As the world becomes a more dangerous place, investors will have to use more unusual investment strategies.
Buying a put option is one way of covering both angles. It allows you to participate in any upside, while also protecting you from any potential downside.
When does a paper profit become a real profit? Some people like to see money in the bank. Only then will they chalk up a trade as a win. For others it’s a case of tallying the gains as they go. For them, a paper profit is every bit the real thing.
It’s the single most important decision every trader must make. Getting this right is vital to your success.
When two of the world’s biggest tech companies are putting billions into this, you know it’s coming. In fact it’s not just coming; it’s already here.
Simply put, when you invest in the biggest market capitalisation stocks on the ASX, you’re basically investing in the broader direction of the market — not in quality business.
You’re well aware that investing is not risk free. You only have to look at the performance of the ASX — or any of the world’s other stock markets — this year to verify that.
A mistake I’ve made in the past is using the progress of a peer as a yardstick for my own share trading success.
What should trouble investors the most is what appears to be a new downward trend for earnings. It’s a reasonably subtle change in the trend, but it’s definitely there.
Short powerful statements are priceless. And this is one of the best. It captures the essence of successful share trading with a simple analogy.