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Leveraged Investments Are Purchased on the Margin

Buying on margin means buying securities, such as stocks, with funds you borrow from your broker. Investing on margin is similar to buying a house with a mortgage. If you buy a house at a purchase price [more…]

Possible Outcomes of Stock Investments Made on Margin

Suppose you think that the stock for the company Mergatroid, Inc., currently at $40 per share, will go up in value. You want to invest in 100 shares, but you have only [more…]

How to Succeed at Investing in Stock on Margin

Margin can escalate your investment profits on the up side but magnify your losses on the down side. If your stock plummets drastically, you can end up with a margin loan that exceeds the market value [more…]

How to Set Up a Short Sale for Your Stock Investments

Going short (also called shorting a stock,selling short, or doing a short sale) on a stock is a common technique investors use to profit from a stock price decline. Investors have made big profits during [more…]

Introduction to Stock Short Sales for Investors

The vast majority of stock investors are familiar with buying stock, holding onto it for a while, and hoping its value goes up. This kind of thinking is called [more…]

Types of Stock Trade Triggers for Investors

Trade triggers can be extremely useful to stock investors (and those who do options and/or track indexes). A trade trigger is any event that sets a trade in motion [more…]

Types of Advanced Conditional Orders for Stock Investments

Advanced conditional orders let stock investors combine two or three orders that, if filled, will either cancel or trigger additional orders. Imagine saying to yourself, “Gee, I’m committed to my current [more…]

Real Estate Trends Are a Key Indicator of Stock Market Performance

Real estate is a key sector to watch in maintaining your stock investments because it’s a cyclical bellwetherindustry — one that has a great effect on many other industries that may be dependent on it. [more…]

Key Questions Stock Investors Should Ask about Industries and Sectors

Your common sense is an important tool in choosing sectors and industries with winning stocks for your investment portfolio. Below are some of the most important questions to ask yourself when you’re choosing [more…]

Strategies for Investing in Stock to Provide Income

Even conservative income investors can be confronted with different types of risk. Fortunately, you can carefully choose income stocks so that you can minimize potential disadvantages. [more…]

Advantages and Disadvantages of Income Stock Investments

Stocks with higher-than-average dividends are known as income stocks. Investors rely on these for regular income, whether in retirement or as a supplement to their earned income. [more…]

The Basics of Income Stock Investments

Dividend-paying stocks are a great consideration for those investors seeking greater income in their stock portfolios, especially stocks with higher-than-average dividends that are known as [more…]

Introduction to Small Cap Investments and Speculative Stocks

Every stock investor wants to get in early on a hot new stock. Why not? You buy Shlobotky, Inc., at $1 per share and hope it zooms to $98 before lunchtime. Who doesn’t want to buy a cheapy-deepy stock [more…]

Tips for Choosing Growth Stocks for Your Investment Portfolio

There are a few key questions that can help you cull the so-so growth stocks to unearth the go-go ones for your investment portfolio. It’s time to dig deeper for the biggest potential winners. Keep in [more…]

Tax Implications of Capital Losses from Stock Investments

Ever think that having the value of your stock investments fall could be a good thing? Perhaps the only real positive regarding losses in your portfolio is that they can reduce your taxes. A [more…]

Minimize Taxes on Capital Gains from Stock Investment

Long-term capital gains from stock investments are taxed at a more favorable rate than ordinary income. To qualify for long-term capital gains treatment, you must hold the investment for more than one [more…]

Capital Gain and Loss Scenarios for the Stock Trader

Any stock investor can come up with hundreds of possible gains and losses scenarios. For example, you may wonder what happens if you sell part of your holdings now as a short-term capital loss and the [more…]

Stock Investment Considerations for Bulls and Bears

Due diligence is necessary for your success as a stock investor. Make sure that you’re investing appropriately for your situation. If you’re 35, heading into your peak earnings years, want to ride a home-run [more…]

Trends Supporting Investment in Security-Related Stocks

World events have the potential to greatly impact the stock market, so it is important that you as an investor keep track of security concerns. The horrific events of September 11, 2001, ushered in an [more…]

Megatrends in Stock Investments

Only a handful of changes in your stock portfolio over the past four decades would have made you a tremendously rich investor. Had you put your money into natural resources [more…]

Key Sectors and Industries for Stock Investments

Many stock investors can benefit from a practice referred to as sector rotation (not quite like crop rotation, but close enough). The idea is that you shift money from one sector to another based on current [more…]

Making Good Decisions Before Trading Options

Pulling the trigger on an options trade is the final step in a deliberate process of analysis that starts with looking at the overall trend of the market and ends with sector and individual stock analysis [more…]


The following is a short glossary of terms pertaining to trading in general and trading options in particular.

adjusted option: An option contract that underwent changes to its underlying package, number [more…]

Option Strategies for Markets Where Volatility Drives You Nuts

Stock investors often fail to capitalize on markets where the trend is neither up nor down consistently but remains volatile. These up-and-down markets with big moves on a frequent basis can be difficult [more…]

10 or So Handy Rules for Options Traders

Trading options is like anything else in the world. If you want to be successful you have to work at it, you need a plan, and you need a good set of rules to keep yourself out of trouble. There are some [more…]

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