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- 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: 652 - 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: 690 - 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: 834 - 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: 575 - 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: 769 - 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: 4203 - 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: 943 - Mutual Funds vs. Stocks - by Submitted on Mar 29, 2009 from Menno SpijkstraNo two things can ever be exactly the same. There is always at least something that one object has that’s different from another, no matter how similar they may be. Even identical twins differences between them, it’s just that they aren’t that noticeable at first glance. Anyways, some people out ...
Views: 792 - 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: 750 - 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: 675 - 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: 645 - Who Created The Financial Crisis - How And Why - by Submitted on Mar 26, 2009 from Steve Selengut"The Big Takeover" by Matt Taibbi is probably the best article written to date explaining the financial crisis and how we got to where we are now. Taibbi's necessarily lengthy article explains the problems, names the "poipetrators", and exposes all of the conflicts of interest--- absolutely a ...
Views: 1950(1 vote) - 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: 763 - 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: 951 - Investing Advice: Top 4 Investing Mistakes - by Submitted on Mar 24, 2009 from Menno SpijkstraThere’s an old saying that goes something like this: “experience is the best teacher”. In some sense this is true, because plenty of people don’t learn unless they learn it the hard way. An example would be a boy thinking that he can make it big in the boxing world by learning everything about ...
Views: 863 - 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: 737 - 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: 862 - 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: 808 - 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: 634 - 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 ...
Views: 644 - Profit from Dividends - by Submitted on Mar 18, 2009 from Shaun RosenbergIt can be tempting to get into stocks that are offering high dividends. In fact for an investor the dividends can make up a huge amount of your total profit from that investment. But there are a few things you are going to want to consider looking at if you are investing for the ...
Views: 728 - When to Use a Stop Limit Order - by Submitted on Mar 18, 2009 from Shaun RosenbergStop limit orders are very powerful in the stock market if used correctly. They can give you a new way of placing a trade that can potentially benefit you. So when might it be a good idea to place a stop limit order? 1. When a stock is at resistance and you are expecting it to break through. ...
Views: 1502 - How Stock Market Emotions Work Against You - by Submitted on Mar 17, 2009 from Shaun RosenbergIn the stock market controlling your emotions is one of the most important keys to being successful as a trader or as an investor. There are so many ways your emotions can harm you. They can … 1. Make You get out early Your emotions can make you get out of a good trade too early to actually ...
Views: 616 - Why Look at a Company’s PE Ratio? - by Submitted on Mar 17, 2009 from Shaun RosenbergThe PE ratio tells you if a stock is overpriced when it is compared to its earnings. It is suppose to be a good indicator for weather a stock is undervalued or overvalued. By why does it work? 1. You want to invest in strong earnings Obviously the more money a company is making the better an ...
Views: 676 - Benefits of Placing Option Spreads - by Submitted on Mar 16, 2009 from Shaun RosenbergSelling options can be a very profitable journey. Placing combining those options into spreads can be a great way of doing this for these reasons. 1. Higher Probability Creating credit spreads allow you to gain a much higher probability of being correct then if you just buy the stock or buy ...
Views: 666 - Why People Don’t Sell Options - by Submitted on Mar 15, 2009 from Shaun RosenbergSelling options can definitely be a profitable way to trade the market, yet many people do not trade them. The top two reasons for this are. 1. Option selling gives you a limited return Most people buy stocks and options and hope that they will go up and make them a ton of money. After all ...
Views: 748 - Avoiding the Ponzi Pusher - by Submitted on Mar 15, 2009 from L.A. LittleCharles Ponzi, the Boston financeer and swindler, has come to symbolize the idea of fradulent investment operations where investors are paid handsome returns by subsequent investors rather than from profits. Other nations refer to this activity as illegal pyramiding, but whatever the name, a ...
Views: 1203 - Never Consider Stock Investing in These Troubled Times - by Submitted on Mar 14, 2009 from John AndersonConsidering stock investing in these troubled times is much like plunging your hand into a vat of killer sharks and hoping for the best and I say this because the market is seeing some really tough times of late due to the economic recession. Sure, we have a great president on the seat of the ...
Views: 849 - Taking a Break from the Market - by Submitted on Mar 14, 2009 from Shaun RosenbergThe stock market can be both a rewarding place and an “evil place bend on taking away your money”. In order for you to be consistently profitable you have to realize there are some times you should just take a break and let the market work itself out. Whenever the direction is unclear and ...
Views: 657 - When to Place an Iron Condor Trade - by Submitted on Mar 13, 2009 from Shaun RosenbergIron Condors can be very profitable at times so how do you find the best time to place an iron condor? When should you enter the trade? This is what everyone wants to know. Well there are a couple of things that might be helpful. 1. When the Market is going Flat When stocks are not trending ...
Views: 1242 - Ways to Make Money in the Stock Market - by Submitted on Mar 12, 2009 from Shaun RosenbergThere are 3 major ways you can make money in the stock market. Each of these ways has its advantages and disadvantages. 1. Buying and Selling Stocks This is definitely the most popular way to make money. It involves simply buying a stock either because of some fundamental data or some ...
Views: 620 - Beware of Quick Investing - by Submitted on Mar 11, 2009 from John AOVInvesting in financial vehicles such as stocks, bonds, treasury, and mutual funds are a good way to earn a premium on interest because these financial vehicles typically yield more than the traditional savings account. And why is it they earn more? It is because there is the element of risk ...
Views: 863 - Why Look at a Company’s Debt? - by Submitted on Mar 11, 2009 from Shaun RosenbergWhen picking a company for a long term investment it is important to look at many different factors of that company. One of which is the amount of debt the company has. There are two major reasons you want to look at a company’s debt. 1. How Long will it be around? If a company has a ton of ...
Views: 686 - Finding Good Undervalued Companies - by Submitted on Mar 10, 2009 from Shaun RosenbergRecently every stock has been getting crushed. This means that today is probably one of the best investment opportunities of our life time to get into strong stocks for the long term. So how do you find the best of these stocks to invest in? Here are a few things you can look at. 1. The P/E ...
Views: 1338 - Filling the Investment Education Void with Web Workshops - by Submitted on Mar 10, 2009 from Steve SelengutNow more than ever, you can appreciate the need for comprehensive investment education. All of a sudden, fifty percent of your nest egg has disappeared--- and the bad news? There never was a plan for income generation. Ouch! Dwelling on coulda's, woulda's, and shoulda's isn't going to rebuild ...
Views: 2027(29 votes) - How to Control Your Trading Emotions - by Submitted on Mar 09, 2009 from Shaun RosenbergTrading brings out all kinds of emotions that just seem to get in the way and make it very hard to actually get anywhere. If you want to succeed you must control your emotions. Does this sound familiar to anyone? You buy a stock that is trading at $50 because you believe the stock will jump ...
Views: 788 - How Many Shares to Buy - by Submitted on Mar 06, 2009 from Shaun RosenbergBefore you enter the market you will need to decide not only what to buy and when to buy it, buy how much to buy. How many shares of stocks should you buy to limit your risk? Here are some things to consider when you decide that. 1. How much capital do you Have? How much money do you have ...
Views: 1521 - Is Holding Cash a Bad Idea? - by Submitted on Mar 05, 2009 from Shaun RosenbergAbsolutely not, in fact there are times when holding cash is probably the smartest thing you can do. I know no one likes to hear it, but sometimes you have to stay out of the market at least for a little while. Here are a few reasons why it is important to hold cash when times are ...
Views: 936 - A Basic Introduction to Trading Psychology - by Submitted on Mar 05, 2009 from Todd GasterMost people talk about the uncertainty of trading and how it can best be addressed, but knowing how to establish and recognize your entry signals can go a long way in setting the correct path to trading. Therefore, a basic introduction to trading must be done. The first goal in trading is for ...
Views: 1352 - 3 Secrets to Successful Day Trading Online - by Submitted on Mar 04, 2009 from Christopher LeeCurrency trade has been the by line for many investment success stories of late and there has been good reason to support this. With more and more brokerage offering comprehensive platform support, services to train beginners in Forex trade, demo accounts and online services, working from home ...
Views: 798 - Why You Need to Invest with Real Money - by Submitted on Mar 04, 2009 from Shaun RosenbergI am a firm believer in paper trading. You have to develop a strategy before you put any real money into the market. But aside from that you need to invest with real money eventually and here is why. 1. The Obvious Reason, If you don’t invest real money you don’t make money. If you are paper ...
Views: 698 - Why Buy Put Options? - by Submitted on Mar 03, 2009 from Shaun RosenbergPut options are a great way to make money as the stock market goes down. There are a number of benefits to trading them, and when the markets are falling there is no faster way to profit. Here are some reasons that Put options can be fun to trade as stocks fall. 1. It allows you to have some ...
Views: 892 - Making Money in a Bear Market - by Submitted on Mar 02, 2009 from Shaun RosenbergThe Markets have been falling fast lately and most people either believe it is the end of the world or the markets are at a bottom. Both conclusions are probably wrong. First of all it is not the end of the world. Stocks go up and down that’s what they do. That said, even though the markets ...
Views: 864 - Global Investors' Bill Of Rights May Prevent Economic Déjà Vu - by Submitted on Mar 02, 2009 from Steve SelengutThe purpose of IBOR is to protect financial markets and to create self-sufficient investors who produce economic growth instead of government deficits. IBOR standards create transparent financial markets, regulate speculation, and protect retirement portfolios. Here's a sampling: Section One: ...
Views: 1505(1 vote) - Are We at Bottom? - by Submitted on Feb 26, 2009 from Shaun RosenbergEveryone has been trying to call a bottom in the market for a while. The markets have to stop going down and start going up at some point. But is that point now? It seems like there is a lot of strong evidence supporting the bottom. Stocks are greatly undervalued; right now you can buy tons ...
Views: 708 - Why Spreads, Why Now? - by Submitted on Feb 25, 2009 from Shaun RosenbergOption 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: 689 - How Much Stock Should You Buy? - by Submitted on Feb 24, 2009 from Shaun RosenbergOk, 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: 3647 - Stocks Can Always Go Down - by Submitted on Feb 23, 2009 from Shaun RosenbergOne 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: 722 - Holding Cash and Great Returns - by Submitted on Feb 22, 2009 from Shaun RosenbergMost 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: 692 - Why Trade Spreads? - by Submitted on Feb 21, 2009 from Shaun RosenbergOption 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 ...
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