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Articles by Shaun Rosenberg

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By Shaun RosenbergJul 16, 20091 topic

Selling Puts as a Workable Strategy

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 or before a given date. For this you collect a premium, but are forced to buy the stock if it does go down to the strike price you sold or lower.rnWhy you obligate yourself to buy a stock?

Primary topic: Investing

3,060 views2/5 (2)

By Shaun RosenbergDec 31, 20091 topic

Why You Should Care About Stock Splits

Stock splits can be extremely profitable things. When a stock splits it lowers the price that its shares are trading at and increasing the amount of shares it has to compensate. For example when a $20 stock has a 2 for 1 split the stock becomes worth $10, however there are twice as many shares out there for investors, and each investor who owned the stock before the split will have twice as many shares. The interesting part about splits is that they signify growth, because th

Primary topic: Investing

1,370 views3/5 (2)

By Shaun RosenbergAug 13, 20091 topic

Do Covered Calls Limit Your Profits?

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 given strike price on or before a given date. For this right you get money up front. For example say you own 100 shares of XYZ stock trading at $28. You can sell the front month $30 call for $

Primary topic: Investing

1,232 views3/5 (2)

By Shaun RosenbergAug 20, 20091 topic

Rolling Options to a Later Date

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. Iâm sure you know that all option contracts eventually expire. At that expiration date they are either profitable or not. Well if an option you own is about to expire you have the option to exit that position and get into a position at a later date. For example I sold a $5 pu

Primary topic: Investing

1,510 views3/5 (1)

By Shaun RosenbergAug 12, 20091 topic

Is Trading Risky?

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 isnât a way around this simple fact. There are many market participants that are realizing buying for the long term might not be as risk free as they initially thought. If you would have bought stocks 10 years ago you would still be around break even. If you would have bou

Primary topic: Investing

1,499 views3/5 (1)

By Shaun RosenbergOct 16, 20091 topic

What Successful Stock Traders Look For

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 even what they will do if they lose. On the other hand a successful trader takes 4 things into consideration. 1. What is my Profit Target The first thing to ask yourself is how much do you a

Primary topic: Investing

1,447 views3/5 (1)

By Shaun RosenbergJan 12, 20101 topic

Cash Flow From Holding A Stock

Did you know that you could get cash flow simply buy holding a stock? Itâs true; in fact there are a few ways which investors can make a decent income from the stock market by simply buying and holding stocks. These are. 1. Dividends Of course when you own a stock that is paying off a dividend you are automatically making money month after month. You take on no additional risk by collecting it and instead can just sit back and make passive income until you sell the stock. 2

Primary topic: Investing

1,374 views3/5 (1)

By Shaun RosenbergAug 5, 20091 topic

Selling Spreads

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 Consistent If you are buying options you might be able to get those huge 200% returns on one trade. But that is not the norm; it can come after a series of losses. Sometimes all those amazing gains d

Primary topic: Investing

1,368 views3/5 (1)

By Shaun RosenbergOct 10, 20091 topic

Major Benefits Of Investing In The Stock Market

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 give you a great return. Compare that to something like CDs which only increase your account by a small percentage. The problem with putting your money in the bank is that often times the inter

Primary topic: Investing

7,425 views

By Shaun RosenbergSep 29, 20091 topic

Steps for Income Investing

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 dividend stocks, or top dividend stocks. You can also get a list by going to MSN money, Yahoo finance, or any other type of online stock information website. 2. Check Out the Companies Of course ju

Primary topic: Investing

1,314 views3/5 (1)

By Shaun RosenbergJul 16, 20091 topic

Why To Start Investing Young

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 you are only getting into the stock market 10 years before retirement you are at a huge disadvantage to someone who has 50 years before they need to retire. Time to make mistakes, and figure out how

Primary topic: Investing

1,173 views2.5/5 (2)

By Shaun RosenbergSep 20, 20091 topic

What Drives Stock Prices

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 companyâs profit. If a company makes a 20% return on their capital it does not mean that the stock will also go up 20%. What does move a stockâs price is something called supply and demand. If more people want to buy the stock then sell it then the s

Primary topic: Investing

1,198 views3/5 (1)

By Shaun RosenbergAug 21, 20091 topic

Two Targets When Trading

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 ok somehow. Instead buying is only half the trade. The other half is selling. Having some point where you will sell if you make money can help you actually see your profits as well as getti

Primary topic: Investing

1,058 views3/5 (1)

By Shaun RosenbergAug 11, 20091 topic

Should Everyone Learn Stock Trading?

Should everyone learn stock trading? It can be very profitable, but that doesnât 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 trader. 1. Emotional Control All traders need to be able to control their emotions. Emotions are your biggest enemy when it comes to your money. Nothing will have you flocking with the heard and ru

Primary topic: Investing

1,036 views3/5 (1)

By Shaun RosenbergAug 11, 20091 topic

When To Buy Options

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 and then, but the conditions have to be just right. In order for me to jump in I want. 1. To see a trend If there is a good solid trend in both the stock market indexes and in the individual

Primary topic: Investing

1,004 views3/5 (1)

By Shaun RosenbergAug 13, 20091 topic

Why Are Covered Calls So Popular?

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 is instant return. It can get hard to just wait for the long term and to hold onto a belief that when all is said and done you are going to have more money now then you started with.rnAnd whil

Primary topic: Investing

956 views3/5 (1)

By Shaun RosenbergAug 19, 20091 topic

Tips for The Troubled Trader

The troubled trader is someone who just canât 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 at the news, especially when you are having a hard time. You want to get that last piece of assurance that everything is alright, everything will work out. Even if you realize how dangerous it

Primary topic: Investing

1,402 views2/5 (1)

By Shaun RosenbergJul 17, 20091 topic

Selling Covered Calls Has its Advantages

One great strategy is selling covered calls. This strategy is pretty simple, but sometimes the simple strategy is the best. rnWhen 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 given a set amount of money based off of different factors such as, time until expiration, volume, and the strike price.rnThe major disadvantage of this strategy is that is severely limit

Primary topic: Investing

1,051 views2/5 (2)

By Shaun RosenbergAug 19, 20091 topic

Your Trading Style

Developing your own trading style is of course one of the first steps to actually trading. You cannot simply get someone elseâs 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 you start to trade ask yourself these questions. 1. How Often Do I want to trade? Do you want to be trading in very short time frames such as a few minutes or a few hours? Or do you want to

Primary topic: Investing

1,360 views2/5 (1)

By Shaun RosenbergAug 2, 20091 topic

Managing Losses on Option Spreads

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 important to have some sort of stop which allows you to exit out of your position whenever you experience a loss. There are two different methods that can be very helpful when limiting your loss.

Primary topic: Investing

1,350 views2/5 (1)

By Shaun RosenbergAug 7, 20091 topic

Can You Short An Option

People always talk about buying options. But that isnât 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 on or before a certain expiration date. So for instance if you buy the $40 put for $3 you have the right to sell your stock at $40 before the expiration date. But for every buyer there is

Primary topic: Investing

4,790 views

By Shaun RosenbergMar 29, 20091 topic

Put Options vs. Short ETFs

Put options and short ETFs are two ways you can look at profiting from the downside, so which one is better. What provides the least risk and highest reward?nnWell at least when you compare it to your total investment put options probably give you a higher risk then short ETFs do. But all and all I believe buying puts is a better way to go about trading the downside then buying short ETFs for these reasons.nn1. Higher rewardnnObviously option trading will give you a much high

Primary topic: Investing

4,295 views

By Shaun RosenbergApr 27, 20091 topic

Buying Insurance for Your Stock

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. nnIt works by utilizing something called a put option. When you buy a put option on a stock you are buying the right to sell your stock at a certain level on or before a given date.nnSo, say for example you buy a stock trading at $46 and decide that you want some protection to the

Primary topic: Investing

4,190 views

By Shaun RosenbergAug 15, 20091 topic

Can You Be Wrong Trading?

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 hoped for the best there would be no professional traders. There would just be a lot of happy people when stocks go up and a lot of unhappy people when stocks go down. Since when was puttin

Primary topic: Investing

1,134 views2/5 (1)

By Shaun RosenbergAug 2, 20091 topic

What Are Option Greeks For?

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 didnât go up with it, or even went down. Why does this happen? Well there are a number of factors that go into options. Factors such as time decay, volatility, and price movement all get lumped together into every option. That is why it is normally a good idea to have a firm unders

Primary topic: Investing

1,127 views2/5 (1)

By Shaun RosenbergApr 3, 20091 topic

Advantages and Disadvantages to Selling Options

Selling Options has its advantages and disadvantages; if you are interested in getting into option trading this is something you might want to consider.nnWhen you sell options you are not trying to predict which way the stock will move, rather you are trying to decide which way the stock is likely not to move to. So if you find a stock that is trading at $70 and expect it to go up you could always sell the $65 put for $2.4 walk away with the premium and profit as long as the

Primary topic: Investing

4,000 views

By Shaun RosenbergAug 15, 20091 topic

Going All in When Trading

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 to trading in the stock market. Each professional player has something that gives them the edge in the game. The only real reason many of the best players lose their chips is because of a

Primary topic: Investing

1,092 views2/5 (1)

By Shaun RosenbergAug 7, 20091 topic

How Much do Options Really Cost?

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 value, volatility, and time value. It is not all about the stock, all three of these factors play a large part of the option pricing. Letâs say you find a $45 call that is trading for $6 the

Primary topic: Investing

3,859 views

By Shaun RosenbergAug 20, 20091 topic

Use Patients When Trading

rnWhen 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 making money and the ones who are not. There are always times when you may look at a stock and really want to get into that position. But if it is not giving you a buy signal based off of yo

Primary topic: Investing

1,027 views2/5 (1)

By Shaun RosenbergFeb 24, 20091 topic

How Much Stock Should You Buy?

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. nNow you have to decide, how much of it do you want to buy.nnObviously you donât want to put your entire account in 1 stock because nothing is a for sure thing. You can still lose money even if everything appears to be good. If it goes sour you donât want it to take your whole account down with it. nnSo you have to determine how much you are willing

Primary topic: Investing

3,726 views

By Shaun RosenbergOct 15, 20091 topic

Different Ways to Invest in The Stock Market

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. rnYour money grows as the company grows or shrinks as the company shrinks. You do not have to consistently watch your position and make split second decisions because you are in it for the long term.

Primary topic: Investing

3,671 views

By Shaun RosenbergMay 12, 20091 topic

Negative Cost Basis Stocks

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.nnHere 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 then you originally put into it.nn1. Sell Puts to EnternnIf you are not already in a stock you can start pulling off an income by selling a naked put to enter the trade. This gives you a

Primary topic: Investing

3,666 views

By Shaun RosenbergFeb 4, 20091 topic

How Much Can I Make Trading the Stock Market?

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.nnThat is not the question you should be asking. In fact concentrating on that question will hurt you in 3 ways. nn1. You would not limit your losses. Instead of looking at your possible gains what you should be looking at is how much you are willing to lose on every tr

Primary topic: Investing

3,494 views

By Shaun RosenbergApr 30, 20091 topic

Best Time To Buy Stock Options

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. nnHere are some tips to figuring out when the best time to buy an option is.nn1. When the Stock is giving you a Technical SignalnnGoing down to the basics, you need a reason for buying the option to begin with. If you are just buying the option and hoping the stock will suddenly have a huge move in

Primary topic: Investing

2,780 views

By Shaun RosenbergJan 16, 20091 topic

Adding and Subtracting from a Stock Position

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.nnMany traders will practice taking away from their position once a given level is hit. For instance say you want to buy 100 shares of XYZ stock at $45. You have a target of $55, but if the stock gets to $52 you would take half of the position off. nnWhy would you take profits early? Basically to guarantee any pr

Primary topic: Investing

2,625 views

By Shaun RosenbergFeb 6, 20091 topic

Trading Stocks as a Business

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.nnThat is not how trading works. Sure if you did that you would occasionally get some pretty big winners, but you would also get some pretty big losers as well. That is why the first way you have to approach trading is by minimizing cost.nnYouâre going to have losing trades along wit

Primary topic: Investing

2,580 views

By Shaun RosenbergMay 19, 20091 topic

Mistakes of Option Sellers

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.nn1. Risk ManagementnnIt is really easy to forget about risk management when you are winning the majority of your trades. But you still need to consider risk management when you sell an option; otherwise you might wake up one day and find out that all of the profit you made during the last

Primary topic: Investing

1,975 views

By Shaun RosenbergAug 5, 20091 topic

Does Trend Trading Work?

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 âGuruâsâ 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 profitable. Jessie Livermore the greatest trader who ever lived was able to make over $100 million dollars by trading the trends in the market as opposed to buying and holding a group

Primary topic: Investing

1,834 views

By Shaun RosenbergJun 9, 20091 topic

Selling Spreads vs Naked Options

Two strategies for making money as an option seller are to either sell naked options or spreads. Selling spreads are often ntime the much wiser choice for the following reasons.nn1. Lower RisknnYou assume a much lower risk when you sell a spread as opposed to selling a naked option. For example, if you sell a naked call on a stock at say $50 your potential loss is unlimited because there is no limit to how far a stock can move upward.nnOn the other hand if you sold a $50/$55

Primary topic: Investing

1,716 views

By Shaun RosenbergJul 14, 20091 topic

How to Not Get Stuck in Bull Trap

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 participantâs right before it starts going down again. There are 3 things that you can do to help avoid being devastated by a bull trap. 1. Look at the Fundamentals Looking at the fundamentals of a company helps to avoid getting into a stock that will go to $0. Strong companies often have strong stocks th

Primary topic: Investing

1,612 views

By Shaun RosenbergMar 6, 20091 topic

How Many Shares to Buy

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.nn1. How much capital do you Have?nnHow much money do you have in your trading account? This is the most important thing to consider when you are deciding how much stock to buy. You donât want to have a large portion of your account in 1 trade becau

Primary topic: Investing

1,597 views

By Shaun RosenbergMar 18, 20091 topic

When to Use a Stop Limit Order

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.nnSo when might it be a good idea to place a stop limit order?nn1. When a stock is at resistance and you are expecting it to break through. nnSay a stock is at a key level of resistance of $45. If the stock breaks through to $47 you are willing to consider it a breakout and take the trade. And if it does break out you have

Primary topic: Investing

1,570 views

By Shaun RosenbergAug 5, 20091 topic

Trading Against the Trend - Unwise

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 up 40% right now. That may be true, but how could you have picked the bottom? You canât really use any fundamental analysis techniques because the market is always thinking 6 months in adv

Primary topic: Investing

1,568 views

By Shaun RosenbergAug 4, 20091 topic

Why is Now The Best Time to Invest?

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 Invested Yesterday History has shown that the best time to invest was yesterday. The earlier you start investing the more time you have to let your money grow and become your own personal go

Primary topic: Investing

1,496 views

By Shaun RosenbergOct 17, 20091 topic

Covered Calls vs Dividends

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 letâs look at what they each are. Dividends are your share of the companyâs earnings. When a company pays a dividend to their stock holders they are rewarding them for buying into the company by giving you some money as the company makes money. You do not take on any additional risk by receiving dividends and these small pay

Primary topic: Investing

1,438 views

By Shaun RosenbergMar 10, 20091 topic

Finding Good Undervalued Companies

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?nnHere are a few things you can look at.nn1. The P/E rationnEveryone looks at the P/E ratio. It helps you to get an understanding of how the price of the stock compares with the actual earnings of the company which is of course the lifeblo

Primary topic: Investing

1,412 views

By Shaun RosenbergOct 28, 20081 topic

Line Chart, Bar Chart, Or Candlesticks

With all the different ways to view stock charts today it can get kind of confusing. Figuring out whether to use a line chart, bar chart, or candlestick chart is the first step.nnLetâs compare them. Bar charts and candlesticks give you much more information than the simple line chart. They tell you the open and closing price along with the high and low of the day. nnEven though they both give off the same information I prefer the candlestick because it is much easier to rea

Primary topic: Investing

1,403 views

By Shaun RosenbergJul 22, 20091 topic

Why I Donât Counter Trend Trade

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 strategy is no one can do it. Sure you have people who may have called a bottom 2 weeks before it happened back in 2000 and are still talked about today because of it, but no one has ever be

Primary topic: Investing

1,388 views

By Shaun RosenbergMay 6, 20091 topic

Why Day Trading Can Be a Good Idea

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.nn1. You Donât Have the Gap RisknnStocks can gap, and sometimes they can gap big. I have seen stocks gap over 20% overnight on a rare occasion. If they work in your favor they can be great, but if they work against you they can be your worst nightmare.nnThe best part about day trading is that you do not have to worry about your po

Primary topic: Investing

1,385 views

By Shaun RosenbergSep 18, 20091 topic

Buying Pullbacks in the Market

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 rnespecially true if the longer term direction of the stock is up. In fact some of the worldâs richest people have made their money by buying after a pullback and selling later on when the stock was trading at a much higher price level.

Primary topic: Investing

1,382 views

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