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: 835
The 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: 580
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: 1108
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: 861
It is probably one of the best times to invest for the long term. Almost every stock is undervalued and has seemed to have stopped going up. So a buy and hold strategy might not be that bad of an idea.
The reasons buying and holding could have the potential to be very profitable ... Views: 792
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: 1332
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: 587
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: 590
Chart 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: 608
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: 531
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: 850
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: 654
Price is King when it comes to the market. Sure there are many different ways to evaluate a company and the different methods all have their advantages but the price patterns of a company still gives you the most accurate buy and sell signals.
More than any oscillator, any fundamental ratio, or ... Views: 714
Short 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: 615
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: 588
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: 1104
I thought it might be fun to talk about how the stock market was born. Many people do not realize the importance of the stock market.
The stock market was born out of necessity. It helps companies grow as well as helps the average citizen fight against inflation.
Imagine you are a ... Views: 741
The 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: 834
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: 815
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: 620
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: 1091
Everyone 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: 582
Option 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: 540
Stop 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: 548
Stop 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: 562
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: 643
Setting up a trading hour is easy and is a necessity. You do not want to be involved in the market 24/7 so setting up an hour where you review your trades is a must.
There are a number of reasons why having a trading hour is a must.
1. Your body gets used to it. If you are always reviewing ... Views: 591