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This is first in my “How To Make Money In The Stock Market” series of articles. The articles are in the form of frequently asked questions. This means you can focus straight in on the important points, learn practical application and see the results quickly. You wont learn how to get rich quick but you will learn to trade based upon sound underlying historical principles. These skills will lead to independent financial security for you and your family.

So, who want to make a great deal of money? Well, everyone would like to do it. Read this and you’ll have a better understanding of the matter.

Although writing covered calls is a fairly simple strategy to understand and to trade, and even though it can be employed by conservative investors, it is never entirely without risk. Identifying the best potential covered call trades can also be a challenge due to the vast universe of optionable stocks. And while a covered call strategy can be profitable even in bear markets, some market conditions are more challenging than others.

Selling options can be a very profitable journey. Placing combining those options into spreads can be a great way of doing this for these reasons.

With nothing at stake, you can show that you are able to succeed in paper trading because the psychological element is largely held in check. Whatever trend following method and technical analysis indicators you are using, you are able to apply that without emotion.

Opportunities to invest in penny stocks is attractive for the investor. You can start without a lot of money but, make sure you have a entry and exit plan before you start investing.

The price of stocks is purely a function of ‘supply and demand.’ The more money people invest in the stock market, the higher the prices of stocks go. Because of the introduction and popularity of the 401K, Roth IRA, etc., coupled with an aging Baby Boomer population trying to make up for lost time, the overall demand for stock mutual funds soared during the 90’s.

Investment means putting money in an asset that can yield profit in the short, medium, or long term. For a new investor, it is very important to understand the different types of investments before deciding on an investment type.

Every crisis is an opportunity. Presently the world economy is facing an unprecedented crisis. The slump in economy has resulted in a downswing in the share market. Can an investor hope that shares will yield profit at this juncture?

Normally an investor expects two things from the share of a company in which he plans investments. Regular dividends and capital appreciation! With proper investment plan and choices, this objective is achievable.