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Articles from Shaun Rosenberg | Selfgrowth.com
- How to Enter a Covered Call Trade - by Submitted on Apr 23, 2009 from Shaun RosenbergCovered Calls can be a great way to collect premium from the stock market month after month. So how do you go about entering one? You have to follow these steps. 1. Find A Stock Of course the first thing you want to do is to find a stock, you can’t enter a trade without it. The stock that ...
Views: 930 - Benefits of Vertical Spreads - by Submitted on Apr 22, 2009 from Shaun RosenbergVertical spreads allow you to profit in the stock market without having to predict what will happen next. It involves using options and helps you make money if you can predict what will probably not happen in the future. For example we find a stock trading at $70 and expect it to go up. We ...
Views: 669 - Why Chart Patterns Work? - by Submitted on Apr 22, 2009 from Shaun RosenbergChart patterns give you buy and sell signals that can make you profits and help you limit your losses in the stock market. But what makes them work so well? Chart patterns work because of psychology. Take the rectangular patterns, this pattern occurs when a stock is bouncing back and forth ...
Views: 1097 - Protective Puts Vs Stop Orders - by Submitted on Apr 21, 2009 from Shaun RosenbergProtective puts and stop orders both allow you to limit your loss in the stock market. Each has its own advantages and disadvantages. So say we bought the stock at $54 and want to limit our losses to $4. We could do this by buying the $50 put for $8. Now if the stock goes down the most we ...
Views: 920 - Waiting For Technical Signals - by Submitted on Apr 21, 2009 from Shaun RosenbergSometimes you can be researching a stock and find it is a great investment. By all fundamental means this stock should go up, but none of that matters unless the technicals tell you it is a good buy. It can be very hard to resist buying something that should go up logically, but if it isn’t ...
Views: 648 - When to Trade 3x ETFs - by Submitted on Apr 20, 2009 from Shaun Rosenberg3x ETFs can be a great way to either increase your profits or increase your losses in the stock market. Before you trade them make sure you are prepared. If you trade them consider the following. 1. Not for long term Tipple leveraged ETFs are not for long term investing no matter which way ...
Views: 992 - Income Investing with ETFs - by Submitted on Apr 20, 2009 from Shaun RosenbergIncome investing is a very popular strategy, especially when the markets are volatile. Using ETFs can help you achieve this. And here are a few things you can look for when choosing a good ETF to invest in. 1. Dividends You want your ETF to have dividends of course. The goal of income ...
Views: 644 - Why Trading With the Trend Works - by Submitted on Apr 17, 2009 from Shaun RosenbergEveryone has heard it, trade with the trend, don’t fight the trend, but why does it work so well? Well the simple answer is emotions, more specifically fear and greed. These two emotions are what cause technical analysis to work. But they are not the only reason; below are 3 reasons why ...
Views: 634 - Rolling Options - by Submitted on Apr 16, 2009 from Shaun RosenbergAll options eventually expire. But there are many times when you still want to use the option contract to profit. In this case rolling your option into a later date can be a good idea. When you roll options you simply close the option position you are in and open up another option position in ...
Views: 751 - 4 Ways to Make Money in a Sideways Market - by Submitted on Apr 16, 2009 from Shaun RosenbergSideways markets can be hard to profit in if you are trying to catch every little tick. But there are still ways you can profit when stocks are flat. Here they are. 1. Covered Calls One thing you can do is to sell covered calls. You can simply find a strong stock that you would not mind ...
Views: 646 - Selling Options Instead of Buying Them - by Submitted on Apr 15, 2009 from Shaun RosenbergBuying options can be a great way to make huge returns in the stock market. But they can also work against you in many different ways. Selling options, however can give you the same ability to make a good return, but with less risk. Here are some reasons why selling options can be better than ...
Views: 632 - Protective Puts: Why Are They Useful? - by Submitted on Apr 14, 2009 from Shaun RosenbergProtective puts allow you to protect yourself from huge losses in the stock market when times are uncertain. So what are they? When you buy a protective put you are buying the right to sell a stock at a given price on or before a given date. So say you own a stock that is trading at $60 and ...
Views: 551 - Investing for Dividends - by Submitted on Apr 14, 2009 from Shaun RosenbergInvesting for dividends can allow you to make a nice consistence cash flow from your investments. So what should you look for when finding long term dividend plays? 1. Strong Companies The company has to be pretty stable to say the least. If a stock goes down 50% it doesn’t matter that you ...
Views: 678 - Preventing Unsystematic Risk - by Submitted on Apr 13, 2009 from Shaun RosenbergUnsystematic risk is the risk you take on when investing in a stock. Basically it is the risk of some new announcements, or earnings reports coming out that could affect the price of the stock. So if you buy a stock thinking it was a good buy and all of a sudden the company comes out with ...
Views: 894 - Why There is a Stock Market - by Submitted on Apr 13, 2009 from Shaun RosenbergThe stock market has been around for centuries, but why? Why does it help the economy? Does it help in any way? The answer is yes. The stock market was created to help 2 people. 1. Business owners Say you open up a new shop that cost you $1,000,000 after a couple years your business grows ...
Views: 941 - Stop Limits: How Useful Are They? - by Submitted on Apr 12, 2009 from Shaun RosenbergStop limit orders allow you to put two different orders into your position, a stop and a limit. It allow you to get in or out at a good price. When you set a stop limit order you tell your broker that you want to buy a stock between two prices and if you can’t get it between those two prices ...
Views: 640 - Stocks Move, Options Move Faster - by Submitted on Apr 11, 2009 from Shaun RosenbergOptions are powerful investment tools. They allow you to profit from rising stocks or from falling stocks by an incredible amount if you are right, but they also come with the risk of having you lose an incredible amount if you are wrong. Let’s look at an example. Say we find stock XYZ ...
Views: 627 - Selling Covered Calls as an Exit Strategy - by Submitted on Apr 11, 2009 from Shaun RosenbergSelling covered calls is a great way to make money in the stock market. But as an exit strategy it has it’s ups and downs. First let’s look at the benefits of selling covered calls as an exit strategy. 1. It allows you to make consistent cash flow If you are constantly selling covered calls ...
Views: 926 - Out of the Money Stock Options vs. In the Money Stock Options - by Submitted on Apr 10, 2009 from Shaun RosenbergOption trading is a great way to increase your potential returns in the stock market. But even with options there is room for risky traders and less risky traders. If you want to be a more conservative option buyer you can always buy in the money stock options. If you feel like taking on a ...
Views: 1198 - Stock Options and Risk Management - by Submitted on Apr 10, 2009 from Shaun RosenbergStock options allow you to make huge returns in the market. When they are winning it is easy to get carried away with them and risk too much, but if you are going to survive as a trader you must make risk management your number 1 concern. So how do you manage your risk with options, especially ...
Views: 717 - Why Short Term Trading Works the Best - by Submitted on Apr 09, 2009 from Shaun RosenbergShort term trading is a much better way to approach the stock market. It gives you so many different advantages. 1. It allows you to Cut your losses The first thing you want to do is to not lose money. The more you lose the less likely you will be able to make up that loss and actually ...
Views: 673 - Why Use Stops - by Submitted on Apr 09, 2009 from Shaun RosenbergStop orders allow you to cut your losses short as well as use proper risk managements. So besides the fact that stocks can fall fast, what other reasons are there for you to use stop orders? 1. It allows to manage risk When you place a stop order on a stock what you are doing is telling your ...
Views: 671 - Why Look at Chart Patterns? - by Submitted on Apr 08, 2009 from Shaun RosenbergChart Patterns are a very useful tool in the trading world. They are patterns that can give you precise entry and exit signals, and allow you to catch the biggest moves in the market. So why are they good to look at? Here are some reasons. 1. They give you a buy signal With chart patterns ...
Views: 698 - Why I Use Technical Analysis - by Submitted on Apr 08, 2009 from Shaun RosenbergThe best way to invest in the stock market is by using technical analysis and technical indicators. And here is why that is so. 1. Technical Analysis can give you specific Buy Signals. When you are looking at the fundamentals of a company you can find stocks that are undervalued or ...
Views: 669 - Buying Stocks to Sell Calls On - by Submitted on Apr 07, 2009 from Shaun RosenbergBuying a few different stocks to sell covered calls on can be a good thing or a bad thing. All basic principles of buying stocks still apply, so choose your positions carefully. So what stocks are good candidates for covered calls? 1. Good long Term Plays If you are going to sell covered ...
Views: 813 - Waiting for the Bounce, or Not? - by Submitted on Apr 07, 2009 from Shaun RosenbergOne of the ways to catch a stock is by catching it as it falls on support. When a stock hits support it is normally a good sign that it will go up. But should you wait for the bounce or not? It depends on your own personality. There are advantages and disadvantages to waiting for the bounce. ...
Views: 634 - Limiting Losses in the Stock Market - by Submitted on Apr 06, 2009 from Shaun RosenbergIt is amazing that everyone talks about getting the huge returns in the market, but not many people focus on protecting yourself from taking huge losses which is the most important part of trading. Think about it if you buy a stock at $30 and it falls and crashes to $10 you have just lost 66% ...
Views: 672 - Stock Options, Picking the Right Strike Price - by Submitted on Apr 06, 2009 from Shaun RosenbergOptions can be a powerful wealth building tool if used properly. But one big mistake you can make when trading stock options is buying the wrong strike price. This can work against you in so many ways. So let’s examine some strike prices and how they can help you. 1. In the Money An in the ...
Views: 922 - Having an Exit Plan for Bad Trades - by Submitted on Apr 05, 2009 from Shaun RosenbergTrading in the stock market can lead to huge gains, which is why many people will flock to it as a way for them to finally quit their jobs. The problem is that it can also have large losses. Because of this your first concern should be to protect yourself from taking big losses. You want to ...
Views: 621 - Advantages and Disadvantages to Selling Options - by Submitted on Apr 03, 2009 from Shaun RosenbergSelling Options has its advantages and disadvantages; if you are interested in getting into option trading this is something you might want to consider. When you sell options you are not trying to predict which way the stock will move, rather you are trying to decide which way the stock is ...
Views: 3918 - ETFs for Long Term Investments - by Submitted on Apr 03, 2009 from Shaun RosenbergETFs can be a great way to profit in the long term. If you want to get into investing and do not know which stocks to buy and hold ETFs can be a great benefit to you. And here is why. 1. Already Diverse ETFs are already diverse. If you buy an ETF you are buying something that tracks many ...
Views: 636 - Stops on Option Pays - by Submitted on Apr 02, 2009 from Shaun RosenbergPlacing stops on option plays is extremely important for anyone looking to trade options profitably. There are 3 ways you can limit the amount you lose on your option. 1. Let it expire I will use this every now and then when I am looking to either make a huge gain or a small loss. What it ...
Views: 613 - Why Chart Patterns? - by Submitted on Apr 02, 2009 from Shaun RosenbergChart patterns are naturally occurring patterns in the stock market that can indicate a big move either to the upside or the downside. They can be a good indicator for short term movements. So why are they so important? Why can they give you a great way to trade the stock market? 1. They ...
Views: 760 - How to Create a Credit Spread - by Submitted on Apr 01, 2009 from Shaun RosenbergCredit Spreads allow you as a trader to profit by selling options and letting those options expire worthless. It also allows you to limit your max risk because you not only sell an option but buy another option. So let’s look at an example. We find a stock trading at $74 and we believe that ...
Views: 648 - Using the Option Delta - by Submitted on Apr 01, 2009 from Shaun RosenbergThe Option delta is a great way to predict how much an option will increase or decrease as the stock moves one way or another, but how do you use it? A delta is a number between 0 and 1 that estimates how far a stock option is likely to move for every 1 point move in the stock. Every option ...
Views: 686 - Don’t Confuse Stop Limits with Stops - by Submitted on Mar 31, 2009 from Shaun RosenbergOne of the biggest mistakes I have made was confusing a stop limit order with a stop order. This could potentially be very harmful to your account. A stop order is simple; when you use it you tell your broker “sell my stock once it gets to a certain point”. This way you can effectively limit ...
Views: 827 - Covered Calls During Volatile Times - by Submitted on Mar 31, 2009 from Shaun RosenbergCovered calls can be a great way to profit when the stock market is trending sideways. If you don’t know which way stocks are going to go it isn’t a bad idea to sell some calls on strong stocks. Some reasons Selling Covered Calls can be a good idea are. 1. Monthly Income Selling calls is a ...
Views: 572 - Signs of a Bottom - by Submitted on Mar 30, 2009 from Shaun RosenbergEveryone wants to find the bottom of the stock market so they can make huge returns and be looked at as a genius. But often times the only way you can tell when a bottom is, is after the fact. There are some signs that you can look at however to determine if the bottom is coming. 1. No one ...
Views: 763 - Put Options vs. Short ETFs - by Submitted on Mar 29, 2009 from Shaun RosenbergPut options and short ETFs are two ways you can look at profiting from the downside, so which one is better. What provides the least risk and highest reward? Well at least when you compare it to your total investment put options probably give you a higher risk then short ETFs do. But all ...
Views: 4195 - Cutting Losses on Stock Options - by Submitted on Mar 29, 2009 from Shaun RosenbergWhen you hear the words stock options you probably think something like risky or huge losses. But if done correctly trading options can be profitable and help you to experience limited losses. Most people who trade options will probably end up going bankrupt, and why is that? It is because ...
Views: 936 - Buying Options with a Plan - by Submitted on Mar 28, 2009 from Shaun RosenbergAnytime you trade stocks in the market it is normally a good idea to have a plan, but when you trade options plans are critical. You do not have the luxury of holding onto the option and hoping it will come back. Your plan should be simple to follow and answer the following ...
Views: 745 - Top Reasons to Cut Your Losses Short in the Stock Market - by Submitted on Mar 27, 2009 from Shaun RosenbergThe biggest mistake I have seen people making in the stock market is not getting out when they are wrong. Instead they allow a trade they are in to pull back 50% or more if things turn against them. The larger you let your losses get the shorter you will be trading the market. Here are the ...
Views: 674 - Why Use Stop Orders - by Submitted on Mar 26, 2009 from Shaun RosenbergStop orders are very critical in the stock market. It can help you to limit your losses when you are wrong and keep your gains when you are right. Many new investors will fail because they do not utilize this order. So what is a stop order? Well a stop order is an order that you place ...
Views: 640 - Stocks Vs Options - by Submitted on Mar 25, 2009 from Shaun RosenbergThere is a lot of debate out there whether it is better to trade stocks or options on the open market. My personal opinion is options give you such an advantage that you shouldn’t ignore them. Let’s compare buying the stock with buying an option. When you buy the stock you are buying the ...
Views: 756 - When Not to Use Stop Limit Orders - by Submitted on Mar 24, 2009 from Shaun RosenbergStop limit orders can be very powerful if you use them correctly. However there are certain times when you should just not use stop limit orders. Before we go into when you should not place stop limit orders lets go into what they are first. When you set a stop limit order you are attempting ...
Views: 947 - Day Trading Advantages - by Submitted on Mar 23, 2009 from Shaun RosenbergDay trading can certainly have its advantages in the stock market. Here are a few reasons why it can be a good idea to day trade, if you know what you’re doing. 1. Shorter Time Frame The benefit of a shorter time frame is compound interest. The shorter your time frame is the greater compound ...
Views: 730 - Benefits of Short ETFs - by Submitted on Mar 22, 2009 from Shaun RosenbergShort ETFs are one of the new inventions in the stock market. They allow people to make money as the markets are falling down. But most investors don’t use them in fact most everyone seems to have an argument why you shouldn’t use them. There articles say silly things like if you buy them ...
Views: 856 - ETFs vs. Stocks - by Submitted on Mar 21, 2009 from Shaun RosenbergTrading ETFs can be a very profitable thing to do. There are a few major advantages to trading ETFs that you would not have if you decided to trade stocks. 1. ETFs come with less surprises If you have ever traded stocks you have probably noticed that you can get some surprises now and then. ...
Views: 803 - Investing in ETFs - by Submitted on Mar 20, 2009 from Shaun RosenbergETFs provide a great way for investors to diversify along with not having to pay those huge mutual fund fees. Here are some reasons why ETFs might be for you. 1. They give you a great way to diversify ETFs track certain industry groups or markets. So if you buy the ETF for a specific ...
Views: 631 - Why Use Credit Spreads? - by Submitted on Mar 19, 2009 from Shaun RosenbergOption selling can be a very profitable thing especially when you sell options using credit spreads. But many investors go about it the wrong way. There are a number of people who try to sell naked options on a stock. And if you don’t know what that is it is simply selling an option on a ...
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