The article below will explain how you can profit from stock options and avoid many of the common pitfalls. When you receive stock market tips, the prices have already gone up beyond the level where you are able to profit. It is likely that you’ll end up making a loss. If you want to learn a very powerful trading strategy that brings a lot of profit, you should know about unusual option activity scanner

To be a successful investment, you need the same skills as a doctor. He or she must investigate thoroughly and pay attention to an investment’s heartbeat. What options trading is really about. This is about being proactive and taking steps before an event of significance occurs. Unfortunately, many investors are left scrambling as the event unfolds. Many of my clients tell me that the market seems to be conspiring against them.

We’ll look at an example to show what most investors experience at one time or another. Imagine that something like this happened to you.

NewBee is a company you’ve followed for some time, as an investment. You are a trendsetter investor who is not quite ready to take action because this company’s lack of funding and management strength has you worried. It is now at the point that only a merge could help save this company.

The newspaper informs you that NewBee and a big corporation called BigBee are merging. As you rush to your online trading platform, you discover that NewBee’s stock price has already surged 80% in response to the news of the merger. The news of the merger has prompted millions to act and pay an 80 percent premium for a NewBee share. When your purchase order is completed, you’ve paid a premium of 85%. The stock then drops in value immediately after you buy it. While investors in the past made 60% over yesterday’s prices, you suffered a loss of 13.5 %.

We call this “emotional trends buying.” Investors lose their money because of this. You are most likely the last person to learn about important company information. Never buy shares based on the news, even when it is good. Even though it sounds illogical, good news can often be associated with price drops. Take a moment to understand the concept.