Lessons In Options Trading That You Don’t Want To Ignore

What is your experience with options trading? You’re not going to corner this market overnight, but you certainly are going to benefit as an investor if you decide to give it a shot. Look at options the same way you did the market when you first started buying stocks. Inch by inch, life is a cinch, right?

Consider the current size of your portfolio and how options can fit. Many investors get excited about options contracts and want to dive right in with trading calls and selling naked puts. It’s all about that leverage, right? You don’t want to tackle the options market all at once. Be sure that you start small.

There are certain mistakes that beginner options traders make when first starting out. It’s a good idea to know what those mistakes are so that you can avoid them. For starters, you always want to have an exit plan. You might be thinking about potential losses when you hear that rule, but the truth of the matter is you also want to know when to take profits.

The options market can move rather quickly. While the prices of contracts are in relation to the underlying securities, bidding wars dictate the volatility of the options market. More seasoned traders are often participating in options trading, and they know how to be patient and look for opportunities to maximize profits.

Seasoned traders don’t mind placing a bid and waiting. People with more money can often wait out others who might not have learned that type of patience just yet. That’s one of the rules of the options game that you want to learn right away.

What I always tell people, too, is that you might want to consider starting out with selling or writing covered calls. Doing so isn’t just considered to be the safest move, but it provides you with a tactile learning experience. You get to learn the options market before you start making bigger moves.

Selling covered calls provide you with the opportunity to hedge against your portfolio. Yet there’s much more to this options strategy than just hedging. You know how volatile the stock market, in general, can be. Especially in a long-standing bull market, writing covered calls can be a great strategy.

Let’s look at another mistake that investors often make. You’re hoping to place quite a few winning trades when it comes to the options market. Yet you’re not always going to be ringing the register so to speak. There are those times when you’re going to have an exit strategy in mind for cutting losses, and you’re going to move on to another trade. Visit Trade Ideas Promo Code to learn about different exit strategies.

You’ve jumped the first hurdle, but this is where you want to be careful. You’ve just cut your losses on a trade, and now you’re looking to make your next big move. Don’t ‘double up’ so to speak and place an irrational trade just because the potential profit looks enticing. For example, it’s rare that people sell puts that are already ‘in the money.’

You also want to be sure you’re careful when it comes to liquidity. Some options are less liquid than others. If you buy or sell an option that doesn’t have much volume, then you might have more trouble exiting the position when the time is right. You don’t want that to happen.

You also need to be sure that when selling options, you’re willing to take opportunities to buy them back at a profit. There are countless stories where options traders have declined to do so, only to see the trade start heading in the other direction. When your gut tells you to take profits, do it without question.

It is perfectly fine if you find out you left money on the table. You go into trades thinking you’re going to maximize profits to the utmost every single time, and that’s when you’re going to start placing more losing trades. You can’t be fixated like that when it comes to the options market.

Learn from the seasoned traders out there and the mistakes they’ve made. Take the options market one bite at a time. Start out small, and get that hands-on experience, building up your portfolio piece by piece. One day you might sell naked puts but not today.

Best Motorcycles For Your Kids or For Commuting To Work

With the price of fuel fluctuating with every week, not to mention car insurance as well, more and more people are switching to riding motorcycles. They are a lot of fun to ride, inexpensive to buy, and really cheap to drive as well. Plus, they usually have special parking places in most downtown areas that are designed to encourage more motorcycles by offering cheap parking. When it all adds up, everyone should have a bike to offset the expense of their car and help save the planet with a smaller CO2 footprint as well. Here are some great recommendations for choosing a bike.

Kids Can Ride Motorcycles Too And Electrics Are The Future

Electric bikes have a lot of advantages, especially those designed for kids. For one thing, they plug in and recharge so your kids don’t have to go down to the local gas station and fork over $50 to fill up. In fact, electric vehicles, bikes included, are far more economical to drive than those that run on gasoline or diesel.

Electric motorcycles are also very inexpensive to buy, usually less than half the price of a gas bike. They also have far fewer moving parts, less to break down or wear out. Parts for them are inexpensive and can be bought online, plus many parts, like the batteries are fairly universal, a few sizes fit many models. Another big benefit is that the electric bikes can be ridden on the road without a drivers license as long as they don’t go too fast, and most of them don’t.

What to Look For In A Kids Motorcycle

There are going to be two categories available, one is a toy, and the other is a useful tool. The toys have a maximum speed of 2 or 3 mph, it’s a toy you can play with in the house. The other bikes will travel at about 14 to 18 mph, you can run to the store in 3 minutes and come back in 3 more, that’s the difference. Look at something like the Razor Euro Electric Scooter which can cruise at 15 miles per hour and has real 12 in. tires. Or, the Razor MX350 Dirt Rocket Electric Motocross Bike which can go 14 mph while climbing hills and navigating bumps. Remember as well, if your kid really loves his Razor, you can get long-lasting lithium ion batteries that will make it run for hours and hours on a single charge!

Best Motorcycle For Commuters

There are a ton of reasons to get a motorcycle just for your morning commute. For one, most smaller motorcycles get about 70 miles per gallon of gas, they are cheap to insure, ask your car insurance agent. And, if you aren’t driving your car to work and back, the insurance on that will also go down considerably.

Many companies have motorcycle parking right near the main entrance and downtown areas have special bike parking, less expensive and more often available too. Everything on a motorcycle that can wear out, like the tires, brakes, chains and sprockets are inexpensive to replace and easy to do yourself in less than 30 minutes or so. They only take about 1 quart of oil too, again, a bargain.

What To Look For In A Commuter Motorcycle

This is going to depend on whether you need to access the freeway to get to work. If you don’t, you can get an inexpensive 250 CC bike that won’t hardly set you back two weeks pay. Most of them are Chinese made, spend a little more and get better quality and a longer life. But, they aren’t very good for going 65 mph on the freeway with mixing it up with large semis and other huge vehicles. They are excellent at staying on the feeder roads and getting to work with a fun, invigorating ride.

The better class of commuter motorcycle is going to have a larger motor, stronger, heavier frame, and last longer in every way. That would be like a Honda CB300R which has a 286 CC motor but can handle freeway speeds. You’ll also find that the Honda brand is one of the most respected in the motorcycle industry for high quality and longevity as well.

For a little bit longer commute, and a bike that can go on long trips on the weekend too, try the Yamaha Tracer GT. It has a much larger engine, 3 cylinders, and can hold freeway speeds for hours without a problem. It’s more stable than the smaller Honda above, and it weighs more too. However, if you want to take your bike on a trip to the beach, this one is the one you want.

Riding a motorcycle to work or play, is fun every single time. You’ll get hooked after awhile and want another to do different types of things with, like off-road riding, cruising across the USA, or a tiny scooter just to get groceries. They are addicting, inexpensive, and fun to ride.

How To Choose, Inspect And Buy a New Motorcycle

Even a lot of guys that own and work on their own cars for years, don’t know a lot about motorcycles & motorcycle gear until they get one. However, that doesn’t help too much when you first start looking and don’t know all of the checkpoints that you need to be aware of when getting ready to buy. So here are some of the things that you need to be aware of as you look over a bike that you’re considering for purchase. Above all, take your time, be observant, don’t get excited and jump into a transaction before you’re ready.

What Type of Motorcycle Is Best for You?

Some of the choices you’ll consider are based on what you’ve seen, what you’ve ridden, and what your friends have. Some bikes can be used for several different purposes while others are more single purpose. Think about all the things you need to, or want to do with your motorcycle before you decide.

For a long time, there were only street bikes and dirt bikes, but now there are several branches to be aware of. There are the big cruisers that are great for long trips in the country and small scooters that do the city commute easier. Some bikes can be easily parked in the downtown area while others will have to use a car parking spot.

Tires are also a consideration. You can remove the smooth street tires from a dual purpose bike and put on some meaty heavy-duty traction tires and change the whole look. The bike will be able to go up dirt, mud, sand, and rocky roads and trails with good stability. However, on the highway, it’s going to him because of the knobby tires. Many bikes that are strictly off-road trail bikes aren’t meant for riding on the road at all, they’re not even street legal, keep that in mind if you’re looking at one of those.

Another thing to consider is that some of the real crotch-rocket bikes that can go from 0 to 60 in three seconds, are uncomfortable unless you’re basically racing through traffic, which is very dangerous. Unless you like to lean over all of the time, take note of how the seat and handlebars are situated.

Checking Out The Paperwork

When you talk to the person selling the bike on the phone, ask if all of the paperwork is in order. Sure, in most cases it will be, but there is always that chance that the answer is NO. They will most likely tell you if you ask because you’ve let them know you’re going to check.

Take a look at the registration and match the serial number on the frame to the one on the paperwork. Many bikes also will have a matching serial number on the motor as well, or a separate number that is also listed on the title or registration. Check the date of the last time the bike was legally registered, in some states, you have to make up for the lost years, in others you don’t. Bikes sometimes sit in people’s garages for years without being used.

Take A Close Look At The Frame

When bikes are in accidents many times the frame will get cracked. Take a close look around where the forks hook into the frame, under the handlebars, near the back where the rear fork is attached, be methodical. A broken or cracked frame may make a bike unstable, dangerous to ride, and worthless. Take a look at the ends of the handlebar grips to see if they’re worn off from road scrapes, this can tell you the bike has had some accidents. Is the tank dented or is it new? Spin the wheels, both front, and rear, to see if they are true, or bent.

Take a look at the sprockets and chain too. If the chain is caked with thick grease and oil, then the sprockets are probably worn out from the wear.

Take A Close Look At the Motor

Look for any oil leaks, make sure the odometer is working so the number of miles is accurate. Check the fuel filter, if it’s loaded with rust, the fuel tank is probably rusting out. Check under the fuel tank to see if it’s been patched with epoxy due to rust. You can buy a bike with a rusted out tank, but make sure you can find a new one and take off a substantial amount on the price.

Once the motor has been started, go to the exhaust and take a whiff. If you smell burning oil or see blue smoke, the rings are probably bad and need replacing. Black smoke with the smell of gasoline is due to too much fuel entering the combustion chamber. It might be an adjustment on the carburetor, or it may need a new carburetor. If that’s the case have a good bike mechanic inspect the bike before you buy.

Buying a bike for the first time can seem complicated but it’s not. If all else fails, once you’ve found a motorcycle that you like, take it to a good mechanic and have it checked out professionally. It might cost you a few dollars but well worth it.