We are currently looking for an Official SelfGrowth.com Guide to "Investing". If you have expertise in Investing and your own website and/or product for this topic, please review this form for complete details. The Official Guide Position is part of our Premium Placement Package
Option spreads allow you to make money as a stock does not move into a certain area. For example if you made a bull put spread by buying the $40 put and selling the $45 put you would be profitable as long as the stock stayed above $45.
They give you a great way to profit in the stock market. ... Views: 742
Ok, so you have done your homework and found a great stock that you believe will head up. It is following all of your rules.
Now you have to decide, how much of it do you want to buy.
Obviously you don’t want to put your entire account in 1 stock because nothing is a for sure thing. You can ... Views: 3718
One of the things we are constantly reminded of in the stock market, especially at times like these, is that stocks can always go down. You need to remember this always.
Even if you combine the best technical indicator with the most fundamentally undervalued stock and buy it on an historical ... Views: 771
Most people do not see that these the two things holding cash and great returns can actually work together. Most people just assume if you aren’t investing all the time you aren’t going to make good returns, not true.
You don’t need to be in the market one way or another at every moment of the ... Views: 743
Option spreads can give you some new ways to look at the stock market and can help you make money trading in the short term even if you are not good at option trading.
Here are some reasons why trading option spreads can be a good idea.
1. Spreads give you more ways to be able to profit from ... Views: 765
The current U.S. financial crisis is much worse than anyone’s letting on. David Walker, the United States’ comptroller general, has been sounding the warning alarm that things will quickly go from bad to worse if we don’t do something, and soon.
In fact, Walker recently revealed in an interview ... Views: 999
Considering that forex chart combines several characteristics at a time – primary deposit amount, currency price and time for trading we should define the basic task: how much time should we need to make profitable transaction with certain deposit amount. To answer this question we should pay ... Views: 4392
I have been talking a lot about iron condors lately because they are very helpful in making money in a sideways market, and that is what we are in. But there are other ways that we can pull a monthly income from a sideways market.
One very effective method is selling a horizontal spread. For ... Views: 794
There are 3 ways that you can make money from a stock that you own, or an investment that you want to get into. Ideally you want to be making money all 3 ways every time you enter an investment.
The 3 ways are:
1. Dividends.
Some stocks offer a dividend, which means they actually pay you ... Views: 1094
At first glance there seem to be few parallels between Buddhism and your trading and investing strategies, but is that really so? If you look beneath the surface a very different picture starts to evolve.
At first glance there seem to be few parallels between Buddhism and your trading and ... Views: 2496
Option Spreads can be very helpful for anyone who want to enter the world of short term trading but is having problems finding stocks that will do exactly what they are expecting. Spreads use creative ways to make it easier to make a monthly income from stocks.
The best thing about spreads is ... Views: 710
Everybody wants to know if it is time to buy stocks and financial advisors, brokers and analyst are quick to say Yes because stock prices are cheap. If you are one of those investors asking if it is a good idea to buy stocks right now, then please take into consideration the following points ... Views: 581
There are a few reasons why I am selling naked puts in my own portfolio at this time. I just believe that this is a great time for doing it, properly anyway. And here is why.
1. Stocks are undervalued. The market has crashed so far in 2008 that nearly every stock that is left is undervalued. ... Views: 694
Denny Mitchell, a commercial real estate developer with an active interest in investing in tax lien certificates, has turned his part time hobby into a wildly successful web community for new tax lien investors. In April of 2008, Mr Mitchell launched BuyTaxLiens.com thinking it would be a simple ... Views: 1289
Ralf Nelson Elliott studied market behavior within the 75-years time interval. Examining yearly, monthly, daily, hourly, and half-hourly charts he tried to find recognizable patterns and reveal reasons of Dow Jones indexes behavior, to derive in such a way consistence and principles of prices ... Views: 1242
A stigma exists that someone who day trades successfully has something special or some sort of gift that most others don’t have. Part of this stigma must come from the statistics that 95% of day traders fail. What is it about the 5% that make it? I believe part of this notion comes from the ... Views: 874
A diagonal spread is a spread that allows you to produce a monthly income from the stock market and at the same time being able to profit from appreciation or depreciation in the stock.
Ok so how does it work? Simply put you buy an option that will not expire for many months. You also sell an ... Views: 900
Most people who enter the option selling world do so because it comes with a high probability of being correct. Most people see that they can make money 80% of the time and decide that this is what they should be doing.
Few realize that even with such a high success rate you still should ... Views: 648
Most traders fail to make money in the stock market because they fail to treat trading as a business. They believe they can just buy a stock it will go up 200%, they sell and everything is good.
That is not how trading works. Sure if you did that you would occasionally get some pretty big ... Views: 2572
By following the rules below, you will have a much better chance of keeping your own trading style simple, and thus stand a greater chance of long term success.
Rule #1:
Always keep a good part of your capital in a cash reserve. Never invest all your funds.
Rule #2:
Learn how to take your ... Views: 890
There are many panicked investors out there who have no idea where to safely stash their money in these troubled times. Expert investors and traders know several key facts about investing, which I’m going to share with you now. First, according to Larry Edelson of Money and Markets magazine, ... Views: 947
Long-term U.S. treasury bills have always been a relatively safe place for investors to place their capital for decades at a time. That may no longer be the case in the coming months.
Foreign investors face a risk of devalued U.S. currency, and foreign and domestic investors alike battle the ... Views: 1888
An alarming amount of investors still don’t believe in the true value of gold, even after gaining access to overwhelming evidence of its buying power. Central banks are steadily selling gold, but that’s not enough proof for some that gold is holding its own weight in the economic crisis.
In ... Views: 917
I’ve heard the statement many times. “You know, I’ve been wanting to get into real estate, but…”
How do you finish that sentence?
“I don’t know how or where to get the money.”
“It’s too risky.”
“Is it biblical?”
“It would take too much time.”
“What if it doesn’t work?”
“It seems like ... Views: 7359
The single biggest question that new traders ask is how much can I make trading the stock market? They all want to know what annual return they can expect to make, or how much monthly income they will generate.
That is not the question you should be asking. In fact concentrating on that ... Views: 3484
Almost everyone who is in the stock market has a few long term investments. Maybe they bought a few ETFs that they believe will go up in the long term. But along with your investments it is a good idea to place some short term trades.
The real benefit of short term trades lies in compound ... Views: 687
Today the markets have been acting crazy. Stocks will be up huge one day and down huge the next. In general they are not doing very much.
That is what makes covered calls such a great idea. When you buy a stock and sell a call you make an income from selling the calls and you do not need ... Views: 741
Most people when they sell bear call spreads intend to hold onto them until they expire. If they do and they profit you can realize your maximum gain. You also do not have to pay commissions for exiting your spread if they just expire.
But in certain conditions it is a good idea to exit a ... Views: 1022
It is possible to make money on a down trending stock without having to short it. Maybe you want to make money as a stock falls, but would also like to make money if the stock stays still.
In this case you may want to use a bear call spread. This spread allows you to take a partially bearish ... Views: 740
More than fifty years ago, LaVern Baker & The Gliders, brought Jim Dandy into the fray to lasso runaway horses, dry the tears in little girls' eyes, and to save special mermaids from the hooks of villainous fishermen.
(Black Oak Arkansas' rendition on You Tube will help you understand what your ... Views: 1868
Dividend-paying stocks are absolutely the fastest and most reliable way to achieve financial security and independence. Holding these stocks for a long period of time helps you realize the true power of compounding dividends. Dividends are paid quarterly. Each quarter, the monies received from ... Views: 956
Sideways markets are always harder to trade then trending markets. Trying to hit every swing can be difficult for a trader. Instead of trying to predict the movements you can make money in a sideways market by using a strategy called an iron condor.
This is how it works. Say a stock is ... Views: 948
In a situation like we have now in the market there are many stocks that are way undervalued. You may be looking into buying some of these undervalued stocks and waiting for the market to recover. If so selling out of the money covered calls on those stocks is an excellent way to generate ... Views: 929
Selling covered calls is always a great strategy, but it becomes even more important when the markets are volatile like they are today.
For all those who don’t know what a covered call is, it is a strategy where you buy a stock and sell call options on it.
These call options allow you to ... Views: 742
Many traders will practice adding to a winning position as well as subtracting from a winning position. These strategies can be very helpful to let your winners grow.
Many traders will practice taking away from their position once a given level is hit. For instance say you want to buy 100 ... Views: 2613
The Working Capital Model (WCM) is an historically new methodology, but with roots deeply imbedded in the building blocks of capitalism, and financial psychology--- if there actually is such a thing.
The earliest forms of capitalism sprung from ancient Roman mercantilism, which involved the ... Views: 1500
I make my trading decisions based on technical analysis. I believe in developing a trading system and following it to a tee. But I don’t take just any old trade that gives me a technical set ups of course. Before I enter a stock I like to check a few things.
1. I back test the stock, just a ... Views: 753
Everyone has a different personality. So it makes sense that everyone has a different stock trading personality. Some people trade very aggressively and like to go after the short term movements. Some people are less aggressive and like to ride the longer term trends.
Finding your trading ... Views: 694
Crash! The 2007 thru 2008 financial crisis halved 401(k), IRA, and Mutual Fund values in a matter of months. For many, retirement dates had to be pushed back; for others, new jobs had to be found. The tragic flaw? No income allocation in the investment program. Market value builds egos; income ... Views: 2175
Poker is really a miniature stock market on so many levels. You can apply much of what you learn from one to the other.
One of the biggest similarities is how little your profits matter. If you make $1,000 in anything it is a big deal, but if you make $1,000 in the stock market or in a ... Views: 840
Technical analysis is a non-traditional way of picking stocks to buy and sell. It is based off of human emotions and patterns in those emotions.
A technical trader realizes that stocks do not move up and down because a company is making or losing money. A stock goes up and down based off of ... Views: 755
Low volume stocks can make it much more difficult to trade profitable. For that reason it is better to stay out of these stocks regardless of how the set up looks.
Volume should be looked at every time you place a trade. What volume does is tell you exactly how much of a given stock was ... Views: 1358
Most people enter the investment process tip first. They hear something, grab an idea from a popular blog, accept a Cramerism or some motley foolishness, and think that they are making investment decisions. Rarely, will the right-now, instant-gratification, Internet-generation speculator think ... Views: 2108
I am a huge stock market geek and a huge poker geek as well. I remember seeing not too long ago a world poker series; they were interviewing a guy from the semi finals who said he was an option trader.
That made me think, trading which is one of my biggest hobbies is very similar to one of ... Views: 1316
Embody the habits of the rich to enrich your own wallet!
1. Tax-free: Contributing and trading within a tax-qualified brokerage account means that you could be earning up to 30% additional in returns (which you don't give to the IRS for capital gains taxes). Compound that year in and year out ... Views: 1151
If you pay attention to the stock market at all you will get bombarded with tons of useless facts about what is going on with the country, how the economy is improving/ getting worse, how inflation rates are changing, what the unemployment rate is.
It is difficult to find out which information ... Views: 884
Most people decide that the stock market is just too risky for them to put their hard earned money into. I know many savers out there who would rather put their money into a savings account then into the markets.
This way they can go for the sure thing, the government insured return, but what ... Views: 892
11 Rules of Successful Forex Trading
When your trading is successful you feel great. But your life can turn into nightmare when you face the period of losses. You can spend weeks gaining money and lost everything within several minutes. This situation is well known to all traders. Hence ... Views: 1991
Changing your trading rules can be a good approach if your rules aren’t working. But if they are there is no need to change them just because you have a few bad trades.
You have been good, following your trading rules and having some success. But you start to notice some flaws in your ... Views: 716
Some people try to find the perfect trading set up. They only trade when all the stars are aligned and when everything that can possible be on their side is on their side.
It is so easy to want to find the perfect set up, the set up that can’t fail. Where all we have to do is click to ... Views: 711