Stock Market Investing Is Not Trading

Investing is not the same as Trading. When you look for stock market education and training for beginners, make sure they are teaching you investing and not trading. There is a huge difference between the two. Investing is long-term owning of stocks for retirement. Trading is short-term holding of stock.

Applying Strategies to the Stock Market

Yet every strategy, beginner or advanced, can be applied to the stock market as well. Technical analysis is the same no matter the market. Unfortunately, many stock investors look at futures and forex trading and assume that there is some magical force working behind the scenes that makes trading more difficult than stock investing.

Stocks and Single Stock Futures

Stocks represent ownership in a corporation. The history of stock ownership has been dated as far back as ancient Mesopotamia. Today, the trading of shares in corporations occurs in various parts around the world.

CFDs and Stock Options – Tools to Get Optimum Results

CFDs developed in the 1990s in London, they are unique from single stock futures and stock options. They are an over-the-counter form of stock derivatives. CFDs have no set expiration date, unlike stock options and single stock futures.

Limitations of Selling Options

Option selling should be a straightforward endeavor. See an option you want to sell, sell it, wait until expiration, and collect the premium. You would think that it was as easy as pie, but for some reason it isn’t.

Two Advanced Covered Option Strategies

We use a protective option to protect the cash, futures, or stock position. The protective option is put in place to protect against any sudden drops or jumps, but with a little more imagination an option can be sold on either type of position to generate income to add to the overall profit of the position. Selling an Option against a Synthetic Option – This strategy is slightly advanced because there are three moving parts, but it is another way to initiate a covered option position, and thus it’s important to…

Straddle – Strategy to Know the Rhythm of the Market

Technically, a straddle is considered the purchase or sale of an equal number of puts and calls, with the same strike price and expiration dates. Realistically speaking, a straddle is a way to give yourself a choice. The most difficult part of trading is choosing whether you are going to be long or short; the second most difficult part is giving up that choice once it has been made.

Straddle, Strangle, and Execution

Being long and short the market at the same time is practically a revolutionary concept for retail traders, while professional traders have been doing it since the futures market’s inception. Somehow the concept has either been lost or is considered a form of trading blasphemy when it is suggested that retail traders incorporate this strategy into their trading. Retail traders often confuse being long and short in the market simultaneously with being delta neutral.

Penny Stocks – The Rewards of Trading Penny Stocks

Small time investors love penny stocks because of their sheer mobility. While other stocks may rise only a few percentage points, penny stocks have the potential of going 20% to 30% higher within a single trading day.

Natural Gas Stocks and ETFs

For those individuals interested in natural gas stocks and ETFs! Natural gas is a potential phenom that has the possibility of becoming a widespread alternative to gasoline and diesel.

Never Let Emotions Affect Investment Decisions

Most investors are not disciplined. They buy because they feel the stock should rise or sell because the stock should fall. A trend is not over until it is over, and you should have a discipline that tells you when that has occurred. Emotions will cause a person to act prematurely. Fear, pride, and greed are the enemies of disciplined investing.

Use Time-Stops on All Stock Positions

When a setup does not deliver on the promised price surge, then the setup ceases to exist and it is time to sell. A time-stop will help you keep your assets available for investments that perform. Without a time-stop, money can be tied up for many months or even years in non-performing investments.

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