Thursday, August 7, 2008

Traders type and who ?

Hi everybody
Understanding the difference is important. But not to depth. As it does not really apllies to making money. We can cat traders into four types.
1)Days traders , Day traders are found on the trading Floor. This now you do not see it any more as its more or lest computerise nowadays. The only way to cap them is thru movies.
2) Theory traders, This traders are the safest trader? Why? Cause they used lots of charts and theory and funtimentals to buy or sell a options. They used all kind of manthematical models to calculate whether the options is over priced or under priced vs the volume and volatilty and time decade to excises. These traders are the super analytical. From my experience... If i were to be one of them. might as well kill me. Cause its too much work. And sometimes before we can even finish with a single part of calculation. The price has aready move.
3) Permuim Sellers, These traders are the traders that Sells contacts. They will sell their options at high price and take advantage of the time decay value to buyng back. Which in the end still make money from it. As its the same like buy low sell high make money: and sell high buy back low. You still make the same.
4) Spread Traders, Spreads traders are the most sopisicated trading. Its very hard to understand as there are lots of strategy. Like butterflies spreads, condors spreads put spareads , call spread.
But generally this is the best way to make money. Later this i will cover.

Thats all for today. I have postd three postes. Hope that you guys will understand more.

1 comment:

wee said...

What exactly is premuim sellers?