Okay, so I left off last time briefly mentioning fractional shares. Now, I hope to delve into the concept of fractional shares and how important it can be in your online investing and mechanical strategies. Below is a quick comparison of how one would need to invest $10k at a traditional broker and then one would invest the same $10k at FolioInvesting. (Note: With the rounding of shares at a traditional broker, you will have to sort through and reduce some shares to get it down below $10k invested.)
If you have a mechanical trading system that lists 20 stocks on average and traded stocks once per month, you have a couple options for online stock broker commissions:
Traditional Broker
(20 stocks sold + 20 stocks bought) * $10.00 per trade * 12 months = $4,800
FolioInvesting.com
Unlimited trading for one flat annual fee = $300
In my last post, I talked a little bit about emotion in investing. Emotions in investing can really make or break your annual returns. Seriously, sometimes it is really tough to stomach the market ups and downs. Ask anyone that suffered through the 2000-2003 bear market or the 2008-2009 meltdown. What I am talking about to avoid emotions with investing is mechanical investing…
In my last post, Time to Fire up this Blog Again, I started with a little background on me and my investing experience. Today I would like to continue on with that.
I want to help you become a better investor. I am tired of all the investment get rich quick schemes and hype out there. With all the ups and downs of the market, making heads or tails of what is going on can be difficult or impossible. Pulling the trigger to buy (or sell) stock can be a tough and emotional decision.
Let’s update how we use online options trading with the ProShares Ultra S&P500 (ETF) (NYSE:SSO) to created a covered call strategy. As you may recall from previous articles, the cost basis on our 500 shares of SSO is $22.64. Thanks to timing and strategy since end end of June I am at 7.8% profit that yields a CAGR of 40.1%.
Once again we revisit the covered call strategy we have initiated with the ProShares Ultra S&P500 (ETF) (NYSE:SSO) to find that thanks to volatility you can still bank coin.
Playing with the ProShares Ultra S&P500 (ETF) (NYSE:SSO) Options has become a National Pastime for many investors looking to play the broad market swings. A simple excercise in selling covered calls and knowing when to execute them can keep you afloat and do what I like to call 'charge rent' on the shares I own. Using stock options to protect your investment is a tool every trader should know and use in 2009.
High yield savings accounts are a bit of the rage these days given the economy is in the toilet. So if you are putting money, such as your emergency fund, into a savings account, make sure you are getting the best rate. Let's review a few of the offerings that we would recommend.
I made over 50% Compound Annual Growth Rate (CAGR) for June by using Covered Calls. Yes, stock options, can be extremely volatile and dangerous… to buy! So, why not get on the other side of the fence and sell them? I recently bought one of the leveraged exchange traded funds (ETFs). Here is how the transaction(s) went.