The stock market becomes a Bullish Market when indications are such that prices begin to rise. Coming after a bear market, investor confidence and optimism often cause this spike upward. And in this Planet Wallet review, everything is discuss trading and how the company helps in trading.
In today’s market, however, this trend may not be so straightforward. Constant market fluctuations in response to global economic issues is now the norm. This is made worse by the psychological factors and speculation which many investors use to determine their stock trading activity.
Proper Timing for Trading
A bear market has an absolute low after which it can do nothing but rise – the beginning of the Bullish Market. Successful investors try to anticipate when this will occur and put themselves into the best position to trade at the exact right time.
To do this, traders must anticipate with some accuracy just when the market reaches its lowest point. They must be able to buy before the bullish trend takes over prices. Experienced investors will actually confirm the low and nudge the market towards the pricing spike.
A Bearish Economy Can Exist With a Bullish Market
This is a key concept to understand. Before the economy can experience movement in any direction, the markets will first influence it.
Investors base their trading decisions on global financial news, such as the United States’ fiscal stimulus package, inflationary trends, and dips and spikes in interest rates.
All of these actions are a direct result of economic conditions due to stock market pricing trends. As growth slows and inflation rises, the economy is actually stimulated and demand will increase globally.
The lesson, therefore, is for investors to anticipate a Bullish Market turn and buy at just the right time to avoid rising prices. You can be sure the team at Planet Wealth are always on the lookout for those exact market turns, in order to produce a healthy return for their clients.
The lure of easy money seems to take many investors to follow the ways of the technical analysis. Reading charts, graphs, trends and speculating in the markers seems to have plenty of appeal and hold a lot of excitement for a lot of investors.
But rarely does this work. You need to look at many various factors to become successful with any Investing Strategy.
We, at Planet Wealth, have a saying that goes like this, “If nothing seems to work, we would want to live with the surest of the nothing that worked”. Inherent chaos at the stock market only mandates caution.
Technical Analysis And Your Investing Strategy
Using technical analysis to pick up stocks, by its very design, reeks of caution. You take your time to research a really sound company with a blessed management; steady or improving cash-flows etc and buy and hold it for a long period of time.
This takes away the uncertainty and risk involved to an extent. You may not make plenty, but you might just not go shirtless and this is very important with any Investing Strategy.
Markets can fluctuate due to plenty of reasons, so how can you decide based on the market movements? Elections, rains, tornadoes, plan “irrational exuberance” or nothing but a wild global rumour can rock the stock market.
How then, could you depend on technical analysis for picking up stocks? We are not against technical analysis when it comes to trading, but we are only trying to suggest that they best work in tandem together. Not all by themselves.
Options Trading isn’t that difficult to understand if you get the gist of what it is all about. An Option is just a contract to buy (or sell) something at a specified price and not let the market trends affect the price in any way.
For example, if you walk into a shop and look t buy something that seems to be out of stock, you would then agree to come back later and ask the dealer to keep it ready for you and also to ensure that you lock the price up such that you would be happy to buy it at the same price.
That’s all there is to Options Trading, it’s just that the promises being made are entered into a binding contract. Options Trading is a great way of Investing to protect your wealth, but you still have to take precautions to trade in options successfully.
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Beware Of The Risks
The Government, the market or the advisors, will not take the blame for bad results when you lose. Remember that this is a battleground but you will be the lone soldier. Advice is something either comes free or you pay for it, but the results are yours to bear.
The risk is totally yours when you are Options Trading and you must know that. The regulators only get into the picture after the damage is done and that isn’t good news, is it?
Be Careful What Options Trading Advice You Get
Don’t let anyone come to you and dispense advice on Investing, be it Renting Stocks or Options Trading. If they were that good, they would have made their wealth by now.
Instead, pick the best of the stock brokers and keep the relationship professional. Change your advisors if needed, but share your ideals, goals and aspirations with them. When it comes to Investing, let them do the grunt work while you do the thinking and deciding.
It has always been believed that people who stretch their grey matter a bit, take action enthusiastically and go that extra mile always turn out to be successful Stock Market investors.
Most of us are taught certain things or have picked up lessons from our perceptions and experiences due to which we get boxed into certain notions about financial Investing.
Stocks and bonds are comfortable for many of us, the lazier ones go for mutual funds alone. But that’s mediocre, real money lies elsewhere, like Option Spread Trading, for instance.
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What Does Option Spread Trading Involve?
Option Spread Trading, as you can guess from the name, involves making money off the available spread between a premium Options sold and a premium option purchased, both options pertaining to the same asset. By doing this, certain things are achieved right away.
You are making money off the spread and this doesn’t have much to do with the market movements and so called “irrational exuberance” which is a term coined by a famous investor and author Benjamin Franklin.
Additionally, you aren’t at much risk because options by their very design are designed to protect your investment from wild Stock Market swings and the possibility of portfolio getting wiped out.
Getting rich, as you very well know isn’t a one day job. Option Spread Trading has a learning curve to master, but when you are able to do it, there is just no stopping this investment strategy, keep your eyes peeled, be willing to learn, and keep your Options open.
Andrew Dimitri from Planet Wealth explains Option Spread Trading…
Leverage is a powerful word in business and finance and although it is such a simple word, its implications are overwhelming, its applications rich but still a mystery.
One such leverage is financial leverage, which is in effect, using other people’s money for building, buying or owning assets like following a Protected Equity Strategy by taking a protected equity loan, for instance.
Protected Equity Strategy – Using Other People’s Money
This is an incredible and powerful way of getting rich, provided you know what you are doing. It is achievable though, with the right amount of education and knowledge. There is good debt and bad debt, while debt itself is inevitable. A great strategy for investing in the stock market is the Protected Equity Strategy.
When Investing In Shares, it is always desirable to have exposure to equity since this class of assets has the ability to beat inflation and fetch better returns over a long time frame. But because of the fact that there is considerable risk involved, it stops investors and prevents them from using financial leverage of any sort.
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Minimise The Risk With Protected Equity
By availing a personal equity loan, you would be able to buy assets that utilize equity as a major part of the portfolio composition to ensure that inflationary repercussions are nullified and you get to minimise the risks associated with an investment portfolio skewed towards a heavy equity exposure brought about due to the vagaries of the Stock Market.
The rich have always been richer due to the fact that they invest differently as compared to the average investor. It’s not that the common investor gets it all wrong by her usual Buy – hold- pray strategy.
It’s just that the rich invest in something else like – IPOs, Options Trading or Share Purchase Plans and make money before anyone else makes money.
Successful Stock Market Investing
Successful Investing comes about when investors are knowledgeable and spend time trying to seek out such deals.
The more time you spend on the Stock Market, keeping your ears and eyes open, the more Options you will see opening up. Robert Kiyosaki in the Rich Dad Series and many other self made millionaires, have always advocated the need to get out of your present reality and scope and let to your mind absorb.
One of the easiest investment options for a common investor to get started would be Share Purchase Plans, where companies allow their existing share-holders to become richer by Investing in more Shares of the same company in question (which is limited to a certain amount stipulated by the ASCI).
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Investing In Share Purchase Plans
One of the reasons why a Share Purchase Plans is a great way for an average investor to create wealth is due to the fact that the Shares floated out are going to be made available at a deep discount.
By being able to invest in Shares at such a discount, it is possible that the investor makes a lot of money post-tax if and when the share value appreciates.
Have a sound financial advisor on board your team and this should help you considerably to make sure you get this all right. Share Purchase Plans, as an Investing strategy is a great way to get started into the world of the Investing elite.
Renting US Stocks…Strategy is crucial right now. The American Stock Market has experienced some dramatic drops this past year. However, don’t despair. In a market known for its aggressive trading, selling stock options (i.e. “renting stocks”) is a comparatively low-key, yet powerful way to make a living (or at least a regular profit) from the market.
What to Consider When Renting US Stocks
Strategy-wise, Renting Stocks is always a good idea because of how likely it is that you’ll be profiting from the activity. If you’re Renting Stocks, you’re not just sitting on the Stocks, hoping they won’t diminish in value. Rather, you’re actively earning an income from them, even if their value stays the same.
Their value can even drop by a small number, and you’ll still gain a profit. Even if a stock’s value fluctuates month by month, you’ll still come out on top, this is of ultimate importance if you are to make your stock market investing strategy profitable.
The one thing you have to watch out for with Renting Stocks is sudden, severe drops in stock price. These do happen when you’re Renting US Stocks.
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Strategy For US Stocks: Insurance
The way to shield yourself from Stock Market disasters is to insure the Stocks you rent out. One great advantage of Renting Stocks is that you can always simply mark off a part of the premium you earn to spend on insurance. It can cost as little as 30% of your premium to insure a stock for 75% of its original price.
So if, for example, you’re Renting US Stocks month by month, you can spend 30% of your monthly premium on insurance.
Say, disaster strikes. The company you bought stock in goes bankrupt (this has happened to many investors). Fortunately, you’ll still be able to sell the company’s now-worthless stock for 75% of the price you rented it for!
Consider the practice of Renting Australian Shares. Strategy is involved, more than merely luck. That’s why Renting Shares is such a good way to make money on the Australian market.
Renting Australian Shares Strategy
Because the practice allows you to use strategy very well to minimise your risk, Renting Shares is one of the best ways to have a stable, reliable source of ready cash every month.
It’s also a way of working “smart” rather than working hard for your money–you’re not going to have to spend a 40 hour work week looking at stock prices to make money at Renting Shares.
Secret Of Renting Australian Shares
Strategy-wise, when you’re Renting Australian Shares, you should look for reliable shares that don’t go up or down very much. Usually, stock that stays the same year after year is not particularly good stock to hold on to–though people will buy it, and that’s good for you.
Trading in Australia, you have a better chance of predicting when stock will stay the same over time, rather than when Stocks will take a sudden jump or dip.
Renting Shares is like renting property. Except, instead of giving people a temporary place to live in exchange for money, you’re giving people a chance to profit from your stock in exchange for money. When you Rent Shares, even if your shares don’t go up in value–you still make money.
The only way you could lose money, is if your Shares diminish in value by a lot, which you can avoid by buying insurance.
That’s because when you are Renting Shares, your “rent” is really the premium–some percentage of the total value of the Shares, which you will get to keep regardless of if your Shares are ultimately bought by the “renter” (other investor) or not.
Andrew Dimitri from Planet Wealth Explains the Renting Shares & Stocks Strategy…
The way to really make a living off the stock market is through judicious, active options trading. Trading options related to stock is far more lucrative than simply trading stock itself, and more complicated.
With options trading, day traders can profit (and, sometimes, lose money) many times a day over the same shares of stock. Trading options doesn’t even always require that the trader possess the stock itself.
Thinking Of Making A Living Active Options Trading?
No doubt about it, options trading can seem labyrinthine to the uninitiated. Yet, becoming a successful options trader is no more (and no less) difficult than becoming a good bridge player.
Anyone with a clear head on his or her shoulders can become an options trader. It doesn’t matter if their degree had been in mathematics, English literature, or if they hadn’t gone to university at all.
Before you start trading options actively, follow the stock market.
Educate yourself about the different kinds of trades you can make. For example, learn the difference between writes and spreads, between a naked call and a covered call. Then, observe how other traders operate. See how they gain money, see how they lose money. After a bit of practice, you’re ready to start trading.
When You Start Active Options Trading
Once you start option trading, remember not to get irrational. Also, don’t let other traders’ irrationality lose you money. For this reason, don’t trade right after the market starts up, or right before the day’s end. That’s when other traders start behaving unreasonably, and when the price of stocks starts fluctuating wildly.
Active Options Trading Video With Andrew Dimitri & Rob Roy From Planet Wealth…