Investing during a Bearish Market – when stock prices are showing clear indications of declining, can be a great way for knowledgeable Investors to make a profit. Of course, for most people, this did not occur. But for a savvy few, the numerous turns of the markets from bearish to bullish presented some unique opportunities for gains during a Volatile Market.
It certainly helps to have the experience of learning how to anticipate these market trends. But it is also necessary to be in the proper position to take advantage of the bullish upswings which always follow the lowest bear markets.
Market Trends Over the Last Year
For most Investors, last year’s Dow Jones trend of experiencing frequent Bear Market lows was one not they had previously run across. Many Stock Market dabblers had no idea how to respond to the four subsequent bullish rallies that occurred. Professional Stock Market Traders, however, saw the opportunities and were able to take advantage of them.
Those four rallies were key indicators of confidence and optimism on the part of global Investors. Mostly this was due to financial news from the United States. The Stock Market was quick to rebound when pundits expected relief from the recessionary economy. Of course, the relief was too often short-lived, and the Bearish Market quickly returned.
Bearish Market Investment Strategy
Anyone who wishes to make money in a Bearish Market must understand three essential principles of Investing. These are:
Finding stocks which are poised to make the largest gains.
Buying them at exactly the right time.
Utilising discipline to sell when pricing is optimal.
Of course these three factors are always essential parts of Successful Investing, but even more so in the Bearish Market. Not everyone has lost money in recent months, but only those who understand the right strategies were able to realise a profit.
Trading Options is literally swimming with the sharks and it is advised to know what you are doing before you venture out and start investing in unknown waters. This article is intended to be a heads up for you before you even think of learning how to start Trading Options.
Trading Options With Protection
Just like any Investment Strategy out there, options have inherent risk involved too and the risk factor is a lot higher than most other financial instruments. Not knowing or not being aware of these risks is the worst thing you could do. Do try to figure out how to Trade Options before you go out and start Investing your hard earned money.
Defence Is As Important As Offence In Options Trading
First step to building wealth is to protect what you own. There is no sense in squandering your wealth away based on a wild fancy. If there is one strategy you would need, something we at Planet Wealth swear by, is to first master defence and then go for offence.
Options Trading Can Insure Your Portfolio And Investments
No matter what anyone tells you about Trading Options on the stock market, it is still an amazing way to insure your portfolio and save it from the ever fluctuating markets. Of course, most of the options you would trade might even end up worthless, but the amount of money lost is minimal and also expected. This is how the really wealthy and savvy Investors protect their wealth….get your investing strategy on the right path now.
One thing about stockbrokers is that they make money whether you make money or lose it. Also, there are plenty of ways a Stock Broker would stand to gain from you (sometimes, at your expense) and that makes it mandatory for you to know how to choose your Stockbroker carefully.
What To Look For In A Stockbroker
One of the first things you should look out for when you seek a Stockbroker is whether or not they are certified by an appropriate licensing authority. No authorization or certification is an immediate disqualification.
In Australia, for instance, any individual or company looking to provide such financial services must have had an AFS license as mandated by the Australian Securities and Investment Commission.
Share Your Thoughts With Your Stockbroker
Secondly, Stockbrokers are your partners. You can’t hide any of your thoughts related to stocks, Investing and financial goals with them. If you don’t share your goals with your Stockbroker, they can’t be of much help to you since they wouldn’t know where to go.
And finally, look to do business with someone who makes decisions for you and not for themselves. Try to ascertain firmly if the Stockbroker you are looking to hire is on the same page as you are when it comes to Investing ideals, goals and commitment levels.
Learning precisely how to choose your Stockbroker goes beyond this little post and is certainly difficult to find the right Stock Broker, but if you aren’t looking, you aren’t working hard enough.
The quality of your Stockbroker decides your fate on the Stock Market to a certain extent, makes or loses some of your wealth, and can be a sore point if not done right.
What’s so great about Renting Australian Shares? Strategy-wise, it’s an excellent way to make money on the Australian stock market.
Renting Australian Shares Strategy For The Market
The practice of selling options on your Shares (i.e. “rent” shares) is a good way to accrue wealth from the Australian market. Done right, it’s a way to make a profit every month, while putting yourself in very little danger of losing money. You also don’t have to devote your career to day trading to make money from Renting Australian Shares.
Strategy Is To Rent Consistent Shares
The best way to earn wealth risk-free from Renting Shares is to look for companies whose stock does not change very much from month to month. In the Australian market, this is generally easier to do than finding that “golden” company whose stock you think will rise way up.
Why does this strategy work so well? It has to do with why is renting a Share officially called “Selling a Call Option” on that share.
If you are Renting Shares of company XYZ, you’re getting money from another investor who is speculating that XYZ stock will go up dramatically. You are selling that investor the “option” to purchase XYZ shares from you at a later date (usually a month later), at a set price. You are getting a premium (your “rent”) on that Share, which you will get to keep regardless of if XYZ stock goes up, goes down, or stays the same. If XYZ stock goes up higher than you determined in your initial agreement to “rent,” you automatically sell your share to your renter for the agreed-on price, in addition to the premium. If XYZ stock stays more or less the same, you keep the Share, and the premium.
That way, you can keep renting out the same Australian Shares month by month, and earning money from them, practically while you sleep.
Investors tradestock options during the course of a trading day to make far more money on the stock market than they would have been able to from simply buying and selling stock. Day traders engage in active options trading every day, using a wide variety of strategies that are somewhat more complex than merely buying and selling stock. In some cases (e.g. naked calls), you don’t even have to own a stock to sell other investors the option to buy it.
How To Earn Money With Active Options Trading
You can earn a pretty impressive income, simply trading stock options every day. It is especially lucrative considering that becoming a day trader doesn’t even require a college degree. Because, ultimately, you’re only putting yourself at risk, all you need to succeed as a day trader is knowledge of the stock market, knowledge of your options, and an ability to think clearly and rationally without letting emotions cloud your decision-making. It takes a long time to become a successful options trader, certainly; yet, equally certainly, options trading is something you can learn without going to college.
Active Options Trading Advice
When you begin your first day of trading options, remember this: refrain from activity during the initial half-hour after the market opens, and during the final half-hour before the market closes. That’s when traders are going to be at their most irrational. Consequently, that’s when the market behaves the most wildly, and when you stand to lose money. Planet Wealth may be the solution if you want to maximise return and minimize loss.
Andrew Dimitri & Rob Roy - Video On Active Options Trading…
Planet Wealth offers a live trading room that allows it’s members to gain experience in the charting and technical analysis side of stock market trading. One of Australia’s top professional traders, John Howell has joined the team at Planet Wealth to provide members with live access to computer, while he trades.
What Does The Planet Wealth Live Trading Room Offer?
A minimum of one hour of online mentoring per day with one of Australia’s top traders, John Howell - All done while the stock market is open.
You will be able to watch John live in action on his computer as he searches for promising trades. You will be able to view his charts and watch while he does his technical analysis, while doing this you will be able to hear him talk about what he is doing and you can also ask questions and get an answer immediately.
When John identifies a potential technical buy or sell signal, this will be shared with you and all other members in the trading room.
You will be give access a virtual homestudy course that you can access online. This is designed to save you thousands of dollars on seminars and other methods of learning about stock market investing. You will be able to download online videos featuring John Howell any time you choose. You will be able to learn about technical analysis, charting, indicators and all of the factors that the professionals use in finding a potential profitable trade.
What Is The Cost To Become A Member Of The Live Trading Room?
All of the above is included in your planet wealth live trading room membership for less than US$20 per hour, and you can get your membership, or find out more by going to the live trading room.
What Do Trading Room Members Have To Say?
“AT LAST some one who tells it like it is. No sugar coating or short cut ways to making a fortune. Just sheer hard work, enthusiasm and a passion for trading has made John experienced beyond his years. Through countless hours of back testing and learning from seasoned professionals John is able to share gold nuggets of information that others pay tens of thousands of dollars to learn. If John can’t get you excited about trading then no one can!”
“THIS STUFF IS AMAZING !! I am learning so much you wouldn’t believe it It has to be the best way to learn , being taught the way the pros do it is just incredible Patience is the key , John tries to stack everything to his advantage , making sure all his indicators point to a possible trade , he will then look again and make a decision on all these parameters . …you can bet (each trade) has been thoroughly researched and would represent a great chance of making money based on his skill and knowledge We learn something new every day … Thanks John”
“THIS LIVE TRADING ROOM is soooooo beneficial. I find this a wonderful learning platform and thanks to John especially for all his hard work in putting it together each day. Looking forward to the next 12 months with even greater anticipation and successful trading.”
Video Of John Howell of Planet Wealth & his technical wrap for 20th February 2009…
Don’t be scared by the volatility of the American stock market. Sure, we’ve all seen some disasters on the US market this past year, but there’s still wealth to be earned. Using the effective and relatively low-risk strategy of “renting” out US stock (formally known as “call options trading”), you can earn a profit from the American stock market. When Renting US Stocks, strategy is your friend, especially in a time where the stock market is so volatile.
Renting Stocks Is A Strategy That Diminishes Potential Losses
The reason that the practice of renting stocks offers so comparatively little risk is that the stock you’re renting out doesn’t have to increase in value for you to make money. The value of the stocks you’re renting can stay at the same level for months at a time; it can even decrease a little bit; it can go down a little one month, and recuperate the next. You’ll only lose big-time if the stock falls through the floor…unless, that is, you are smart enough to purchase insurance for your stock.
Renting Stocks Is A Strategy That Is Indispensable
How to insure the stock you’re renting? Easy. Invest some of the premium you’ll be earning month-to-month in insurance. To get adequate insurance, you’re only going to be paying less than half of the premium you’ll be earning for nothing. Most likely, you’ll be paying less than 40%.
In return for that 40%, your stock will be guaranteed to sell for 75%, or sometimes even more of its worth today, one rental period from today (the best rental period is usually around one month). Renting stocks is a great strategy to produce a consistent monthly income with little associated risk involved.
Planet Wealth founder Andrew Dimitri introduces renting stocks on video:
Investing during a Bearish Market – when stock prices are showing clear indications of declining, can be a great way for knowledgeable Investors to make a profit. Of course, for most people, this did not occur. But for a savvy few, the numerous turns of the markets from bearish to bullish presented some unique opportunities for gains during a Volatile Market.
