Archive for October, 2010

Penny Stocks Guide – How To Invest In The Right Penny Stocks

If you are new to the world of micro cap shares, we can expect that you will want a penny stock guide. As its name implies, it is a guide to the whats, wheres, whens, whys and hows of penny stock investing and trading that both the novice and the veteran investor and trader can take good advantage of. Keep in mind that said guide is only that – a guide. Ultimately, you have to make the decision whether to buy or sell or keep the penny shares at any time. Yes, your stockbroker may be of help but we still suggest being on top of your investments since it is your money at stake, not anybody else’s. Let’s start with the question of what a penny share is. Strangely enough, there is no general definition of what makes for a penny stock other than it can be defined in three…

What Is A Parity Between The Canadian Currency And The US Dollar

When we use the word parity, we are referring to something that is equal to some other thing. When referring to a Canadian dollar parity forecast therefore, we mean parity between the Canadian currency and the US dollar. We will briefly discuss the various factors that play a role when we prepare such a forecast. The US dollar has been in a declining phase for a number of years now. We can attribute this to a variety of factors. A major reason is certainly the lackluster performance of the US economy and the lack of trust in its ability to bounce back in a short time. As the dollar continued to decline, an increasing number of investors started to lose faith in this currency, switching to the Euro and other currencies that performed better. The Canadian dollar has been worth less than a US dollar for many years. As the…

Covered Call Options Calculator – Why Covered Call Traders Lose Money

Covered Call Options Calculator Anybody can invest and get the market rate of return, even my 84 year old grandmother who probably does not even know what stocks are. All you have to do is invest in something like a total stock market index fund. In fact doing this, you will beat around 70% of all the active fund managers. However, if you want to do better than the market, you better have a plan. Covered Calls is a way to do so. Covered Call Options Calculator Covered calls are the most conservative of all the various option strategies. It seems pretty simple but, many people have trouble making money with them. Most of their problems are one of four things: (1) failure to properly screen good CC candidates (2) failure to monitor and manage your positions once in them (3) not being in enough positions to be…

Covered Call Options Explained – Selling Covered Stock Options Versus Buying Stock

Covered Call Options Explained If you have educated yourself a bit about stock options and understand what it means to go long puts and calls, you also owe it to yourself to understand selling options, also known as “writing” options. The question that comes to mind when people see the value in having covered calls and puts in their portfolio is: what is the difference between writing an option contract against stock that I am buying or shorting, versus simply buying or shorting that stock? It is an excellent question and the answer is surprisingly simple. Covered Call Options Explained Let us say that you buy 100 shares of XYZ stock at $76 per share for $7600. At the same time you write one XYZ call with a strike price of 80, whose expiration is a few months away. For this you are paid a premium of let’s say, two dollars, or…

Covered Call Options Screener – Trading Covered Calls For Monthly Compounding Income

Covered Call Options Screener Covered call writing strategies are ideally suited to stocks which have good fundamentals and are also on the rise. Let’s assume you have adopted a strategy to write “out of the money” call options immediately after purchasing multiples of 100 of any U.S. ‘optionable’ stocks. There are 3 possible outcomes: Covered Call Options Screener 1. The stock remains below the strike price but doesn’t fall significantly, by option expiration date – AVERAGE OUTCOME… you keep the option premium and possibly make some gain on the shares if you choose to sell them 2. The stock is above the strike price at option expiration date – BEST OUTCOME… you keep the option premium PLUS enjoy a gain on the shares if and when you are called to sell them 3. The stock falls significantly below the strike price by expiration date – WORST OUTCOME… you keep the option premium and use it to offset…

Make Cash Using Trading Systems On The Web – Making Money from the Longer Term Trends

Make Cash Using Trading Systems On The Web Currency markets never sleep and several trillions dollars are traded everyday, making currencies the world’s biggest and most exciting investment market. Make Cash Using Trading Systems On The Web In recent years, mechanical currency trading systems, using technical analysis to predict trend movements have become increasingly popular as a way of locking into, and profiting from the longer term currency trends. Making Money from the Longer Term Trends Currency trading systems are ideal for making profits from longer-term currency trends, and they occur in all currencies. The longer-term trends in FOREX markets reflect the health of the economy. As economic cycles are relatively long and take years, so do the currency trends that reflect these cycles. A good currency trading system can enable traders to lock into, and make profits from these longer-term trends. When choosing currencies to trade…

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