Articles

Articles by Shaun Rosenberg

Browse every published article connected to Shaun Rosenberg, with exact attribution and full-archive search.

articles: 227
shown per page: 50
search signals: Topic + expert

Articles

227 articles by Shaun Rosenberg · showing 50

Browse every published article connected to Shaun Rosenberg, or search within this exact expert archive.

By Shaun RosenbergJul 23, 20091 topic

Why I love Trend Trading

Trend trading can be an extremely powerful way of making money in the stock market. It has simple bases behind it too, catch a stock that is trending up and ride it until it starts to go down. What can be a simpler trading approach? Trend trading is probably the best approach for trading in the stock market because it allows you to. 1. Cut Your Losses Short If you use strategies like buying off of support or buying a break through resistance you can easily cut your losses sho

Primary topic: Investing

999 views

By Shaun RosenbergJul 22, 20091 topic

Sell a Put to Buy a Stock

One very effective strategy of getting into a strong stock is to not just go right out and buy the stock, but to sell a put on the stock instead. This does give you some advantages that you would not have had you simply entered the stock.rnThe advantages are. 1. Money Up Front One of the most attracting aspects of selling a put in that you receive money up front. You donât have to wait for your investment to go up (if it does at all) to make a profit. There are not many inv

Primary topic: Investing

969 views

By Shaun RosenbergJul 22, 20091 topic

Why I Donât Counter Trend Trade

Counter trend trading is a pretty sought after strategy. Everyone wants to buy a stock as it bottoms or short a stock as it is forming a top. It is the whole buy low sell high idea. Why not buy when a stock is at its lowest and sell right before it turns around. The only problem with this strategy is no one can do it. Sure you have people who may have called a bottom 2 weeks before it happened back in 2000 and are still talked about today because of it, but no one has ever be

Primary topic: Investing

1,388 views

By Shaun RosenbergJul 21, 20091 topic

How Would I Invest a Small Amount of Money in the Stock Market?

If I only had a small amount of money, say $2,000 to invest in the stock market what strategy would I use to make a good return while at the same time limiting risk? The answer seems pretty simple when I think about it. I would still be trend trading because it offers you such a great advantage over other strategies. It helps you to. 1. Limit your Losses One of the basic principles behind trend trading is cutting your losses short. This is even more critical if you only have

Primary topic: Investing

890 views

By Shaun RosenbergJul 17, 20091 topic

Selling Covered Calls Has its Advantages

One great strategy is selling covered calls. This strategy is pretty simple, but sometimes the simple strategy is the best. rnWhen you sell a call on a stock that you already own, you are giving someone else the right to buy that stock from you at a given strike price. For this right you are given a set amount of money based off of different factors such as, time until expiration, volume, and the strike price.rnThe major disadvantage of this strategy is that is severely limit

Primary topic: Investing

1,051 views2/5 (2)

By Shaun RosenbergJul 16, 20091 topic

Selling Puts as a Workable Strategy

Not many people realize that selling puts can be a very good strategy in the stock market. It can be a great source of income and help you get into stocks that you already like at a lower price. It works like this you sell someone else the right to sell a stock at a certain strike price on or before a given date. For this you collect a premium, but are forced to buy the stock if it does go down to the strike price you sold or lower.rnWhy you obligate yourself to buy a stock?

Primary topic: Investing

3,060 views2/5 (2)

By Shaun RosenbergJul 16, 20091 topic

Why To Start Investing Young

Starting to invest when you are really young has many great benefits. In fact it is one of the wisest things you can do from a financial standpoint. So why is it so important? 1. Time The younger you start to invest the more time you will have to make money in the stock market. If you are only getting into the stock market 10 years before retirement you are at a huge disadvantage to someone who has 50 years before they need to retire. Time to make mistakes, and figure out how

Primary topic: Investing

1,173 views2.5/5 (2)

By Shaun RosenbergJul 14, 20091 topic

Pros and Cons of Selling a Put

Selling a put can be a very effective way to increase your profit in the stock market. It helps to bring some income to the account while at the same time letting you get into longer term positions. The pros to this strategy are 1. You Get Money Upfront The best thing about deciding to sell a put is that you make your profit up front. Not many strategies out there let you make money once you enter the trade. 2. Cashflow Can Add Up The premium you make for selling 1 put can be

Primary topic: Investing

1,111 views

By Shaun RosenbergJul 14, 20091 topic

How to Not Get Stuck in Bull Trap

A bull trap occurs after a long down trend in a stock happens and you may get a signal that it is going to start trending back up. This normally catches many of the market participantâs right before it starts going down again. There are 3 things that you can do to help avoid being devastated by a bull trap. 1. Look at the Fundamentals Looking at the fundamentals of a company helps to avoid getting into a stock that will go to $0. Strong companies often have strong stocks th

Primary topic: Investing

1,612 views

By Shaun RosenbergJun 30, 20091 topic

Why to Stay With the Trend

It is common to want to pick the bottom of a stock in order to get in before a trend starts. But that does not make it the most profitable route to go. It is a far better strategy to stick with the trend of a stock until it ends for the following reasons. 1. High probability If a stock has been trending up and building momentum there is a good chance that rnit will continue to keep going up at least in the short term. The odds of it suddenly switching directions are pretty lo

Primary topic: Investing

1,009 views

By Shaun RosenbergJun 20, 20091 topic

Why is Gold a Hedge Against Inflation?

Gold is considered to be a great place to put your money in order to guard against inflation. It is a shiny metal that is deemed valuable, but why does it work to help your money keeps its buying power, even when inflation hits?nn Well gold is a good hedge becausenn1. It is ValuablennGold is a very valuable commodity. It is considered very beautiful especially when compared to other commodities like iron or steel. It also does not tarnish. It remains a beautiful commodity for

Primary topic: Investing

982 views

By Shaun RosenbergJun 19, 20091 topic

Bottom Picking Vs Momentum Investing

There are two major ways to trade the stock market, bottom picking and momentum investing. Most people attempt to make money by calling the tops and bottoms, but it can be more profitable to simply ride a trend until it ends. nnTrading with the trend has 3 major advantages.nn1. Hard To Pick Tops and BottomsnnAnyone who thinks they accurately pick the tops and bottoms of a stock has never actually traded in the stock market. Of course if you keep trying to call bottoms you are

Primary topic: Investing

805 views

By Shaun RosenbergJun 19, 20091 topic

Do Stock Splits affect price movement?

Stock splits occur when the price of the stock lowers and investors get more shares to make up for the lowered price. So do they actually affect how strong a stock will be in the future?nnMost investors and traders believe that splits will in fact cause a stock to outperform the rest of the market for these two reasons.nn1. It Shows GrowthnnIf a stock has already split it shows that the company is already growing and that can have an enormous positive affect on a stock. It ma

Primary topic: Investing

1,067 views

By Shaun RosenbergJun 18, 20091 topic

Trading on the same side as The Trend

Trading 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.nnTrend trading has 3 major advantages.nn1. Trends are likely to continue for a whilennA trend is more likely to continue then it is to reverse all of a sudden. History has shown this many times in the stock market as prices tend to fluctuate greatly. I have not seen many stocks tha

Primary topic: Investing

735 views

By Shaun RosenbergJun 9, 20091 topic

Selling Spreads vs Naked Options

Two strategies for making money as an option seller are to either sell naked options or spreads. Selling spreads are often ntime the much wiser choice for the following reasons.nn1. Lower RisknnYou assume a much lower risk when you sell a spread as opposed to selling a naked option. For example, if you sell a naked call on a stock at say $50 your potential loss is unlimited because there is no limit to how far a stock can move upward.nnOn the other hand if you sold a $50/$55

Primary topic: Investing

1,716 views

By Shaun RosenbergJun 3, 20091 topic

Is Selling Naked Puts a Bad Thing?

Selling naked puts is a way for you to get a steady stream of cash flow in the stock market. But how good of a strategy is it exactly? nnWhen you sell a naked put what you are doing is selling someone else the right to sell a stock to you at a set price in the future. So if you sell a $50 put on a stock you assume the risk of having to buy the stock at $50 at some point in the future before the put expires. nnSo is it risky, well if you do it right it is no more risky than an

Primary topic: Investing

977 views

By Shaun RosenbergJun 2, 20091 topic

Always Wait for a Signal

You may have your own personal opinions and beliefs on where a stick is likely to head, but before you pull the trigger and make the trade make sure that you actually have a technical signal on the position. Waiting will help you in many ways.nn1. Stocks do not care about your opinionsnnStocks do not care about what you believe will happen. They do not believe on how logical your belief is or how much sense it makes. In the end a stock will always do what it is going to ndo,

Primary topic: Investing

833 views

By Shaun RosenbergJun 2, 20091 topic

Buying Options On Up trending Stocks

Buying options on up trending stocks can be a very effective strategy at times. There are many reasons why this can be so effective.nn1. Trends ContinuennA 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 them until they start to turn around. No one that I have ever heard of has been able to call the end of a trend and be right the majority of the time.nnI have heard of people who call

Primary topic: Investing

736 views

By Shaun RosenbergMay 29, 20091 topic

Reasons People Think Options Are Risky

Everyone 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.nn1. Short TermnnPeople look as short term as risky. I have heard more than 1 person say that you cannot predict what will happen in the market in a less than 5 year period. I am not sure where this number comes from, but you can make money by bein

Primary topic: Investing

696 views

By Shaun RosenbergMay 27, 20091 topic

What Are Covered Calls?

Selling covered calls allow you to make an income off of stocks you own and increase your profit in the long run. But what are they? nnWhen you sell a covered call what you are doing is selling the right for someone else to buy the stock from you at a given price sometime in the future. This could drastically lower your profit potential if the stock suddenly shoots up, but you do get a nice premium for selling that right. Letâs look at an example.nnSay you own stock XYZ, wh

Primary topic: Investing

795 views

By Shaun RosenbergMay 27, 20091 topic

Mistakes Traders Make

Trading the stock market is a very abnormal way of making money. There are so many ways for you to make or lose money, and you have to keep on your toes and be cautious to avoid losing your money. Here are the top 3 mistakes traders will make.nn1. Only Looking at ProfitsnnNewer traders are especially vulnerable here. Everyone wants to have huge returns with no losses. It is very tempting to look at how much you can expect to make and not even give the slightest attention to w

Primary topic: Investing

773 views

By Shaun RosenbergMay 26, 20091 topic

Making Your Own Decisions vs listening to the Analysis

In the investment work you can either learn to trade yourself, or listen to whatever the analysis tell you and follow their advice. Unfortunately too many people chose to follow the analysis instead of taking it into their own hands. nnThere are 4 reasons why it can be a wiser to make your own decision then to listen to the âexpertsânn1. Many Analysis have a terrible track recordnnNow, Iâm not saying there arenât analysis who have made nexcellent picks, Iâm sure som

Primary topic: Investing

690 views

By Shaun RosenbergMay 26, 20091 topic

Why Not to Sell Covered Calls During a Downtrend

Buying a down trending stock to sell covered calls on can turn into a very bad idea very fast. Here are 3 reasons why selling covered calls on a downward moving stock can become a black hole in your account. nn1. The Premium does not Make up for The LossnnThe part that everyone loves about selling calls is the fact that you can make money up front. What no one tells you is that even though you are making money up front does not mean that the trade will be profitable. nnIf you

Primary topic: Investing

963 views

By Shaun RosenbergMay 24, 20091 topic

Covered Calls vs. Just Holding Stocks

Covered 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 off in the end. nn1. Allows you to make extra MoneynnSelling calls allows you to make extra money in the stock market. This extra cash flow often times can be many times greater than some

Primary topic: Investing

735 views

By Shaun RosenbergMay 22, 20091 topic

When to Avoid Doing Covered Calls

Selling Covered calls is a wonderful strategy in general. It allows people to make consistent money from the stock market, but there are some times when it is better to avoid placing a covered call position.nn1. When the Markets Are FallingnnWhen a stock is down trending it is better to avoid doing a covered call because you would have to buy the stock and ride the trend down to do that. Getting a $1 premium is not going to be very helpful if the stock goes down 15 points. nn

Primary topic: Investing

942 views

By Shaun RosenbergMay 22, 20091 topic

Buying Puts Can Be a Good Thing

People associate buying puts with being risky and speculative, and they are. But that does not mean that you cannot make money by trading them. In fact there are many reasons why it works to your advantage to buy puts every now and then.nn1. Stocks Can Go DownnnStocks do not only go up, they can go down as well. To truly take advantage of all moves you need to be able to make money when stocks go down. Just think about the last recession we have had. If you were bullish your

Primary topic: Investing

770 views

By Shaun RosenbergMay 21, 20091 topic

The Big Mistake of New Option Traders

Most people buy options without even considering what they are buying or how the option will move. They do not look at the risks of an option and try to predict the possible profits and losses. Instead they just buy hoping that eventually the option they bought will make them rich beyond their wildest dreams.nnOne common mistake people will make is buying the far out of the money option because it is cheap and it still should move up as the stock moves up. These people are su

Primary topic: Investing

690 views

By Shaun RosenbergMay 19, 20091 topic

Mistakes of New Technical Traders

Now traders who try to make money using technical analysis often make many mistakes. Some of these mistakes are.nn1. Risk ManagementnnRisk 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 find a stock on support, buy it and hope for the best.nnThe problem with that is that when a stock breaks support and falls they do not know what to do. They may think that the stock is

Primary topic: Investing

715 views

By Shaun RosenbergMay 19, 20091 topic

Mistakes of Option Sellers

Selling options is a great way to make consistent money trading the stock market, but there are a few mistakes that many option sellers will make, especially when they have just started out.nn1. Risk ManagementnnIt is really easy to forget about risk management when you are winning the majority of your trades. But you still need to consider risk management when you sell an option; otherwise you might wake up one day and find out that all of the profit you made during the last

Primary topic: Investing

1,975 views

By Shaun RosenbergMay 18, 20091 topic

What to Know When Trading Options

Stock 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. nnBefore you trade options you should consider the following.nn1. Options should not make up a large part of your accountnnOptions are better used for the risky money in your account, the money you can afford to lose. This way if you had a bad trade or two it is not the end of the world. Losing 50% of your options value seems like a l

Primary topic: Investing

743 views

By Shaun RosenbergMay 18, 20091 topic

What to Know When You Swing Trade

Swing Trading Can be hard, both mechanically and emotionally. But when you are comfortable and confident about your approach it is definitely worth it.nnSome things you should know about swing trading are.nn1. Losing Streaks can happennnAll swing traders will have a losing streak from time to time, so you had better prepare yourself for it, both with your money and emotionally. You want to always keep your losses short so that anything you lose is only a small portion of your

Primary topic: Investing

697 views

By Shaun RosenbergMay 13, 20091 topic

Concentrate on One Trading Strategy

It 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.nn1. Everyone is differentnnEveryone is different, so everyone will have better success with n1 strategy over another. For example if you do not like to watch the markets, or at least check on your positions every day you should not be day trading or swing trading. nnOn the other hand if you like making money on the little

Primary topic: Investing

718 views

By Shaun RosenbergMay 12, 20091 topic

Negative Cost Basis Stocks

Did you know that it is possible to have stocks in your account that you have already made a profit on before you sell it? It is rare, but it can happen.nnHere are some tips help you pull out some money from the stocks you already own, and possible even pull out more cash flow from the stock then you originally put into it.nn1. Sell Puts to EnternnIf you are not already in a stock you can start pulling off an income by selling a naked put to enter the trade. This gives you a

Primary topic: Investing

3,666 views

By Shaun RosenbergMay 12, 20091 topic

Long Term is Not Always Bad

I consider myself a short term trader, but that does not mean I canât invest ever now and then. Sometimes the conditions are perfect for investing and you canât overlook it. This occurs when.nn1. There is a âFire SaleânnA fire sale is just another name for when stocks are cheap. When stocks get low enough, especially strong stocks it is not a bad thing to buy a few and hold onto them for a while. The market goes through cycles of ups and down, there is nothing wrong w

Primary topic: Investing

710 views

By Shaun RosenbergMay 8, 20091 topic

Selling Options Lets Youâ¦

There are a lot of benefits to selling options in the stock market. Some of the things selling options lets you do are.nn1. Make Money In A Confused MarketnnWhen stocks are volatile and have no clue which direction they want to go selling options lets you make a profit. Instead of trying to predict what will happen, you can simply sell options and make money by predicting where a stock will likely not go. nThis isnât that hard in volatile markets considering stocks can stay

Primary topic: Investing

709 views

By Shaun RosenbergMay 6, 20091 topic

Benefits of Technical Trading

Using Technical analysis to trade the stock market gives you the greatest odds for success for many different reasons. nn1. The Markets Live in the FuturennIt is hard to use fundamental data to predict where a stock will likely go in the short term, because the stock market lives in the future. On average the stock market tends to reflect what is going to happen in the economy 6 months down the road. nnThis is why we often see stocks starting to rally out of a bears market 6

Primary topic: Investing

860 views

By Shaun RosenbergMay 6, 20091 topic

Why Day Trading Can Be a Good Idea

Day trading is a great way to make money in the stock market. It has many advantages over other strategies in the stock market, some of which are.nn1. You Donât Have the Gap RisknnStocks can gap, and sometimes they can gap big. I have seen stocks gap over 20% overnight on a rare occasion. If they work in your favor they can be great, but if they work against you they can be your worst nightmare.nnThe best part about day trading is that you do not have to worry about your po

Primary topic: Investing

1,385 views

By Shaun RosenbergMay 5, 20091 topic

Naked Puts

Naked Puts are supposed to be one of the riskiest strategies out there. But if done right selling naked puts can be even safer, and more profitable than buying stocks.nnWhen you sell a naked put you take on the obligation to buy a stock at a certain price on or before a given date. For this you bank a premium up front.nnSelling puts can be a good strategy as long as you donât go overboard. So if you sell naked puts on $50,000 worth of stocks, make sure you could buy $50,000

Primary topic: Investing

953 views

By Shaun RosenbergMay 5, 20091 topic

Staying with the Trend

I 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. nnThere 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 noise out there and just go with the trend. nThere are many reasons to just hop on board and ride a trend regardless of what the noise thinks.nn1. The Markets are hard to predictnnThe mar

Primary topic: Investing

730 views

By Shaun RosenbergMay 4, 20091 topic

Trading and Commission

All traders have to pay commissions; there is no way around it. But commissions will normally make up only a very small amount of your portfolio, so it normally isnât too bad.nIf you are seeing commissions take a large amount of your profit here are some tips to help you reduce their effect on your account.nn1. Shop AroundnnNot every broker has the best deal in town. Some may charge $10 per trade some may charge $4. That can make a huge difference especially if you are tryi

Primary topic: Investing

673 views

By Shaun RosenbergMay 3, 20091 topic

Combining Chart Patterns with Fundamentals

A lot of people try to pick the exact bottom of a stock by taking into consideration the fundamentals of the company. However you can increase your odds of getting into a profitable trade if you combine fundamental analysis with Chart Patterns.nThere are 3 major reasons why chart patterns and fundamental analysis can make a good combination.nn1. It gives you a point to buynnInstead of just guessing when to buy a stock you can use an indicator such as a chart pattern breakout

Primary topic: Investing

623 views

By Shaun RosenbergApr 30, 20091 topic

Low Probability Trades

Trading some low probability trades isnât always a bad thing. It can help you to make a huge return if you are right and you can always manage your risk when you are wrong.nnBy a low probability trade I am talking about trades that will probably not be profitable. Even so it can be a good idea to take a few of these trades now and then if you consider the following.nn1. What You are riskingnnYou donât want to be risking a lot of money on any one trade. But, this is even m

Primary topic: Investing

785 views

By Shaun RosenbergApr 30, 20091 topic

Best Time To Buy Stock Options

Stock options can be very profitable in the stock market provided you use them right. Whenever you are buying an option you should take some time to consider why you are buying it. nnHere are some tips to figuring out when the best time to buy an option is.nn1. When the Stock is giving you a Technical SignalnnGoing down to the basics, you need a reason for buying the option to begin with. If you are just buying the option and hoping the stock will suddenly have a huge move in

Primary topic: Investing

2,780 views

By Shaun RosenbergApr 28, 20091 topic

Stock Options and their Advantages

Stock options hold many advantages over just holding a stock. This ranges from higher leverage to managing risk. Below are all the ways options can be a better way to go.nn1. Higher ReturnnnOptions offer a higher return then holding the stock. Even a small move in the stock can give you a huge return in the option world. There have been times when I have over doubled my investment in under a day due to options.nnThat has got to speak to the shear ability of option contracts t

Primary topic: Investing

944 views

By Shaun RosenbergApr 27, 20091 topic

Buying Insurance for Your Stock

Did you know there was a way to buy insurance for your stocks? It allows you to keep some of the money you have invested if your stock crashes, which could be very powerful when times are uncertain. nnIt works by utilizing something called a put option. When you buy a put option on a stock you are buying the right to sell your stock at a certain level on or before a given date.nnSo, say for example you buy a stock trading at $46 and decide that you want some protection to the

Primary topic: Investing

4,190 views

By Shaun RosenbergApr 27, 20091 topic

Stops on Options

Options can be very risky because it is possible to lose 100% of your invested capital if you are wrong. One thing you can do to prevent this is to put stops on your options.nnYou can place a stop on an option in two ways.nn1. Put a Stop on the individual OptionnnThe first thing you can do is to put a stop order on the individual option. So, if you buy an option trading at $8 you can chose to put a stop at $4. This way if the option ever dropped to $4 you would be out and be

Primary topic: Investing

945 views

By Shaun RosenbergApr 26, 20091 topic

Stock Options: What You Should Know

Stock options give you a way to get leverage in the stock market. They can greatly increase your returns, if done right. But before you take the leap to trading options there are a few things you should know.nn1. Not For the Long termnnOptions eventually expire. They are not for long term investing. If you are going to be investing in options it has to be done through the short term, otherwise you may wake up one day and find out all of your options have expired worthless.nn2

Primary topic: Investing

839 views

By Shaun RosenbergApr 24, 20091 topic

Can Options Help You Control Risk?

Options can be a great way to get leverage in the stock market. In some ways they can even be used to help manage risk in the stock market.nnIf you get into a stock that is trading at $50 and expect it to go up, it can be pretty risky. Say you buy the stock and some bad news comes out of nowhere, which affects the stock. Sure you can always put a stop on your position.nnBut if the stock gaps down and opens at $40 a stop at $47 isnât going to help you much, youâll still ge

Primary topic: Investing

638 views

By Shaun RosenbergApr 24, 20091 topic

Trading Spreads vs. Stocks

Trading 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.nn1. Non DirectionalnnThe major advantage to trading spreads is that they offer you a way to make money in the stock market without having to pick a direction. Instead you only have to decide where a stock will not go within that same time period.nnFor example, you buy stock XYZ which is trading at $50. You could buy the sto

Primary topic: Investing

718 views

By Shaun RosenbergApr 23, 20091 topic

How to Enter an Option Play

Option Plays can be very profitable, if done correctly. So what are the steps to enter an option trade successfully?nn1. Find A TradennThe first thing you need to do is find a stock that you believe will make a big move in a short time period. This stock may be bouncing off of support, breaking through resistance, or giving you whatever you consider to be your buy signal.nnIf the trade looks like it could be a great stock trade it may also be a great option trade.nn2. Look at

Primary topic: Investing

697 views

Back to top ↑