As investors, we all want to beat the market, but most people have a hard time doing it, let alone doing it consistently. In this 3-Step guide, we explore some simple techniques that will give your portfolio the edge in 2012. Following these 3 simple rules, we will take control of your portfolio and position it to beat the market.
So what do smart investors do differently than the rest?
In response to my previous post in which we discussed the basics of options and how to utilize them to profit, a reader asked:
Great article explaining options. It seems like if you did want to enter into one of these hedging strategies using both calls and puts that you would need a pretty big upswing or downswing to realize any profit. This is probably more effective in a volatile market like we are seeing today but under more stable conditions would you still recommend this strategy? – Jeff
That’s a great question, and we can examine the question in a few parts.
Please note that this is the second part of a 2 part series examining how to keep an eye out for “sure bet” situations or ways to profit no matter which way the market goes. In part 1, we discussed how to recognize the Triangle Pattern in charts, and in this section we will look at how to profit from it.
This brings us to Options. If we can understand Options, we can position ourselves to capitalize on large changes in the market.
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The debt problem has been haunting the stock market, and a volatility exists where any small change could trigger a big shift in the market. The problem lies in investors not knowing how new information will affect everything. If you buy stock expecting that the news will be good and you are wrong, you stand to lose all of your money.
The question that many try to answer: How can we limit risk? Is there a way to profit no matter which way the market went? In this two part article, we will examine the strategies necessary to do this. If you have already read this section, skip to part 2 here.
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You probably always thought that there was no way to win a million dollars. You can play the lotto or go to the casino, but the chances of you hitting the jackpot are slim-to-none, unless of course you have been struck by lightning recently.
Enter CNBC’s Million Dollar Portfolio Challenge. By following a few tips you could have better than a 1 in 6,000 chance of winning (and have a ton of fun while you’re at it). Those odds are far better than winning the Powerball (1 in 200,000,000), or being struck by lightning (1 in 1,000,0000). Not too shabby, huh?
Below, we explore some tips and tricks to the challenge that will significantly help increase your chances of winning. After reading this, you should be able to compete with the best players in the competition.