBs work often enough (forme), they are an essential part of my tool kit. Cheers, Greg

Covered Call Writing

Sunday, February 22nd, 2009

Anna, Thanks for writing your series of articles on trading, they are the clearest and most logical articles I have seen on the subject. I have a SIPP, from the time I was self-employed, and it is currently with Selftrade. I think that Covered Call Writing is a strategy that I would like to use in my SIPP to generate income, I already have a number of shares in there. However Selftrade are unable to allow me to write covered calls, they will allow me to buy them but not sell them if I don’t own them. I have had a “Google” but have been unable to find an online stockbroker that would allow me to write covered calls for shares I own in a SIPP. Are you aware of any such UK based stockbrokers? regards, David

Trading Signals

Sunday, February 22nd, 2009

Hi Anna, I am still on the circuit – thanks for all your help and I hope you and yours are all fine and enjoying our wonderful unpredictable summer. I had intended to be live trading by now (as I had mentioned below back in May). As yet not ! Working on optimising success (if thats the right way to put it) have looked at so much (possible paralysis from analysis thing going on), well I have ventured through charts, indicators, swing, intraday, sessions, expert advisers, an array of platforms thru various brokers, signal providers etc etc. etc. you name it I have been there day and night, night and day. All this whilst running a family and a job – chaotic eh ! I am determined that I will be better than good at this, I’ve got that on tape in my head. Anyway just today, your advice come to mind about keeping it simple, this is what I crave most, whilst at present I do not have belief in my capabilities of technical analysis (that would be premature) I do believe that there must exist geniune professional traders (not generated from a black box) that offer a geniune successful signal service. My question really Anna, is do you have any knowledge in this area – are you able to point me in a profitable direction ? I hope you do not deem this type of question inappropriate, if so, please feel free to let me know. Look forward to hearing from you when you can (summer hols and all). In the meantime kindest regards Veronica