Traders should become very familiar with margin trading, especially since it comes in many forms. Learn about the different types of margin accounts and how you can climb up the margin ladder and make your way up to portfolio margin status.
The volume profile tool can be used to identify which price is attracting most of the buyers and sellers. It can help identify support and resistance levels and areas where trading volume is accumulating.
The volatility Rule of 16 can be useful when figuring out how much an options price is likely to move especially during earnings. This can be helpful in planning trading entry and exit points.
Use thinkorswim to analyze exchange-traded funds, find stocks that are trading above a 200-, 100-, or 50-day simple moving average, and look up stock symbols quickly.
Some vertical spreads have the same looking risk profile. There's a reason why that may be the case. Here's an example of a vertical debit and credit spread options trade.
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Content intended for educational/informational purposes only. Not investment advice, or a recommendation of any security, strategy, or account type.
Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.
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