Trading Video: What If Market Moves Beyond 62% Fibonacci Retracement Level?

From the previous videos (See �Related Topic� below), we have learnt a few tips of using Fibonacci Retracement in the real examples.As learnt from the videos, markets tend to make price retracement / pull back at the level of 38%, 50% or 62%.Generally, market will make retracement to level 38% or 50%, while retracement to a level of 62% tends to be an extreme move. Very seldom market will make beyond 62% retracement.How about when market has moved beyond 62% retracement?This video shows a real example in the current S&P 500 market.Recently, the S&P 500 market is in a rally.Is the rally in the S&P 500 market for real, or just a rally in a bigger bear market?Watch the video to find out.PS:Did you notice the "Talking Chart" in the video?Pretty cool, huh? :)Related Topics:* Trading...

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Limit-If-Touched (LIT) Order

Limit-If-Touched (LIT) is an order to buy / sell a security when the market reaches / touches a predetermined price level (i.e. Trigger Price) that is lower than current price for buy order, or higher than current price for sell order. This order is held in the system until the Trigger Price is touched. Once Trigger Price is touched, the order will be submitted as a Limit Order to buy / sell at the specified Limit Price or better.The same advantage & disadvantage of Limit Order apply to LIT Order as well.There are 2 types of LIT Order:a) Buy Limit-If-Touched (Buy LIT) order is an order to buy a security at Limit Price or better (i.e. at Limit Price or lower for a buy order) if the market price of the security goes down to the Trigger Price, which is lower than current market price of the...

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Trading Video: Fibonacci Retracement & Support/Resistance

I believe many people have benefited & learnt something from the video I shared few weeks ago where we learnt some trading tips.That video has given us an example on how to use Fibonacci tools to predict market retracement.Fibonacci Retracement is indeed a very useful tool in technical analysis, which I personally like and always use when analyzing a stock and preparing a trading plan.However, when using Fibonacci Retracement to predict market retracement or to estimate price target, we should also consider the previous support / resistance level.The new video here gives us some real examples about this.Do watch carefully and learn something from it. Enjoy! :)Related Topics:* FREE Trading Educational Videos You Should Not Miss* Short Trading Videos: Fibonacci Retracement Rules* Learning...

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Option�s TIME VALUE � Putting It Together � Part 3: Main Factors � Implied Volatility & Time to Expiration

Go back to Part 2: Main Factors � 1) Degree of Options Moneyness2) Implied Volatility (IV)The higher the IV, the higher the option�s time value.Why is it so?Because higher IV reflects a greater expected fluctuation (in either direction) of the underlying stock price (e.g. due to earnings announcement is nearing, pending for FDA approvals, or some other important event / news, which is expected to move the stock price drastically).Therefore, when IV is higher, the options would be more uncertain as to whether or not the options can finish ITM. This explains the higher time value.3) Time Remaining to ExpirationThe longer the time remaining to expiration, the higher the option�s time value.Hence, all other things being equal, an option with more days to expiration will have more time value than...

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