Applying the Combined Approach as a Diversification Method
Another aspect in combining analytical approaches is the resulting diversification this method provides. With fundamental analysis, you invariably end up diversifying by the attributes of competitive...
View ArticleOptions to Leverage and Manage Your Portfolio
Most investors and traders start out with two assumptions. First, their stock market activities are going to involve buying and selling shares of stock (either directly or through a mutual fund)....
View ArticleOptions Basics Explained
There are two kinds of options, both traded publicly on the open exchanges. First is the call, which is an intangible contract giving its owner the right, but not the obligation, to buy 100 shares of...
View ArticleValuation of Options
The option’s value is called its premium. This is the current value of each option contract. It is expressed as a single numeral with two decimal places. For example, an option might be priced...
View ArticleBasic Long Option Strategies
The rudiments of options are not easy to grasp, and for that reason trying some paper trading makes sense. This helps you to try out basic strategies, master terminology, and learn how the system...
View ArticleCovered Calls
Another basic strategy is the covered call, which is a two-part strategy. First you must own 100 shares of the underlying stock. Then a call is sold and the risks of going short are covered by the...
View ArticleThe Flexibility of Options
Options have dozens of uses beyond the basic strategies. They can be used to open spreads, for example. These are strategies consisting of opening two or more different options at the same time and on...
View ArticleA Sensible Approach to the Market
Whether you decide to approach the stock market as an investor or as a trader, or by combining both disciplines, your success is going to rely on how effectively you gain experience and knowledge and...
View ArticlePopular Stock Market Myths
The stock market is a culture based partly on persistent myths. To a large extent, belief in myths is wishful thinking and, in some cases, magical thinking. This is a belief in something that simply...
View ArticleThe Learning Curve of Investing
How much can you learn simply by studying? You can read books, study information on web sites, attend seminars, and spend months in paper trading. Yet when that is all done, you still do not really...
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