Andrew Baxter

  For some investors, options trading is something they never truly enjoy the benefits of for multiple reasons. Most of this centres around have a lack of understanding on how to use these powerful instruments properly. When asked the question posed above, as I have been many times, my response is simple. Imagine the stock market is a board game. Most investors are stuck playing checkers. In other words their only strategy is to try and make money by guessing correctly the direction the shares are to move in. Massive flexibility and control As a professional options trader, I play the board game equivalent of chess. Through a broad range of options strategies, I can manage, profit from a move up, a move down or even no move in the shares. I can generate an immediate and upfront income from my trading, I can capture an increase in market volatility or, in contrast, profit from a fall in market volatility. In short, by trading options I have an incredible amount of f...

  Emotions are the key driver of the stock market. Yes, fundamentals and economics are the “Why” prices will rise or fall, but Fear and Greed are a here and now action that causes prices to fluctuate despite the underlying factors of a company, commodity or market. Hence, the reason why Technical Analysis has become such a prized and popular method in modern day investing. It’s not a market crash that causes investors to lose their wealth. Ok, so a 30% fall in the markets within a few days wipes out tens of Billions of dollars in value, but unless you sell stock and exit the position/s, you have an unrealized loss due to the crash. And in most “Flash Crash” situations, the markets rebound very quickly, resulting in stock positions bouncing back to previous crash levels, if not within weeks, then within a couple of months. What loses wealth for stock market investors is holding onto stocks during an extended Bear market, and then selling at the bottom. Markets move ...