Relax, you’ve got Options…

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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.

The Trader’s Holy Grail: Limiting Risk

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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.

Competing for $1,000,000

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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.

How to Pick Stocks: Spotting Value

Value-Investing

Value stocks are a completely unique kind of investment. With thousands of companies that are publicly traded it might seem that they are a common occurrence, but rarely is this true. In depressed economic times, these types of opportunities are more prevalent; however, in most bull markets these opportunities are less frequent. Currently we are undergoing a recession of sorts, which has brought about levels of unemployment and financial uncertainty not seen in over 25 years. While there are many who watched as their retirement portfolios were cut by 20% in this recession and subsequently lost years of accrued wealth, there are those who have the capital to invest during this time and have found an opportunity of a life-time in both the real-estate, and stock markets.

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