Most investors have heard horror stories about buying and selling options. And they are all true! Some of those stories are when someone has placed all their investment capital into one stock and prayed that it will go up. This isn’t investing. It’s rolling the dice at a casino. The house always comes out ahead. Let’s […]
Warren Buffett, also known as the “Oracle of Omaha,” is an investing legend. The chances are, if you have any experience with the stock market, then you know who he is. He is regarded by many as one of the best if not the best investor in the world. However, he does go about investing […]
You watched in horror while that stock you own dropped over 30%. The relief you feel now after it recovered is outweighed by the dread of watching it sink again. Or, you followed the adage to buy when there is blood in the streets and bought at the market low in March and neither want […]
Gold and silver have been on tremendous runs lately. Gold is up over 40% from its March low while silver has more than doubled. If you are long precious metals stocks, metals ETFs, or the metals themselves, congratulations on your gains. At this point, however, you might be asking yourself it’s time to look at […]
Options investors should take the time to learn about market volatility. This measure can help investors with decisions about the overall trend of the market. The Chicago Board Options Exchange (CBOE) created an indicator that helps investors keep track of volatility. Appropriately, this index is named the Volatility Index or VIX. If you point your […]
What if there was an indicator that can help you determine the tops or the bottoms of a market? That indicator would seem like a worthy inclusion in your trading tools, right? Many traders feel that the Put-Call Ratio (PCR) is just the indicator for the job of predicting the direction of the market. Before […]
Many investors consider options investing to be risky. There are several reasons why people think that, but let’s explore three actual risks associated with options investing. The first risk has to do with expectations management. Novice options investors expect stock prices to move quickly. While that can happen, it often doesn’t. These investors load up […]
Sometimes we forget the basics. Even in a year with low implied volatility of the market you can scratch out just under 30% profits in our long and short-term portfolios. You can also cash out out income portfolio with a 20% profit by following basic strategies, not by gambling! So let’s review the basics. Here they […]
Long-term Equity Anticipation Securities (LEAPS) are options contracts with longer expiration dates than standard options, which usually expire in a year or less. The expiration dates for LEAPS are usually over a year, but some can have up to three-year expiration dates. Investors can use LEAPS instead of buying an underlying stock outright. This strategy […]
Perhaps the biggest advantage of investing in dividend-paying stocks is that reinvesting your dividends can increase your returns considerably in the long run. This strategy is commonly referred to as a dividend reinvestment plan (DRIP). Under a dividend reinvestment plan the dividends paid by the stocks you own do not reach your brokerage account at […]
