ETFs can be a great way to profit in the long term. If you want to get into investing and do not know which stocks to buy and hold ETFs can be a great benefit to you. And here is why.
1. Already Diverse
ETFs are already diverse. If you buy an ETF you are buying something that tracks many ... Views: 552
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: 551
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: 551
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: 551
History has proven time and time again that buying long term stocks when the markets are down has been a wonderful strategy. In fact the best times to buy have always been close to the market bottoms.
That is because when the markets crash they tend to take all stocks with them. This ... Views: 547
Trading in the stock market can lead to huge gains, which is why many people will flock to it as a way for them to finally quit their jobs. The problem is that it can also have large losses.
Because of this your first concern should be to protect yourself from taking big losses. You want to ... Views: 546
Holding cash when trading, those are the words the majority of traders fear. No one wants to do it, but it can actually be a benefit to you.
Two of the biggest stock market geniuses of all time, Warren Buffet and Jessie Livermore have always gone through long periods of holding cash. They ... Views: 546
One of the ways to catch a stock is by catching it as it falls on support. When a stock hits support it is normally a good sign that it will go up. But should you wait for the bounce or not?
It depends on your own personality. There are advantages and disadvantages to waiting for the bounce. ... Views: 546
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: 545
Buying protective puts can be a very useful strategy when you are trading in the stock market. When the markets start to get volatile many traders will buy puts to protect themselves from the downside. It is actually a very simple strategy to learn and use.
If you want to understand how ... Views: 545
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: 545
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: 543
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: 542
Buying leaps can be a very effective long term way to leverage your money in the stock market. Buying a leap can produce greater gains than just buying the stock and holing it.
Let us look at an example of how it works. We find that stock XYZ is currently trading at $45. It is a strong ... Views: 540
Reacting to the market is a lesson every trader should learn. It is much simpler and much more profitable then to just react to the market then to try to understand it.
Too many traders try to explain a big move. For instance most people will say that stocks fell because of the unemployment ... Views: 539
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: 536
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: 533
ETFs 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: 532
There is no such thing as the magical trading system. All trading systems have their strengths and weaknesses.
Many Gurus’ out there will talk about a secret trading system that cannot fail. It supposable is the insider trading system that only a few people know about, and the professionals ... Views: 527
Being positive is always a good thing in any aspect of life. In the trading world it is almost impossible to make money without having positive thinking.
Without a positive attitude it becomes harder to pull the trigger. You are unable to place the trade because you are unsure if it is going ... Views: 523
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: 522
Placing stops on option plays is extremely important for anyone looking to trade options profitably. There are 3 ways you can limit the amount you lose on your option.
1. Let it expire
I will use this every now and then when I am looking to either make a huge gain or a small loss. What it ... Views: 521
Capital preservation probably the most important things you need to consider when you are trading in the stock market. You may have a system that works well, but if you lost all your money on 1 trade you will not be able to make money with your system. It is one of the most overlooked aspects ... Views: 515
Keeping both long and short term trades can benefit you in many ways. It can give you all the benefits of short term trading with some of the safety from long term trading.
Many experienced traders will keep both long term investments and short term trades out at the same time. This allows ... Views: 513
Covered 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: 512
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: 504
Protective puts allow you to protect yourself from huge losses in the stock market when times are uncertain. So what are they?
When you buy a protective put you are buying the right to sell a stock at a given price on or before a given date. So say you own a stock that is trading at $60 and ... Views: 484