Different Types of Stock Options

There are few kinds of stock options. The first formal option market was established in 1973 in Chicago. The popularity of options picked up dramatically in the last 30 years. Why are they so popular? Let me give you an example, in the first week of July, 1989, the United Airlines closed at $140 a […]

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Long-term Investing Strategy Tips

Long-term strategies are based on three basic investment rules. First, you have to decide whether you can invest at this moment of your life at all. You have to have an ability to withstand the market declines. The declines of today differ from the declines of the sixties and the seventies by the speed that […]

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CD vs. Stocks Income Comparison

CD vs. Stocks Income Comparison. Investment strategies are supposed to answer two basic questions: what and when to buy or sell securities. Risk free instruments do not call for any strategy because deposit capital is not subject to market fluctuations. No matter how low the income derived from the investment is, the account always grows […]

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Different Types of Pension Plans

What are the different types of pension plans? One of the basic goals of investments is to build a solid capital base which can produce sufficient income at retirement. This is why Congress created social security in the public sector and pension plans in the private sector. In the last few decades Congress expanded these […]

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Examples of Medium Risk Investments

What are the moderate risk investment options? Financial instruments with moderate risk have prices which are subjected to larger market fluctuations. The capital gains potential is limitless. The fees vary from 1% (stocks) to 6% (buying a house), and the duration of the investments vary from one day to several years. The minimum investment varies […]

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Investment in Real Estate or Gold

Investment in Real Estate or Gold – which to choose? One of the most popular forms of investment is real estate. It is popular because most real estate investments have beaten the rate of inflation over the years. Investment in real estate has an additional advantage from a tax liability point of view because the […]

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Stock Market Indicators List

What are the best stock market indicators? Market Indicators allow investors to “time” the market and to decide on the best course of action based on this reading. Indicators can be further grouped as monetary, market valuation, bull, bear and market sentiment. Monetary Indicators These indicators help to establish the demand and supply for money […]

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Short Selling Stocks Example

What does selling short mean? “Buy low, sell high” is not the most helpful and accurate advice on Wall Street. This statement assumes that our first transaction has to be a purchase of securities followed by their sale. Let’s assume, however, that our market assessment suggests an imminent decline in the market prices. Investors can, […]

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Types of Stock Orders Explained

What are the types of orders in stocks? There are 5 kinds of stock orders. An investor can leave one of the following orders with his broker: market order, limit order, stop order, stop limit order, and a fill or kill order (FOK). The market order is executed immediately. The three other types of orders […]

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Dividend Reinvestment Plan Strategies

Dividend Reinvestment Plan Strategy of Down 10% — Buy and Up 30% — Sell. This strategy was created by Eugene Brody. It signals a purchase only when the market – as measured by the Standards & Poor’s 500 or the Dow Jones Industrial average – declines 10% from the same date the previous year. Conversely, […]

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