Where to Find Wall Street Training

admin — Wed, 24 Feb 2010 16:54:58 +0000

Wall Street training is crucial to become a successful investor. As you might expect, some training tools are excellent while others are not. Create a plan that makes sense to you. Here is a simple and enjoyable way to help you learn to trade stocks profitably.

Learn the language: Online Wall Street training will confuse you if you haven’t learned the language of investing. Learn the differences between buy and hold investing and day trading, how to trade stock options, online free stock trading, market timing strategies, and mutual funds. But, first—learn what these terms mean.

Play stock market games: A stock simulation market game will train you to be comfortable with investing just as practice repetitions for an athlete, musician, actor, or public speaker prepare them for the game, performance, or meeting. An excellent stock market game, like the one offered by WallStreetSurvivor.com, operates exactly like the real world. Fortunately, you need not risk your hard-earned money while learning how to play the stocks game.

After learning the language and playing stock market games with virtual money, you should have the Wall Street training you need to become a profitable investor.

How Covered Call Writing Can Protect You

admin — Mon, 22 Feb 2010 20:02:36 +0000

Covered call writing at first often appears to be a bit convoluted. However, it is a conservative and safe process that helps protect the investor and maximizes income and/or profit. A covered call is a component in answering the question, “how to trade stock options.”

First, understand the nature of a call option. If you want the ability to buy a stock at an agreed-upon price by a given date, you seek a call option. Once you own some call options, you can sell them to others, typically for a premium (fee or income). Should you also own the shares of the stock identified by the call, you now have engaged in covered call writing.

But, how does covered call writing enhance model stock portfolios? For example, assume you have 100 shares of ABC, Inc. worth $10,000. You sell call options for this stock for $1,200. You pocket the income and wait for the buyer to exercise their options. Should the stock price decline, you are protected unless the loss exceeds the $1,200 you’ve already received. Such a decline will usually influence the call owner NOT to exercise the option, since they can buy the stock for less on the market. But, you’ve already made $1,200 or, worst case, lowered your potential loss by that amount. You win either way.

Still a bit hazy on covered call writing? Learn much more about covered call writing in Wall Street Survivor’s Investing 101 online course.

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Where to Find Wall Street Training

How Covered Call Writing Can Protect You