Did you know that you could get cash flow simply buy holding a stock? It’s true; in fact there are a few ways which investors can make a decent income from the stock market by simply buying and holding stocks. These are.
1. Dividends
Of course when you own a stock that is paying off a ... Views: 1290
Stock splits can be extremely profitable things. When a stock splits it lowers the price that its shares are trading at and increasing the amount of shares it has to compensate.
For example when a $20 stock has a 2 for 1 split the stock becomes worth $10, however there are twice as many ... Views: 1287
It seems like there are just as many mutual funds now a days as there are stocks. But what are they? What happens when you put your money into a fund?
Well a mutual fund allows you to invest in how well you think particular management company will perform. Basically your money gets pulled ... Views: 783
It is no secret that dividend paying stocks are a very popular investment. And there is a good reason for that. There are 3 major benefits that you get any time you are investing in dividend paying stocks.
1. They don’t have to go up
Dividend stocks do not have to go up in order for you ... Views: 1102
Covered calls and dividends are two ways to create a consistent cash flow off of the stock market. But which one of these two methods is better? Well let’s look at what they each are.
Dividends are your share of the company’s earnings. When a company pays a dividend to their stock holders ... Views: 1345
There is a big difference between what successful stock traders look for and what the average wannabe looks for. The average investor wants a hot stock tip that is going to go up 10,000% and make them a millionaire overnight.
They do not even think about their specific goal for 1 trade or ... Views: 1368
There are a few different ways to invest in the stock market. Each way has its own advantages and disadvantages. The ways you can invest in the stock market are.
1. Buying common or preferred stock
Buying stock and holding onto it for the long term is the simplest way to invest.
Your ... Views: 3583
Stocks are shares of a company. When you buy a stock you are actually buying a piece of the company and to some extent profit as the company grows and lose money as the company loses money.
Companies issue stock for one simple reason to help them raise cash. By selling large amounts of ... Views: 783
Investing in the stock market has a large number of great benefits and can help you achieve your goals. Everyone can be better off by investing at least something into the stock market because of these 4 reasons.
1. Better than Putting it in the Bank
The stock market has the ability to ... Views: 7329
Income investing can be immensely profitable in the stock market. Here are the 4 major steps you will have to take in order to get into and manage income stocks.
1. Find a list of Dividend Stocks
There are many ways to do this. You can always do a Google search for the term list of ... Views: 1221
Investing in Dividend stocks can be a great way to increase your returns in the stock market. There are many reasons why this is so, but here are a few.
1. The Income
Of course the first good thing about dividend stocks is the amount of income they can produce. If you have enough money ... Views: 1231
There seems to be some confusion whether or not the stock market is actually tradable. Everyone knows about buy and hold, but when they hear the words short term trading it is like taboo.
The short answer is yes, the markets are tradable. It is possible to make a fantastic return from the ... Views: 1042
What drives stock prices? It seems like there is some confusion about this. Some people might be shocked when they see a stock fall on great earnings, or vice versa.
That is because stock prices are not directly linked to the company’s profit. If a company makes a 20% return on their ... Views: 1111
One way to increase your returns in the stock market is to sell options n stocks that you already own. This can also give you another way to receive a monthly income from your positions.
When you sell a call you receive money up front. The only downside is that you give someone else the ... Views: 1029
Buying pullbacks is one of the most famous strategies out there. Everyone wants to buy at the low and sell at the high right? So is it actually a good strategy?
It can be very profitable if you buy a stock as it comes down a little. This is
especially true if the longer term direction of ... Views: 1297
The rich love to invest in stocks. In fact the majority of rich people have some money saved away in the market. Why is it? Because it helps them to stay rich and become richer.
Investing in stocks can be a very wise decision.
1. It Has a Good History
The stock market is a bumpy ... Views: 1210
Trading with the trend is one of the most important things you can do in the stock market. It automatically increases your odds of being correct.
There are 3 reasons why it is much better to trade with the trend then against it.
1. Likely to continue
Trends are likely t continue. If a ... Views: 1221
I never sell naked calls, because there is just too much risk involved. How much risk? Infinite! That is right there is no limit to how much you risk on a naked call.
When you sell a naked call you are giving someone else the right to buy a given stock at a given price on or before a given ... Views: 1204
Whenever you enter the stock market it is a good idea to have two targets. Each one of these is critical to being successful in a given trade.
The first target someone should have is where you believe the stock will go. You do not want to just blindly buy a stock and hope that it works out ... Views: 975
Rolling options to a later date is something that you have probably seen if you are trading options. It allows you to get out of a position you are currently in and get into a position at a later date.
I’m sure you know that all option contracts eventually expire. At that expiration date ... Views: 1426
When trading in the stock market one of the most important things that you can have is patients. You want to be able to wait until the time is just right before you get in.
Anyone can create their own trading rules but actually following those rules is what sets apart the people who are ... Views: 952
The troubled trader is someone who just can’t seem to make it in the trading world. They may have learned a lot in the past, but are still having trouble making consistent gains.
If you are in this situation these tips can help you out.
1. Turn Off the News
It is very tempting to look ... Views: 1312
Developing your own trading style is of course one of the first steps to actually trading. You cannot simply get someone else’s trading system and make it work for you because it may not fit your needs. Every person is different, and that works its way in the stock market as well.
Before ... Views: 1285
Selling covered calls is a very effective strategy in the stock market. It lets you make continuous cash flow from a stock that you already own and can have a huge effect on your annual return. So how do you set up a covered call trade?
There are three steps you have to take.
1. Find A ... Views: 1015
Stock options can either help you to gain a huge return in the stock market, or it can completely destroy your account. Trading them can be a good thing as long as you keep a handle on your risk.
There are three things that may help you to increase your chances of being profitable with ... Views: 1227
I read an article that was saying one of the most important things to know about the stock market is when to go all in. Well I kind of agree, you got to know that there is never a good time to go all in.
If you ever watch the world series of poker you will find that it is a very similar game ... Views: 1007
Some people seem to believe that the professional traders got that way by not being wrong. That they can somehow pick a stock that is going to shoot up 200% in the next couple of months. This is what leads a lot of people to just buy and hope for the best.
Well, if everyone just bought and ... Views: 1050
Covered calls can be a very profitable strategy. That has made it one of the most used strategies in the stock market for both traders and investors. But what does it offer that makes it such a workable approach?
1. Money Now
You make money the second you enter a covered calls trade. It ... Views: 879
Writing covered calls is a very popular strategy in the stock market. And it can be both a great cash flow producer and a not so great means of missing a profit.
When you sell a call on a stock you already own what you are doing is giving someone else the right to buy a given stock at a ... Views: 1155
How risky is trading? Is it something that only a few people will ever be able to do, or is it something that anyone can do?
Well anytime you are getting into a stock position you are risking money. There isn’t a way around this simple fact.
There are many market participants that ... Views: 1414
Should everyone learn stock trading? It can be very profitable, but that doesn’t mean that everyone should take part. Some people will probably be better off as far away from the stock market as possible. There are three traits that you must have if you want to succeed as a stock ... Views: 943
Buying options can be a very profitable strategy, but it can also be a very risky strategy. Trade it correctly and you can make unbelievable gains. Trade it incorrectly and it can take your account to $0 faster than you would have even imagined possible.
I like to trade options every now ... Views: 908
In this world there is economics and there is the stock market. The problem comes when people start to assume they are the same thing.
Don’t get me wrong they are related. If the economy is doing great then sooner or later so will the stock market. If the economy is doing poorly the stock ... Views: 1185
Stock market crashes aren’t always bad. In fact sometimes they can be unbelievable profitable. During a big crash there is the opportunity to make a large amount of money in a short period of time, if you play it right.
So what do you need to do to play a market crash successfully? Well ... Views: 956
ETFs and covered calls can be a great combination at times. It kind of seems like they were made for each other because ETFs have the following characteristics.
1. Not go to Zero
I have never seen an ETF go to zero before because it is just a combination of different stocks. For it to go ... Views: 1216
When you buy a stock option how much are you actually paying for that option? What are you paying for? Not many people realize that a large chunk of the option they are buying might not even be for the underlying stock.
An option price has three major things factored into it; intrinsic ... Views: 3759
I don’t know what all the fuss is about penny stocks. They take your money go to zero and everyone seems to think that is a great deal. Not me, there are 3 reasons why I will never trade penny stocks.
1. They are Penny Stocks For A Reason
A company doesn’t go from $10 to $.10 unless ... Views: 966
People always talk about buying options. But that isn’t the only way you can use them to increase your returns in the stock market. You can also short options and make money from the premium.
Let me explain how this works. A put option gives you the right to sell a stock at a certain price ... Views: 4696
Trading against the trend is not a great idea when you think about it. Everyone seems to want to pick the top or the bottom but there are so many consequences to that kind of thinking.
1. It is low probability
I have heard people say if only they would have picked the bottom they would be ... Views: 1470
Selling spreads can be a very profitable strategy. Instead of shooting for one or two big home runs it tries to shoot a lot of singles which eventually add up and can cause you to get a great return in your trading account.
The major benefits of selling spreads are that it.
1. Is ... Views: 1295
Selling puts can be a wonderful strategy at times. And it definitely can build up after you have been doing it for a long while.
Most new traders want to make the big returns. They want to buy that option that is going to shoot up 300% in 2 days. While that can happen every once and a ... Views: 951
There are a lot of people who do not believe that you can make money in the stock market by trend trading. They think trading with the trend is a scam that “Guru’s” say to get you to buy their product.
While there can be a lot of scams out there trading with the trend can actually be very ... Views: 1749
Keeping your losses small in the stock market lets you keep money in your account when you are wrong. Getting out of bad trades lets you live to fight another day.
So how do you go about cutting your losses? Here are three strategies that are very helpful.
1. Not 100% in one trade
I ... Views: 1077
Now is the best time to invest in the stock market. In fact it is normally a great idea to invest in the stock market as soon as you can; since we are all limited on time it is nice to start when we have a lot of it left.
Here are 3 reasons why now is a good time to invest.
1. Should Have ... Views: 1414
It is easy to ignore the losing side when trading spreads. Especially when trading out of the money credit spreads and are winning 80+% of the time.
But unless a trader can manage their risk they will eventually lose all of their money. This goes with credit spreads as well. So it is ... Views: 1264
Too many people try to jump into an option without having a good understanding of what it actually is. Occasionally there will be times when the stock goes up yet the call option that they bought didn’t go up with it, or even went down.
Why does this happen? Well there are a number of ... Views: 1046
Letting your winners ride is a stock market strategy that we can all learn from. This simple way of thinking has proven its effectiveness time and time again in the stock market.
Many trading strategies out there call for you setting a profit target to meet. Once it meets that target then ... Views: 929
Covered call writing is one of the best strategies in the stock market. It allows you to make a monthly income while at the same time not having to spend too much time at the computer adjusting and planning trades.
To create a covered call you only need to do the following.
1. Find a ... Views: 879
It is probably one of the best times to invest for the long term. Almost every stock is undervalued and has seemed to have stopped going up. So a buy and hold strategy might not be that bad of an idea.
The reasons buying and holding could have the potential to be very profitable ... Views: 906
It is very important to learn from your past mistakes in anything you do. This way you can be continuously improving your life. The same goes with trading, it is a very wise decision to keep a trading journal and update what you have done periodically.
Anytime you start to lose money it ... Views: 816