Category Archives: Investing

Call And Put Options, The Easy Way To Trading Success

Put and Call Options are a kind of option agreement. They are often confused with other types of financial products like futures, which work on a similar principal but are very different. This is not the type of mistake you want to make if you are trading as a broker. It could cost you a lot of money.

They are a very useful tool for brokers, as they allow them to limit the danger of playing the stock market considerably, especially if combined wisely with other financial products, like stocks and futures. The important thing is to understand how the market works, find a trading method that works for you, and using it effectively.

The first thing we must do is learn what an option is, and what it is not. Let us start with what it is not.

People often think that a put option is buying something at a certain price in the future. That is actually a futures contract. With a futures contract you are buying a commodity at a certain price in the future, this way you assure yourself you can purchase the product you need, if you are a manufacturer. If you are a speculator you buy with the idea that the price is going to rise and you can sell for a profit in the future.

The difference with a call and put options is that you are not actually buying anything, you are buying the right of purchasing or selling at a certain price in the future.

If you are a little confused at this stage do not worry, it is hard to grasp at the beginning. Let us use a simple analogy to explain it. Imagine you want to buy an apartment in the best part of town. You still need to finalize the loan with your bank, or you still have not sold your current home, so you decide to buy the apartment in a year. You also think that that area of town is booming so the price is going to skyrocket. So you decide to talk to the owner and offer him the value of the house plus a 20% on top of that (or whatever he will agree to). In order to close the deal you give him a deposit, with the promise that you will pay the rest in a year.

This deposit makes the purchase legally binding. Whatever the change in the price of the house you have the right to buy it at the agreed price. However, if the value of the home drops instead of rising, you are not forced to buy it, you can simply lose the deposit and walk away from the agreement.

In this simple example, you were buying an option, in this case a call options, to buy a home at a set price. The call option premium was the deposit. You had the right to buy or not buy the house after the set time expired. On the hand the seller of the option, the homeowner, had the obligation of selling the house at the agreed price.

You may find more info on call options by visiting the the webpage. Look for info on put options as well.

The Art of Day Trading

Day Trading continues to be one of the most alluring professions as it is one of the few professions that allows you to be self employed and completely independent of bosses, employees and even clients. It is a profession that you can also do easily from home. All you need is a computer and high speed access to the internet.

However, Day Trading is also one of the most difficult professions, with a failure rate estimated by most as at least 90%. The biggest reason for this high failure rate is that most new day traders start out with too little capital, and the expectation of being able to pay their bills with their trading profits. Another big reason for this high failure rate is that most new traders start without a coherent game plan or strategy to trade.

Due to the nature of the financial markets as being one of the few ways an individual can make a lot of money in a short period of time, there is a substantial amount of information trading that is forced down the throats of new traders. Much of this information is usually the typical package of indicators that may indicate whether a stock or market is overbought/oversold, or some kind of price pattern or price/volume relationship that may identify a favorable time to trade. There is also the more radical type of information based upon Elliott Wave, Fibonacci, cycles and even astronomy.

However, it is rare that you will actually read any information that provides you with a strategy for identifying a market to trade, when to trade, how much equity to risk, when to exit when the trade goes against you, when to take profits, etc. Once you are provided with their magic indicator, you are forced to come up with this information on your own.

Well, here are a few tips for successful Day Trading.

1. When you are Day Trading individual stocks, look for stocks that have significant volume and liquidity. The same can be said for other markets, such as commodities, currencies, interest rate futures and stock index futures.

2. When you begin Day Trading, keep your initial profit goals modest, and never start Day Trading without another means of income to pay your bills.

3. Before you begin Day Trading, you should have a well thought out, basic strategy for trading the markets you plan to trade. For instance, if you are looking to scalp in and out of the markets throughout the day, develop a strategy that allows you to utilize 5 minute charts or even shorter time frames, that looks for a specific trading set up that allows you to enter a trade while minimizing your risk.

4. Once you have developed your plan of attack, think about potential situations where you may have to deviate from your plan. For instance, you may enter a trade based upon your strategy, but the market does not act as it should. Sometimes, it just pays to exit, rather than wait for the market to stop you out. You can always move on to the next trade. The best trades will usually move in your favor quickly if you enter at the right time.

5. Consider multiple entries and exits for a single trade. For instance, on a short-term scalp trade, set a profit target that allows you to lock in some profits fairly quickly. Once you have locked in that bit of profit, you can let the rest of the position ride in order to shoot for a more significant profit with little risk.

6. When trading individual stocks or stock index futures, consider learning how to read the tape to put the odds more in your favor. For instance, trade only in the direction of the underlying trend of the market for the day, and confirm this trend with such indicators as the Advance/Decline ratio, TRIN, Tick, and the performance of all of the major indexes.

7. Look for price patterns on the daily charts that may hint at a directional bias for your market of choice, then trade in the direction of that bias.

8. Avoid taking trades in the first 15 minutes after the market has opened. This is amateur hour. The true direction of the market you are trading will usually reveal itself after this period of trading.

9. Make sure your strategy adjusts your position sizes to account for changes in market volatility. As volatility rises, lower your position size, and as it falls, increase your position size.

These are just a few tips worth considering as you embark on Day Trading. Remember, there is no perfect strategy that will be profitable 100% of the time. However, if you develop a strategy that puts the odds in your favor, and you are able to stick with it in the long run, you should find yourself to be profitable in the long run.

Scott Cole

Scott Cole is a real estate professional as well as a trader and analyst in the stock and futures markets. He is also the owner of several trading related websites, including http://www.kungfutrader.com bestdaytradingstocks.com and http://theultimatestocktradingsystem.com

Why Invest in Commercial Properties Instead of Single Family Homes?

While there are many people who seem to believe that investing in residential real estate and single-family homes is the way to go, investing in commercial properties is much better. Instead of focusing your real estate investing on residential properties focusing on commercial properties is a better option for a variety of reasons.

First of all, when it comes to investing in commercial properties, you will not have to worry about personally qualifying for a loan. The property itself qualifies for the loan. You usually will not have to worry about personally guaranteeing the loans when it comes to investing in commercial properties. Non-recourse financing is the type of financing most often used for commercial real estate investing. If your loan is foreclosed on, the bank will take the property, but they can’t come after you personally. Also, it will never affect your personal credit score.

You will also have the opportunity to deal with professional tenants when it comes to investing in commercial properties, instead of dealing with the tenants that come with residential properties, which is a huge benefit.

Another reason to invest in commercial real estate is to maximize your potential for profit on any one deal. You would have to invest in a lot of single-family homes to generate the kind of profit you can make on one commercial real estate investment.

So, with the proper education and training, it can be the right move to break into the field of commercial real estate investing.

How Much Money Will You Need?
Before you start purchasing commercial properties, it is important that you know how much money you are going to need to get started. Even though you will be able to get financing for your properties there are still going to be some fees that you are going to have to pay for on your own. So, how much money should you have available? Well, for the pre-closing and closing costs you are going to have to pay, you should have about 3-5% of the amount of the loan available, as well as 10-20% of the purchase price for the down payment. While you may not need that much money, it is best to plan on this amount just in case.

Where to Get the Money
Once you know how much money you will need, you are probably wondering where you can actually get the money. There are a variety of different places that you can get the money you will need. Commercial mortgage brokers are one choice. There are also some private lenders that may be able to provide you with the money that you need, so be sure to consider all of your options.

Using the Money
When you actually are ready to get the loan for your commercial property you will probably have to explain to your lender what you are going to use the money for. This means that you’ll need to be able to communicate to the lender what you are going to do with the money. There are several things that you may have to do with the money. You may need to use the money to acquire or purchase the property, and in this case, the lender will probably be able to loan you about 80-90% of the money you will need. In some cases you may need to use the money for a refinance of a property and the same amount will probably be available to you for refinancing as well. You may also need to have the money for construction of the property, including renovations, rehabilitations, and building that occurs on the property.

Keeping Yourself Protected
When you decide to invest in commercial properties, it is important that you keep yourself legally protected. Many people sue over a variety of things in today’s world, which means you’ll need to have plenty of protection. Be sure that you never own the properties in your own name, or you could be sued personally. You need to have a LLC or a corporation. This way, any lawsuit would be directed at your company and not at you personally.

A Good Team is Important
If you are going to get involved in commercial real estate investing, it is important that you have a good team to work with you. You should begin to form a good team immediately. You can ask for some recommendations from other people who invest in commercial real estate so that you are sure to get good people for your team. Some of the people that you will need to have on your team include a good commercial mortgage broker, a real estate attorney, a real estate accountant, a good insurance agent, a realtor that specializes in commercial real estate, and a company that works in property management.

Finding the Right Properties
One of the most important things when you are involved in commercial real estate is going to be finding the right properties to invest in. The following are several ways that you can find some great commercial properties to invest in.

– Commercial Realtors – One of the best ways to find good commercial properties to invest in is by using commercial realtors. Good realtors who specialize in commercial real estate can help you find the properties you need and they can also help you do your due diligence as well. If you are going to pick an agent, consider interviewing several agents to make sure that you find one that you can work well with. You can get online and go to the National Association of Realtors to find a good realtor or you can get some recommendations from other commercial real estate investors that you know.

– Internet – Another place that you can look for great commercial properties to invest in is on the Internet. There are a variety of different websites that can help you find the properties you are looking for. You will find both paid and free sites; however, for serious investors, going with the pay sites may be the most beneficial for you.

– Networking – Many investors overlook networking when it comes to finding good properties to invest in. There are a variety of networks and investment groups that can help you find great properties. Try getting involved in Chamber of Commerce meetings or get involved in some associations that will help you find the properties you want.

Consider the benefits; getting a non-recourse loan, dealing with professional tenants and the opportunity for much greater profits on any one deal. When you think about it, it is a smart move to choose investing in commercial real estate rather than investing in single-family homes.

Anthony Seruga and Yolly Bishop of Maverick Real Estate Investments, Inc. work with builders, developers and other players in the commercial real estate industry to acquire and develop properties. They use progressive investment strategies that have proved extremely profitable. In addition to their own deals, they teach both seasoned and inexperienced investors how to be big players in the game. Visit the website for more info.

Turn $25,000 Into $1 Million

Well, it is not very difficult to turn $25,000 into $1 million; there are a number of ways in which you can achieve this feat, but it can take any number of days and months. The slower a scheme takes to make you money the less risky it is; the faster you stand to make money the higher the risk. So keeping that in mind let’s start looking at the various ways to can turn the money you saved up into $1 million and get yourself registered as a millionaire.

Probably the safest and the least risky method to turn that $25,000 to 1 million is to buy real estate. If you study real estate prices and trends you will find out that property prices have doubled over the past few months. If that trend continues over the next few years you can become a millionaire by 2010. However you will need to know which property to buy. Consult a realtor and speak to them about buying property and let them know that you are buying property as an investment. This is the best way to access the largest array of possible properties.

A faster and riskier way to make one million dollars from your $25,000 is to play the currency game. The currency and commodity markets are where the big players double their money each day. If you know your way around this high risk and extremely volatile market you can almost double your money each week. Now that is fast, so you can probably be a millionaire by the end of the month.

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Can Disabled People Get an Early Retirement Pension?

Can disabled people get an early retirement pension? To be healthy and then suffer a disability that keeps you from doing everything you used to can break your heart and break your spirit. But most people to whom this unfortunate thing happens cannot afford to wallow in self-pity – there will be hospital bills to worry about, and then, the question: can disabled people get an early retirement pension?

To answer the question, “Can disabled people get an early retirement pension?” you have to take into account certain factors. The first is how long the person has worked in the organization. This can differ according to the state the person worked in and according to the company. The maximum limit that can be set on this is five hundred hours in the twenty four months prior to the date of disability or one thousand five hundred hours in the sixty months prior to the date of the disability.

There are some other factors that need to be considered while answering the question, “Can disabled people get an early retirement pension?” One is the extent of the disability. A person can only get an early retirement pension if he or she is completely and permanently disabled, with a mental or a physical impairment that keeps him or her from doing any kind of work in any employment. This has to be certified by the Social Security Organization. It must also certify that the person is not expected to recover and become employable.

So can disabled people get an early retirement pension if they can no longer function in the position they used to fill, but they are no eligible for social security disability benefits, because there still are some kinds of work that they can perform? Well, this is a question to which the answer, again, differs from state to state and from organization to organization. Some organizations, if the person fulfills the necessary stipulations, declares the person eligible for early retirement pension. Some others do not.

Once the person is declared eligible for the early retirement pension, he or she will be eligible to be paid the same amount that he or she would have been paid if he or she had retired at the normal retirement age – other early retirement stipulations do not apply.

However, if at any point the person stops being eligible for social security disability benefits, the person will stop receiving the pension.

Clifford Young is an accomplished niche website developer and author.
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