I am trying to learn more about technical analysis and trading in general. I am getting better, I think, but would like to have a decent explanation of pivot points. I see them on various websites, including yours, but I don’t know how to use them. Can you help?— Techtrdr201
I’m glad you have decided to learn more about technical analysis, and glad that you’re reading the best magazine in the field, Technical Analysis ofStocks & Commodities. Now, let’s discuss pivot points.
I am a trader in India and was wondering if US firms allow traders who are not US residents or citizens to trade US equities. I am interested in trading stocks on the New York Stock Exchange and NASDAQ. I have heard of Canadian firms in India, but none from the US. — Sundara
Thanks for the question, and yes, I am aware of some Canadian firms that have expanded into India and Asia. From what I have been told, this is now being curtailed somewhat, but I am not sure why.
In recent years, electronic trading platforms have added the capability to place iceberg orders. What are they, and are they helpful to the average retail trader?
The reference to iceberg stems from the idea that the tip of the iceberg is the only visible part of a large mass of ice emerging from a body of water. Accordingly, the term iceberg order is defined as the practice of breaking up an order to buy or sell a large quantity of contracts into multiple smaller orders through the use of automated software.
Should commodity option spread traders be placing limit orders as packages or on each individual option of the spread?
When trading option spreads, traders intend to execute legs of the trade simultaneously. But it doesn’t always happen that way. Aggressive or skilled traders may enter or exit a spread one leg at a time and attempt to time their optimal fill prices.
Here’s a question I get asked at almost every option event at which I teach: “Tom, how do I hedge 10 shares of Google?” Until recently, my answer used to be, “Get 90 more shares, and then we can talk.” But as of March 18, 2013, my answer has changed.
On that date, the Chicago Board Options Exchange (CBOE) launched a new product called mini-options aimed at the smaller investor (in this case, an investor who holds less than 100 shares of some higher-priced stocks) who is looking to hedge odd-lot securities.