Archive | Derivatives

Options can quickly go sideways or turn against you.

If you must look at Options

If you must look at options, begin by reading, Options for Dummies by George A. Fontanills. This low cost and readily available introductory book gives good basic coverage of the options spectrum. It serves as a good reference to keep on hand.
Last discussion I made it clear that option trades have no place in a beginner’s portfolio. It is good to be aware of them and to learn about them. Only consider using options after you become a knowledgeable and experienced investor.

Continue Reading
Options expire...understand before using.

Are options an option?

NO options nohow – danger for new investors! Options have no place in the portfolio of anyone new to investing. You must master investing basics before you consider looking at or using any derivative. Options are a type of derivative. Derivatives are financial creations “derived” or based on a real asset. They are bets on a future price for the underlying asset. Extreme losses can be quickly realised when you get ahead of yourself while learning to invest. Getting into derivatives too soon can be a danger to your wealth.

Continue Reading
Investment Choices

3 Big and 6 Other Investment Choices

3 Big and 6 Other Investment Choices. The 3 big investment choices are: Mutual Funds, Exchange Traded Funds and Stocks plus 6 other popular choices. This post opens a continuing White Top View Series, Investment Choice. The series provides a basic survey of the many choices investors can access. The series begins with discussions of the most popular investment choices and the less common choices. Discussion of mutual funds, ETFs and equities or stocks opens the series. Additional posts discuss 6 other investment choices include, bonds, commodities, treasuries, money market funds, foreign exchange and derivatives. Options and futures are also parts of the investment mix for discussion.

Continue Reading

Powered by WordPress. Designed by Woo Themes