July 11th, 2010
4 day week following July 4th proved to be a strong one after market gave in to bears for 10 trading sessions. Weak job market, continued European debt crisis seem to have done the trick during the trading sessions when everything looked bad. But last week seemed like bulls are back, they seem to have taken over the market. Death cross was observed by analysts and much bigger drop was predicted. However that does not seem right anymore.
Now that the second quarter is finished, a big focus is going to be on the earnings by various companies. Everyone is going to be watching these announcements. As we have seen from various reports such as Jobless claims etc, it does seem like recovery is slowing down. That is not necessarily a bad thing in my honest opinion. Expecting a steep recovery was like fool’s dream come true. Road to recovery is always bumpy and it takes a while for the jobs to get created. That is because of the uncertainty in the economy.
Bottom line is next few weeks are going to be very interesting given all the earnings. I am going to keep plenty of cash available to jump on the train on either side. But right now, I am sitting on the sidelines.
Tags: Earnings Season June 2010, Recession Over
Posted in Is it time to invest?, stock trading | No Comments »
July 7th, 2010
Its very depressing to see your portfolio in red every day five times a week! Obvious question in everyone’s mind right now is what to do! People have the tendency. There are several ways to make money in a bear market, some of them are listed below:
Short stocks: Shorting can be very profitable in a bear market like this. However keep in mind to be vigilant. You need to always remember that MOST people lose money in trading, specially in their first year of trading. So if you decide to short a stock, be sure to keep an eye on the stock price on a regular basis. One good news is all it takes for the market to rally. If you see signs of bounce play, thats a sign for you to check out!
Invest in Reverse ETFs: These ETFs are inverse of the popular stock indexes. Shares of these ETFs are traded just like any other share. SDS is a very popular reverse index ETF to look at. Its actually double inverse of S&P 500. So it doubles the drop in the S&P for you. You can make really good money if you play it carefully. Again remember, market is for losers!
Buy at dips, sell on news: Thats the old tested techniques. Buy after a stock with good fundamentals has dropped in few sessions and see on the immediate bounce. Do NOT hold stocks for too long when market is volatile.
Cash is the king: Be sure to keep some cash in your account so that you can use it when the unexpected happens and you have a lifetime opportunity to go “all in”!
Tags: Making Money in Bear Market, Reverse ETFs, Shorting Stocks
Posted in Aftermath of Stimulus plans, Learn how to invest, investing stocks and bonds | No Comments »
June 17th, 2010
After almost a month of bear market, it seems like we are heading towards the green land again. No blood on the street does look awesome. However investors are still being very careful. Job loss claims seem to be rising once again; that could be an indication of economical growth slowing down again!
Europe seems to be coming together with Spain being able to pay their debt on time. BP’s fate has been decided after them depositing 20B USD in escrow account. There is a good chance that BP will get bought over by a large oil firm. Their stock has gone down almost 50% in past few weeks, which does not reflect nicely on their cash position either after cutting out the scheduled dividend.
There might be some more sell off planned for next few trading days but overall market sentiment seems to be good. That is purely based upon strong US economy indicators such as retail sales.
Lets keep cash in the account to take advantage of any unforeseen dips in the market! Be sure to chase the solid stocks with promising EPS. This is the time for strong companies to become even more stronger.
Tags: Is this a good time to invest?, June 2010 Recession
Posted in 2009 Recession, Europe Crisis, Is it time to invest? | No Comments »
June 13th, 2010
Per Wiki, Binary Options Trading can be defined using following definition:
In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The cash-or-nothing binary option pays some fixed amount of cash if the option expires in-the-money while the asset-or-nothing pays the value of the underlying security. Thus, the options are binary in nature because there are only two possible outcomes. They are also called all-or-nothing options, digital options(more common in forex/interest rate markets), and Fixed Return Options (FROs) (on the American Stock Exchange).
Source: Learn Binary Options
CompareBroker team has decided to dedicate some time researching and producing educational material about Binary Options Trading. Lot of people think binary options is scam which is not really the case. If you are seriously interested in trading, you will know binary options is a very popular form of trading. Just like everything else, it comes with its own pros and cons. So as a trader, you need to pick your own battles and decide if this is for you or not. Anyways I am going to write a series of articles discussing Binary Options, various aspects to it. Given the speculative nature of this trading, I went ahead and wrote an article about risks associated with this form of options trading. The post is featured on main site, please visit using following link:
Risks Associated with Binary Options Trading
Tags: Binary Options, Options Trading, Trading Risks
Posted in Learn how to invest, Options Trading | No Comments »
