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Since this is a stock market basics article, I'll assume you're a beginner.
The first thing you need is a solid education in stock trading. I know it's not the hottest new thing. It's not sexy. Stocks do not hold the allure of near instant riches. You will not invest $1,000 today and be ... Views: 1133
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: 1109
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: 1353
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: 1373
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: 3589
Daniel Kertcher is the CEO and Founder of Platinum Pursuits. He is well known as an expert within Australian wealth and stock trading education. Born in 1972 Toronto, Canada, he moved to Australia when he was 16. He completed his degree, Bachelor of Science at University of Queensland with a ... Views: 4137
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: 7334
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: 1231
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: 1238
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: 1048
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: 1117
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: 1035
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: 1304
You've heard of the monumental gains penny stocks can make, you've seen the great successes your co-worker had, and you've read about how many millionaires that last high-flyer created. That doesn't mean you're ready for penny stocks, and in fact it might mean that you would do best to stay far ... Views: 1574
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: 1217
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: 1229
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: 1209
I read a banner ad online the other day; it was from a financial guru selling his trading techniques. Interestingly, his very witty tag line goes something like, “predicting the stock market before it goes up.”
Clever I thought, he can predict the markets before they go up! I'd hate to think ... Views: 1040
Have you been thinking about learning online forex trading and starting your own forex trading business? In forex trading you have to spend your time watching the market for entrance and exit points. You can monitor the progress of currencies by feed reports on your computer or by watching them ... Views: 1086
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: 981
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: 1434
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: 957
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: 1320
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: 1293
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: 1026
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: 1236
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: 1013
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: 1055
Forex trading is not that easy as it seems. This Foreign exchange currency market that lets people buy and sell currencies as a part of investment. Unlike the olden days when only the banks and huge corporate firms used to participate in Forex trading, today, anyone with little knowledge about ... Views: 1230
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: 884
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: 1162
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: 1424
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: 948
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: 917
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: 1190
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: 962
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: 1224
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: 3765
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: 974
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: 4703
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: 1478
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: 1303
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: 962
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: 1757
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: 1087
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: 1422
Don't let the recent summer rally fool you, we're not out of the woods yet.
Several factors are coming together to create a "perfect storm," which in combination could send global economies into collapse. We may be able to sidestep this threat if the underlying issues are dealt with one at a ... Views: 1704
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: 1272
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: 1054
Penny Stocks are small value stocks that is traded under US $5, but most of the time under $1. You can trade these penny shares in the Over The Counter (OTC) market in US via your stockbroker.
You can either buy and hold penny share, hoping it will turn out to be Google one day and be very ... Views: 803