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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 RosenbergMar 18, 20091 topic

Profit from Dividends

It can be tempting to get into stocks that are offering high dividends. In fact for an investor the dividends can make up a huge amount of your total profit from that investment.nnBut there are a few things you are going to want to consider looking at if you are investing for the dividends.nn1. Find out how much you are willing to take.nnYou should have a minimum amount you are willing to accept from your dividends. For example, if you only want to look for returns with a div

Primary topic: Investing

779 views

By Shaun RosenbergMar 18, 20091 topic

When to Use a Stop Limit Order

Stop limit orders are very powerful in the stock market if used correctly. They can give you a new way of placing a trade that can potentially benefit you.nnSo when might it be a good idea to place a stop limit order?nn1. When a stock is at resistance and you are expecting it to break through. nnSay a stock is at a key level of resistance of $45. If the stock breaks through to $47 you are willing to consider it a breakout and take the trade. And if it does break out you have

Primary topic: Investing

1,570 views

By Shaun RosenbergMar 17, 20091 topic

How Stock Market Emotions Work Against You

In the stock market controlling your emotions is one of the most important keys to being successful as a trader or as an investor. There are so many ways your emotions can harm you. They can â¦nn1. Make You get out earlynnYour emotions can make you get out of a good trade too early to actually hurt your chances of making a good return from it. If you buy a stock at $50 and it goes up to $53 it is so tempting to get out of the trade and take the $3 profit, especially when you

Primary topic: Investing

678 views

By Shaun RosenbergMar 17, 20091 topic

Why Look at a Companyâs PE Ratio?

The 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?nn1. You want to invest in strong earningsnnObviously the more money a company is making the better an investment the company is in the long term. No one wants to invest in a company that isnât making money. But everyone wants to invest in Coke or Google or any other large company maki

Primary topic: Investing

743 views

By Shaun RosenbergMar 16, 20091 topic

Benefits of Placing Option Spreads

Selling options can be a very profitable journey. Placing combining those options into spreads can be a great way of doing this for these reasons.nn1. Higher ProbabilitynnCreating credit spreads allow you to gain a much higher probability of being correct then if you just buy the stock or buy an option for the stock. The reason for this is because the stock does not necessarily need to go in your direction for you to be profitable. nn The stock only needs to not turn against

Primary topic: Investing

735 views

By Shaun RosenbergMar 15, 20091 topic

Why People Donât Sell Options

Selling options can definitely be a profitable way to trade the market, yet many people do not trade them. The top two reasons for this are.nn1. Option selling gives you a limited returnnnMost people buy stocks and options and hope that they will go up and make them a ton of money. After all if you buy a stock there is no limit to how much it can go up and because of that there is no limit to how much you can make. nnBut even though you are limited on how much money you can m

Primary topic: Investing

810 views

By Shaun RosenbergMar 14, 20091 topic

Taking a Break from the Market

The stock market can be both a rewarding place and an âevil place bend on taking away your moneyâ. 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. nnWhenever the direction is unclear and stocks are making record percentage gains one day and record percentage losses the next it might be time to stay out. Walk away from the computer screen and wait for the next trend to

Primary topic: Investing

719 views

By Shaun RosenbergMar 13, 20091 topic

When to Place an Iron Condor Trade

Iron Condors can be very profitable at times so how do you find the best time to place an iron condor? When should you enter the trade? This is what everyone wants to know.nnWell there are a couple of things that might be helpful.nn1. When the Market is going FlatnnWhen stocks are not trending so much in either way but staying relatively flat that is the best opportunity to look for iron condor spreads. During times like this it may be hard to trade directionally but trading

Primary topic: Investing

1,321 views

By Shaun RosenbergMar 12, 20091 topic

Ways to Make Money in the Stock Market

There are 3 major ways you can make money in the stock market. Each of these ways has its advantages and disadvantages.nn1. Buying and Selling StocksnnThis is definitely the most popular way to make money. It involves simply buying a stock either because of some fundamental data or some technical data and selling it later, hopefully for a profit. You can also turn this around and sell a stock first, then buying it back for a profit later on.nn2. Buying OptionsnnBuying and sel

Primary topic: Investing

687 views

By Shaun RosenbergMar 11, 20091 topic

Why Look at a Companyâs Debt?

When 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. nnThere are two major reasons you want to look at a companyâs debt.nn1. How Long will it be around?nnIf a company has a ton of debt it may not be able to last very long. One little problem can hurt it and make it unable to pay the interest on those debts and the company might end up declaring bankruptcy. nnI

Primary topic: Investing

748 views

By Shaun RosenbergMar 10, 20091 topic

Finding Good Undervalued Companies

Recently every stock has been getting crushed. This means that today is probably one of the best investment opportunities of our life time to get into strong stocks for the long term. So how do you find the best of these stocks to invest in?nnHere are a few things you can look at.nn1. The P/E rationnEveryone looks at the P/E ratio. It helps you to get an understanding of how the price of the stock compares with the actual earnings of the company which is of course the lifeblo

Primary topic: Investing

1,412 views

By Shaun RosenbergMar 9, 20091 topic

How to Control Your Trading Emotions

Trading brings out all kinds of emotions that just seem to get in the way and make it very hard to actually get anywhere. If you want to succeed you must control your emotions.nnDoes this sound familiar to anyone? You buy a stock that is trading at $50 because you believe the stock will jump up and make a good move, for whatever reason. Then the stock starts to move down. It moves down to $48, and you hear someone else talking about the company.nnThe news starts talking about

Primary topic: Investing

853 views

By Shaun RosenbergMar 6, 20091 topic

How Many Shares to Buy

Before you enter the market you will need to decide not only what to buy and when to buy it, buy how much to buy. How many shares of stocks should you buy to limit your risk? Here are some things to consider when you decide that.nn1. How much capital do you Have?nnHow much money do you have in your trading account? This is the most important thing to consider when you are deciding how much stock to buy. You donât want to have a large portion of your account in 1 trade becau

Primary topic: Investing

1,597 views

By Shaun RosenbergMar 5, 20091 topic

Is Holding Cash a Bad Idea?

Absolutely not, in fact there are times when holding cash is probably the smartest thing you can do. I know no one likes to hear it, but sometimes you have to stay out of the market at least for a little while. nnHere are a few reasons why it is important to hold cash when times are uncertain.nn1. Save Your Money for the big moves.nnYou can save your money for when the stock market starts trending again. If you are trading a volatile market and your positions are not going in

Primary topic: Investing

997 views

By Shaun RosenbergMar 4, 20091 topic

Why You Need to Invest with Real Money

I am a firm believer in paper trading. You have to develop a strategy before you put any real money into the market. But aside from that you need to invest with real money eventually and here is why.nn1. The Obvious Reason, If you donât invest real money you donât make money.nnIf you are paper trading and making a great return on your fake money thatâs great you are half way there. Now you need to figure out how to do it with actual money. Until you start investing with

Primary topic: Investing

753 views

By Shaun RosenbergMar 3, 20091 topic

Why Buy Put Options?

Put options are a great way to make money as the stock market goes down. There are a number of benefits to trading them, and when the markets are falling there is no faster way to profit.nnHere are some reasons that Put options can be fun to trade as stocks fall.nn1. It allows you to have some sort of money making system in place as stocks keep falling. nnNearly everyone invested in the market loses money when stocks fall. A few of us who actually trade towards the downside n

Primary topic: Investing

952 views

By Shaun RosenbergMar 2, 20091 topic

Making Money in a Bear Market

The Markets have been falling fast lately and most people either believe it is the end of the world or the markets are at a bottom. Both conclusions are probably wrong.nnFirst of all it is not the end of the world. Stocks go up and down thatâs what they do. That said, even though the markets are so far down they can always go down further. It can be very easy to want to find bullish stocks at these undervalued levels. But the fact that stocks are undervalued isnât going t

Primary topic: Investing

936 views

By Shaun RosenbergFeb 26, 20091 topic

Are We at Bottom?

Everyone has been trying to call a bottom in the market for a while. The markets have to stop going down and start going up at some point. But is that point now?nnIt seems like there is a lot of strong evidence supporting the bottom. Stocks are greatly undervalued; right now you can buy tons of companies for only a fraction of what they should be trading at. In addition to the fundamental reasons stocks are also at a long term support.nnThe SPY has hit support earlier this ye

Primary topic: Investing

767 views

By Shaun RosenbergFeb 25, 20091 topic

Why Spreads, Why Now?

Option 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.nnThey give you a great way to profit in the stock market. So why is now a great time to be trading spread strategies?nn1. Volatility. nn The VIX measures volatility which helps determine the price of options. As volatility goes up options becom

Primary topic: Investing

750 views

By Shaun RosenbergFeb 24, 20091 topic

How Much Stock Should You Buy?

Ok, so you have done your homework and found a great stock that you believe will head up. It is following all of your rules. nNow you have to decide, how much of it do you want to buy.nnObviously you donât want to put your entire account in 1 stock because nothing is a for sure thing. You can still lose money even if everything appears to be good. If it goes sour you donât want it to take your whole account down with it. nnSo you have to determine how much you are willing

Primary topic: Investing

3,726 views

By Shaun RosenbergFeb 23, 20091 topic

Stocks Can Always Go Down

One of the things we are constantly reminded of in the stock market, especially at times like these, is that stocks can always go down. You need to remember this always.nnEven if you combine the best technical indicator with the most fundamentally undervalued stock and buy it on an historical up day, when all the planets align the stock can still go down. Yes, itâs true and you should be aware of that. nnNothing is fool proof. Knowing that you have to look at this market an

Primary topic: Investing

780 views

By Shaun RosenbergFeb 22, 20091 topic

Holding Cash and Great Returns

Most people do not see that these the two things holding cash and great returns can actually work together. Most people just assume if you arenât investing all the time you arenât going to make good returns, not true.nnYou donât need to be in the market one way or another at every moment of the day in order to make fantastic returns on your money. In fact if the markets are hard to trade and you are just losing money by being in you probably should hold more cash.nHere

Primary topic: Investing

750 views

By Shaun RosenbergFeb 21, 20091 topic

Why Trade Spreads?

Option spreads can give you some new ways to look at the stock market and can help you make money trading in the short term even if you are not good at option trading. nnHere are some reasons why trading option spreads can be a good idea.nn1. Spreads give you more ways to be able to profit from the stock market. When you combine options into spreads you are combining the power of options with the power of creativity to form trades that can let you look at the market in a diff

Primary topic: Investing

771 views

By Shaun RosenbergFeb 16, 20091 topic

Another Way to Make Money in a Sideways Market

I have been talking a lot about iron condors lately because they are very helpful in making money in a sideways market, and that is what we are in. But there are other ways that we can pull a monthly income from a sideways market.nnOne very effective method is selling a horizontal spread. For example say you find a stock trading between $60 and $65 and you believe that stock will continue to trade between those levels for a couple months.nnYou can buy a call option on the sto

Primary topic: Investing

802 views

By Shaun RosenbergFeb 15, 20091 topic

3 Ways To Make money From Your Stocks

There are 3 ways that you can make money from a stock that you own, or an investment that you want to get into. Ideally you want to be making money all 3 ways every time you enter an investment. nnThe 3 ways are:nn1. Dividends.nnSome stocks offer a dividend, which means they actually pay you for owning a share of the company. This makes sense because when you buy a stock you are buying a share of the company, so you should be entitled to a share of the profits that the compan

Primary topic: Investing

1,100 views

By Shaun RosenbergFeb 13, 20091 topic

Option Spreads Give You More Variety

Option 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.nnThe best thing about spreads is that they give you many more ways to profit then options. With options it is simple, you can profit if the stock goes up, and you can profit if the stock goes down, provided you are in

Primary topic: Investing

718 views

By Shaun RosenbergFeb 12, 20091 topic

Why Am I Selling Naked Puts Right Now?

There 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.nn1. Stocks are undervalued. The market has crashed so far in 2008 that nearly every stock that is left is undervalued. Now Iâm not saying all stocks today are good buys, and Iâm not even saying that the market will not fall lower, but there are a lot of strong companies and ETFs out there trading for

Primary topic: Investing

701 views

By Shaun RosenbergFeb 10, 20091 topic

What is a Diagonal Spread?

A diagonal spread is a spread that allows you to produce a monthly income from the stock market and at the same time being able to profit from appreciation or depreciation in the stock.nnOk so how does it work? Simply put you buy an option that will not expire for many months. You also sell an option that will expire in the front month. nnFor example say you buy a call option 10 months out for $12. nThen you sell a front month call with a higher strike price for $2. Initially

Primary topic: Investing

908 views

By Shaun RosenbergFeb 8, 20091 topic

Why Manage Your Risk When Selling Options

Most people who enter the option selling world do so because it comes with a high probability of being correct. Most people see that they can make money 80% of the time and decide that this is what they should be doing.nnFew realize that even with such a high success rate you still should manage your risk. Just being right 80% of the time isnât going to make you an automatic Stock Market Trader. nnCases in Point look at iron condors. An iron condor is a high probability tra

Primary topic: Investing

658 views

By Shaun RosenbergFeb 6, 20091 topic

Trading Stocks as a Business

Most traders fail to make money in the stock market because they fail to treat trading as a business. They believe they can just buy a stock it will go up 200%, they sell and everything is good.nnThat is not how trading works. Sure if you did that you would occasionally get some pretty big winners, but you would also get some pretty big losers as well. That is why the first way you have to approach trading is by minimizing cost.nnYouâre going to have losing trades along wit

Primary topic: Investing

2,580 views

By Shaun RosenbergFeb 4, 20091 topic

How Much Can I Make Trading the Stock Market?

The single biggest question that new traders ask is how much can I make trading the stock market? They all want to know what annual return they can expect to make, or how much monthly income they will generate.nnThat is not the question you should be asking. In fact concentrating on that question will hurt you in 3 ways. nn1. You would not limit your losses. Instead of looking at your possible gains what you should be looking at is how much you are willing to lose on every tr

Primary topic: Investing

3,494 views

By Shaun RosenbergFeb 3, 20091 topic

Getting Started in Trading

Almost everyone who is in the stock market has a few long term investments. Maybe they bought a few ETFs that they believe will go up in the long term. But along with your investments it is a good idea to place some short term trades.nnThe real benefit of short term trades lies in compound interest. If you could make 10% in a month it beats making 10% in a year. Yes trading the market can have high risk, but that risk can be minimized with stop loss orders, and position sizin

Primary topic: Investing

695 views

By Shaun RosenbergFeb 2, 20091 topic

What about a Collar?

Today 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. nnThat 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 the stock to do anything. But remember we still are in a bears market. Stocks could suddenly crash without warning tomorrow. nnSelling a $.50 call isnât going to be very helpful if the st

Primary topic: Investing

749 views

By Shaun RosenbergJan 31, 20091 topic

Exiting Bear Call Spreads Early

Most people when they sell bear call spreads intend to hold onto them until they expire. If they do and they profit you can realize your maximum gain. You also do not have to pay commissions for exiting your spread if they just expire.nnBut in certain conditions it is a good idea to exit a bear call spread early. When you sell an out of the money spread the premium is constantly melting away and as long as the stock is not making any upward movements.nnIf a stock falls fast t

Primary topic: Investing

1,030 views

By Shaun RosenbergJan 29, 20091 topic

Being Partially Bearish

It 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.nnIn this case you may want to use a bear call spread. This spread allows you to take a partially bearish stance in the market. Stocks could fall, go nowhere, or even go up a little and you could still profit. nnAll the stock needs to do with a strategy like that is stay below a certain leve

Primary topic: Investing

747 views

By Shaun RosenbergJan 25, 20091 topic

Making Money in Sideways Markets

Sideways markets are always harder to trade then trending markets. Trying to hit every swing can be difficult for a trader. Instead of trying to predict the movements you can make money in a sideways market by using a strategy called an iron condor.nnThis is how it works. Say a stock is moving between $400 and $550. That is a very wide range that the stock seems to be staying within. Instead of trying to trade this we can simply, sell far out of the money options.nnNow say we

Primary topic: Investing

961 views

By Shaun RosenbergJan 21, 20091 topic

Selling Out Of The Money Covered Calls

In a situation like we have now in the market there are many stocks that are way undervalued. You may be looking into buying some of these undervalued stocks and waiting for the market to recover. If so selling out of the money covered calls on those stocks is an excellent way to generate monthly cash flow from your investments. nnWhen you sell out of the money covered calls on a stock you are generating an income by selling the right to buy your stock at a certain price on o

Primary topic: Investing

939 views

By Shaun RosenbergJan 17, 20091 topic

Covered Calls for Volatile Times

Selling covered calls is always a great strategy, but it becomes even more important when the markets are volatile like they are today. nnFor all those who donât know what a covered call is, it is a strategy where you buy a stock and sell call options on it. nnThese call options allow you to collect monthly premium on your stock, however you are obligated to sell your stock if it reaches a certain level. nnThis means if you own a stock that is priced at $40 you can sell the

Primary topic: Investing

750 views

By Shaun RosenbergJan 16, 20091 topic

Adding and Subtracting from a Stock Position

Many traders will practice adding to a winning position as well as subtracting from a winning position. These strategies can be very helpful to let your winners grow.nnMany traders will practice taking away from their position once a given level is hit. For instance say you want to buy 100 shares of XYZ stock at $45. You have a target of $55, but if the stock gets to $52 you would take half of the position off. nnWhy would you take profits early? Basically to guarantee any pr

Primary topic: Investing

2,625 views

By Shaun RosenbergJan 13, 20091 topic

Before You Enter a Trade

I make my trading decisions based on technical analysis. I believe in developing a trading system and following it to a tee. But I donât take just any old trade that gives me a technical set ups of course. Before I enter a stock I like to check a few things.nn1. I back test the stock, just a little. I want to know what would have happened if I had entered the trade before. I like to go back and spot every time I would have gotten a trading signal in the stock in the past ye

Primary topic: Investing

758 views

By Shaun RosenbergJan 6, 20091 topic

Stock Trading Personality

Everyone has a different personality. So it makes sense that everyone has a different stock trading personality. Some people trade very aggressively and like to go after the short term movements. Some people are less aggressive and like to ride the longer term trends. nnFinding your trading style is very important. If you try to be too aggressive and your personality isnât the same you might get too stressed out to make good decisions. On the other hand if you are very aggr

Primary topic: Investing

702 views

By Shaun RosenbergJan 3, 2009Topic pending

What Poker Can Teach Us About the Stock Market

Poker is really a miniature stock market on so many levels. You can apply much of what you learn from one to the other. nnOne of the biggest similarities is how little your profits matter. If you make $1,000 in anything it is a big deal, but if you make $1,000 in the stock market or in a single pot it doesnât matter. That money can come and go, anyone can make money in the markets or playing poker.nnThat is why I donât look at it the same way, one great trade or one good

Primary topic: Jan 3, 2009

Jan 3, 2009

849 views

By Shaun RosenbergJan 2, 20091 topic

Technical Analysis?

Technical 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. nnA 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 supply and demand. If there are more buyers than sellers a stock will normally go up until it reaches a point where sellers start to come in. nnThis can be flipped around. If a stock has

Primary topic: Investing

761 views

By Shaun RosenbergDec 29, 20081 topic

Low Volume stocks

Low volume stocks can make it much more difficult to trade profitable. For that reason it is better to stay out of these stocks regardless of how the set up looks. nnVolume should be looked at every time you place a trade. What volume does is tell you exactly how much of a given stock was traded during the day. Every number counts as 2 tradeâs one buy and one sell. So if volume is 10 million it means 10 million people sold and 10 million people bought that day.nnIt is very

Primary topic: Investing

1,370 views

By Shaun RosenbergDec 27, 2008Topic pending

Stock Market Trading and Poker

I am a huge stock market geek and a huge poker geek as well. I remember seeing not too long ago a world poker series; they were interviewing a guy from the semi finals who said he was an option trader. nnThat made me think, trading which is one of my biggest hobbies is very similar to one of my other favorite hobbies poker. Now I know most people out there are not willing to believe that poker and trading are similar. nnMost people associate poker with slot machines and gambl

Primary topic: Dec 27, 2008

Dec 27, 2008

1,323 views

By Shaun RosenbergDec 23, 20081 topic

Weeding Out Market Noise

If you pay attention to the stock market at all you will get bombarded with tons of useless facts about what is going on with the country, how the economy is improving/ getting worse, how inflation rates are changing, what the unemployment rate is.nnIt is difficult to find out which information is useful and which information is not useful. Easy, remember 90% of all information talked about in the stock market is completely useless, at least when it comes to making money. You

Primary topic: Investing

895 views

By Shaun RosenbergDec 22, 20081 topic

Saving Accounts vs. the Stock Market

Most people decide that the stock market is just too risky for them to put their hard earned money into. I know many savers out there who would rather put their money into a savings account then into the markets.nnThis way they can go for the sure thing, the government insured return, but what are you actually getting when you invest your money into a savings account? Say your bank pays you 2% interest in your savings account, and you put $10,000 into it.nnAfter 1 year you ha

Primary topic: Investing

899 views

By Shaun RosenbergDec 17, 20081 topic

Changing Your Trading Rules

Changing your trading rules can be a good approach if your rules arenât working. But if they are there is no need to change them just because you have a few bad trades. nnYou have been good, following your trading rules and having some success. But you start to notice some flaws in your approach. You will from time to time enter trades where you lose money and are forced to exit. nnYou also see other opportunities that you have missed because they did not give you an entry

Primary topic: Investing

723 views

By Shaun RosenbergDec 10, 20081 topic

Finding the perfect trading set up

Some 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. nnIt 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 buy and we have won. Unfortunately, the perfect set up never comes in the stock market. You can spend every waking moment looking for the perfect stock to buy, one that has great fundame

Primary topic: Investing

719 views

By Shaun RosenbergDec 8, 20081 topic

Take Complete Responsibility When Trading

All 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. nnThis step is very important because until you take responsibility for your trading, both profits and losses, you will not feel comfortable enough to place trades yourself and follow your own rules, which is necessary if you want to make money

Primary topic: Investing

741 views

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