Is Options Trading Better than Stock Trading?
In the right cases, absolutely! For fast-moving companies, whether up or down, options trading offers superior returns to owning stocks. Offering higher percentage gains at a lower cost to stocks, options are well worth the few potential dangers that work against them. We’ll delve into the pros and cons of stocks versus options so you can see for yourself.
Options Pros & Cons
Pro #1: Options Leverage Your Gains
It goes without saying why traders have turned to option contracts over the years ...
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How Can I Double My Money In 5 Years? A Guide to Compounding Wealth
On average, the stock market returns about 10 percent annually before inflation. While individual stocks can vary wildly, that beats the average returns against bonds or other asset classes. That’s especially true with annual interest rates back at zero percent. But here’s the beauty of that average return: If you keep your profits in the stock market, you can grow your wealth far faster than even that 10 percent figure. Why? Thanks to the power of compounding your initial investment, and with ...
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Can You Get Rich From Stocks?
Absolutely! The stock market can be volatile, even dangerous. But used correctly, it’s a powerful wealth-building tool that has stood the test of time, including global depressions, wild fluctuations in interest rates, and even world wars. Those who use this tool properly, even following just a few simple guidelines, can build massive amounts of wealth. What it really takes is an understanding of the common sense and patience involved to make those returns happen. Let’s take a look in detail about how that ...
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What are FAANG Stocks? And Why You Should Invest In Them
The FAANG stocks, listed below, are simply five of the best companies that have ever existed. Mostly from the tech sector, they’ve shown shareholders love over the years with massive returns on the stock market, combined with growing earnings—and a few even pay dividends! In fact, at times, the FAANG stocks have been the sole driver of returns for the overall market. The other 495 names in the S&P 500 Index have simply performed that poorly compared to this small basket ...
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8 Best Stocks to Invest In 2020 | Trading Tips
The stock market is a phenomenal way to build wealth, as it allows an investor to place their money in a vehicle that automatically makes more money. At least, for investors who know what they’re doing. A beginning investor may start out lucky or unlucky, but if they focus on great companies, chances are they’ll do just fine over time with their common stock trading. Looking at the best companies—those that can consistently grow their earnings and cash flow, and who ...
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How Many Stocks Should I Own?
What a Well-Balanced Portfolio Should Look Like
Investors who are just starting out in the stock market either take one of two paths. If they’re risk-averse, they may start investing with a mutual fund or ETF, which owns many stocks and makes management decisions on their behalf. The most common of these funds are index funds, which follows a specific stock market index on Wall Street, such as the Dow Jones Industrial Average, the S&P 500 Index, or the Nasdaq. For individual investors ...
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How Long Should I Hold a Stock?
How to Form a Selling Strategy
Most investors think a lot about what to buy, when to buy, how much to buy, and how much to pay. Whether they use a value investing strategy or are more trading-oriented, most of the focus on investing comes before shares are ever bought. But that’s only half of investing. The other half? Knowing when to sell. As with buying, there’s no one set answer. It will likely come down to your personal risk tolerance, asset allocation, ...
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7 Best Blue Chip Stocks to Buy Right Now 2020
Far from the world of small cap penny stocks are the big, safe names in the investing universe. Dubbed the blue chips, these companies tend to be industry leaders with the size and scale to continue delivering reasonable rewards for shareholders from modest growth and dividends. The top blue chip stocks of Wall Street may not sound as exciting as smaller plays, but as part of your portfolio, they can provide steady returns. While they may not have the high return of ...
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