Posts Tagged ‘Stock Market’

Some Tips For Day Trading the Market

January 12th, 2018 Comments off

Day trading the stock market involves the rapid buying and selling of stocks on a daily basis. This technique is used to secure fast profits from the constant changes in stock values, minute to minute, 2nd to 2nd. It is rare that a day trader will remain in a trade over the course of a night into the day after.

The main question that the general public ask when it comes to day trading is straightforward : ‘is it critical to sit at a P. C. PC watching the markets all day 24×7 to be a successful day trader?’

The answer’s no. It’s not important to sit at a P. C. all day long. There are a number of things to consider, but generally the rule of day trading is to trade when everybody else is trading.

As with all financial investments, day trading is risky in reality, it’s one of the riskiest forms of trading out there. The stock prices rise or fall according to the behaviour of the market, which is completely unpredictable.

If you are constrained by a small amount of capital, you may not be in a position to buy large amounts of a stock, but purchasing only a small amount can add to the danger of a loss. And, glaringly, it is not possible to forecast with certainty which stocks will end up in profits and which in losses.

It is also crucial to know that in day trading, it is the number of shares instead of the cost of shares that should be the focus. If you day trade, you will face losses, but even for the more expensive stocks, the loss should be questionable, because prices don’t usually vary to an intense degree over the course of only one day.

The day trading industry deals in a large variety of stocks and shares. Here are only a few : Growth-Buying Shares shares made of profit, which continue to grow in value . Eventually, these shares will start to decline in price, and an experienced trader can usually predict the future of this type of share.

Small Caps shares of companies which are on the rise and show no signs of stopping. Although these shares are sometimes inexpensive, they are a very dangerous investment for day traders. You’d be more safe to go with enormous caps and / or mid-caps, which are more secure and stable thanks to a premium.

Unloved Stocks company stock which has not performed well during the past. Traders buy these shares in the hopes of generating profits if and when the stock rises in value. As with little caps, unloved stocks could be a risky choice for day traders.

These examples are not your sole options when it comes to day trading stocks. The best way to figure out which type of stock is right for you is to invest some time for careful research, a knowledge understanding of market patterns, a solid strategy, and a controlled trading plan.

Know as much as practicable about the industry before you start basically trading. You need to learn how to trade ONLY when the market gives the right signals

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When The Out Of The Money Covered Call Writing Strategy Fails Miserably

December 16th, 2017 Comments off

There are many investment training strategy websites and e-books that promise you incredible things. One of the more common stock market trading strategies taught is to sell covered call options on stocks. These websites maintain that you can earn monthly returns up to 10% or more using that very strategy! Sound good? Read on.

Under the right circumstances, impressive monthly returns can be achieved by selling out-of-the-money covered call options. This strategy has been successfully used by me. However, it is not without its disadvantages. The public has not been properly educated by the website and e-book marketers. This strategy is marketed as having low risk and being conservative. They leave you holding the bag when it all goes wrong.

When the stock market is rising in value selling out of the money covered calls works well and not to mention the importance of having call tracking. Additionally, when the stock market is neutral (not going up or down by any meaningful amount), this strategy also works well. Please tell me when the last time was that the stock market remained neutral for any length of time?

We are currently in the midst of an extremely volatile market. We have recently seen swings in the Dow as much as 200 points in either direction on any given day. Hardly a profitable market for an out-of-the-money covered call writer. Once that stock you are holding starts to decline, so do your profits. I can assure you that profits can evaporate very quickly. I have seen stocks fall from $10 per share to $1 per share over night! There is never enough premium on an option sale to cover that kind of decline.

You want the stock to get called, that is the key to out of the money covered call writing. Many so called experts do not want the stock to get called. They say you should keep the stock so you can continue to sell a covered call option on it in future months. This strategy is flawed. What you should do is select stocks that are moving up in value, in a rising market. Those stocks will make you the most money. I am happy when a stock gets called because I ended up making the profit that I expected.

What happens if the stock goes way up in value? The stock simply gets called away if it rises up past the strike price and stays there through expiration. Isn’t that what you wanted in the first place? Because you did not participate in those gains you may feel like you left money on the table. If you feel that way just buy the stock outright and don’t sell covered call options on it. Why not just let the stock get called away, take your profit and move on? Then look for stocks to buy and sell calls on for the next month.

Remember, selling out-of-the-money covered calls can provide an excellent source if income in a rising stock market. However, this strategy is less than ideal in a stock market like the one we find ourselves in today. There are, however, other strategies that will offer significant protection in a volatile or declining stock market.

Marc Abrams Is A Certified Public Accountant With Over 15 Years of Financial And Investing Experience. Visit Marc’s Website at To Learn More About Successful Covered Call Option Writing Strategies In Today’s Stock Market.

Gold Investing Attracts Attention Like Nothing Else

December 15th, 2017 Comments off

It can be hard making a few extra dollars these days. Believe it or not, there is a specific way that you can definitely get rich with. Gold investing is a safer investment than the stock market is. People all over the world are getting involved with gold and making huge amounts of money. Find out what you need to do in order to get started.

When you are looking into the world of gold investing, it may be good to have a guide. There are plenty of brokers out there that would love to give you what you need. Most brokers will not charge you anything until your investment actually makes money. If you do not know very much about gold, it may be a wise choice to get a broker.

The internet is going to be another great tool for you. If you are looking to take out some hard work in the gold investing process, look at websites. There are so many currency trading and gold investing websites that will get you some great money.

The world of gold is a fast paced world. Once you are in, you need to make your money and get out. If you are looking for a long term investment, this is not going to be one. The great thing about gold is it is a very short investment. Once you make your money you are all done!

Invest with a level head. You want to ensure that you are financially stable enough to invest in gold. If you do not have a lot of extra money, do not spend what you have. When you have an extra couple of hundred, then look to investing.

Gold investing is a whole lot better than investing in the stock market right now. Take all of these tools along with you, when you feel you are ready to invest. Once you make your quick money, get out while the going is still good!

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You Need To Check Your Emotions At The Door Before You Invest In The Stock Market

December 3rd, 2017 Comments off

We have all been victims of other people’s stock advice. “This stock is a sure-fire winner!” Sometimes the advice comes from a neighbor, or a close friend. Many times it comes from our trusted investment advisor.

Human nature gets us thinking. Do I want to risk losing out on these supposed gains? Without batting a rational eye, we invest. The end result isn’t usually pretty. However, we continue on and repeat this cycle over and over again.

What is wrong with our thinking? The answer is, for many of us, that emotions rule the day. They are so powerful that we often ignore our rational, logical thoughts. The hope for a quick buck or opportunity to “get rich quick” gets those emotional juices flowing. You must realize that it is not the rational side of our brain that is tripping us up, but the emotional side.

Many sound investment plans get ignored due to emotions. If you work at it, you will be able to quiet that emotional side that is prone to ignore your well thought out investing strategy. More importantly, you’ll be able to stick to your plan through both good and bad times.

Casual investors make the same mistakes over and over again because they cannot shake the demons that compel them. It is this type of trader that cannot overcome emotions while investing. They usually lack the ability to treat investing like a business and instead treat it like a game of poker.

The main driving emotion for many investors is the fear of losing money. Making a quick buck is the next one. Don’t forget about the king of all emotions, greed. All of these cloud judgment and prevent you from thinking clearly about how an action affects your portfolio. When this type of thinking is in play, disaster can strike rather quickly.

My emotions were extremely difficult to get under control when investing. I managed to finally tame that beast and let my rational side control my investing decisions. In order to do this, I developed a system that I use to invest with consistent success. I have set parameters to follow that guide me to the right kinds of investments. It is a logical system in black and white. Sure, the emotional beast tries to rear its ugly head from time to time, but I remain diligent and stick to my strategy.

There is no shame in making poor investment decisions over and over. There is good news, you can change things starting now! I made that change and as a result I have been more successful than I ever have been investing in the stock market. I also managed to do this when the stock market was in a sharp decline! I promise you, to be a successful investor all you need is a solid investment strategy and the ability to keep your emotions checked at the door. Take the advise of someone that did that very thing!

Marc Abrams is a CPA with over 15 years experience in financing and investing. Visit Marc’s website to learn more about successful stock market and option trading strategies that can teach you to invest for the future.

The Forex-trading Foreign Currencies Daily

November 30th, 2017 Comments off

Looking for a new place to put your money? Have you gotten board with the typical exchanges and their banker’s hours? When you are looking for a new way to make your riches, you may want to consider the business of trading foreign currencies. Currency is traded on the Forex, or the foreign exchange market. It is completely different from every other trading market in the world.

The Forex is not a physical market like those in New York, Tokyo or London. You cannot actually go stand on the floor of the Forex like you can the NYSE. This is because the Forex is completely virtual. All trades and transactions with Forex occur over a network of computers that truly never sleep. Unlike other markets, the Forex, in essence, is always open for business.

The Forex is not about stocks and futures; it’s all about foreign currency exchange. Currency does not have a definitive value. It is all a matter of timing. The value of currency fluctuates drastically over the course of hours. On the Forex market, banks and other financial institutions trade foreign currency. Currency may fluctuate for a variety of reasons, one of which is the current political climate.

Currency does not have a fixed value. The value of each country’s currency changes rapidly and repeatedly throughout the course of the trading day and night. One the Forex, currency value can change for a plethora of reasons or no reason at all. Due to this uncertainty, all trades on the Forex are based predominantly on speculation.

There are several factors which play into currency fluctuations. The financial status of a country favors greatly into the determination of market value. Changes in gross domestic product and inflation cause swings in the value of each country’s currency.

Currency can change value when there is any sort of political upheaval within a country. Wars are won and lost and Forex currencies rise and fall in direct relation. When we have Presidential elections, the price of the U. S. Dollar can change drastically. The economic status of a country has everything to do with the value of its currency on the Forex market.

If you’re using a good Forex bot, you can expect about a 70% certainty rate on market speculation. Because of the risks involved, typically the biggest investors in the Forex market are banking institutions, national governments and speculation investors. However, anyone can trade on the Forex through a Forex broker. Unlike the big commissions that are paid out to mortgage broker buffalo ny, Forex brokers make a flat transaction fee.

While it’s hard to know for certain what is going to happen with the market, Forex signals send warnings to Forex bots and investors hope to minimize loss. The Forex is the most liquid of all trading markets in the world. Each day over three trillion dollars worth of currency is bought and sold on the Forex market.

The Forex market is the fastest moving market in the world. While it is completely unlike any other market, it is the most liquid and is open virtually 24/7. Trading on the Forex market is purely speculative. With the use of a Forex bot, you can greatly improve your chances of doing well. As with any financial decision, Forex trades should be carefully considered.

This way you get back your initial investment plus a profit. Stock Trading Software Many use programs designed for the FOREX currency it can promote protect your investment. In conclusion, if you really want to find a hot market, look no further than FOREX.