As you might suspect, there’s much more to options than just buying and selling calls and puts. (And if you need a primer on options basics, check out this link.) There are options strategies for making bets (speculating), reducing risk and generating income. Some strategies make a profit when a stock goes up. Some do well when a stock goes down. And some are designed to do best when things stay calm. You can also apply these strategies to the overall stock market, using options on an index such as the S&P 500.
You’ve probably seen one or more stock charts — maybe the ones with vertical bars and little horizontal dashes or those with rectangles that look kind of like sticks of dynamite. Some charts have a meandering line going across the whole graph. Is this all some type of visual Morse code? More like a clever way of conveying a lot of information with some lines and dashes. (Come to think of it, that does sound like Morse code.) This article explains how to read those bars, boxes and lines, so that you can understand the stories they’re telling.
Whether you’re a seasoned trader or you’re just starting out, one of the best things you can do to improve your performance is to keep a trading journal.
If you’re thinking about buying an investment property but don’t have the cash needed in your bank account, don’t despair. Luckily, there are more financing options than you probably realize. Selecting the best option for your real estate investment strategy and particular situation can even save you thousands of dollars.
You may think that owning stocks involves picking the companies you want to buy and phoning up your broker (or logging into your brokerage account) and telling them how many shares you want to buy. Holding shares of stock this way is known as direct stock ownership. And while buying stocks individually is definitely one way to invest, it’s not the only way.
I understand saving for retirement is something I should do, but there are lots of things I should do that I somehow survive not doing. Watching Star Wars comes to mind… The first time someone asked me what my goals for retirement were, I just laughed. I was 25 years old and couldn’t decide what to do that weekend, let alone where I would be at 35. You’re asking about my life at 65? Next question, please!
Back in 1985, rock band Dire Straits had a mega hit with a song called “Money for Nothing.” And who wouldn’t like to get paid without putting in any long hours of work?
Most people invest in stocks through either mutual funds or exchange-traded funds (ETFs). That’s usually the right strategy, because picking winning stocks requires both time and knowledge. Unless you work in the investment industry, both are likely to be in short supply. However, what if you’re heavily invested in funds but are thinking of taking a plunge into individual stocks? If you’re invested only in funds, branching into stocks can be a real education. Or more to the point, education is what you’ll need to make it work!
Part of the reason picking winning stocks is so difficult is because a great company isn’t always a great investment. That may sound like a contradiction in terms, but when it comes to investing and all the complexities of modern markets, it’s also a very real potential outcome.
Time is money. You’ve heard this countless times, but have you ever really thought about how this saying applies to your life? When you work, you are literally exchanging your time for money. You can also trade money for time. When you take an unpaid absence from work or turn down a “gig” to hang out with friends, you are giving up money for more time to do something other than work. However, making money doesn’t have to use your time. Money that is made without consuming any of the 24 hours you get each day is called passive income.