Trading

4 Steps to Start Investing Ethically

Many of us make a conscious effort to do the right thing. We try to have our personal values guide our daily behaviors and decisions. As consumers, we do this by using our purchasing power to support businesses that align with our value set. As investors, we have a similar opportunity.  You can design your […]

Trading

Ready, Set, Invest! 5 Questions to Ask Yourself When You’re Ready to Start Investing

When you decide that it’s time to start investing, sometimes the hardest part can be knowing where to start. For beginners, taking that initial plunge into the market can seem intimidating. But it doesn’t have to be. You can get the ball rolling by answering just a few simple questions – like the ones below. […]

Options

Long Call Spread Strategies

A long call spread gives you the right to buy stock at strike price A and obligates you to sell the stock at strike price B if assigned. This strategy is an alternative to buying a long call. Selling a cheaper call with higher-strike B helps to offset the cost of the call you buy […]

Trading

The Importance of Portfolio Rebalancing

Over time, you might start to see your portfolio asset-allocation veer off track because of market ups and downs. Market variation could cause the performance of an individual stock to improve, while other stocks either remain consistent or actually start to decline in performance during a certain period of time. To give an example of […]

Trading

25 Simple Ways to Save for Investing

According to research, less than ten percent of Americans feel they’re successful in achieving their New Year’s resolutions. If you started this year with the hope of building your investments, don’t despair. While it may seem like every dollar you earn is already spoken for, you’ll be surprised at how many ways you could find […]

Trading

Long Inverse ETF Strategies

The concept behind inverse exchange-traded funds or ETFs seems quite simple. When the underlying target index goes down, the value of the ETF is designed to go up. The target index may be broad-based, like the Standard & Poor’s 500 index, or it could be a basket chosen to follow a specific area of the […]

Trading

Basics of ETFs

Like a mutual fund, an exchange-traded fund (ETF) pools the money of many investors and purchases a group of securities. Like index mutual funds, most ETFs are passively managed. Instead of having a portfolio manager who uses his or her judgment to select specific stocks, bonds, or other securities to buy and sell, both index […]

Options

Long Put Strategy

A long put gives you the right to sell the underlying stock at strike price A. If there were no such thing as puts, the only way to benefit from a downward movement in the market would be to short sell stocks . The problem with shorting stock is you’re exposed to theoretically unlimited risk […]

Options

Short Call Strategies

Also known as a naked call, selling the short call obligates you to sell stock at strike price A if the option is assigned. When running this strategy, you want the call you sell to expire worthless. That’s why most investors sell out-of-the-money options. This strategy has a low profit potential if the stock remains […]

Mutual Funds

Mutual Fund Investment Types

Just about every fund available will fall into one of four categories: Open-end, Exchange-traded, UIT or Closed-end. To help you make heads or tails of these fund types, the table below outlines general definitions, pros and cons, liquidity concerns and other important information to help you make wiser decisions about your finances. Before investing in […]