Stock Option Trading (Basic Information) It is no secret that 2008 was a terrible year for most stock investors, and most probably things are going to get worst in the future. The US and the World economy are in a recession that will probably last at least for the rest of 2009. The recession translates into less demand for products sold by companies, which means less profits … [Read more...]
Ways to making money in future market
For many investors, the futures markets, with all of the different terms and trading strategies, can be very confusing. There are significant profits to be made in the futures markets but it is important that you understand how the different types of markets work and how you can achieve those profits consistently. This article explains how each market works and the different … [Read more...]
Advantages and Limitations of writing covered calls
Advantages of Covered Call Writing One of the best features of writing covered calls is that it can be done in any kind of market, although doing so when the underlying stock is relatively stable is somewhat easier. But writing covered calls is an excellent method of generating extra investment income when the markets are down or flat. If Harry in the above example were to … [Read more...]
How to Make Profit in a Bear Market
How to Make Profit in a Bear Market A bear market exists when equity prices are down 20 percent or more from their highs. Bear markets often result in investors losing a lot of money, but a few simple techniques can enable you to not only survive the storm, but make a lot of money. Sell stocks short. Shorting a stock involves borrowing shares from your brokerage firm and … [Read more...]
Futures & Options :Procedures
When you trade in futures contracts, you rarely take possession of the commodity, currency or financial instruments being transacted. That's because you are purchasing the right to buy or sell at a certain price on a certain date, not the item itself. With options this is not the case , you rent this right. Exchanges allow you to do this for very little money down, allowing the … [Read more...]