Stock Options Trading Strategies - Lean (21 Mar 2006) Professional stock options traders use the term lean to refer to one's perception about the directional strength of the stock. When you own a stock option and intend to hold it for a period of time, you are aware that you will probably be holding it while it goes up and while it goes down.
Stocks Options Trading (21 Mar 2006) Online investing has never been easier and more exciting in the history of the US stock market. Discount online brokerage firms like Scottrade are offering trades for less than 10 dollars. Ameritrade and E-trade are two other discount online brokerages who offer low price trading for the avid investor. Competetion has brought the price of trades down dramatically over the last few years. If you happen to be a Wells Fargo customer, you can even place trades for much less depending on your net assets. Other banks are starting to promote similar competetive offers. Ask your bank what they are doing to earn your business and if you don't like their answer check out their competetion online. Switching banks may sound like hassle to you, but it could save you lots of money long term if you get into investing online.
Exchange Traded Funds Primer (21 Mar 2006) Exchange Traded Funds (ETFs) are a group of passive index funds that trade on an exchange like an individual stock. At the time of writing there are 162 ETFs with $220 billion in assets under management trading on U.S. exchanges.
Analyzing Growth Stocks: An Important Focus For Any Investor (21 Mar 2006) Analyzing growth stocks is an important focus for any investor. This is especially important, since stocks are an irreplaceable part of any good investment plan, and since unbiased stock research is hard to find. Still, we need to look at the big picture once in a while. Since so much has changed lately, this may be a good time to "take stock". Many have reevaluated their investment strategies. The problem is that many of these reevaluations are moving people away from their goals. As the market has dropped, rather than moving toward buying at the cheaper prices, we've seen people move away from stocks, a strategy which has little long-term benefit.
Overseas Investing: Going Against the Mainstream (21 Mar 2006) TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This strategy works in the short term, but can lead to difficulty in the longer haul. It also prevents investors from finding the great opportunities that experts have missed.
Value Investing: Selecting From The Bargain Bin (21 Mar 2006) Picking a beaten-down stock requires a different kind of selection process. Normally, most companies beaten down this far have no earnings to speak of. Of course, if the company continues to earn money, one can apply normal valuation techniques. By that measure, many of these stocks appear outrageously undervalued: an indication of great buys. But this may also be a red flag that things are "too good to be true".
Dont Buy Worldcom! A Guide to Wise Bottom Fishing (21 Mar 2006) Over the past few months, several investment professionals have brought up the topic of the down-and-out company of the day and whether to buy now as a speculation. Last year, K-Mart was the big news, and everyone wanted to know whether this was a good stock play. Today the news is focused on WorldCom and its downfall. Thus, some people are pondering this stock for quick profit potential.
The Stock Market is a Roller Coaster: Prepare for the Ups and Downs (21 Mar 2006) Recent market trends bring this story to mind. On this emotional roller coaster, it's hard to know whether to laugh or cry. For all practical purposes, the war is over. That's good. But the battle to win over Iraq has just begun. That's bad. The markets in the U.S. have been cheered by the quick success. Good. The Japanese market has hit a new 20-year low. Bad. We could go on. It's been a wild month for news.