Stock Market and Options for best currency Trading

There is much misunderstanding on Covered Calls. Most 'pundits' feel that it is a very conservative way of eking a little more out of your existing stock holdings; Well, it is certainly that - but it is much, much more - if approached diligently and intelligently.
This is not a 'Home Run' Strategy - We will never hit it out of the ball park - those are dollars for another segment of your portfolio.
This strategy strives for successive, non-dramatic hits. Have you ever noticed that baseball teams - that win consistently - consist of lots of base hits - and only rarely has a huge home run hit. Well, that is what covered calls consist of - but a steady stream of them!
This is the kind of record that pays for the cars, sail boats, and European vacations - without tossing and turning in bed at night - wondering if that 'tip' will pay off.
It is a well known fact that investors who have a plan - and work the plan - are immeasurably better off than those who rely on news tidbits, and buy whenever there is a well known personage who is recommending a particular stock.
Covered Calls consist of very simple basic components: You have a stock - and you sell the right to have someone buy the stock from you - at a specific price - within a specified time.
Pretty simple, isn't it? You own XYZ stock - and it is selling at $7.50 - and you sell the right for someone to buy it from you if it reaches $10.00. The right to buy it from you costs the person a premium - and that is money that will go to you. Let's say the price to reserve that right to buy it from you is $1.50.
Now, let's look at this. You have a $7.50 stock; Someone is willing to pay a premium because he/she thinks that it is an explosive stock - and he/she thinks it is a bargain to pay $1.50 for the right to buy it from you.
If the stock stays at $7.50 - $8.00 (or somewhere around there) you have made the difference between your $7.50 and $8.00 (if that is where the stock is at the expiration date) - PLUS - the $1.50 you took in. That would be.50 + $1.50 = $2.00. A nice percentage return - 26%! Not boring anymore, is it?
The holdings are usually 3-5 weeks.
Now, suppose your $7.50 stock drops to $6.50: That would be a 13% loss!
But, remember, you have sold the right to buy it from you at $1.50 - (If the stock increased to $10.00 - which obviously it hasn't in this case) you have now brought in $1.50 - added to the diminished stock of $6.50 - You now have $8.00 total - a gain of 6.7% - instead of the 13% loss - as described above!
There are many scenarios one may look at - but, remember this, the strategy of Covered Calls is not a boring, 'eking a little more out of the stock', but, rather is a dynamic strategy which can give you - a very handsome return!
If, it is done intelligently, diligently, and boldly!

R. Parker has been trading for 10 years - and has grown weary reading 'Investment Letters' which devote a substantial time regaling us about their vacations, or their belief on the state of the world - or telling us little homey stories about their pets, children, or their latest visit to Singapore, visiting with the president of this, or that company - and getting great 'inside information', which may be interesting, but almost always - of no immediate use by us - as investors.
What we will do is say: Buy this - and here are your likely parameters of returns.

Stock Market Chart and precious trading Software

Stock chart software: Created and programmed to gather technical data to produce predictions based on how the stock market fluctuates. That is what a stock market chart software can do for you. Although some stock software's are directly connected to online data bases of brokers, there others that run independently.
Before even purchasing stock software's, you should learn all the in's and out's of the stock market and how the entire process is run. This all includes from researching, graphing, charting, and being able to identify how and when the stock market can or will fluctuate based on the current situation of the market. Once you get your feet wet a little on that, only then will does it make sense to purchase a nice piece of software to help assist your investing knowledge and goals!
If you are looking to use a charting software for your stock research and investments, there should be a couple of options that you should look for before actually going out and purchasing one. Most stock software's usually come equipped with a few abilities that I personally believe all investing software's should have, but the absolute necessary functions would include: Research capabilities, allocating the history, identifying the stock patterns and being able to accurately display the potential future of a stock. Oh and let's not forget... "User friendly"
Being able to run efficiently and effectively in a timely manner all connects to your future earnings. The main thing here is to be able to cut out much of the work that require you to spend time on, while still being able to invest in stocks with success! If you find a solid program that can use it's data collected correctly and apply it, your stock market chart software should be able to find you solid predictions on what it believes to be the right investment!

Stocks Based on Company Size - Large, Medium and Small Caps

In the investment world, stocks are grouped depending on some given factors. These include company size and the category of the caps. The caps are either large, medium or small. This categorization is known as market capitalization. It is normally used as a measurement of the corporate size and power and it plays a great part in stock valuation during sale.
In order for investors to be able to make the right decision about stocks based on company size or the size of the caps, it is crucial for them to first carry out a market survey. The size plays a crucial role in determining the risk factor your investment will be predisposed to, as well as the amount of return it will have potential for attracting. Small and large companies, large or small or medium caps react differently to different factors in the market.
In determination of the size of the caps, different indices are used, depending on the prevailing market conditions at the given time. The factor that mostly affects the figures is inflation. When deciding on which stocks to go for, based on caps, it is advisable to put a few factors on note. The first thing to remember is that most experts agree that small caps are more risky, especially if they are worth below $500 million. The one great knowledge you should never let go is that, it is always advisable to invest in what you know, and not what every one else is investing in.

How to Dominate Today's Market With a Stock Picker of Cheap Stocks

Many new and inexperienced traders are beginning to use a stock picker of analytical background to trade in the market. These are programs which do all of the analytical work for you and deliver profitable trades to you so that you don't have to do any work beyond investing money in the picks accordingly.
If you've been interested in investing in the stock market for some time now but don't have the experience to devote to it, here is what to know about a stock picker of cheap stocks especially to realize the kind of profits that you have only dreamed of.
These programs are only as good as the picks which they generate. These programs detect how exactly certain stocks will perform in the short term by taking the full scope of the market into consideration. Stocks perform similarly to each other over time along with the market which progresses in one massive loop.
By looking at the origins of profitable performing stocks of the past, finding origins which are similar in real time market data gives you a very exact idea of what that stock is going to do in the immediate future.
I especially recommend a stock picker of cheap stocks, or one which target penny stocks exclusively as this makes for a powerful combo. Penny stocks are much easier to influence, so you'll commonly view a cheap stock blow up over the course of a few hours.
For example, the first pick which I received from a stock picker of only penny stocks was first priced around just $.18. Just of the course that first day it reached up to $.38 a share. By the end of the second day only it had muscled its way up to $.57 a share. This is evidence to show how these stocks perform and how quickly they can make those jumps, you've just got to be able to identify and differentiate them from the rest.

Stock Warrants - What They Entail

A stock warrant refers to a right given by an issuing company to an investor to buy stocks at a given price during a certain period of time up to a given date. Many people do not differentiate between warrants and options but, the easiest way to tell them apart is to remember that warrants are only issued by the issuing company. Options on the other hand are freely given in the stock market by investors.
Another way in which the two differ is on the fact that, warrants are issued at the point of transaction, directly by the company that is issuing the securities. On the other hand, when options are issued, they can be transferred from one investor to another, which does not apply for their counterparts.
Third, warrants are a means of raising money for many companies because they receive money at the point of issuing the warrant. The fact that they are issued at very low prices makes them very affordable and attractive to many investors and hence the company is able to make a lot of money in the process. Their life is also longer than that of an option; they can last up to 15 years and many investors who seek long term investments prefer them to options.
In as much as the stock warrants come with the advantage of low prices and are long term investment, they are also faced with their own limitations. One disadvantage is that, the holder does not have any voting, share holding or dividends rights. As such, the investor has no say on how affairs are run in the company. The value can also drop to zero and this would leave the investor with no redemption right if this were to happen.

What Are Stock Warrants?

Warrants are options that give you the opportunity to decide on when to buy a given security, the price, quantity and time. Stock warrants are often given by companies, unlike options which are used freely in the stock market. This means that the security held in the warrant can only be issued by the issuing company, but not by the investor holding the shares.
Companies normally issue stock warrants as a method of attracting investors to buy new securities. Not only does it attract investors, but it also gives them confidence in that new stock, the reason being that, the investor can choose to wait until prices have gone down and will still be assured of getting his share. He can also choose to redeem his shares when their value has increased and this is just a good thing to his confidence in the stock.
Stock warrants come in two different types. These are, the call warrants and a put warrant. The first category represents a specific number of shares that can be acquired from the issuer at a given time, either on or before a specified date. The other category specifies the amount of equity that can be sold back to an investor on or before a specified date. This gives an advantage to the investor because he can then decide what to do with his shares or stocks.
When being issued with a warrant, an investor should be able to notice whether they carry some particular characteristics. One of them is that they should have a specified expiry date, which is the last day on which the warrant could be executed. The certificate should also have particulars regarding the investment tool they represent. The style of execution also differs because there are those that have the American style and others the European style. One should be able to know the difference.

Ways of Reducing Tax on Stocks

Investors will always want to go for those types of stocks and securities that give them attractive returns and which do not charge them much tax, or if possible, those that are tax free. Tax efficiency is a very crucial aspect to look at when putting your money in any type of investment. A tax efficient mutual fund seeks to reduce the amount of tax chargeable on the returns by structuring its operations around tax-reduction activities.
One of the ways in which tax can be reduced is by investing in a low-taxed or no-tax security like municipal bonds. A fund can also keep the overall turnover low especially if it deals with stocks. This is simply to say that the stocks should be held for longer periods of time because long-term stocks are subject to low or no tax charges, unlike short term transactions.
The third way to keep taxes low is to do away with income generating securities like dividend paying stocks. These are likely to attract a tax liability whenever the dividends are being issued. Thus, making sure that the securities that you investment trades in are not taxable because this leaves you lower returns.
The government is really doing a great job in encouraging people to invest in tax-efficient investments. This, as it has been proved, is a good way of saving for retirement and other future plans. Putting money in tax-relief pensions is one way of increasing your pension fund, which is just another type of a mutual fund.

Peter Gitundu Creates Interesting And Thought Provoking Content on Mutual Funds. For More Information, Read More Of His Articles Here REDUCING TAX ON STOCKS If You Enjoyed This Article, Make Sure You Read My Most Recent Posts Here MUTUAL FUNDS

3 Basic Steps to Find Your Best Short Term Investment

Many investors want to find the best short term investment. Unfortunately it is easier said than done. Short term investing can be very lucrative, but also risky. It can last for as little as a few minutes to as long as several months. To succeed in this strategy investors must understand the risks and rewards of each investment. They must know how to spot good short-term opportunities and also be able to pr0tect themselves from unforeseen events. In this article I will give you 3 basic steps to find short term opportunities through stock trading.
There are several basic concepts that must be understood to become a successful short term trader. We will concentrate on one which is recognizing potential candidates. Recognizing the right possible trade means you know the difference between a good situation and one to avoid. Many times investors think if they watch the evening news and read the financial times they will be on top of what is happening in the market. Truthfully speaking, by the time we hear about it, the markets are already reacting. So, here are some basic tips to find the right trades at the right time.
Step 1: Watch the moving averages - a moving average is the average price a stock over a specific period of time. The overall idea is to show whether a stock is trending upward or downward
Step 2: Understand overall cycles or patterns - the market trades in cycles, which make it important to watch the calendar at a particular time.
Step 3: Get a sense of market trends - If the trend is negative, you may consider shorting (selling) and doing very little buying. If the trend is positive you want to go long (buy) and do very little selling.
Following these basic steps will give you an understanding on how and when to spot some opportunities for short term investing.

Here's How Ordinary People Can Make Money With Penny Stocks!

Penny stocks are an exciting investment types. Some investors don't consider these sorts of stocks because they think they are too risky. Don't let yourself be nervous though - there's incredible money to be made if you know what to search for.
For the most part, I define any share prices under $2.00 to be a penny share and invest in up and coming businesses instead of established companies. There are many businesses whose share is priced under $2 because the organization has had certain difficulties. I tend to find companies that are up and coming rather than established ones whose stock is cheap based on problems the company has faced. By concentrating on these organizations I can make remarkable money later on when they start earning profits..
We should now take a look at how you can pick out quality penny stocks. When you recognize what to look for, you can start earning fabulous cash.
Examining the industry that the organization is in is an important first step. Is the competition too stiff for a new entrant? This involves a top-down analysis of the industry to make sure that the business is involved in an industry that gives them the opportunity to be a profitable business.
Second, how about the company? How do you feel about the management team? You also have to analyze what the business offers and determine if their product differs from what other businesses are providing. Maybe they offer a specialized product, or perhaps they are differentiating themselves by charging cheaper prices than the rest. It's a wise idea to find a company that provides something unique and sticks out from the rest in some way.
Now it's time take a peek at the financial statements of the company, but don't panic if you see that they have no earnings. Very frequently this is the case with newer businesses. But I do want to determine that the company has funds available to them or financing so that the business can keep growing.
As a final note, it's always a good idea to have the ability to locate new information on the business. By having the ability to get periodic updates from the organization, either on a internet site or some type of newsletter, you can understand exactly what is going on within the organization.
When you begin researching penny stocks and buying some stocks, it's easy to find yourself earning some enormous profits. There's fabulous cash to be earned when you understand what to look for.

Take Advantage of the Economy's Recession and Make Some Huge Stock Profits

This recession which we are currently experiencing and going through is nearing the end. One good thing about a recession is that once the recovery period comes, many stocks have hit their all time low, bottomed out prices. The worse the recession the better it is to begin investing as it nears its end, and experts are hailing this as one of the best times to invest in the history of our economy.
The trick is to differentiate between which stocks have bottomed out from those which are still falling, so many traders turn to using a stock trading system to do all of the analytical work for you so all you've got to do is invest accordingly in the recommended trades. This is what you need to know about a stock trading system and how you can use one of the better ones to realize your financial independence in today's ripe market.
A stock trading system bases its picks and anticipates market behavior based on looking at where the market has been, or rather it takes the full scale of the market into account. It looks at profitable trends of the past and specifically the market behavior and origins of that profitable trend, then compares it to current, real time stocks.
If it finds a current stock which is exhibiting similar behavior to that subsequently well performing stock of the past, it is almost guaranteed that that stock of today will behave very similarly. This is how a stock trading system detects market behavior and is incidentally the same way that analysis experts predict behavior, as well.
The stock trading system and systems which target penny stocks are especially powerful because penny stocks are known for their greater volatility and go on greater bursts than normal stocks. Their cheaper prices enable them to be more open to outside influence, so it takes relatively little trading influence to send them soaring. A penny stock specific stock trading system to differentiate between the well and poor performing stocks is an extremely powerful tool as a result