Hoping and praying that the stocks that you just bought will go up is not the best strategy to use, however it is the one very often used by the average Joe stock trader who is stock trading internet. The only salvation they have is that in bull markets most stocks will go up.
Statistics show that in a bull market about 75% of the stocks will follow the general trend and go up, and in a bear market 75% will also go down. Trading with the trend is the best way to trade as 9 out of 12 stocks will follow the trend and give you the best chance of making gains on your stock purchases.
But what if you own some nice stocks and don't want to sell when the market is clearly going down, or about to go down?. There are a few tactics that you can consider, both of which involve the use of options, CALL options and PUT options. There is the well known strategy called Covered Calls, and the much lesser known one called the Married Put.
If you are going to trade options it is essential that before you start trading you get the best option trading education that you can. You should also practice stock trading until you are comfortable with the process. This is a very important point that must be taken seriously, if you don’t understand the terminology and the theory then you should not be trading options. If the terms Put option, Call option, Married Put and Covered Call are new to you then don’t trade until you have studied sufficiently.
Selling calls against your stock in 100 share increments is the basis of the covered call strategy and it can provide about a 2-7% buffer against the loss in stock price. However a bigger drop in stock price will not be compensated for using the covered call strategy, in general.
Stocks in a bear market, and even in a bull market, can drop quickly on news or earnings releases, as much as 15 to 40% within a month. Using covered calls to protect your stocks will only provide limited protection of less than 7% at best and so will not save you if the stock takes a 40% tumble.
The better solution to providing downside stock protection is the option strategy called the Married Put. As the name suggests the PUT that you buy is used to provide protection when the stock goes down because Put options will increase in value when the stock decreases in value. The term married is used because the option that is selected has to be very compatible with the stock, in other words a good match, if the strategy is to work.
The selection of the best Put option is not straight forward and involves several criteria which are listed below:
1. The strike price of the option
2. The current stock price
3. Choice of options, in or out of the money
4. Put expiration time
Even though the married Put protection only has a limited life span if offers much more protection than the covered call. It can provide as much as 90-95% loss recovery in the event of a significant drop in the stock price.
The downside of the good protection is that you have buy the Put which is a cash debit whereas the covered call is a credit. But there are ways of offsetting this expense and there is much more to this strategy when executed correctly. The Married Put can be made to pay for itself and used to generate very good gains if the market, or stock to be specific, moves a lot.
The general idea of the Collar Trade is to combine the covered call and married Put strategy into one, this is what is called the Collar Trade. In effect you put a collar around the stock, you sell a call and buy a PUT. If you do this correctly most of the cost of the Put can be offset by the credit from the covered call so you can protect your stock at almost no cost. Yes this is a great strategy which the general public is unfortunately very ignorant of, and most brokers don’t understand.
The strategy that I have outlined above is unknown to the average stock market trader but is one of the best trading systems you could have.
A675438906
The process of stock trading has of course evolved a lot over the years as technology as developed. In the early part of the 20th century you had to visit a stock brokers office or trading room to buy and sell stocks.
When the postal mail became into common use you could then buy and sell stocks by mailing a letter to your broker, of course today nobody would think of doing either of these.
Today the most used method of trading is either using the telephone or stock trading online. When using the telephone to trade stocks you can still do it by speaking to a broker and giving them your clear instructions, or you can do it all yourself by using some form of menu system using the digital key pad.
But by far the most common form of trading is done online, so what do you need to know about stock trading online?, more than you may think!
Here are some points that you may not have considered:
1. Virtually all brokers can do stock trading but what about options, Forex and futures?. While you may not be interested in trading either Forex or futures it is quite likely that at some time you will want to trade options online, even if it is just covered calls. Make sure that your broker allows you to trade all the markets that you want to.
2. Of course the fee’s charged by your online broker is an obvious point to check, the fee’s can vary a lot and if you are doing hundreds or thousands of trades a year it can add up to quite a lot of cash. Did you know that you can just call up your online broker and ask for a reduced commission charge?, yes you can, I’ve done it. Of course they don’t advertise it but if you do a lot of trades they will want to keep your business.
3. Have you planned what you will do if you are trading and your internet connection goes down for any reason, it could be a power failure, problems with the internet or your PC crashing?. If you are day trading you will want to telephone your broker and manage your trade, probably you will just want to close it. How will your broker deal with your call, will they answer quickly, will they look at the charts for you and describe what is going on?. Make sure that your broker has good telephone support.
4. Are your trading funds safe?, make sure that your broker is a member of SIPC, the Securities Investor Protection Corporation, which protects against losses caused by the financial failure of the broker-dealer, but not against losses resulting from the decrease in a security’s value. Usually trading accounts are protected by the Securities Investor Protection Corporation (SIPC), up to $500,000 (including up to $100,000 for cash claims).
Whatever you decide to do, before trading stocks, options or anything else make sure that you get a good trading education by reading the best trading books that you can.
A768905423
Although it may seem obvious to most stock market traders there are a number of simple rules that you can follow which will ensure that you have more success when buying stocks:
In the USA stock market there are 3 major indexes which are each made up of a basket of stocks, they are the S and P 500 (also known as the S&P500), the DOW 30 and the Nadaq 100. These stock indexes generally only contain major blue chip stocks, as long as you buy from these 3 groups you will at least know that you are getting a well known solid stock.
For example the DOW30 contains major industrials and large multinational stocks such as Home Depot (HD) and Johnson and Johnson (JNJ) whereas the Nasdaq 100 mainly contains techical companies such as Apple (AAPL) and Miscrosoft (MSFT).
Always buy a stock that is liquid, this means that it is a highly traded stock, this will enable you to easily buy and sell at the price you want without having a delay. You will also get a lower spread, thats the difference between the BID and ASK price of the stock. For a stock to be considered very liquid it should trade at least 500,000 shares per day, ideally even more.
It is best to aviod stocks that are bellow $10 as this usually means the company is in trouble, although with the bear market of 2008/9 there have been a lot of good stocks at bargin prices between $5 and $10. Avoid buying a stock that is below $5 at anytime.
Another consideration to make is options, does the stock has options?, this will be important if you want to trade options around your stock, such as a covered call, or you may want to buy a PUT option in order to protect your stock.
Be very cautious about buying a stock just before it’s earnings are released, stocks often drop significantly if they come out with a poor report. Earnings are released 4 times a year with one of them being the annual report.
If you are going to trade options make sure that you learn how to trade by getting some good education. There are many swing trading strategies that work well with stocks in todays volatile markets.
Hoping and praying that the stocks that you just bought will go up is not the best strategy to use, however it is the one very often used by the average Joe stock trader who is stock trading internet. The only salvation they have is that in bull markets most stocks will go up.
Statistics show that in a bull market about 75% of the stocks will follow the general trend and go up, and in a bear market 75% will also go down. Trading with the trend is the best way to trade as 9 out of 12 stocks will follow the trend and give you the best chance of making gains on your stock purchases.
But what if you own some good stocks and don’t want to sell when the market is clearly going down, or about to go down?. There are a couple of tactics that you can consider, both of which involve the use of options, CALL options and PUT options. There is the widely known strategy called Covered Calls, and the much lesser known one called the Married Put.
If you are going to trade options it is essential that before you start trading you get the best option trading education that you can. You should also practice stock trading until you are comfortable with the process. This is a very important point that must be taken seriously, if you don’t understand the terminology and theory then you should not be trading options. If Put option, Call option, Married Put and Covered Call are new to you then don’t trade until you have studied sufficiently.
Selling calls against your stock in 100 share increments is the basis of the covered call strategy and it can provide about a 2-7% buffer against the loss in stock price. However a bigger drop in stock price will not be compensated for using the covered call strategy, in general.
Stocks in a bear market, and even in a bull market, can drop quickly on news or earnings releases, as much as 15 to 40% within a month. Using covered calls to protect your stocks will only provide limited protection of less than 7% at best and so will not save you if the stock takes a 40% tumble.
The better solution to providing downside stock protection is the option strategy called the Married Put. As the name suggests the PUT that you buy is used to provide protection when the stock goes down because Put options will increase in value when the stock decreases in value. The term married is used because the option that is selected has to be very compatible with the stock, in other words a good match, if the strategy is to work.
The selection of the best Put option is not straight forward and involves several criteria which are listed below:
1. The strike price of the option
2. The current stock price
3. Choice of options, in or out of the money
4. Put expiration time
Even though the married Put protection only has a limited life span if offers much more protection than the covered call. It can provide as much as 95% loss recovery in the event of a significant drop in the stock price.
The downside of the good protection is that you have buy the Put which is a debit whereas the covered call is a credit. But there are ways of off-setting this expense and there is much more to this strategy when executed correctly. The Married Put can be made to pay for itself and used to generate very good gains if the market, or stock to be specific, moves a lot.
The general idea of the Collar Trade is to combine the covered call and married Put strategy into one, this is what is called the Collar Trade. In effect you put a collar around the stock, sell a call and buy a PUT. If you do this correctly most of the cost of the Put can be offset by the credit from the covered call so you can protect your valuable stock at almost no cost. Yes this is a great strategy which the general public is unfortunately very ignorant of, and most brokers don’t understand.
The strategy that I have outlined above is unknown to the average stock market trader but is one of the best trading systems you could have.
The process of stock trading has of course evolved a lot over the years as technology as developed. In the early part of the 20th century you had to physically visit a stock brokers office or trading room to buy and sell stocks.
When the postal mail became into common use you could then buy and sell stocks by mailing a letter to your broker, of course today nobody would dream of doing either of these.
Today the most used method of trading is either using the telephone or stock trading online. When using the telephone to trade stocks you can still do it by speaking to a broker and giving them your clear instructions, or you can do it all yourself by using some form of menu system using the digital key pad.
But by far the most common form of trading is done online, so what do you need to know about stock trading online?, more than you may think!
Here are some points that you may not have considered:
1. Virtually every broker can do stock trading but what about options, Forex and futures?. While you may not be interested in trading either Forex, futures or bonds it is quite likely that at some time you will want to trade options online, even if it is just covered calls. Make sure that your chosen broker allows you to trade all the markets that you want to.
2. Of course the fee’s charged by your online broker is an obvious point to check, the fee’s can vary a lot and if you are doing hundreds or thousands of trades a year it can add up to quite a lot of cash. Did you know that you can just call up your online broker and ask for a reduced commission charge?, yes you can, I’ve done it. Of course they don’t advertise it but if you do a lot of trades they will want to keep your business.
3. Have you planned what you will do if you are in a trade and your internet connection goes down for any reason, it could be a power failure, problems with the internet or your PC crashing?. If you are day trading you will want to telephone your broker and manage your trade, probably you will just want to close it. How will your broker deal with your call, will they answer quickly, will they look at charts for you and describe what is going on?. Make sure that your broker has good telephone support.
4. Are your trading accounts safe?, make sure that your broker is a member of SIPC, the Securities Investor Protection Corporation, which protects against losses caused by the financial failure of the broker-dealer, but not against losses resulting from depreciation in a security’s value. Usually accounts are protected by the Securities Investor Protection Corporation (SIPC), up to $500,000 (including up to $100,000 for cash claims).
Whatever you decide to do, before trading stocks, options or anything else make sure that you get a good trading education by reading the best trading books that you can.
Stock option trading seminar from John Ondercin, Chief Options Strategist for OptionsMentoring.com. Part 3 of 5.
Duration : 9 min 32 sec
Why Settle for less? Make Money and enjoy the good life. Have the freedom to travel and live your life as you choose. Emini trading software lets you work when and where you want. Don’t be tied to desk, live the good life the Live Trading Support e-mini way. www.livetradingsupport24-7.com
Duration : 0:1:15
(safe stock market link) http://www.anrdoezrs.net/click-1264614-10555229?sid=wall_street_survivor_08
WallStreet Survivor: Play this free virtual stock market game.
Sign up and play for free using their the best online form. No credit card required to play WallStreet Survivor. You do not provide billing information. Its Free!
Best Wall Street New York Bear Market Strategies? Play this Free Stock Market Game with safety and urance.
New WallStreet Survivor game players will be given a the best initial cash balance of $100,000 of fictitious funds in their WallStreet Survivor stock market account.
To get started, click on the link in the description of this video. Ill show you where. Come with me. Over here.
Win The Best Prizes.
Free virtual stock market course.
Learn this stock market game in 3 minutes.
Play the only free virtual Stock Market game.
The virtual game at WallStreet Survivor is the best!
Shorting is making a bet that a stock will go down in price. To begin shorting at Wall Street Survivor, first go to Make a Trade. Once on the Make a Trade page, choose which portfolio you will be making the trade in: the contest portfolio or the permanent portfolio. Choose the stock symbol you are going to trade. Choose Short as the action. Now, choose the quantity and click Preview order. virtualgame.
You’re a game winner as soon as you join the WallStreet Survivor stock market community, with their the best course and more chances than ever to win fabulous prize packages.
The more you play stock market game, the more chances you have to win Daily, Free Weekly and Overall Warren Buffet Fabulous Cash prizes!
The Best virtual stock market course.
This stock market game ranks your virtual stock market portfolios performance in the game.
Game Starter virtual stock market course portfolios allow game beginners to trade on stock marcket with a couple of clicks, and learn the ins and outs of stock market without the risk.
WallStreet Survivor Course University: stock market game course tips and articles for newbies and pros alike.
The Best stock market game traders can risk bear market strategies and risky peer performance comparison investment strategies.
A Sell Stop Order is used by investors who own a stock to protect an existing profit or avoid further losses if the stock price drops. A stop order to sell must be placed below the current market price. This can be particularly useful in a falling, or Bear, market. gamecourse.
WallStreet Survivor Community Stock Marcket Stock Market shows recent virtual game trades from the WallStreet Survivor community.
Create a personal stock market watchlist to track potential options new virtal sock marcket trades.
Wall Street Survivo allows you to get in the drivers seat and manage your own fantasy stock portfolio while competing risk-free against friends, peers, and colleagues for the chance to win lucrative cash prizes. virtualcourse.
Collaborate and network in the WallStreet Survivor Forums, where members post course ideas and game strategize with their peers.
Watch free video content from Virtal Sock Marcket.
Stock Market Virtual In-depth Research Center with fabulous charts, stockmarket, earnings calendars, course, market summaries, virtualmarket, and stock market quotes.
Get fabulous Stockmarket Loyalty Points for learning, trading and inviting your friends!
Play with thousands of other the best virtual stock market game players!
Once the order is valid, you’ll see a green checkmark. You can also see the Stock Ticker, the action to Short, and the quantity at a negative amount, since you are shorting. The Order type is Market, since that’s the current market price. Click Place order to make the trade. playvirtual.
Best Wall Street New York Bear Market Strategies? Play Free Stock Market Game.
Duration : 0:1:13
From Wizetrade – Alan Knuckman, President of Commodity Explorer, recaps the stock market for February 13, 2008 and discusses good stock trading opportunities for February 14, 2008. Alan Knuckman uses the Commodity Explorer (www.commodityexplorer.com) software to explore potential trading candidates.
Try your FREE 30 day trial of Commodity Explorer at http://FUTUREFOCUS.notlong.com.
Duration : 0:4:50
Alan Knuckman, President of Wizetrade® Commodities, recaps the previous trading day and discusses good trading opportunities and news for today’s market. He utilizes the Wizetrade® Commodities (www.wizetrade.com) software to explore potential trading candidates.
Trade Commodities with the Most Powerful Trend Recognition Trading Software. Visit Wizetrade Commodities® at The Wizetrade Group .
Duration : 0:4:28
