Bear spread in which a put with a higher striking price is purchased and one with a lower striking price is sold, both options having the same expiration date. This spread is sometimes more broadly categorized as a "vertical spread": a family of spreads involving options of the same stock, same expiration month, but different strike prices. They can be created with either all … [Read more...]
Making money in the Bear market
Are you familiar with the concept, ‘bear market?’ Unless you are involved in the stock market, it would be difficult to understand the term, ‘bull market’ and ‘bear market.’ Making money in the bear market is not quite easy as you need to know the best investments available. Who are bulls and bears in the stock market? Now when we say bulls and bears in the market, we … [Read more...]
Bulls and Bear : The concept
Bear : An operator who expects the share price to fall Bear Market : A weak and falling market where buyers are absent Bull : An operator who expects the share price to rise and takes position in the market to sell at a later date. Bull Market : A rising market where buyers far outnumber the sellers A stock market bull is someone who has a very optimistic view of … [Read more...]
What are the Benefits of trading in a bears markets?
Everyone is concerned about the scenario of how terrible bears markets are. But there are many ways in which trading and especially learning to trade in a bears market can help you. 1. Stocks tend to go down faster then they go up. I know to most of you that does not seem like a good thing but think about this. If a stock is moving in either direction you can … [Read more...]
Aging Demographics – The Other Super Secular Trend
In Dow Theory terms, this would mean investing in a period of severe undervaluation and holding on to your stocks (or dollar cost-average into your portfolio) until the end of the bull market – such as September 1999 when the Dow Theory bear market signal was given -- and then stay out until the primary bear market has fully asserted itself. since then, I have maintained that … [Read more...]