I just heard about a new online currency that is being traded and you can potentially make some money just by setting up a free computer to "mine" for the currency online. They are called "bitcoins" and they are used as inline currency to buy anything. Some businesses have accepted them as a form of payment already. The currency is open source and is not controlled by any entity so there is no Central Bank. Algorithms and code serve as the foundation for the currency and it can be traded for US dollars and other currencies as well. The current rate is $90 for one bitcoin. It was as high as $200 a few days ago and it was at $10 a few months ago.
The great thing is you can mine for it for free. It just takes a long while to find any online so people have come together and pooled their computer resources to find them. When you find a batch the group splits the batch and you get a percentage based on the amount of work your computer did. It's an interesting concept and it can't hurt to try since it's free. I set up an account today just to see what would happen. Let me know if you have any success.
Here's the site for info:
http://www.weusecoins.com/en/
Here's a site for how to mine for them:
http://techcrunch.com/2013/04/08/how-to-mine-bitcoins/
Here's the site to mine for them:
https://mining.bitcoin.cz/
I signed up on Coinbase.com
Update 4-18-13
The best site that I found to generate coins I've found so far is: http://bitcoinplus.com
the mining method on the mining.bitcoin.cz site mentioned is a bit too complicated.
Check this article as well: http://startbitcoin.com/
Wednesday, April 17, 2013
Making Money on Put Strategies
As I mentioned before in a previous post, some very successful traders use put strategies to make a lot of money in the market. This was a very lucrative time for many traders who do. The market was going up and people didn't know where it was going to stop. Then instability came into the market through Cyprus, Greece and now with the attacks in Boston. You can almost guarantee something is going to happen in a two-month time period to cause markets to destabilize and when they do the S&P, DOW and NASDAQ all go down. The best play of course is the SPY because it responds directly to big dips in the market. The options are also real close between the Bid and Ask price so this makes it easier to get in and out of your trade.
The market always goes up slowly and comes down fast. You will almost never catch the market going up fast unless it is on some news that nobody but insiders know and when it does it is usually in after hours trading so you missed the run (case in point: Sprint shot up a whole point over night the other day after Dish Network said it wanted to buy them). So the play is to wait for the market to go up and then place put options at various points going at the most two months out. For example the market is already down today so I would wait until SPY gets back to 157 and then as it goes up place put options for the June 155 strike price. Then wait and see what happens. You can place your stop at 159 and your limit at around 153 (I know the options order window in TOS doesn't show the strike price but after you play around with adjusting your trade price it will show you on the chart where your options orders are).
Yes it's great to have stop and limit orders but always watch your trades. There are sometimes your bid doesn't go through as quickly as you would like and you could miss some profits or worse lose money. When you see your profit margin approaching it may be a good thing to call your broker and ask him/her to place the trade for you at your trade price. Depending on the brokerage firm they can actually execute your trade for you better than your computer. They can find a buyer for you and make you some good money. I've had good experiences with Trade King and highly recommend them.
The market always goes up slowly and comes down fast. You will almost never catch the market going up fast unless it is on some news that nobody but insiders know and when it does it is usually in after hours trading so you missed the run (case in point: Sprint shot up a whole point over night the other day after Dish Network said it wanted to buy them). So the play is to wait for the market to go up and then place put options at various points going at the most two months out. For example the market is already down today so I would wait until SPY gets back to 157 and then as it goes up place put options for the June 155 strike price. Then wait and see what happens. You can place your stop at 159 and your limit at around 153 (I know the options order window in TOS doesn't show the strike price but after you play around with adjusting your trade price it will show you on the chart where your options orders are).
Yes it's great to have stop and limit orders but always watch your trades. There are sometimes your bid doesn't go through as quickly as you would like and you could miss some profits or worse lose money. When you see your profit margin approaching it may be a good thing to call your broker and ask him/her to place the trade for you at your trade price. Depending on the brokerage firm they can actually execute your trade for you better than your computer. They can find a buyer for you and make you some good money. I've had good experiences with Trade King and highly recommend them.
Monday, April 1, 2013
Great simplified approach to trading
I know I mentioned this guy's trading technique before but I want to post another one of his more recent videos that describe in more detail his trading style. He has also developed a software service that gives his daily setups.
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