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Stock Option Credit Spreads – A Low-Risk Monthly Income Technique Used by the Pros

Risk-adverse investors can reliably generate a stream of monthly income from “the markets.” Wall Street pro’s, and many armchair investors, employ stock options to provide income that does not rely on correctly divining the direction of the market. The specialized option strategy for accomplishing this is the option credit spread. Properly selected, option credit spreads can deliver high annualized rates of return that are essentially independent of market direction and market volatility. As with any undertaking, you need to know and follow the rules – in this case, the rules are the “entry criteria” the investor uses to identify and establish his credit spread positions.

I’ll Sell Once I Get Back to Even

As a financial advisor, nothing pains me more than to hear these words from investors. But more often than not, after experiencing a significant drop in value from a stock, individual investors have this misdirected belief that waiting for the price to return to what they bought it for is the most prudent decision.

Investment Alternatives to Playing the Stock Market

Under currently prevailing market conditions, many Investors are reducing their exposure to equities, and seeking alternative assets to boost returns without dramatically altering their overall risk profile. The current environment for investors can be categorised by:

Top 10 Bear Stock Market Investing Tips

Stock market investing in a bear market can be tricky because the entire market seems to be on the decline. Look for undervalued stocks which have a price lower than the anticipated stock value in the near future. If the company is solid and shows promise but has a very low stock price it may be a good choice, especially in a bear market.

Fund Managers and Broker Recommendations

Stock-broker research falls short in one critical area. It rarely persuades fund managers to invest.

An Expert’s Guide About How To Buy Penny Stocks Online

Finding out how to buy penny stocks online prosperously can help propel you into the Internet stock world, though you best arm yourself with a little knowledge first. A couple of important…

How To Buy Penny Stocks Online: A Penny Stock Description

You can be the conqueror of your finances if you know how to buy penny stocks online. If a company trades its shares for less than five dollars then it is sometimes classified as a penny stock.

Small Caps and the ‘Liquidity Trap’

Executives of small cap companies increasingly complain their shares are illiquid and performing poorly as a result. Is this association valid?

Timing the Stock Market for Beginners – How to Buy Low and Sell High

Buying low and selling high is a tried and tested formula for many people who have seen a lot of profit in the stock market. However for beginners, it could be quite difficult to determine when actually to sell or buy stocks, especially when the prices are on the move either up or down. Timing is an essential skill and here are a few principles to follow in order to buy low and sell high.

Finding Value in Undervalued Stock

What goes up must come down and the reverse is just as true when it come to our Dow Jones. This year stocks went up, then down, and then they went back up again. With the current volatility it is almost impossible for the small investor or the amateur to “time” the market. Even in the best of times with a relatively stable market is difficult making a profit trying to outguess the market and in these times it is a fool’s folly.