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Naked Puts

Naked Puts are supposed to be one of the riskiest strategies out there. But if done right selling naked puts can be even safer, and more profitable than buying stocks.

Stock Investment Volatility

Investment in shares has become like computer games. With a few keystrokes and the click of the mouse, you can do transactions of unlimited worth. This is the advantage as well as the danger!

Stock Investment Decision Making

Stock investment is a savings game. For conducting every game you need to know and follow prescribed rules and regulations. Any violation means, you are penalized. The penalty is in proportion to the severity of violations of the rules.

Securities Investor Protection Corporation (SIPC)

The Securities Investor Protection Corporation (SIPC) is a federally mandated non-profit organization in the United States (sometimes referred to as “Sip-ick”). The main objective of the organization is to protect investors from broker or dealer defaults.

Quality Investing

There are various kinds of investment strategies followed by different investors. Each strategy is underlined by the same principle of earning returns on the stocks invested in. One such strategy is quality investing.

P-E Ratio

The price-to-earnings ratio or the P/E ratio looks at the relationship of the valuation of a stock with its company’s earnings. P/E ratio of a stock is also known as its “P/E,” “PER,” “earnings multiple,” or simply “multiple.” It is actually a quantification of the price paid for a share in relation to the annual net income or profit earned by the company per share. P/E ratio is the most popular metric for stock analysis, though not the only metric.

Free Cash Flow (FCF)

In the financial world, free cash flow (FCF) represents that amount of capital of a company that they can distribute among the security holders – for example, equity holders, debt holders, preferred stock holders, convertible security holders, etc. According to some investors, though the main focus for all is on the earnings of the company, it can be faked hiding the “real” profit the company makes. However, it is very difficult to hide FCF and it provides a better view of the company’s earnings.

Financial Industry Regulatory Authority – FINRA

The Financial Industry Regulatory Authority (FINRA) is a self-regulatory organization (SRO) in the United States, which was founded under the Securities Exchange Act of 1934. It was a successor to the National Association of Securities Dealers, Inc. (NASD).

Discounted Cash Flow – DCF

The discounted cash flow (DCF) is a method of valuation or a fundamental analysis equation that is used to calculate the future cash flows for investments to get their present value. DCF is most often used by investors to calculate the time value of money and returns that they are to get out of an investment.

Staying With the Trend

I hear a lot of people talk about finding the bottom of a crash or finding the top of a rally, particularly this rally we have recently been having. There is always news out there somewhere that a trend will not continue for one reason or another, but sometimes it is best to ignore all the noise out there and just go with the trend. There are many reasons to just hop on board and ride a trend regardless of what the noise thinks.