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Articles from Shaun Rosenberg | Selfgrowth.com
- Stock Market Mistakes, What To Avoid - by Submitted on Mar 15, 2008 from Shaun RosenbergThere are 6 critical mistakes that all traders in the stock market make. These mistakes are made by amateurs and experienced traders alike. They can be devastating and make one lose all of their money in the stock market. These are mistakes you definitely want to avoid. That is why I have put ...
Views: 692 - Take Complete Responsibility When Trading - by Submitted on Dec 08, 2008 from Shaun RosenbergAll successful traders will take complete responsibility for their trading actions. You will not find a successful trader who blames others for losing their money in the stock market. This is the first step to becoming a great trader. This step is very important because until you take ...
Views: 691 - What about a Collar? - by Submitted on Feb 02, 2009 from Shaun RosenbergToday the markets have been acting crazy. Stocks will be up huge one day and down huge the next. In general they are not doing very much. That is what makes covered calls such a great idea. When you buy a stock and sell a call you make an income from selling the calls and you do not need ...
Views: 691 - Using the Option Delta - by Submitted on Apr 01, 2009 from Shaun RosenbergThe Option delta is a great way to predict how much an option will increase or decrease as the stock moves one way or another, but how do you use it? A delta is a number between 0 and 1 that estimates how far a stock option is likely to move for every 1 point move in the stock. Every option ...
Views: 690 - Why Spreads, Why Now? - by Submitted on Feb 25, 2009 from Shaun RosenbergOption spreads allow you to make money as a stock does not move into a certain area. For example if you made a bull put spread by buying the $40 put and selling the $45 put you would be profitable as long as the stock stayed above $45. They give you a great way to profit in the stock market. ...
Views: 690 - Never Move Your Stops Down - by Submitted on Oct 27, 2008 from Shaun RosenbergIt is very tempting to move your stops down during times of panic. It becomes even harder when you believe the market is overreacting to bad news. But holding your ground is absolutely critical when trading. When you buy a stock you need to have a stop level. This is a level that is the ...
Views: 689 - Technical Analysis? - by Submitted on Jan 02, 2009 from Shaun RosenbergTechnical analysis is a non-traditional way of picking stocks to buy and sell. It is based off of human emotions and patterns in those emotions. A technical trader realizes that stocks do not move up and down because a company is making or losing money. A stock goes up and down based off of ...
Views: 689 - Why Look at a Company’s Debt? - by Submitted on Mar 11, 2009 from Shaun RosenbergWhen picking a company for a long term investment it is important to look at many different factors of that company. One of which is the amount of debt the company has. There are two major reasons you want to look at a company’s debt. 1. How Long will it be around? If a company has a ton of ...
Views: 687 - Covered Calls for Volatile Times - by Submitted on Jan 17, 2009 from Shaun RosenbergSelling covered calls is always a great strategy, but it becomes even more important when the markets are volatile like they are today. For all those who don’t know what a covered call is, it is a strategy where you buy a stock and sell call options on it. These call options allow you to ...
Views: 685 - Being Partially Bearish - by Submitted on Jan 29, 2009 from Shaun RosenbergIt is possible to make money on a down trending stock without having to short it. Maybe you want to make money as a stock falls, but would also like to make money if the stock stays still. In this case you may want to use a bear call spread. This spread allows you to take a partially bearish ...
Views: 683 - Why Short Term Trading Works the Best - by Submitted on Apr 09, 2009 from Shaun RosenbergShort term trading is a much better way to approach the stock market. It gives you so many different advantages. 1. It allows you to Cut your losses The first thing you want to do is to not lose money. The more you lose the less likely you will be able to make up that loss and actually ...
Views: 682 - Investing for Dividends - by Submitted on Apr 14, 2009 from Shaun RosenbergInvesting for dividends can allow you to make a nice consistence cash flow from your investments. So what should you look for when finding long term dividend plays? 1. Strong Companies The company has to be pretty stable to say the least. If a stock goes down 50% it doesn’t matter that you ...
Views: 681 - Buying Options On Up trending Stocks - by Submitted on Jun 02, 2009 from Shaun RosenbergBuying options on up trending stocks can be a very effective strategy at times. There are many reasons why this can be so effective. 1. Trends Continue A trend can continue for a very long time, instead of trying to call the tops or bottoms it has always been more effective to just trade with ...
Views: 680 - Staying with the Trend - by Submitted on May 05, 2009 from Shaun RosenbergI 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 ...
Views: 679 - What to Know When Trading Options - by Submitted on May 18, 2009 from Shaun RosenbergStock options give you a wonderful way of getting leverage in the stock market. But it is also important to remember that sword goes both ways. Before you trade options you should consider the following. 1. Options should not make up a large part of your account Options are better used for ...
Views: 678 - Why Use Stops - by Submitted on Apr 09, 2009 from Shaun RosenbergStop orders allow you to cut your losses short as well as use proper risk managements. So besides the fact that stocks can fall fast, what other reasons are there for you to use stop orders? 1. It allows to manage risk When you place a stop order on a stock what you are doing is telling your ...
Views: 678 - Benefits of Vertical Spreads - by Submitted on Apr 22, 2009 from Shaun RosenbergVertical spreads allow you to profit in the stock market without having to predict what will happen next. It involves using options and helps you make money if you can predict what will probably not happen in the future. For example we find a stock trading at $70 and expect it to go up. We ...
Views: 677 - Limiting Losses in the Stock Market - by Submitted on Apr 06, 2009 from Shaun RosenbergIt is amazing that everyone talks about getting the huge returns in the market, but not many people focus on protecting yourself from taking huge losses which is the most important part of trading. Think about it if you buy a stock at $30 and it falls and crashes to $10 you have just lost 66% ...
Views: 677 - Why I Use Technical Analysis - by Submitted on Apr 08, 2009 from Shaun RosenbergThe best way to invest in the stock market is by using technical analysis and technical indicators. And here is why that is so. 1. Technical Analysis can give you specific Buy Signals. When you are looking at the fundamentals of a company you can find stocks that are undervalued or ...
Views: 677 - Why Look at a Company’s PE Ratio? - by Submitted on Mar 17, 2009 from Shaun RosenbergThe PE ratio tells you if a stock is overpriced when it is compared to its earnings. It is suppose to be a good indicator for weather a stock is undervalued or overvalued. By why does it work? 1. You want to invest in strong earnings Obviously the more money a company is making the better an ...
Views: 677 - Top Reasons to Cut Your Losses Short in the Stock Market - by Submitted on Mar 27, 2009 from Shaun RosenbergThe biggest mistake I have seen people making in the stock market is not getting out when they are wrong. Instead they allow a trade they are in to pull back 50% or more if things turn against them. The larger you let your losses get the shorter you will be trading the market. Here are the ...
Views: 676 - Trading on the same side as The Trend - by Submitted on Jun 18, 2009 from Shaun RosenbergTrading with the trend is the best way to make a great return in the stock market. Regardless of what your strategy is trading on the same side as the overall trend can improve your winning streak. Trend trading has 3 major advantages. 1. Trends are likely to continue for a while A trend is ...
Views: 676 - Covered Calls vs. Just Holding Stocks - by Submitted on May 24, 2009 from Shaun RosenbergCovered calls are a great way to increase your return in the stock market. Some of these slow moving stocks are better for selling calls on then just holding the stock. Here are 4 reasons why selling covered calls can be a better alternative then to just keeping your stock and hoping it pays ...
Views: 674 - What All Successful Trading Systems Need - by Submitted on Nov 08, 2008 from Shaun RosenbergSuccessful trading systems provide the best way to make money in the stock market. In order for a trading system to work it needs a few things. The first thing you need in a trading system is specific buy signals, when X happens you do Y. This seems pretty obvious and most new traders stop ...
Views: 668 - Changing Your Trading Rules - by Submitted on Dec 17, 2008 from Shaun RosenbergChanging your trading rules can be a good approach if your rules aren’t working. But if they are there is no need to change them just because you have a few bad trades. You have been good, following your trading rules and having some success. But you start to notice some flaws in your ...
Views: 667 - Option Spreads Give You More Variety - by Submitted on Feb 13, 2009 from Shaun RosenbergOption Spreads can be very helpful for anyone who want to enter the world of short term trading but is having problems finding stocks that will do exactly what they are expecting. Spreads use creative ways to make it easier to make a monthly income from stocks. The best thing about spreads is ...
Views: 667 - Benefits of Placing Option Spreads - by Submitted on Mar 16, 2009 from Shaun RosenbergSelling options can be a very profitable journey. Placing combining those options into spreads can be a great way of doing this for these reasons. 1. Higher Probability Creating credit spreads allow you to gain a much higher probability of being correct then if you just buy the stock or buy ...
Views: 666 - Mistakes of New Technical Traders - by Submitted on May 19, 2009 from Shaun RosenbergNow traders who try to make money using technical analysis often make many mistakes. Some of these mistakes are. 1. Risk Management Risk Management is the most important part of trading. If you do not control your risk you will feel the pain eventually in your account. Many new traders will ...
Views: 665 - Concentrate on One Trading Strategy - by Submitted on May 13, 2009 from Shaun RosenbergIt is much better to concentrate on just one or two different strategies and not try to master everything. There are many different reasons why this is so. 1. Everyone is different Everyone is different, so everyone will have better success with 1 strategy over another. For example if you do ...
Views: 660 - Finding the perfect trading set up - by Submitted on Dec 10, 2008 from Shaun RosenbergSome people try to find the perfect trading set up. They only trade when all the stars are aligned and when everything that can possible be on their side is on their side. It is so easy to want to find the perfect set up, the set up that can’t fail. Where all we have to do is click to ...
Views: 660 - Trading Spreads vs. Stocks - by Submitted on Apr 24, 2009 from Shaun RosenbergTrading Option Spreads allows you to have many advantages over trading simple stocks. It can also be very rewarding. Here are some of the main advantages. 1. Non Directional The major advantage to trading spreads is that they offer you a way to make money in the stock market without having to ...
Views: 660 - Taking a Break from the Market - by Submitted on Mar 14, 2009 from Shaun RosenbergThe stock market can be both a rewarding place and an “evil place bend on taking away your money”. In order for you to be consistently profitable you have to realize there are some times you should just take a break and let the market work itself out. Whenever the direction is unclear and ...
Views: 658 - Waiting For Technical Signals - by Submitted on Apr 21, 2009 from Shaun RosenbergSometimes you can be researching a stock and find it is a great investment. By all fundamental means this stock should go up, but none of that matters unless the technicals tell you it is a good buy. It can be very hard to resist buying something that should go up logically, but if it isn’t ...
Views: 657 - How to Create a Credit Spread - by Submitted on Apr 01, 2009 from Shaun RosenbergCredit Spreads allow you as a trader to profit by selling options and letting those options expire worthless. It also allows you to limit your max risk because you not only sell an option but buy another option. So let’s look at an example. We find a stock trading at $74 and we believe that ...
Views: 654 - Trading With the Trend - by Submitted on Oct 23, 2008 from Shaun RosenbergNo matter how many times you have heard it, it is worth hearing it again. You must trade with the trend and not against it if you ever plan on being successful in the stock market. It can be difficult to trade in the same direction as the market especially when prices have fallen so much. ...
Views: 652 - What to Know When You Swing Trade - by Submitted on May 18, 2009 from Shaun RosenbergSwing Trading Can be hard, both mechanically and emotionally. But when you are comfortable and confident about your approach it is definitely worth it. Some things you should know about swing trading are. 1. Losing Streaks can happen All swing traders will have a losing streak from time to ...
Views: 651 - 4 Ways to Make Money in a Sideways Market - by Submitted on Apr 16, 2009 from Shaun RosenbergSideways markets can be hard to profit in if you are trying to catch every little tick. But there are still ways you can profit when stocks are flat. Here they are. 1. Covered Calls One thing you can do is to sell covered calls. You can simply find a strong stock that you would not mind ...
Views: 650 - Why Am I Selling Naked Puts Right Now? - by Submitted on Feb 12, 2009 from Shaun RosenbergThere are a few reasons why I am selling naked puts in my own portfolio at this time. I just believe that this is a great time for doing it, properly anyway. And here is why. 1. Stocks are undervalued. The market has crashed so far in 2008 that nearly every stock that is left is undervalued. ...
Views: 650 - Income Investing with ETFs - by Submitted on Apr 20, 2009 from Shaun RosenbergIncome investing is a very popular strategy, especially when the markets are volatile. Using ETFs can help you achieve this. And here are a few things you can look for when choosing a good ETF to invest in. 1. Dividends You want your ETF to have dividends of course. The goal of income ...
Views: 649 - Selling Options Lets You… - by Submitted on May 08, 2009 from Shaun RosenbergThere are a lot of benefits to selling options in the stock market. Some of the things selling options lets you do are. 1. Make Money In A Confused Market When stocks are volatile and have no clue which direction they want to go selling options lets you make a profit. Instead of trying to ...
Views: 647 - Reasons People Think Options Are Risky - by Submitted on May 29, 2009 from Shaun RosenbergEveryone believes that buying options is the riskiest thing you can do in the stock market. While they are risky in a sense that you can lose money they are no more risky then buying stocks. The main reasons people think others are. 1. Short Term People look as short term as risky. I have ...
Views: 646 - Stop Limits: How Useful Are They? - by Submitted on Apr 12, 2009 from Shaun RosenbergStop limit orders allow you to put two different orders into your position, a stop and a limit. It allow you to get in or out at a good price. When you set a stop limit order you tell your broker that you want to buy a stock between two prices and if you can’t get it between those two prices ...
Views: 646 - Why Use Stop Orders - by Submitted on Mar 26, 2009 from Shaun RosenbergStop orders are very critical in the stock market. It can help you to limit your losses when you are wrong and keep your gains when you are right. Many new investors will fail because they do not utilize this order. So what is a stop order? Well a stop order is an order that you place ...
Views: 646 - Why Use Credit Spreads? - by Submitted on Mar 19, 2009 from Shaun RosenbergOption selling can be a very profitable thing especially when you sell options using credit spreads. But many investors go about it the wrong way. There are a number of people who try to sell naked options on a stock. And if you don’t know what that is it is simply selling an option on a ...
Views: 645 - Long Term is Not Always Bad - by Submitted on May 12, 2009 from Shaun RosenbergI consider myself a short term trader, but that does not mean I can’t invest ever now and then. Sometimes the conditions are perfect for investing and you can’t overlook it. This occurs when. 1. There is a “Fire Sale” A fire sale is just another name for when stocks are cheap. When stocks ...
Views: 644 - ETFs for Long Term Investments - by Submitted on Apr 03, 2009 from Shaun RosenbergETFs can be a great way to profit in the long term. If you want to get into investing and do not know which stocks to buy and hold ETFs can be a great benefit to you. And here is why. 1. Already Diverse ETFs are already diverse. If you buy an ETF you are buying something that tracks many ...
Views: 642 - Holding Cash When Trading - by Submitted on Dec 07, 2008 from Shaun RosenbergHolding cash when trading, those are the words the majority of traders fear. No one wants to do it, but it can actually be a benefit to you. Two of the biggest stock market geniuses of all time, Warren Buffet and Jessie Livermore have always gone through long periods of holding cash. They ...
Views: 641 - Why Trading With the Trend Works - by Submitted on Apr 17, 2009 from Shaun RosenbergEveryone has heard it, trade with the trend, don’t fight the trend, but why does it work so well? Well the simple answer is emotions, more specifically fear and greed. These two emotions are what cause technical analysis to work. But they are not the only reason; below are 3 reasons why ...
Views: 640 - Selling Options Instead of Buying Them - by Submitted on Apr 15, 2009 from Shaun RosenbergBuying options can be a great way to make huge returns in the stock market. But they can also work against you in many different ways. Selling options, however can give you the same ability to make a good return, but with less risk. Here are some reasons why selling options can be better than ...
Views: 639 - Waiting for the Bounce, or Not? - by Submitted on Apr 07, 2009 from Shaun RosenbergOne of the ways to catch a stock is by catching it as it falls on support. When a stock hits support it is normally a good sign that it will go up. But should you wait for the bounce or not? It depends on your own personality. There are advantages and disadvantages to waiting for the bounce. ...
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