Makings Of An Options Trading System Part 2

By Maclin Vestor

A covered call strategy within a cycle will require people to sell options against the stock. If the stock is above the strike price, the stock will be "called" away. The seller receives the premium, but the owner of the call receives the shares at the strike price. There are various strategies involving this covered call strategy.

Some people prefer to have the covered call eventually pay back the stock owner his investment, so that he or she can reinvest that money, and upon receiving the investment back, the person will let the stock run. If this is the strategy, ideally you want to sell covered calls as the stock falls, as it stays flat, and then you want to have your cash back and let the stock run when it is on its way up again. This can allow you to buy an out of favor stock that is still in it's decline, but in the second half of the decline, reduce your cost basis to zero, and still own the stock near it's bottom. In the cycle mentioned earlier, depending on how fast the yield will allow you to recover the price of the stock, You will invest in the stock as early as the beginning of "dogs" and as late as contrarian, and recover your cost as early as contrarian, and as late as the start of estimate revision.

Another covered call strategy would be to buy a neglect, contrarian, or positive earnings surprise stock, sell out of the money covered calls, and continue to do so until the end of the growth stage of the stock, and not only stop selling the calls, but to just sell the stock.

Yet another strategy would be to write a covered call until around 20% can be gained, either through capital appreciation or collecting the option, then to convert the stock into a LEAP call as soon as selling the stock plus the premiums collected can pay for the call. This allows you to have a quicker turnover rate in terms of getting your money out, and playing with the house's money.

This would be great for anyone who intends on having the stock paid for, and expecting to own the stock option through the entire length of the option or longer if they intend on rolling over the gains by buying another LEAP. It is also a good strategy if the stock's future becomes less certain, and the investor wants to protect his or her initial investment. Now if someone rolls a stock into a stock option that doesn't necessarily mean they are done collecting income from covered calls. There is far more to be learned about covered calls, so make sure to do your research before considering if its right for you. - 23210

About the Author:

Maclin Vestor teaches about various automated trading systems and teaches you to find a stock market trading system that works for you.

Getting Started with Forex Trading

By Regis Pelletier

Even beginners can explore the forex market nowadays. This is in most part due to the Internet and the various forex applications that have sprung out and made it accessible.

If YOU are a beginner and this apply to you beware of the double edge sword.

The forex market is easier than ever to get into and will allow you to experience much faster but on the other hand it is also the reason why if you are a beginner and unprepared you will be tempted to rush into the market.

And that is a complete recipe for disaster.

You should start off slowly if you don't want to number yourself amongst the many beginners who leaped before they looked. YOU need to start by getting the knowledge that YOU need before anything else.

To do so, you should begin by reading whatever resources you can find about the forex market. Try finding books, guides, articles, and anything and everything else that you can lay your hands on that is connected to the forex market in some way.

It wouldn't be a good idea to start trading immediately even if you have all the knowledge brimming inside you. Instead, you should kick things off by carrying out what is commonly known as 'paper trades'.

While you're paper trading, you're going to be investing 'virtual' money instead of real money, and so any losses (or profits!) that you make are not going to affect your capital in the slightest. Consider 'paper trades' to be a mock version of trading.

More importantly, these paper trades will give you the hands-on experience that you need with trading in general, so when you finally do move on to real forex trading, you're going to already have tried out some of what you've learnt, at very least.

The results that you obtain when you actually start trading are going to be dramatically improved if you go about it in this manner. Most of the pitfalls and common mistakes that beginners make would be the kind of thing that you've already overcome during your paper trading sessions.

Wandering aimlessly through the forex marketplace and hoping that you get lucky somewhere is much worst than finding that you are still learning things along the way.

Experience and knowledge are the two most crucial components that every prospective trader must have before they start to actually make trades. Bottom line: every effort should be taken to acquire these components - and then use them to your own advantage, to help you profit from your decisions! - 23210

About the Author:

Looking to find the best deal on Getting Started With Forex Trading, then visit www.the-scrutinizer.com/forex to find the best advice on The best forex program reviews for you.

Free Forex Training The Answer You Need

By Chris Green

If you are looking for a way to free forex training, it is time for you to realize that the best training is never for free. Many new traders have a miss conception that there is good training available out there that is free. This is true to a certain degree, but for the type of training that is going to really push you ahead, this is not the case. Which training would you think is better? The one that is offered for free, or the one with a cost behind it? You should know that the person that has a cost involved has put a lot more time and effort into their training since people are paying for it. The training wont sell if it isn't good, so they make sure it is.

Sifting through many free forex training guides, It isn't hard to see the similarities between them all. They say that they hold all kinds of crucial tips and secrets that can substantially help your skill set. This usually isn't the case, and they all seem to have to same bogus tips that don't really help you out much.

Free forex training guides are just a way to keep the trader miss directed and separated from the great information that you can find out there. Why would someone spend their time making a guide for people to become more successful at their forex trades that would contain great information for free?

Taking a peek at free forex training guides from this point of view can possibly help you out. If there is a trader that is willing to pay for training, it means they are serious about their own success. If they are serious about their own success, they are looking for the best training out there. The expert trader that is offering the training knows that serious traders are willing to pay for good training, so they put more effort into their guides, go over more detail and further into depth about trading. This factor alone shows that the paid training will have much better and detailed information that can be applied to your trading.

You may be wondering if you should stick to free forex training guides. Hopefully at this point you are not, and you are realizing that they will only take you so far and leave you stranded at a certain point. If you are looking to rely only on free guides for your trading, you may as well just give up, because you are not serious enough to become a successful trader. If you want to constantly be going in circles and not to know where to go on your trades, stick to the free trading guides. If you are going to take your trading more serious, and want to make yourself a successful profitable trader, then you are definitely going to need to get good training. Don't fail where others have, take yourself to the higher level of forex trading, and make the profits you want. - 23210

About the Author:

If you truly want to get out of the ditch and make a buck, check out the "Big Wigs" Free Forex Training. If you have read up to this point, and you want to make real profits for your self, stop letting the "Big Wigs" spoon feed you tips, find out their insider Free Forex Training.

The Debt Settlement Tax Can Bite You If You're Not Careful

By Sean Payne

If you owe money to creditors, you might be thinking about talking to them to negotiate a settlement for your debts, by paying them less than you owe. Be careful, though. You may not have been aware of it, but debt settlement can have a huge impact on your taxes.

If you negotiated a settlement with your creditors, you're basically "earning" money from your debt. Here's how it works: If you took out a loan for $10,000 and couldn't pay it back, but negotiated with your creditors for them to accept $6,000 as full payment of your loan, you've pocketed $4,000 (the difference between how much you borrowed and how much you paid back). The IRS takes a close look at these kinds of loan repayments.

I'm sure that at one point, there was a loophole in the IRS tax laws that allowed for this to happen. Unfortunately, the IRS is quick to get wise about these types of things. Just like so many other tax loopholes, this one has been closed.

Just like in our example above, if you have credit card debt or any other kind of debt, you will likely be held liable for any "profit" that you realize as a result of settling your debt for less than you owe. Keep this in mind when it comes time to prepare your taxes after debt settlement.

Even though this may sound like a bad thing, you still come out ahead after taxes. In our example above, the $4000 you realized as a gain might be taxed at 30%, depending on your tax bracket. However, even when you add the $1200 tax, you've still only paid $7200 to clear a $10,000 debt. That's still a bargain in my book.

The debt settlement tax comes as a surprise to many people, who don't realize that they owe taxes on their so-called profit or gain until the IRS comes to audit them. Don't let it take you by surprise.

If you require more information about how to plan for this tax, please talk to a CPA or other tax expert. - 23210

About the Author:

Sean Payne is a personal finance expert who has learned through trial and error (and a lot of advice) how to get out of debt. You can learn more about the debt settlement tax at Sean's website, where you'll find a unique "get out of debt course" that really works.

What You Need To Know About Social Security Benefits

By Doeren Mayhew

Throughout the years, the two main sources of income when Americans retire are social security and pensions from their employers. However, since the prices of every item these days are increasing, the financial support that people may get from these sources may not be enough to sustain all their needs. Social Security support may not be that large in amount while pensions are only given by very few employers.

Because of this, people find out that their personal income on both the retirement and off-retirement accounts are very good financial support upon retirement.

A person is only eligible to receive social security benefits if he is consistent in his contributions amounting to that of at least 10 years. The amount of benefit is not the same for every individual. It is determined by the amount of your contribution and the age at which you choose to receive the benefits.

The good side about this is that the benefits are set to go up with inflation and the bad side is that your earnings in determining the benefits are capped. This just means that those who earn huge income will get less of their usual earnings compared to those whose income is below the level of cap.

Once you reach your age of retirement than you can fully receive your benefits. The usual retirement age is 65 but for those born in year 1938 or much later, the age increases to 67 for those born after the year 1959.

If you want to check out how much benefit you can get, go to the website of Social Security Administration at www.ssa.gov. You can also review the annual statement sent by SSA to your registered address, which they send to you three months before your birthday.

Getting your benefits at an earlier versus later year
You may choose to start getting your benefits at an early age of 62. The only catch is that of course the amount is going to be lesser than what you will be getting once you reach your full retirement age. For instance, you retired at age 62 but your full age of retirement is 66, you will just get 75% of your supposedly benefits once you reach that age. You will increase it by waiting.

On the other hand, if you decide to take the benefit years after your full retirement age, you will receive an increase in payment. Each year beyond your full retirement age equals an additional 8% per month. So, if your full retirement age is 66 and you choose to get your benefit at age 30, you will receive a monthly benefit of 132% of the amount you should have received had you starting getting the benefit at age 66.

Remember that if you will get the benefits earlier, you will be paying less and get more in the process. The reverse will happen if you will opt to delay in getting your benefits. So If you want the benefits to work to your advantage, you have to know when you are going to receive them.

Spousal benefits is also available
Even if your spouse does not have any earnings with Social Security, he or she will still get the benefits because of your record. Your children will also be eligible but this will depend on their age.

For your spouse, he or she will get 50% of your benefits once you have reached your retirement age. You will also lessen your spouse's benefit if you will get your benefits earlier.

Always remember that your spouse may be entitled to his or her own set of benefits as well. If this is the case, then he or she will surely be paid higher. - 23210

About the Author:

This data is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional advice or opinions and assumes no liability in connection with its use. Please contact Doeren Mayhew for more information.