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Articles by Shaun Rosenberg

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227 articles by Shaun Rosenberg · showing 50

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By Shaun RosenbergJan 12, 20101 topic

Cash Flow From Holding A Stock

Did you know that you could get cash flow simply buy holding a stock? Itâs true; in fact there are a few ways which investors can make a decent income from the stock market by simply buying and holding stocks. These are. 1. Dividends Of course when you own a stock that is paying off a dividend you are automatically making money month after month. You take on no additional risk by collecting it and instead can just sit back and make passive income until you sell the stock. 2

Primary topic: Investing

1,374 views3/5 (1)

By Shaun RosenbergDec 31, 20091 topic

Why You Should Care About Stock Splits

Stock splits can be extremely profitable things. When a stock splits it lowers the price that its shares are trading at and increasing the amount of shares it has to compensate. For example when a $20 stock has a 2 for 1 split the stock becomes worth $10, however there are twice as many shares out there for investors, and each investor who owned the stock before the split will have twice as many shares. The interesting part about splits is that they signify growth, because th

Primary topic: Investing

1,370 views3/5 (2)

By Shaun RosenbergOct 19, 20091 topic

What Are Mutual Funds

It seems like there are just as many mutual funds now a days as there are stocks. But what are they? What happens when you put your money into a fund? Well a mutual fund allows you to invest in how well you think particular management company will perform. Basically your money gets pulled together with many other investorsâ money and the fund is responsible for managing it. The fund hires professionals to decide where your money is best invested. Everyone who invested in a

Primary topic: Investing

863 views

By Shaun RosenbergOct 19, 20091 topic

3 Benefits Of Dividend Stocks

It is no secret that dividend paying stocks are a very popular investment. And there is a good reason for that. There are 3 major benefits that you get any time you are investing in dividend paying stocks. 1. They donât have to go up Dividend stocks do not have to go up in order for you to make money. If the stock is trading at $50 it can stay at $50 forever and you could still be making money off of it due to the cash flow it is giving off. That is a very refreshing change

Primary topic: Investing

1,188 views

By Shaun RosenbergOct 17, 20091 topic

Covered Calls vs Dividends

Covered calls and dividends are two ways to create a consistent cash flow off of the stock market. But which one of these two methods is better? Well letâs look at what they each are. Dividends are your share of the companyâs earnings. When a company pays a dividend to their stock holders they are rewarding them for buying into the company by giving you some money as the company makes money. You do not take on any additional risk by receiving dividends and these small pay

Primary topic: Investing

1,438 views

By Shaun RosenbergOct 16, 20091 topic

What Successful Stock Traders Look For

There is a big difference between what successful stock traders look for and what the average wannabe looks for. The average investor wants a hot stock tip that is going to go up 10,000% and make them a millionaire overnight. They do not even think about their specific goal for 1 trade or even what they will do if they lose. On the other hand a successful trader takes 4 things into consideration. 1. What is my Profit Target The first thing to ask yourself is how much do you a

Primary topic: Investing

1,447 views3/5 (1)

By Shaun RosenbergOct 15, 20091 topic

Different Ways to Invest in The Stock Market

There are a few different ways to invest in the stock market. Each way has its own advantages and disadvantages. The ways you can invest in the stock market are. 1. Buying common or preferred stock Buying stock and holding onto it for the long term is the simplest way to invest. rnYour money grows as the company grows or shrinks as the company shrinks. You do not have to consistently watch your position and make split second decisions because you are in it for the long term.

Primary topic: Investing

3,671 views

By Shaun RosenbergOct 15, 20091 topic

What Are Stocks

Stocks are shares of a company. When you buy a stock you are actually buying a piece of the company and to some extent profit as the company grows and lose money as the company loses money. Companies issue stock for one simple reason to help them raise cash. By selling large amounts of their stock they are receiving money up front which they can use to grow their business, or pay for upcoming expenses. As the investor you are betting that the underlying company is going to gr

Primary topic: Investing

874 views

By Shaun RosenbergOct 10, 20091 topic

Major Benefits Of Investing In The Stock Market

Investing in the stock market has a large number of great benefits and can help you achieve your goals. Everyone can be better off by investing at least something into the stock market because of these 4 reasons. 1. Better than Putting it in the Bank The stock market has the ability to give you a great return. Compare that to something like CDs which only increase your account by a small percentage. The problem with putting your money in the bank is that often times the inter

Primary topic: Investing

7,425 views

By Shaun RosenbergSep 29, 20091 topic

Steps for Income Investing

Income investing can be immensely profitable in the stock market. Here are the 4 major steps you will have to take in order to get into and manage income stocks. 1. Find a list of Dividend Stocks There are many ways to do this. You can always do a Google search for the term list of dividend stocks, or top dividend stocks. You can also get a list by going to MSN money, Yahoo finance, or any other type of online stock information website. 2. Check Out the Companies Of course ju

Primary topic: Investing

1,314 views3/5 (1)

By Shaun RosenbergSep 29, 20091 topic

Why Invest in Dividend Stocks

Investing in Dividend stocks can be a great way to increase your returns in the stock market. There are many reasons why this is so, but here are a few. 1. The Income Of course the first good thing about dividend stocks is the amount of income they can produce. If you have enough money you can simply buy your way to a great income using these equities. It is also easier to keep investing in something that is giving you a monthly income rather than investing in something that

Primary topic: Investing

1,309 views

By Shaun RosenbergSep 20, 20091 topic

Are the Markets Tradable?

There seems to be some confusion whether or not the stock market is actually tradable. Everyone knows about buy and hold, but when they hear the words short term trading it is like taboo. The short answer is yes, the markets are tradable. It is possible to make a fantastic return from the stock market not by buying and holding, but by trading rnit. There are two keys to successful trading. By looking at both of them it is possible to get a hold of this trading thing and profi

Primary topic: Investing

1,122 views

By Shaun RosenbergSep 20, 20091 topic

What Drives Stock Prices

What drives stock prices? It seems like there is some confusion about this. Some people might be shocked when they see a stock fall on great earnings, or vice versa. That is because stock prices are not directly linked to the companyâs profit. If a company makes a 20% return on their capital it does not mean that the stock will also go up 20%. What does move a stockâs price is something called supply and demand. If more people want to buy the stock then sell it then the s

Primary topic: Investing

1,198 views3/5 (1)

By Shaun RosenbergSep 18, 20091 topic

Selling Options On Your Stock

One way to increase your returns in the stock market is to sell options n stocks that you already own. This can also give you another way to receive a monthly income from your positions. When you sell a call you receive money up front. The only downside is that you give someone else the ability to buy the stock from you at a given price in the near future. The great thing about this strategy is your ability to make consistent money. By selling calls month after month you can

Primary topic: Investing

1,111 views

By Shaun RosenbergSep 18, 20091 topic

Buying Pullbacks in the Market

Buying pullbacks is one of the most famous strategies out there. Everyone wants to buy at the low and sell at the high right? So is it actually a good strategy? It can be very profitable if you buy a stock as it comes down a little. This is rnespecially true if the longer term direction of the stock is up. In fact some of the worldâs richest people have made their money by buying after a pullback and selling later on when the stock was trading at a much higher price level.

Primary topic: Investing

1,382 views

By Shaun RosenbergSep 9, 20091 topic

Why The Rich Invest in Stocks

The rich love to invest in stocks. In fact the majority of rich people have some money saved away in the market. Why is it? Because it helps them to stay rich and become richer. Investing in stocks can be a very wise decision. 1. It Has a Good History The stock market is a bumpy ride. Up, down, up, down that seems to be the norm. There are many times that you could have lost money. But the one thing no one can say is that the stock market has not been profitable in the long t

Primary topic: Investing

1,293 views

By Shaun RosenbergSep 9, 20091 topic

Why Trade The Trend

Trading with the trend is one of the most important things you can do in the stock market. It automatically increases your odds of being correct. There are 3 reasons why it is much better to trade with the trend then against it. 1. Likely to continue Trends are likely t continue. If a stock is going up it probably will not start going down all of sudden. The reason for this is that people are generally more confident if the market is going up. A little bad news here and there

Primary topic: Investing

1,301 views

By Shaun RosenbergSep 3, 20091 topic

Never Sell Naked Calls

I never sell naked calls, because there is just too much risk involved. How much risk? Infinite! That is right there is no limit to how much you risk on a naked call. When you sell a naked call you are giving someone else the right to buy a given stock at a given price on or before a given date in the future. So say you sell the $40 call on stock XYZ and make $2. That is a pretty easy profit. The only problem is now you are obligated to sell XYZ at $40. If the stock goes up t

Primary topic: Investing

1,282 views

By Shaun RosenbergAug 21, 20091 topic

Two Targets When Trading

Whenever you enter the stock market it is a good idea to have two targets. Each one of these is critical to being successful in a given trade. The first target someone should have is where you believe the stock will go. You do not want to just blindly buy a stock and hope that it works out ok somehow. Instead buying is only half the trade. The other half is selling. Having some point where you will sell if you make money can help you actually see your profits as well as getti

Primary topic: Investing

1,058 views3/5 (1)

By Shaun RosenbergAug 20, 20091 topic

Rolling Options to a Later Date

Rolling options to a later date is something that you have probably seen if you are trading options. It allows you to get out of a position you are currently in and get into a position at a later date. Iâm sure you know that all option contracts eventually expire. At that expiration date they are either profitable or not. Well if an option you own is about to expire you have the option to exit that position and get into a position at a later date. For example I sold a $5 pu

Primary topic: Investing

1,510 views3/5 (1)

By Shaun RosenbergAug 20, 20091 topic

Use Patients When Trading

rnWhen trading in the stock market one of the most important things that you can have is patients. You want to be able to wait until the time is just right before you get in. Anyone can create their own trading rules but actually following those rules is what sets apart the people who are making money and the ones who are not. There are always times when you may look at a stock and really want to get into that position. But if it is not giving you a buy signal based off of yo

Primary topic: Investing

1,027 views2/5 (1)

By Shaun RosenbergAug 19, 20091 topic

Tips for The Troubled Trader

The troubled trader is someone who just canât seem to make it in the trading world. They may have learned a lot in the past, but are still having trouble making consistent gains. If you are in this situation these tips can help you out. 1. Turn Off the News It is very tempting to look at the news, especially when you are having a hard time. You want to get that last piece of assurance that everything is alright, everything will work out. Even if you realize how dangerous it

Primary topic: Investing

1,402 views2/5 (1)

By Shaun RosenbergAug 19, 20091 topic

Your Trading Style

Developing your own trading style is of course one of the first steps to actually trading. You cannot simply get someone elseâs trading system and make it work for you because it may not fit your needs. Every person is different, and that works its way in the stock market as well. Before you start to trade ask yourself these questions. 1. How Often Do I want to trade? Do you want to be trading in very short time frames such as a few minutes or a few hours? Or do you want to

Primary topic: Investing

1,360 views2/5 (1)

By Shaun RosenbergAug 17, 20091 topic

Selling Covered Calls

Selling covered calls is a very effective strategy in the stock market. It lets you make continuous cash flow from a stock that you already own and can have a huge effect on your annual return. So how do you set up a covered call trade? There are three steps you have to take. 1. Find A Stock The first step to opening up a covered calls trade is to find a stock that you would not mind holding onto for a while. The stock should definitely be very strong when it comes to its fun

Primary topic: Investing

1,104 views

By Shaun RosenbergAug 17, 20091 topic

Investing in Stock Options

Stock options can either help you to gain a huge return in the stock market, or it can completely destroy your account. Trading them can be a good thing as long as you keep a handle on your risk. There are three things that may help you to increase your chances of being profitable with them. 1. Only use a small percentage By only using a small percentage of your account on any one option trade you are lowering the amount you can lose. This can be a very effective strategy con

Primary topic: Investing

1,309 views

By Shaun RosenbergAug 15, 20091 topic

Going All in When Trading

I read an article that was saying one of the most important things to know about the stock market is when to go all in. Well I kind of agree, you got to know that there is never a good time to go all in. If you ever watch the world series of poker you will find that it is a very similar game to trading in the stock market. Each professional player has something that gives them the edge in the game. The only real reason many of the best players lose their chips is because of a

Primary topic: Investing

1,092 views2/5 (1)

By Shaun RosenbergAug 15, 20091 topic

Can You Be Wrong Trading?

Some people seem to believe that the professional traders got that way by not being wrong. That they can somehow pick a stock that is going to shoot up 200% in the next couple of months. This is what leads a lot of people to just buy and hope for the best. Well, if everyone just bought and hoped for the best there would be no professional traders. There would just be a lot of happy people when stocks go up and a lot of unhappy people when stocks go down. Since when was puttin

Primary topic: Investing

1,134 views2/5 (1)

By Shaun RosenbergAug 13, 20091 topic

Why Are Covered Calls So Popular?

Covered calls can be a very profitable strategy. That has made it one of the most used strategies in the stock market for both traders and investors. But what does it offer that makes it such a workable approach? 1. Money Now You make money the second you enter a covered calls trade. It is instant return. It can get hard to just wait for the long term and to hold onto a belief that when all is said and done you are going to have more money now then you started with.rnAnd whil

Primary topic: Investing

956 views3/5 (1)

By Shaun RosenbergAug 13, 20091 topic

Do Covered Calls Limit Your Profits?

Writing covered calls is a very popular strategy in the stock market. And it can be both a great cash flow producer and a not so great means of missing a profit. When you sell a call on a stock you already own what you are doing is giving someone else the right to buy a given stock at a given strike price on or before a given date. For this right you get money up front. For example say you own 100 shares of XYZ stock trading at $28. You can sell the front month $30 call for $

Primary topic: Investing

1,232 views3/5 (2)

By Shaun RosenbergAug 12, 20091 topic

Is Trading Risky?

How risky is trading? Is it something that only a few people will ever be able to do, or is it something that anyone can do? Well anytime you are getting into a stock position you are risking money. There isnât a way around this simple fact. There are many market participants that are realizing buying for the long term might not be as risk free as they initially thought. If you would have bought stocks 10 years ago you would still be around break even. If you would have bou

Primary topic: Investing

1,499 views3/5 (1)

By Shaun RosenbergAug 11, 20091 topic

Should Everyone Learn Stock Trading?

Should everyone learn stock trading? It can be very profitable, but that doesnât mean that everyone should take part. Some people will probably be better off as far away from the stock market as possible. There are three traits that you must have if you want to succeed as a stock trader. 1. Emotional Control All traders need to be able to control their emotions. Emotions are your biggest enemy when it comes to your money. Nothing will have you flocking with the heard and ru

Primary topic: Investing

1,036 views3/5 (1)

By Shaun RosenbergAug 11, 20091 topic

When To Buy Options

Buying options can be a very profitable strategy, but it can also be a very risky strategy. Trade it correctly and you can make unbelievable gains. Trade it incorrectly and it can take your account to $0 faster than you would have even imagined possible. I like to trade options every now and then, but the conditions have to be just right. In order for me to jump in I want. 1. To see a trend If there is a good solid trend in both the stock market indexes and in the individual

Primary topic: Investing

1,004 views3/5 (1)

By Shaun RosenbergAug 11, 20091 topic

Economics and the Stock Market

In this world there is economics and there is the stock market. The problem comes when people start to assume they are the same thing. Donât get me wrong they are related. If the economy is doing great then sooner or later so will the stock market. If the economy is doing poorly the stock market will probably go down. So what is the problem? The problem is that this doesnât always happen like that. There have been many times where the news comes out saying something like

Primary topic: Investing

1,265 views

By Shaun RosenbergAug 11, 20091 topic

Playing a Stock Market Crash

Stock market crashes arenât always bad. In fact sometimes they can be unbelievable profitable. During a big crash there is the opportunity to make a large amount of money in a short period of time, if you play it right. So what do you need to do to play a market crash successfully? Well there are 3 things that you should always consider when you play the downside. 1. Keeping Small Losses When you short a stock you max loss is unlimited. There is no limit to how far up a sto

Primary topic: Investing

1,044 views

By Shaun RosenbergAug 10, 20091 topic

ETFs and Covered Calls

ETFs and covered calls can be a great combination at times. It kind of seems like they were made for each other because ETFs have the following characteristics. 1. Not go to Zero I have never seen an ETF go to zero before because it is just a combination of different stocks. For it to go to zero every stock that the ETF holds would have to go under. That isnât saying that there is no way an EFT can go to zero, but it is pretty unlikely. That makes it a good candidate if you

Primary topic: Investing

1,310 views

By Shaun RosenbergAug 7, 20091 topic

How Much do Options Really Cost?

When you buy a stock option how much are you actually paying for that option? What are you paying for? Not many people realize that a large chunk of the option they are buying might not even be for the underlying stock. An option price has three major things factored into it; intrinsic value, volatility, and time value. It is not all about the stock, all three of these factors play a large part of the option pricing. Letâs say you find a $45 call that is trading for $6 the

Primary topic: Investing

3,859 views

By Shaun RosenbergAug 7, 20091 topic

I Donât Like Penny Stocks

I donât know what all the fuss is about penny stocks. They take your money go to zero and everyone seems to think that is a great deal. Not me, there are 3 reasons why I will never trade penny stocks. 1. They are Penny Stocks For A Reason A company doesnât go from $10 to $.10 unless there is something drastically wrong with it. Buying a penny stock and hoping it is going to make you rich is like betting on the horse with a broken leg just because the odds are 1000 to 1. S

Primary topic: Investing

1,050 views

By Shaun RosenbergAug 7, 20091 topic

Can You Short An Option

People always talk about buying options. But that isnât the only way you can use them to increase your returns in the stock market. You can also short options and make money from the premium. Let me explain how this works. A put option gives you the right to sell a stock at a certain price on or before a certain expiration date. So for instance if you buy the $40 put for $3 you have the right to sell your stock at $40 before the expiration date. But for every buyer there is

Primary topic: Investing

4,790 views

By Shaun RosenbergAug 5, 20091 topic

Trading Against the Trend - Unwise

Trading against the trend is not a great idea when you think about it. Everyone seems to want to pick the top or the bottom but there are so many consequences to that kind of thinking. 1. It is low probability I have heard people say if only they would have picked the bottom they would be up 40% right now. That may be true, but how could you have picked the bottom? You canât really use any fundamental analysis techniques because the market is always thinking 6 months in adv

Primary topic: Investing

1,568 views

By Shaun RosenbergAug 5, 20091 topic

Selling Spreads

Selling spreads can be a very profitable strategy. Instead of shooting for one or two big home runs it tries to shoot a lot of singles which eventually add up and can cause you to get a great return in your trading account. The major benefits of selling spreads are that it. 1. Is Consistent If you are buying options you might be able to get those huge 200% returns on one trade. But that is not the norm; it can come after a series of losses. Sometimes all those amazing gains d

Primary topic: Investing

1,368 views3/5 (1)

By Shaun RosenbergAug 5, 20091 topic

Selling Puts Adds Up

Selling puts can be a wonderful strategy at times. And it definitely can build up after you have been doing it for a long while. Most new traders want to make the big returns. They want to buy that option that is going to shoot up 300% in 2 days. While that can happen every once and a while, getting such huge gains are not the norm, no matter what the sales letters say. When you buy options you are going to be wrong, a lot. It might take 10 trades before you get one that shoo

Primary topic: Investing

1,034 views

By Shaun RosenbergAug 5, 20091 topic

Does Trend Trading Work?

There are a lot of people who do not believe that you can make money in the stock market by trend trading. They think trading with the trend is a scam that âGuruâsâ say to get you to buy their product. While there can be a lot of scams out there trading with the trend can actually be very profitable. Jessie Livermore the greatest trader who ever lived was able to make over $100 million dollars by trading the trends in the market as opposed to buying and holding a group

Primary topic: Investing

1,834 views

By Shaun RosenbergAug 4, 20091 topic

How To Keep Your Losses Small

Keeping your losses small in the stock market lets you keep money in your account when you are wrong. Getting out of bad trades lets you live to fight another day. So how do you go about cutting your losses? Here are three strategies that are very helpful. 1. Not 100% in one trade I never put 100% of my account into any position, because you so not know how that position will do. It could gap down big tomorrow, and if it does I do not want my account going down with it. So if

Primary topic: Investing

1,160 views

By Shaun RosenbergAug 4, 20091 topic

Why is Now The Best Time to Invest?

Now is the best time to invest in the stock market. In fact it is normally a great idea to invest in the stock market as soon as you can; since we are all limited on time it is nice to start when we have a lot of it left. Here are 3 reasons why now is a good time to invest. 1. Should Have Invested Yesterday History has shown that the best time to invest was yesterday. The earlier you start investing the more time you have to let your money grow and become your own personal go

Primary topic: Investing

1,496 views

By Shaun RosenbergAug 2, 20091 topic

Managing Losses on Option Spreads

It is easy to ignore the losing side when trading spreads. Especially when trading out of the money credit spreads and are winning 80+% of the time. But unless a trader can manage their risk they will eventually lose all of their money. This goes with credit spreads as well. So it is important to have some sort of stop which allows you to exit out of your position whenever you experience a loss. There are two different methods that can be very helpful when limiting your loss.

Primary topic: Investing

1,350 views2/5 (1)

By Shaun RosenbergAug 2, 20091 topic

What Are Option Greeks For?

Too many people try to jump into an option without having a good understanding of what it actually is. Occasionally there will be times when the stock goes up yet the call option that they bought didnât go up with it, or even went down. Why does this happen? Well there are a number of factors that go into options. Factors such as time decay, volatility, and price movement all get lumped together into every option. That is why it is normally a good idea to have a firm unders

Primary topic: Investing

1,127 views2/5 (1)

By Shaun RosenbergJul 30, 20091 topic

Letting Winners Ride

Letting your winners ride is a stock market strategy that we can all learn from. This simple way of thinking has proven its effectiveness time and time again in the stock market. Many trading strategies out there call for you setting a profit target to meet. Once it meets that target then it is time to exit out of the position. Many traders will try to find the true value of a stock or the point at which the stock will turn around and sell there. It is the whole theory of buy

Primary topic: Investing

1,010 views

By Shaun RosenbergJul 28, 20091 topic

How to Write Covered Calls

Covered call writing is one of the best strategies in the stock market. It allows you to make a monthly income while at the same time not having to spend too much time at the computer adjusting and planning trades. To create a covered call you only need to do the following. 1. Find a Stock The first step is to find a stock that is both fundamentally and technically strong. It should meet all of the criteria that you consider a good long term stock. Make sure that this stock h

Primary topic: Stock Trading

964 views

By Shaun RosenbergJul 24, 20091 topic

Why Is Now A Good Time To Invest

It is probably one of the best times to invest for the long term. Almost every stock is undervalued and has seemed to have stopped going up. So a buy and hold strategy might not be that bad of an idea. The reasons buying and holding could have the potential to be very profitable are. 1. Low Prices Stocks are low, at least when you compare them to their âtrue valueâ. Studies have proven that getting into stocks that are undervalued typically a wise decision and leads to la

Primary topic: Investing

992 views

By Shaun RosenbergJul 23, 20091 topic

Learning from Trading Mistakes

It is very important to learn from your past mistakes in anything you do. This way you can be continuously improving your life. The same goes with trading, it is a very wise decision to keep a trading journal and update what you have done periodically. Anytime you start to lose money it can be a good idea to review your positions and figure out. 1. What you Did Wrong What did you do that caused you to lose money? Was it just a losing streak? Every trading strategy will have a

Primary topic: Investing

902 views

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