It 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
Stop 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: 1500
In 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
The 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: 673
Selling 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: 663
Selling 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: 745
The 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: 655
Iron 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: 1238
There 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: 616
When 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: 684
Recently 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: 1335
Trading 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: 787
Before 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: 1519
Absolutely 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: 933
I 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: 696
Put 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: 888
The 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: 863
Everyone 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: 705
Option 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: 686
Ok, 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: 3644
One 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: 719
Most 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: 689
Option 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 ... Views: 713
I have been talking a lot about iron condors lately because they are very helpful in making money in a sideways market, and that is what we are in. But there are other ways that we can pull a monthly income from a sideways market.
One very effective method is selling a horizontal spread. For ... Views: 742
There are 3 ways that you can make money from a stock that you own, or an investment that you want to get into. Ideally you want to be making money all 3 ways every time you enter an investment.
The 3 ways are:
1. Dividends.
Some stocks offer a dividend, which means they actually pay you ... Views: 1039
Option Spreads can be very helpful for anyone who want to enter the world of short term trading but is having problems finding stocks that will do exactly what they are expecting. Spreads use creative ways to make it easier to make a monthly income from stocks.
The best thing about spreads is ... Views: 664
There are a few reasons why I am selling naked puts in my own portfolio at this time. I just believe that this is a great time for doing it, properly anyway. And here is why.
1. Stocks are undervalued. The market has crashed so far in 2008 that nearly every stock that is left is undervalued. ... Views: 647
A diagonal spread is a spread that allows you to produce a monthly income from the stock market and at the same time being able to profit from appreciation or depreciation in the stock.
Ok so how does it work? Simply put you buy an option that will not expire for many months. You also sell an ... Views: 821
Most people who enter the option selling world do so because it comes with a high probability of being correct. Most people see that they can make money 80% of the time and decide that this is what they should be doing.
Few realize that even with such a high success rate you still should ... Views: 594
Most traders fail to make money in the stock market because they fail to treat trading as a business. They believe they can just buy a stock it will go up 200%, they sell and everything is good.
That is not how trading works. Sure if you did that you would occasionally get some pretty big ... Views: 2501
The single biggest question that new traders ask is how much can I make trading the stock market? They all want to know what annual return they can expect to make, or how much monthly income they will generate.
That is not the question you should be asking. In fact concentrating on that ... Views: 3421
Almost everyone who is in the stock market has a few long term investments. Maybe they bought a few ETFs that they believe will go up in the long term. But along with your investments it is a good idea to place some short term trades.
The real benefit of short term trades lies in compound ... Views: 629
Today the markets have been acting crazy. Stocks will be up huge one day and down huge the next. In general they are not doing very much.
That is what makes covered calls such a great idea. When you buy a stock and sell a call you make an income from selling the calls and you do not need ... Views: 687
Most people when they sell bear call spreads intend to hold onto them until they expire. If they do and they profit you can realize your maximum gain. You also do not have to pay commissions for exiting your spread if they just expire.
But in certain conditions it is a good idea to exit a ... Views: 966
It is possible to make money on a down trending stock without having to short it. Maybe you want to make money as a stock falls, but would also like to make money if the stock stays still.
In this case you may want to use a bear call spread. This spread allows you to take a partially bearish ... Views: 678
Sideways markets are always harder to trade then trending markets. Trying to hit every swing can be difficult for a trader. Instead of trying to predict the movements you can make money in a sideways market by using a strategy called an iron condor.
This is how it works. Say a stock is ... Views: 882
In a situation like we have now in the market there are many stocks that are way undervalued. You may be looking into buying some of these undervalued stocks and waiting for the market to recover. If so selling out of the money covered calls on those stocks is an excellent way to generate ... Views: 876
Selling covered calls is always a great strategy, but it becomes even more important when the markets are volatile like they are today.
For all those who don’t know what a covered call is, it is a strategy where you buy a stock and sell call options on it.
These call options allow you to ... Views: 682
Many traders will practice adding to a winning position as well as subtracting from a winning position. These strategies can be very helpful to let your winners grow.
Many traders will practice taking away from their position once a given level is hit. For instance say you want to buy 100 ... Views: 2550
I make my trading decisions based on technical analysis. I believe in developing a trading system and following it to a tee. But I don’t take just any old trade that gives me a technical set ups of course. Before I enter a stock I like to check a few things.
1. I back test the stock, just a ... Views: 693
Everyone has a different personality. So it makes sense that everyone has a different stock trading personality. Some people trade very aggressively and like to go after the short term movements. Some people are less aggressive and like to ride the longer term trends.
Finding your trading ... Views: 629
Poker is really a miniature stock market on so many levels. You can apply much of what you learn from one to the other.
One of the biggest similarities is how little your profits matter. If you make $1,000 in anything it is a big deal, but if you make $1,000 in the stock market or in a ... Views: 781
Technical analysis is a non-traditional way of picking stocks to buy and sell. It is based off of human emotions and patterns in those emotions.
A technical trader realizes that stocks do not move up and down because a company is making or losing money. A stock goes up and down based off of ... Views: 683
Low volume stocks can make it much more difficult to trade profitable. For that reason it is better to stay out of these stocks regardless of how the set up looks.
Volume should be looked at every time you place a trade. What volume does is tell you exactly how much of a given stock was ... Views: 1276
I am a huge stock market geek and a huge poker geek as well. I remember seeing not too long ago a world poker series; they were interviewing a guy from the semi finals who said he was an option trader.
That made me think, trading which is one of my biggest hobbies is very similar to one of ... Views: 1253
If you pay attention to the stock market at all you will get bombarded with tons of useless facts about what is going on with the country, how the economy is improving/ getting worse, how inflation rates are changing, what the unemployment rate is.
It is difficult to find out which information ... Views: 827
Most people decide that the stock market is just too risky for them to put their hard earned money into. I know many savers out there who would rather put their money into a savings account then into the markets.
This way they can go for the sure thing, the government insured return, but what ... Views: 839
Changing your trading rules can be a good approach if your rules aren’t working. But if they are there is no need to change them just because you have a few bad trades.
You have been good, following your trading rules and having some success. But you start to notice some flaws in your ... Views: 664
Some people try to find the perfect trading set up. They only trade when all the stars are aligned and when everything that can possible be on their side is on their side.
It is so easy to want to find the perfect set up, the set up that can’t fail. Where all we have to do is click to ... Views: 657
All successful traders will take complete responsibility for their trading actions. You will not find a successful trader who blames others for losing their money in the stock market. This is the first step to becoming a great trader.
This step is very important because until you take ... Views: 688