Posted on October 15, 2010 by Rich Browne

The seller of the put option is obliged to purchase the underlying security. For this obligation, the seller receives the option premium from the buyer of the option. The buyer of a put option will exercise his right only if the price falls below the exercise price of the underlying asset.
In practice, the underlying security [...]

Posted on October 15, 2010 by Rich Browne

A put option is a contract designed for a subscriber of an option to sell a security or other asset (the underlying) at a predetermined price (exercise price) on a specific date known as the maturity date. It allows the buyer of the put to hedge against, or bet on a decline in the price [...]

Posted on October 15, 2010 by Rich Browne

Saving in retirements plans is nowadays a necessity if you want to provide enough money for the time you reach the age of retirement. A traditional pension doesn’t satisfy anymore to pay all the bills. An important reason is the aging of the population and the need of money for a longer time. The chance [...]

Posted on October 15, 2010 by Rich Browne

Buying property is maybe the best investment you can make. Everyone needs a house or an apartment to live in and if you don’t buy it, you need to rent. You probably need to apply for a loan because the price of your house will be too high to pay it at once. The benefit [...]

Posted on October 15, 2010 by Rich Browne

Mutual funds
Mutual funds are maybe the most popular investment instruments nowadays. It is possible to invest in 100 or more companies by buying one mutual fund. You can diversify in equity funds, bond funds, strategy funds, index funds, sector funds, small- cap funds, mid-cap funds, large- cap funds and even a mix or several types [...]

Posted on October 15, 2010 by Rich Browne

How you diversify your investments is an important issue if you want to reach high returns and avoid losing all your money. Everyone knows the popular proverb” Don’t put all your eggs in one basket” and it is really important you keep this rule in mind. It is not only a matter of diversification in [...]

Posted on October 15, 2010 by Rich Browne

A portfolio is a set of financial assets belonging to natural or legal persons, following an investment. Investment in a portfolio of securities is less risky than an allocation of capital on a single type of security. The allocation must be properly diversified in that among the financial assets there must be a correlation.
An important [...]

Posted on October 06, 2010 by Rich Browne

It is important to remember with online brokers they do not offer personal advice but allow you to access their research which may provide general stock recommendations. if you find an online broker a little overwhelming it is possible to conduct day trading using a full service broker who can provide personal advice relating to [...]

Posted on October 06, 2010 by Rich Browne

It is a myth that a significant amount of capital is required to commence trading as a day trader. You do no not need to have a fancy degree in business to be a day trader.
In short a day trader can be defined as an individual who buys and sells shares [...]

Posted on October 06, 2010 by Rich Browne

Smart investing is conceptually very simple. It consists of finding market failures. Economics assumes that everyone has “perfect information” in an ideal market. Any time you have information that someone else does not, any time you can use information someone else cannot, any time you are right and the other guy is wrong, you can [...]