An options price is determined by a variety of factors, but volatility, the amount an underlying stock’s price is expected to move, is one of the most important factors to consider when trading options. If a stock is highly volatile, there is a greater chance that it will reach the… Read More
Amber Hestla is Lead Investment Strategist behind Profitable Trading's Income Trader, Profit Amplifier and Maximum Income. She specializes in generating income using options strategies that minimize risk by applying skills she learned on military deployments and intelligence training to the markets.
While deployed overseas with the military, Amber learned the importance of analyzing data to forecast what is likely to happen in the future, a skill she now applies to financial markets. Prior to that, Amber studied risk management working undercover. While risk management is no longer a matter of life and death, she believes it is the most important factor in long-term trading success.
And although she makes her living in the markets, she continues to study the markets and trading daily. Her writing has been featured in trading magazines including the Market Technicians Association newsletter, Technical Analysis of Stocks & Commodities and Stocks, Futures and Options in the United States, and Shares, a weekly trading magazine published in the United Kingdom.
When traders think about Black Swans, they tend to recall the big market declines like the one we lived through in 2008 when a housing market meltdown led to a steep drop in stock prices. Black Swans can also be seen in positive… Read More
When a company misses earnings or lowers their revenue forecasts, the stock price tends to fall. Some traders invariably “buy the dip,” meaning that they buy after a decline thinking the pullback in price is simply a blip in the longer-term uptrend. Read More
Quantitative easing has historically been good for stocks, bonds and gold. And given that the Federal Reserve’s latest QE program is open-ended, we might see the benefits of easy… Read More
Almost all stocks moved higher on the Federal Reserve’s announcement of QE3 last week, but there were a few laggards. Traders often say that a rising tide lifts all boats, and it is true that the majority of stocks move up when… Read More
Gold has been a popular investment for centuries, but the price gains of gold in the long term usually just match the rate of inflation. During the past few years, gold has soared while inflation has been low. Unless inflation picks up,… Read More
Traders sometimes overreact to bad news. One of the most common occurrences of this is when a... Read More
Traders sometimes overreact to bad news. One of the most common occurrences of this is when a company reports lower-than-expected earnings or guidance, which causes the stock to sell off sharply. If... Read More
There has been a break in the news cycle as Europe has been quiet for a few weeks, but that is about to change. The next summit of European leaders is scheduled for mid-October, but politicians are already posturing so there could be market-moving news before then. #-ad_banner-# The European… Read More