Go to http://ExpertOptionTrading.com/videos for more free videos on Options Implied Volatility Eventually, because there is no support, individual investors start to get scared. They start selling their shares on a daily basis. That's what happened to Starbucks. It just kept dropping and dropping. It looks like it's found a little bit of support here, around the 16 level. Once again, at this level, which we haven't seen since 2004 - there may be some institutional support coming back into the stock, looking to purchase it at a significantly lower price level than it was up here. Maybe they will take for another run back up to 40, or even higher. Who knows? At one time, if we go back to 2003 - the reason that mutual funds actually got into the stock at the beginning, was because of the fact that they could see the trend ahead. The bear market was in 2000. In 2003, the bear market was pretty much over on the NASDAQ. Things started turning around. There was investment. Business started investing. The economy was looking much better. They knew that the consumer was the one who was going to benefit from this turnaround in the economy. There was going to be a tremendous amount of wealth created for consumers, over the next few years. They got into stocks like Starbucks, and ran up the price. As Starbucks prospered, so did the mutual funds who brought their stocks. At some point, they realized that, "Hey, the party is over. The consumer is no longer in as good shape as it was back in 2003." In 2007, we had the housing crisis to deal with. Interest rates had started to go up just a little bit, at this point. The consumer wasn't looking as good as he was back in 2003. Eventually, the mutual funds knew that they had to start looking for other stocks that would take the place of the consumer stocks that they had purchased. They started looking around. You can see, right around 2007, right when Starbucks started selling off - that was about the time that mutual funds started getting involved in stocks that had to do with oil and gas. There is a cycle going on here. That's my point. My point is that the stock market goes up and down based on the cyclical nature of sectors. During certain types of economies, certain sectors are going to do better than others. From 2003-2006, it was the consumer that was the winner during that period. Interest rates were low, they were buying houses, they were buying big SUVs, gas prices were low. This was the time of the consumer. Now, we're changing again. In mid-2006 to 2007, mutual funds realized, looking ahead, that in fact, gas prices are at a historical low. They realized that gas is going to become a significant factor in the economy. They probably received research reports stating that there was going to be a gas crisis in a couple of years, if the government doesn't do something. They started to put their money on the table, and started buying up all these oil and gas stocks, going back here in mid-2006 and 2007. As soon as they decide that the sector of oil and gas are going to be the next hot stock, everybody jumps into it. The prices will just run through the roof. As soon as they see institutional support here, prices will continue to go up. Those mutual funds are buying and selling. For more videos on Options Implied Volatility be sure to check out our channel: http://www.youtube.com/user/howtotradeoptions To learn more about the Expert Option Trading course go to: http://ExpertOptionTrading.com Additional Tags ================ vertical spreads, options greeks, what is options trading, option volatility, option spreads, options volatility, how to trade in options, option strategies, index options, equity options, virtual trading, options spreads, virtual options trading, options trading tutorial, option trading strategy, options trading course, how to trade stock options, options trading systems, options training, learning options, learn to trade options, option trading tutorial, options trading strategy, option trading course, option trading systems, options trading basics, option trading basics, option trading system, options trading courses, options trading training, trade options, what is a stock option, options strategies
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If there are two ways, what are you going to select one of both?
1) The easiest way is telling to the public
How to earn the money?
2) the most difficult way to himself
How to earn the money
Indeed!
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If they know,
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They do know it
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And be a wiser
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There is no such a thing in the world, fretting or paying them to open the methodology of trading.
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Bon voyage!
Yours odyssey lee