Wealthpress |
- The Single Most Important Metric When Investing
- Robinhood’s IPO Just Went Live: Here’s Everything Wrong With It
- How You Can Profit From the Best IPOs of the Year
- The MOST Dangerous Trap in Every Investment Market
- 2 Financial Stocks to Invest in as Interest Rates Rise
- Safety Against Inflation: 3 Pullbacks With Upside Potential
- The Best Stocks to Hedge Your Books Right Now
- Ethereum Outperforms Bitcoin by 150%: Here’s How to Trade Them
- These 4 Russell Stocks Are Set to Explode. Here’s Why…
- Afraid of Options Trading? Don’t Be — Start With the Basics
| The Single Most Important Metric When Investing Posted: 02 Jul 2021 01:37 PM PDT Price is primary… What we mean by that is anyone can go on T.V. and say they're bullish or bearish on XYZ stock or whatever else they want to say. But all that matters and the only thing that moves price is what they actually do. It's the same thing here… Price shows you exactly what position(s) market participants are taking, and when an asset's price moves, it single-handedly determines our ability to make or lose money on Wall Street. So in today's video we're going to explain why price is the most important metric to look at when trading. And the best part is that you can use it anywhere you have transactions between buyers and sellers. P.S. WealthPress Senior Strategist and former multi-million dollar hedge fund manager Roger Scott has finally broken his silence on his breakthrough discovery… One that could save traders hours of research. It all revolves around what he calls a "Sniper Line." Once a stock crosses a sniper line, investors can place a quick trade, check back in a handful of days… The post The Single Most Important Metric When Investing appeared first on Wealthpress.  |
| Robinhood’s IPO Just Went Live: Here’s Everything Wrong With It Posted: 02 Jul 2021 01:01 PM PDT Well, the company finally did it. On Thursday, we saw the Robinhood IPO filing and retail traders are singing praises to the heavens. But… should they be? It'd be a gross understatement to say that meme stocks took over the financial world in 2020 and 2021 — and Robinhood is the leading brokerage for people wanting to trade them. So it’s safe to say that Robinhood's initial public offering (IPO) is one of the most anticipated filings this year. Being the dork that I am, I spent the entire afternoon poring through the details of the filing. And to the traders out there interested in learning about this aspect of the stock market, you can discover a lot about a company by reading the prospectus it files with the SEC. And boy, I ended up learning way too much about Robinhood… Enough to make me question even trading on the platform again. Concerning Facts About Robinhood's IPO FilingOne of the first things I saw was that Robinhood is actually profitable. While this isn't a bad thing, it is a bit surprising since previous IPOs didn't have the same luxury. Robinhood was able to grow sales to $958 million in 2020. That's a 245% increase from 2019. However, of that revenue, 17% came from crypto and 81% came from payment for trading data. For those that are unaware, Citadel pays Robinhood to inform them what traders are doing on the platform. Robinhood's explosive growth in new users — the company added about 18 million new accounts between 2020 and 2021 — is unprecedented. So Citadel is definity putting in a pretty chunk of cash to learn what each new account holder is up to. The company is also structuring its IPO in a way that will give away shares to traders that open a new account or have an existing one. That means 35% of the offering is going to be retail. Typically, when you have a good deal, you want that percentage to be in the single digits — 7% to 10%. There's a reason for that, and it's known as the IPO lock-up period. A lock-up period is a contract clause that prevents insiders — i.e. founders, employees and early investors — who already own shares from selling them for 90 to 180 days after the IPO. This means that even if the stock goes down 80% after the IPO, the insiders are stuck with the shares. Robinhood isn't doing that. And when I put all of the facts about Robinhood's IPO filing together, I got a massive epiphany. Unfortunately, it might not be what the Robinhood retail traders want to hear… Check out my short video below to learn more about the Robinhood IPO filing. Also be sure to share your thoughts in the comments section below. And as always, send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel. P.S. We just found a breakthrough trading strategy so powerful, we've already used it to signal winners overnight… Every. Single. Week. How do we do it? By simply buying certain stocks right at the market's close, and then selling them again the next morning. It's that simple. The post Robinhood's IPO Just Went Live: Here's Everything Wrong With It appeared first on Wealthpress.  |
| How You Can Profit From the Best IPOs of the Year Posted: 02 Jul 2021 12:42 PM PDT Nothing gets people more excited than new stock. For us traders, it's like the release of a new video game, or as Venture Society's Marin Katusa put it, it's like "fresh draft picks on a championship finals team." And there has been a lot of new stock over the past year or so, with several exciting companies doing initial public offerings (IPOs). And like any new draft pick, there's a ton of talk about recent — and future — offerings. So I thought we should take a moment to talk about how to profit from IPOs, using some recent examples that you may be able to still make some money on. For those who need a refresher, an IPO is when a private company makes its stock available for public trading. The reasoning for IPOs is that a company wants to raise money by selling stock, usually to fund further growth… but sometimes so that a CEO can sell off the massive amount of stock he owns in the company and make it liquid. And for the public? It's pretty exciting. Remember all the hype around the DoorDash Inc. (NYSE: DASH) offering? Or the Coinbase Global Inc. (Nasdaq: COIN) IPO? But DoorDash is a prime example of why it's important to know how to profit from IPOs. Yes, it's an exciting company that people know and were excited to buy. But a lot of trend chasers bought too late and lost some serious money. We don't want you falling into that same trap. How to Profit From IPOsIn order to show you just how to profit from IPOs, I'm going to use an example of a popular recent one: Roblox Corp. (NYSE: RBLX), the popular video game developer that has a ton of in-game ways to make money from its users. Full disclosure: I own this stock… and it's not the only one I'm going to show you. Roblox's IPO was March 10, so just a few months ago. And the hype around it was big. On its first day of trading, it climbed over 50%, opening at $45 per share and closing at $69.50. Then, it did what many newly IPO'd stocks do: It sank not long after the offering and undercut the low. But that ended up being a good buying opportunity, because in May of 2021, the stock broke out. That should be your first takeaway if you're wanting to profit from an IPO: Don't chase the trend. Wait for it undercut the low if you believe in the stock. Now Roblox has been pulling back from its recent new high, and could be in another buying zone… If you want to know my thoughts on Roblox, how to profit from IPOs and some more recent offerings that could still generate profits, check out my video below. And as always, make sure to subscribe to our YouTube channel and turn on notifications so that you are always up to date. The post How You Can Profit From the Best IPOs of the Year appeared first on Wealthpress.  |
| The MOST Dangerous Trap in Every Investment Market Posted: 02 Jul 2021 10:39 AM PDT What do many cryptos, cannabis stocks, precious metals stocks and SPACs all have in common? The answer might not be obvious at a glance. But if you've personally invested in any of the above before… Or if you're familiar with the story of the GameStop short squeeze… Then you might have a good idea of the answer already. Know Your RisksWhen you decide to invest in a particular stock or asset, it's not enough to simply know what the drivers and catalysts are. You must also understand the risks. Risk management is a complicated and in-depth topic. There are many different types of risks:
Also important is this: Each investor's risk profile is different… The single young investor with stable income and no dependents or mortgage has a much larger appetite for risk. Especially compared to a household's primary breadwinner with children to take care of, college tuition fees on the near horizon, and a hefty mortgage on the house that needs a major renovation. But setting all of that aside, today we'll be focusing on a single kind of risk in particular — one that has reared its ugly head time and again to thwart the efforts of many a would-be investor. I'm Talking About Liquidity Risk…Quite often, when a particular new sector or asset class hits it big, there's a massive run-up in prices that causes investors to pile on. And there's no sexier story to jump onto than a small-cap company or — lately — crypto ICO. Small-cap companies are the fresh draft picks on a championship finals team, the underdog stories that everybody loves to cheer on. Compared to the senior, more well-established companies in their sector, they're much cheaper, thinly traded and usually have no analysts following the story… It often means that they have more room for dramatic share price moves if they hit it big. Apple isn't going to be providing shareholders with 10x returns in a short time frame. It's too large, its assets and revenue streams too well understood for that kind of crazy jump in valuation. But a small-cap biotech company worth pennies? They just might have the idea that'll turn them into the next Pfizer or Moderna. Small-cap companies and sh*tcoin cryptos are a dime a dozen. Many of them never make it past the planning stage. But when an entire sector takes off, like during the cannabis and crypto rushes we've seen in the last few years, many coins and companies often get lifted up to the top by the rising tide. For instance, three years ago, marijuana was on the up-and-up. With volume through the roof and prices flying high, things were looking good. The bankers were soaring, high on their own smoke clipping fees. But then the other shoe dropped:  As you can see, prices collapsed over the next few months… and trading volume dried up alongside the meteoric fall in prices. Here's the chart for a sample junior (small-cap) cannabis company during that same time frame:  Though there was plenty of volume for this stock at the beginning of 2018, you can see that trade volume tapered off rather quickly. And by mid-2018 it would've been very difficult to exit a large position in the stock. Be wary of your paper gains evaporating ultra-fast when liquidity (volume) dries up. And if you'd decided to buy in, or worse, average down, late in 2018 when volume briefly spiked up… You would've been left in even worse shape. Only months later, by Spring 2019, trade volume had all but completely dried up. This hard lesson learned by the cannabis crowd was felt in early 2021 after many tech stocks experienced a liquidity freeze. Don't Get Left Holding the BagAs mentioned earlier, this is a story I've seen once too many times — in precious metals, SPACs, cryptocurrencies and cannabis, among others. Don't fall for a bearded geo with a box of crayons, a map and a fistful of promises urging you to "double down and average down". In the absolute worst-case scenario, a company that needs to raise money will get its share price wiped up during a period of a liquidity freeze. The dilution that will occur to the shareholders will essentially wipe out much of the value you thought you had. A similar analogue for cryptocurrencies would be coins that aren't being used or developed any longer — you won't be able to find any buyers for your failed crypto coins. All too often, amateur investors experiencing their first big win will ride that paper high. Dogecoin anyone?? They'll look at their account statements and feel euphoric over the big numbers and triple-digit gains they see, without understanding one fundamental fact:
When it comes to my premium newsletter service, Katusa's Resource Opportunities, I'm not just about delivering the best stock research and picks to my subscribers. There are simple rules to ensure you do not experience a catastrophic loss. When you're overleveraged, can't sleep at night because of your position sizes, or hold little cash capital — you're setting yourself up for the potential of a catastrophic loss. Unless you have a biblical tolerance for risk in crisis situations, you'll get crushed. Keep in mind that 99.99% of people who can fog a mirror should not use any leverage tools for investing. Taking a mortgage or line of credit to invest in the markets or cryptos is taking excessive risk in any sector. You will set yourself up for hardship and a lot of personal strain; even if it works out. If you are jeopardizing your standard of living for yourself or your family, don't even consider it. There are many ways to reduce your risk and amplify your upside. I also want to educate my readers, with best practices like the Katusa Free Ride: By applying the Katusa Free Ride Formula appropriately… You can reduce your exposure to liquidity risk — and many other types of risk — simply by taking your initial capital off the table. Here's how it works…  To learn more about managing your investment portfolio's risk, as well as to find out what I believe is going to be the largest wealth creation opportunity of our lifetime, consider subscribing to Katusa's Resource Opportunities. It'll be the most risk-free educational investment course you'll ever make in your life. Regards, Marin The post The MOST Dangerous Trap in Every Investment Market appeared first on Wealthpress.  |
| 2 Financial Stocks to Invest in as Interest Rates Rise Posted: 02 Jul 2021 09:50 AM PDT Even though interest rates are historically low, the majority of investors and analysts still think inflation will push them higher in 2021. (But is that really such a surprise after getting more than $6 trillion in U.S. stimulus spending?) That's why I've been watching the Financials sector; it's the most sensitive to interest-rate changes… You see, when interest rates climb, so do profit margins for businesses like banks, insurance companies, brokerage firms, money managers and… the best financial stocks. So rising interest rates can push financial stocks even higher! And because it's my job to help you guys stay on top of these things, I put together a short list of the best financial stocks for my readers to start targeting now… 2 Best Financial Stocks for the Rest of 2021The first financial stock on my list shouldn't be any surprise… It's Blackstone Group Inc. (NYSE: BX)! For those of you who aren't familiar with this group, it's one of the world's leading investment and advisory firms, responsible for managing things like private corporate equity firms, real estate funds, credit-oriented funds, collateralized loan obligation vehicles and closed-end mutual funds. That's a mouthful, isn't it? And as of March 31, Blackstone has $648.8 billion in assets under management — that's a 4.9% increase from $618.6 billion just three months prior and a 21% jump from a year ago. We're talking billions and billions of dollars here, folks… so it's easy to see why this is one of the best financial stocks to own in 2021. But that's just a little bit about this company… Check out my short video below to get more information on why I like BX and the next best financial stock on my radar for the remainder of 2021. And if you found this video helpful, be sure to let us know in the comments section. Don’t forget to subscribe to our YouTube channel if you haven't already so you can be notified as soon as we post our next video! P.S. I'm willing to bet most people don't know this, but nothing can compete with the kinds of gains seen in crypto. Nothing… not even from a short squeeze like GameStop! That's mostly because the right crypto coins have already given everyday traders the chance to grab returns like 1,641%… 2,300%… and even 11,257%! And there are three strong forces that will lead to a $5 trillion flood into cryptocurrencies this July… So anyone who knows how to spot the right ones could walk away with gains just like the documented ones above. The post 2 Financial Stocks to Invest in as Interest Rates Rise appeared first on Wealthpress.  |
| Safety Against Inflation: 3 Pullbacks With Upside Potential Posted: 02 Jul 2021 06:58 AM PDT Supply chain issues and rising commodity prices continue to plague manufacturers and retailers around the world. While the Federal Reserve holds on to its "transitory inflation" stance, we have seen higher inflation. And it is likely to continue — at least in the short term. I have three stocks on my radar that will benefit from inflation moving higher — and more in today's stock market recap. But first… Stock Market RecapIn the stock market recap, global stocks are mixed and U.S. stocks are quiet as we head into the Fourth of July weekend. The United States added 850,000 jobs in June, lessening job market worries. This figure is more aligned with recent jobless claims than in previous months. Shortages in basic materials, transportation troubles and higher commodity prices have led to the highest manufacturing price index jump since July 1979. The index grew 92.1% in May, according to the Institute for Supply Management. This gives us a good indication that inflationary pressures will continue. Technology stocks look a bit overbought. Tech stocks are sensitive to interest rates because traders factor in lower margins with rising rates. Financials, Industrials and Energy stocks could see higher prices as we approach the end of the summer. Roger's Radar: 3 Breakout CandidatesKroger Company (NYSE: KR) is the second largest supermarket chain in the United States by revenue. The relative strength index is below neutral, meaning it has some room for growth. KR is approaching its 50-day moving average and could test a recent four-year high it made last week. I've also discovered a REIT that owns and operates industrial properties. America is getting back to work — and this REIT could benefit. The third stock I have for today is a pharmaceutical company. Health care stocks are typically immune from inflationary pressures, and this stock could be a great hedge. In today's video, you'll discover whether stocks are heading higher or lower… why bonds are range bound until the end of summer… whether momentum levels are declining or rising… how manufacturing is going to impact stocks… and three cheap stocks ripe for a breakout. P.S. Join the Biggest Crypto Event of the Year Bitcoin is all anyone in the media talks about these days. But little do they know, they're missing out on something even bigger… I'm talking about an explosive event in July that's already sent certain crypto gains way past Bitcoin… like 587% on COSM… 1,009% on AAVE… and 2,300% on VeChain. And that's just the beginning, folks! This 20-year veteran trader thinks we're about to experience the first major "convergence" in cryptocurrencies… And he's quickly bringing regular traders up to speed teaching many who have never traded crypto before exactly how they can take advantage! Check back each morning for Roger's Radar and the most important news and numbers in the WealthPress stock market recap. The post Safety Against Inflation: 3 Pullbacks With Upside Potential appeared first on Wealthpress.  |
| The Best Stocks to Hedge Your Books Right Now Posted: 01 Jul 2021 02:09 PM PDT Traders, you never want to get caught with your pants down — literally… But especially in these markets. That's why it's important to know how to hedge your portfolio in 2021. The past year and a half have been a wild one, and my imaginary crystal ball isn't showing me what's coming. All I know is that a week ago, the markets were at all-time highs and the VIX was almost reaching 17. Yes, you read that right… 17. And when the markets look like that, hedging your portfolio is super cheap. But that depends on what you think the markets are going to do. Because there are a couple of different protection strategies you can look into. And like I said, that crystal ball that I don't have? It's not showing much. Should we be bearish? Is the market going to correct? I don't know. It could pull back a little… But the trend is bullish and, as you know, you never want to fight the trend. How to Hedge Your Portfolio in 2021Normally, I'd say you could buy gold or silver to hedge your portfolio in 2021. But as we all know, normal correlation doesn't exist anymore. Luckily, there are plenty of other options. On the one hand, you could buy puts and the VIX and hope that the market crashes… Because remember, if you buy the VIX, you want volatility to spike. And if you buy puts, you're hoping the stocks crash. But here's something I'm doing… I'm buying bonds. Specifically, the iShares 20-Plus Year Treasury Bond ETF (Nasdaq: TLT). Exciting, I know… But it's been holding up pretty well and looking like it wants to break out. Now keep in mind, the TLT doesn't move a lot. But if it moves 0.5% or 1% a day, calls are going to pay off nicely. And even while the markets did pretty much nothing a week ago, the TLT was rising. So not only am I hedging my portfolio in 2021, I'm still earning! Now if I had bought puts or the VIX, like I mentioned above… I'd be losing money right now. But that's just one of your choices. For more strategies and stocks to hedge your portfolio in 2021, check out my short video below. And make sure to subscribe to our YouTube channel and click that bell so you can always be up to date on our latest videos. P.S. WealthPress Senior is tired of pouring over report after report of data… OK, maybe not, but that isn't how everyone likes to spend their time. All that research paid off for Roger, however, when he made this discovery. A discovery so powerful that in 27 years of trading, he's never seen anything like it. And now he wants to share it with traders that are tired of owning stocks that are going nowhere, when they could be on vacation instead. And all they have to watch… The post The Best Stocks to Hedge Your Books Right Now appeared first on Wealthpress.  |
| Ethereum Outperforms Bitcoin by 150%: Here’s How to Trade Them Posted: 01 Jul 2021 01:21 PM PDT Let's talk about the best cryptocurrency pairs trade right now. It's been a bloodbath in the crypto space over the past few weeks — June has not been kind to the coins, to say the least. Those of you who have been following me for a while know that I'm a big proponent of the Ethereum branch of crypto. While I'm not going to sit here and pretend I'm some big tech expert, the reason I like it most is because of how useful Ethereum is. It isn't just another typical cryptocurrency… It’s a whole decentralized computer network. Ethereum uses blockchain tech to replace centralized computing systems — like Apple, Amazon and Google — that store people's personal data. However, these types of computing systems tend to have one drawback: It's easy for cybercriminals to hack into them. By utilizing blockchain technology to create a decentralized app store, Ethereum solves the problem of hackers getting access to users’ personal information. The app store can't force different regulations on the users, and companies are unable to store any type of personal information. Ethereum is also a network used for NFT's (non-fungible tokens), which has allowed everything from art and music to sports highlights to be monetized. This trend will only grow. In the future, we won't remember a time without NFTs. So one way to think of Ethereum is it's like owning early internet companies. With that said, I'm going to show you a technical breakdown of the crypto in general, and the best cryptocurrency pairs trade right now… And then I'm going to show you a Money Link that's playing out between the two. The Best Cryptocurrency Pairs Trade: Ethereum and BitcoinTaking a look at Ethereum's chart, I first noticed the extreme highs it made in May of over $4,000 a coin. It then immediately collapsed all the way down to $1,700 — about a 61% drop… It's important to pay attention to these numbers because they're fibonacci retracement numbers. Fibonacci retracement numbers show where support and resistance is most likely going to be in a stock or crypto. Investors use this information to place entry orders, determine stop-loss levels or set price targets. And I'm betting that the interim low in Ethereum is in. Since we're going to be bouncing off of that number, the next step is figuring out where it's going to rise from there. The first key level to look at is the previous bounce, which was 30% from its previous low. That's up to around $2,740, which is a big gain from today's $2,100 price tag. The next bounce after that should be where the big money's at… Now if we look at my Money Link pairs trade I have between Bitcoin and Ethereum, you'll notice something interesting… Over the course of the past five years, Bitcoin has trounced Ethereum — but that tide is turning. And when you compare the two charts year to date, you'll notice that Bitcoin has underperformed by about 150%. Ethereum is up 172% in 2021 while Bitcoin is barely scraping by with an 18% gain. And when you flip the charts around, you'll notice the massive profit opportunity setting up… Check out my short video below to learn more about the best cryptocurrency pairs trade right now. Also be sure to share your thoughts in the comments section below. And as always, send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel. The post Ethereum Outperforms Bitcoin by 150%: Here's How to Trade Them appeared first on Wealthpress.  |
| These 4 Russell Stocks Are Set to Explode. Here’s Why… Posted: 01 Jul 2021 12:29 PM PDT If you pay close attention to the markets like I do, then it shouldn't be a surprise when I tell you the Russell 2000 has been kinda flat. But there's also something you probably don't know… If we go back and look at the nine-month chart, the runup it had from November to February was so big that its performance over the past 12 months, believe it or not, is 59%! A side note for those of you wondering: The performance on the S&P 500 and Nasdaq 100 are 38% and 48%, respectively. That's a big difference, folks! The bottom line is I see the Russell 2000 to start picking up steam once again. Because the fact that it's been going sideways instead of down is very positive — and tells me it’s resilient. So I thought it would be a good time to walk you through my favorite small-cap stocks for the rest of 2021. My 4 Favorite Small-Cap Stocks for the Rest of 2021Before we jump into my favorite small-cap stocks, there's something all traders need to understand… The way I see the markets is the more an asset goes up, the higher the odds it'll congest and move sideways. And the longer it congests or goes sideways, the higher the odds that the next run — up or down — will be sustainable. In other words, I'm happy the Russell 2000 hasn’t bucked the trend. We're likely going to see less pressure between the U.S. and China, and more upside in electric vehicle and solar energy stocks, so today I want to go over my four favorite small-cap stocks. When I say small-cap stocks I don't mean penny stocks. I'm talking about companies with a market cap of about $2 billion. Because these are the names that tend to move upward of 6 1/2 more than the broader market. So check out my short video below to get a look at my favorite small-cap stocks… Don’t forget to subscribe to our YouTube channel if you haven't already so you can be notified as soon as we post our next video!
P.S. Bitcoin is all anyone in the media talks about these days. But little do they know, they're missing out on something even bigger… I'm talking about an explosive event in July that's already sent certain crypto gains way past Bitcoin… like 587% on COSM… 1,009% on AAVE… and 2,300% on VeChain. And that's just the beginning, folks! This 20-year veteran trader thinks we're about to experience the first major "convergence" in cryptocurrencies… And he's quickly bringing regular traders up to speed teaching many who have never traded crypto before exactly how they can take advantage! The post These 4 Russell Stocks Are Set to Explode. Here's Why… appeared first on Wealthpress.  |
| Afraid of Options Trading? Don’t Be — Start With the Basics Posted: 01 Jul 2021 11:46 AM PDT Options can be an intimidating investment prospect for both new and experienced traders alike. But as you're about to see, they really aren't all that scary once you get the basics. In fact, they have two main advantages over traditional stock investments. When most people think about stock trading, they think of either penny stocks you can trade with a small account (which are super volatile), or day trading, which requires you to have a massive account (usually $25,000 just to start). So you're either taking on a lot of risk by trading cheap penny stocks, or you're shelling out a boatload of money up-front to own more stable companies. Now when you buy options, you're buying a contract that gives you the right to buy or sell 100 shares of a stock at a specific strike price by a certain expiration date. Right off the bat, you already know how much risk you're taking on because the most money you can lose on an options trade is the initial premium you paid for it. Compare that to a stock, which can end up costing you more money than your initial investment if it drops below your purchase price. So you have limited downside risk with options, versus potentially losing all of your money in stocks because they can fall all the way to $0. Options also require less upfront financial commitment than buying shares of a company outright. So you can trade them with a much smaller account — often starting with as little as $2,000. Let's look at a theoretical example of how this works… Say you want to buy 10 shares of Apple Inc. (Nasdaq: AAPL) at $100 per share. That's going to cost you $1,000 up front, which can tie up most of your portfolio if you're starting with a smaller account. Instead, you decide to buy one call option of Apple, representing 100 shares of Apple's stock. In this scenario, that call option is only going to cost you $1, or $100 total (that's $1 multiplied by 100 because one contract is 100 shares). Now you get to control 100 shares of Apple instead of just 10 — for far less money up front. And let's say that stock goes up $5 over the next week. If you'd bought common stock of Apple, you'd make $5 per share. So you'd come away with $50 if you own 10 shares. But if you bought the call option for $1 and Apple's stock went up $5, that call contract could go from $1 to $2 in just one week — which would double your money. Meanwhile, you only risked $100 instead of the $1,000 that would have been tied up by buying Apple's stock outright. I don't know about you, but that sounds like a pretty good deal to me. So the next time you're thinking of adding positions to your portfolio, consider giving options a try. Not only are they a tool used by advanced and professional traders, but they can significantly boost your portfolio return in record time. Lance Ippolito Future of Wealth, WealthPress P.S. WealthPress Senior Strategist Roger Scott has gone missing… And he's left behind the clues on the most life-changing breakthrough of his entire career… One that could help "send anyone's retirement account to the moon!" All thanks to this breakthrough… the Sniper Line. Click here to see what's in the safe. The post Afraid of Options Trading? Don't Be — Start With the Basics appeared first on Wealthpress.  |
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