Puja Tayal
Options are derivative contracts as they derive their value from the price movement of the underlying stock. But can it be reversed? Can options contracts influence their underlying stock prices?
The stock market is always in motion. There are peaks and troughs, downturns and upturns, and corrections and rallies, depending
The power of compounding is admired by all investors. What if you could harness this power through stock trading? A disciplined approach and long-term view of trading can make you retire early and wealthy.
The option market is where you can get more for less. Buying a call option can amplify your gains and limit your downside risk. Selling a call can earn a limited amount for taking risk.
The world expected 2021 to mark the end of the pandemic and the beginning of normal life. But a slowdown in vaccinating the world population delayed the recovery and spiked inflation. In the new year of 2022, the world expected recovery, but a Covid 19 mutant (BA.2 virus) immune to vaccine seems to be casting its spell. Even though this year started on a bearish note with the TSX Composite Index in red, some trends will work out in 2022 just how energy stocks worked out in 2021 and tech stocks in 2020.
Humans make mistakes, and it shows that you are trying. Making mistakes is a part of learning and makes you a better trader and an investor. All investing gurus, from Warren Buffett to Peter Lynch, talk about their mistakes and what they learned from them. Now, there are some common trading mistakes every trader makes when they begin trading. You can learn from others’ mistakes and avoid them. This can save you a great deal of money and give you the financial bandwidth to make new mistakes. Here are the 5 most common mistakes made by beginner traders and how to avoid them.
Options trading is complex, and your trading platform plays a pivot role in the returns you generate. Online trading platforms offer various types of instruments, including stocks, ETFs, forex, futures, and options. If you are a non-US trader who wants to trade in the U.S. markets, you can if you have the necessary paperwork. So if you are a U.S. resident but not a citizen or a non-US citizen living outside of the U.S., you can open an account with an international or U.S.-based broker that accepts applications from your country of residence.
Options trading can be tricky and expensive. After all, it is a market that runs on traders’ expectations of the future price of an underlying asset. In the stock market, you have the luxury of time. Here you don’t. As an options trader, you not only have to predict the price movement but also the time when that price movement will occur. While that is not enough, you have a plethora of choices available in the options market.
The world has bought upon itself a self-inflicted energy crisis. In a rush to make the earth green again and control carbon emission, many major governments accelerated the shift from coal to other renewable energy. They discouraged investment in oil and gas production and infrastructure without preparing reliable alternatives. Many banks and pension funds followed suit and removed their funds from fossil fuel assets.
Profits and losses are a part of the trade game. You are not a real trader if you haven’t suffered a loss. You can own the loss, learn from it, and get working on improving the trade or you can back out, blame it on luck, and exit the stock market forever. The choice is yours.
Last year brought a big fall for the global stock markets followed by a recovery towards the year-end. But this recovery was lopsided toward tech stocks as the pandemic came as a boom to the cloud and internet companies. This year is all about the after-effects of the pandemic and the vaccination drive. The economic recovery will begin in 2022 as all sectors, online and offline, return to businesses. This is where the value is. Here are the top 10 stocks that are trading at lower prices but hold the potential to grow when things return to normalcy.
Canada is seeing a fourth wave of the pandemic that is stalling the growth of recovery stocks. Canada’s chief public health officer, Dr. Theresa Tam, in a press conference, said, “The latest national surveillance data indicate that a fourth wave is underway in Canada and that cases are plotting along a strong resurgence trajectory.” This comes when Canada and other countries started reopening schools and offices, easing international travel restrictions, and phasing out stimulus. The rising cases have created uncertainty around the return to normalcy.
What are the odds? Many say options are risky, complex, and not my cup of tea. They are complex only because traders put in all sophisticated lingo and make the transaction look complex. It is like solving E=MC2 without learning 2×2. If you understand the very logic behind this financial instrument, everything will fall into place.
The stock market is two-faceted, where both red and green, bear and bull prevail. There are market forces of demand and supply that work in mysterious ways. Many perish in this market, and only a few who learn the ways of the force succeed. I may sound like a Jedi, but that is how the delicate balance of the stock universe is maintained.
Options have gathered popularity as risky investment instruments. But do you know, options were invented to reduce risk? To give you an idea of options risk reduction ability, no amount of portfolio diversification across stocks or bonds could protect investor’s money from the 2008 financial crisis or the March 2020 pandemic crisis. It was only the options that protected investors from the downside risk.
Have you been investing in stocks, commodities, bonds for a long time? You have learned a lot about them and realized that you can predict how they move in the near term. It is time to step up the ladder, ace the game and try your hands on options trading. Options trading is complex and risky. You can make money in stocks without much knowledge, but you will stand to lose in the derivatives market without the right knowledge.
The Bitcoin and crypto frenzy has returned. Many new-age investors are looking at crypto as an investment asset. But there are debates over its sustainability as many regulators do not consider Bitcoin or other cryptocurrencies like Litecoin, Dogecoin, or Ethereum as a legal currency. Canada is taking a step closer to accepting Bitcoin and even introduced Bitcoin ETFs. The Canada Revenue Agency (CRA) is also cracking down on the crypto gains for taxes.
What is Bitcoin? It’s a cryptocurrency, a digital token that some companies are beginning to accept instead of money. Many call it digital gold as it is considered to be the future alternative to paper currency, it is limited, and it needs to be mined. It has caught the attention of many companies, hedge funds, and billionaire investors.
Hashtag Investing
1 King Street West
Toronto, ON Canada
M5H 1A1