Trend trading can be an extremely powerful way of making money in the stock market. It has simple bases behind it too, catch a stock that is trending up and ride it until it starts to go down. What can be a simpler trading approach?
Trend trading is probably the best approach for trading in ... Views: 943
One very effective strategy of getting into a strong stock is to not just go right out and buy the stock, but to sell a put on the stock instead. This does give you some advantages that you would not have had you simply entered the stock.
The advantages are.
1. Money Up Front
One of the ... Views: 914
Counter trend trading is a pretty sought after strategy. Everyone wants to buy a stock as it bottoms or short a stock as it is forming a top. It is the whole buy low sell high idea. Why not buy when a stock is at its lowest and sell right before it turns around.
The only problem with this ... Views: 1320
If I only had a small amount of money, say $2,000 to invest in the stock market what strategy would I use to make a good return while at the same time limiting risk? The answer seems pretty simple when I think about it. I would still be trend trading because it offers you such a great ... Views: 856
One great strategy is selling covered calls. This strategy is pretty simple, but sometimes the simple strategy is the best.
When you sell a call on a stock that you already own, you are giving someone else the right to buy that stock from you at a given strike price. For this right you are ... Views: 995
Not many people realize that selling puts can be a very good strategy in the stock market. It can be a great source of income and help you get into stocks that you already like at a lower price.
It works like this you sell someone else the right to sell a stock at a certain strike price on ... Views: 2988
Starting to invest when you are really young has many great benefits. In fact it is one of the wisest things you can do from a financial standpoint.
So why is it so important?
1. Time
The younger you start to invest the more time you will have to make money in the stock market. If ... Views: 1106
Selling a put can be a very effective way to increase your profit in the stock market. It helps to bring some income to the account while at the same time letting you get into longer term positions.
The pros to this strategy are
1. You Get Money Upfront
The best thing about deciding to ... Views: 1047
A bull trap occurs after a long down trend in a stock happens and you may get a signal that it is going to start trending back up. This normally catches many of the market participant’s right before it starts going down again.
There are 3 things that you can do to help avoid being devastated ... Views: 1552
It is common to want to pick the bottom of a stock in order to get in before a trend starts. But that does not make it the most profitable route to go. It is a far better strategy to stick with the trend of a stock until it ends for the following reasons.
1. High probability
If a stock ... Views: 945
Gold is considered to be a great place to put your money in order to guard against inflation. It is a shiny metal that is deemed valuable, but why does it work to help your money keeps its buying power, even when inflation hits?
Well gold is a good hedge because
1. It is Valuable
Gold is a ... Views: 925
There are two major ways to trade the stock market, bottom picking and momentum investing. Most people attempt to make money by calling the tops and bottoms, but it can be more profitable to simply ride a trend until it ends.
Trading with the trend has 3 major advantages.
1. Hard To Pick ... Views: 751
Stock splits occur when the price of the stock lowers and investors get more shares to make up for the lowered price. So do they actually affect how strong a stock will be in the future?
Most investors and traders believe that splits will in fact cause a stock to outperform the rest of the ... Views: 1018
Trading with the trend is the best way to make a great return in the stock market. Regardless of what your strategy is trading on the same side as the overall trend can improve your winning streak.
Trend trading has 3 major advantages.
1. Trends are likely to continue for a while
A trend is ... Views: 683
Two strategies for making money as an option seller are to either sell naked options or spreads. Selling spreads are often
time the much wiser choice for the following reasons.
1. Lower Risk
You assume a much lower risk when you sell a spread as opposed to selling a naked option. For ... Views: 1656
Selling naked puts is a way for you to get a steady stream of cash flow in the stock market. But how good of a strategy is it exactly?
When you sell a naked put what you are doing is selling someone else the right to sell a stock to you at a set price in the future. So if you sell a $50 put ... Views: 922
You may have your own personal opinions and beliefs on where a stick is likely to head, but before you pull the trigger and make the trade make sure that you actually have a technical signal on the position. Waiting will help you in many ways.
1. Stocks do not care about your opinions
Stocks ... Views: 782
Buying options on up trending stocks can be a very effective strategy at times. There are many reasons why this can be so effective.
1. Trends Continue
A trend can continue for a very long time, instead of trying to call the tops or bottoms it has always been more effective to just trade with ... Views: 682
Everyone believes that buying options is the riskiest thing you can do in the stock market. While they are risky in a sense that you can lose money they are no more risky then buying stocks. The main reasons people think others are.
1. Short Term
People look as short term as risky. I have ... Views: 652
Selling covered calls allow you to make an income off of stocks you own and increase your profit in the long run. But what are they?
When you sell a covered call what you are doing is selling the right for someone else to buy the stock from you at a given price sometime in the future. This ... Views: 724
Trading the stock market is a very abnormal way of making money. There are so many ways for you to make or lose money, and you have to keep on your toes and be cautious to avoid losing your money. Here are the top 3 mistakes traders will make.
1. Only Looking at Profits
Newer traders are ... Views: 724
In the investment work you can either learn to trade yourself, or listen to whatever the analysis tell you and follow their advice. Unfortunately too many people chose to follow the analysis instead of taking it into their own hands.
There are 4 reasons why it can be a wiser to make your own ... Views: 643
Buying a down trending stock to sell covered calls on can turn into a very bad idea very fast. Here are 3 reasons why selling covered calls on a downward moving stock can become a black hole in your account.
1. The Premium does not Make up for The Loss
The part that everyone loves about ... Views: 909
Covered calls are a great way to increase your return in the stock market. Some of these slow moving stocks are better for selling calls on then just holding the stock. Here are 4 reasons why selling covered calls can be a better alternative then to just keeping your stock and hoping it pays ... Views: 677
Selling Covered calls is a wonderful strategy in general. It allows people to make consistent money from the stock market, but there are some times when it is better to avoid placing a covered call position.
1. When the Markets Are Falling
When a stock is down trending it is better to avoid ... Views: 880
People associate buying puts with being risky and speculative, and they are. But that does not mean that you cannot make money by trading them. In fact there are many reasons why it works to your advantage to buy puts every now and then.
1. Stocks Can Go Down
Stocks do not only go up, they ... Views: 715
Most people buy options without even considering what they are buying or how the option will move. They do not look at the risks of an option and try to predict the possible profits and losses. Instead they just buy hoping that eventually the option they bought will make them rich beyond their ... Views: 632
Now traders who try to make money using technical analysis often make many mistakes. Some of these mistakes are.
1. Risk Management
Risk Management is the most important part of trading. If you do not control your risk you will feel the pain eventually in your account. Many new traders will ... Views: 669
Selling options is a great way to make consistent money trading the stock market, but there are a few mistakes that many option sellers will make, especially when they have just started out.
1. Risk Management
It is really easy to forget about risk management when you are winning the majority ... Views: 1918
Stock options give you a wonderful way of getting leverage in the stock market. But it is also important to remember that sword goes both ways.
Before you trade options you should consider the following.
1. Options should not make up a large part of your account
Options are better used for ... Views: 685
Swing Trading Can be hard, both mechanically and emotionally. But when you are comfortable and confident about your approach it is definitely worth it.
Some things you should know about swing trading are.
1. Losing Streaks can happen
All swing traders will have a losing streak from time to ... Views: 655
It is much better to concentrate on just one or two different strategies and not try to master everything. There are many different reasons why this is so.
1. Everyone is different
Everyone is different, so everyone will have better success with
1 strategy over another. For example if you do ... Views: 663
Did you know that it is possible to have stocks in your account that you have already made a profit on before you sell it? It is rare, but it can happen.
Here are some tips help you pull out some money from the stocks you already own, and possible even pull out more cash flow from the stock ... Views: 3605
I consider myself a short term trader, but that does not mean I can’t invest ever now and then. Sometimes the conditions are perfect for investing and you can’t overlook it. This occurs when.
1. There is a “Fire Sale”
A fire sale is just another name for when stocks are cheap. When stocks ... Views: 648
There are a lot of benefits to selling options in the stock market. Some of the things selling options lets you do are.
1. Make Money In A Confused Market
When stocks are volatile and have no clue which direction they want to go selling options lets you make a profit. Instead of trying to ... Views: 652
Using Technical analysis to trade the stock market gives you the greatest odds for success for many different reasons.
1. The Markets Live in the Future
It is hard to use fundamental data to predict where a stock will likely go in the short term, because the stock market lives in the future. ... Views: 809
Day trading is a great way to make money in the stock market. It has many advantages over other strategies in the stock market, some of which are.
1. You Don’t Have the Gap Risk
Stocks can gap, and sometimes they can gap big. I have seen stocks gap over 20% overnight on a rare occasion. If ... Views: 1327
Naked Puts are supposed to be one of the riskiest strategies out there. But if done right selling naked puts can be even safer, and more profitable than buying stocks.
When you sell a naked put you take on the obligation to buy a stock at a certain price on or before a given date. For this ... Views: 884
I hear a lot of people talk about finding the bottom of a crash or finding the top of a rally, particularly this rally we have recently been having.
There is always news out there somewhere that a trend will not continue for one reason or another, but sometimes it is best to ignore all the ... Views: 684
All traders have to pay commissions; there is no way around it. But commissions will normally make up only a very small amount of your portfolio, so it normally isn’t too bad.
If you are seeing commissions take a large amount of your profit here are some tips to help you reduce their effect on ... Views: 629
A lot of people try to pick the exact bottom of a stock by taking into consideration the fundamentals of the company. However you can increase your odds of getting into a profitable trade if you combine fundamental analysis with Chart Patterns.
There are 3 major reasons why chart patterns and ... Views: 571
Trading some low probability trades isn’t always a bad thing. It can help you to make a huge return if you are right and you can always manage your risk when you are wrong.
By a low probability trade I am talking about trades that will probably not be profitable. Even so it can be a good idea ... Views: 740
Stock options can be very profitable in the stock market provided you use them right. Whenever you are buying an option you should take some time to consider why you are buying it.
Here are some tips to figuring out when the best time to buy an option is.
1. When the Stock is giving you a ... Views: 2699
Stock options hold many advantages over just holding a stock. This ranges from higher leverage to managing risk. Below are all the ways options can be a better way to go.
1. Higher Return
Options offer a higher return then holding the stock. Even a small move in the stock can give you a huge ... Views: 891
Did you know there was a way to buy insurance for your stocks? It allows you to keep some of the money you have invested if your stock crashes, which could be very powerful when times are uncertain.
It works by utilizing something called a put option. When you buy a put option on a stock you ... Views: 4109
Options can be very risky because it is possible to lose 100% of your invested capital if you are wrong. One thing you can do to prevent this is to put stops on your options.
You can place a stop on an option in two ways.
1. Put a Stop on the individual Option
The first thing you can do is ... Views: 885
Stock options give you a way to get leverage in the stock market. They can greatly increase your returns, if done right. But before you take the leap to trading options there are a few things you should know.
1. Not For the Long term
Options eventually expire. They are not for long term ... Views: 793
Options can be a great way to get leverage in the stock market. In some ways they can even be used to help manage risk in the stock market.
If you get into a stock that is trading at $50 and expect it to go up, it can be pretty risky. Say you buy the stock and some bad news comes out of ... Views: 584
Trading Option Spreads allows you to have many advantages over trading simple stocks. It can also be very rewarding. Here are some of the main advantages.
1. Non Directional
The major advantage to trading spreads is that they offer you a way to make money in the stock market without having to ... Views: 665
Option Plays can be very profitable, if done correctly. So what are the steps to enter an option trade successfully?
1. Find A Trade
The first thing you need to do is find a stock that you believe will make a big move in a short time period. This stock may be bouncing off of support, ... Views: 634