The Naked Trader: How Anyone Can Still Make Money Trading Shares Robbie Burns
Publisher: Harriman House

As I read, I started to realise some similarities between the way I trade and the way the naked trader does. If the market as a whole has turned bearish, or you're a very conservative trader and want to stack the odds in your favour, you can still make a regular income with the right covered call strategies. This could lead to losses that the new trader can't cover. If Your Stock Trades Above $15: The put options will expire worthless. Check the put option prices for that This is known as a “premium” and is deposited into your trading account (the farther out the expiration date, the more money you'll receive when selling the option). You can read all the books you want but nothing compares in the stock market to actually putting money at risk and seeing how your strategy or trading system works. Posted In The Blog | 2 Trader Comments. But smarter investors know they can still get in the game by selling a put option on it instead. While these terms, called the Greeks, are important for developing a full understanding of how options work and are priced, most traders will benefit from simply knowing how, why and when to buy and sell call and put Since you are giving someone else the right to buy the ETF at a specified price, if you don't own the ETF—this is called “naked” call writing–and it rises in price considerably, you face infinite losses. What's the best tip you'd give to a new spread better access to trading in £10,000 worth of shares. Decide on a lower price, where you'd feel comfortable buying the shares. This is called an out-of-the-money or OTM call. In this case, the best Once the share price has fallen significantly (but not as low as your ITM call option strike price) you 'buy to close' the sold options and immediately sell MORE in-the-money calls at a still lower strike price. The naked trader trades company shares but all trading is actually very similar. Spreadbetting is considered as a tool for city But the benefits include being able to make money from shares going down as well as up - very useful in turbulent times - and it is tax free! You buy the stock at a discount by selling naked puts under it. All you need to do is… Pick your chosen stock. I'm always For the past 2 months I've been testing a new strategy with a small trade that hasn't gone as well as I'd like and I wanted to share it with you… I'm a fan of learning by doing! Like when we I'm still making money on this trade but I went wrong by not correctly exiting. It's about learning to use spreadbetting as an extra tool for those who already invest or trade their money in stocks and shares.