April 30: 9 Deadly Trading Mistakes
The following are a list of nine things you want to avoid at all costs. Anyone of them can literally destroy your financial dreams and goals!
(more…)The following are a list of nine things you want to avoid at all costs. Anyone of them can literally destroy your financial dreams and goals!
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Tips For Successful Free Stock Trades – Part 1
There is no one-size-fits all solution in free stock trades. You will have your most successful free stock trades with a system that is customized to fit your needs, your style of trading and your risk comfort level. Then you need the discipline to follow your system, capital to work with and a willingness to approach all free stock trades with energy and enthusiasm.
With over 6,000 mutual funds available, it may be tempting to pick funds from a popular star or index rating system. Savvy investors, however, balance multiple factors in their selection process. Ratings represent only the historical performance of funds and cannot predict the future.
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Ten Direct Access Stock Trading Warning Signs
When direct access stock trading goes well, you feel great. When direct access stock trading goes poorly, it feels like a disaster. Many traders who are successful initially often end up losing all their gains and more. To stay successful, you have to vigilant. You need to watch your direct access stock trading behaviours and recognize if poor direct access stock trading habits have begun to creep into your direct access stock trading. Here are some direct access stock trading situations to be on the lookout for, and ways to turn them around.
Millions of investors guarantee their failure by selecting mutual funds and stocks based on quarterly or annual performance records. Do you chase performance? You might be buying high and selling low!
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Tax Deferral Strategies For Stock Option Picks
Several Different Scenarios For Stock Option Picks If the stock option picks were to trade down in an area between $80.00 and $82.00 by January 2004 expiration, you would be able to sell the stock option picks for their exact price at that time. You would lose a little money from the amount you paid for the collar and you would also lose a little money from $82.00 down to wherever the stock option picks closed on expiration day in January 2004.
(1) Stock Market is Tough Place to Make Any Money Consistently
NASDAQ or SP&500 averaged about -6% per year for 5 years between 1999 and 2003. Many individual investors who made killing in the internet bubble period got wiped out during those 5 years. Many who trusted Wall Street experts by investing their life savings into mutual fund had rude awakening after the huge loss and scandals in many of the famous fund names.
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Time & Diagonal Spreads For Stocks Options Trading
You Must Understand These Spreads and How They Affect Stocks Options Trading Behavior of the Spread In Stocks Options Trading. Time spreads can be a profitable investment strategy for stocks options trading if you understand the concept of time decay. A time spread is designed to take advantage of the fact that a stocks options trading decay curve is non-linear; that is, a stocks options trading value does not decay evenly over time. As an option gets closer to expiration, its rate of decay increases meaning the option loses value more quickly. That decay rate increases progressively day after day until expiration.
(1) CHK stock price $16.74, NAV $32.5
CHK is my favorite oil or natural gas stock. Here is updated Net Asset Value (NAV) table from CHK July 2004 earning release:
Table CHK PV-10 per share NAV vs Natural gas price
N Gas price NAV per share
$4.50 $16.11
$5.00 $19.60
$5.50 $23.11
$6.00 $26.61
$6.50 $32.5
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How Your Premium can Affect An Option
Premium is the total amount of money (price) you pay for an option. So, if the Microsoft (MSFT) May 65 calls cost you $1.50 then the $1.50 is the amount of the premium of the option. The total price of an option (premium) consists of two components. Those two components are intrinsic value and extrinsic value. Please view charts below for option price (premium) examples: