How,Make,Money,the,Sharemarket finance, share, loan How to Make Money in the Sharemarket

If your financial problems have reached the point where you do not see a way out and you feel as though you are drowning in debt, your best way out is through declaring bankruptcy. Filing may well allow you to get your finances back on track Thankfully, there are now several web sites that are there to help people like you with bad credit to find the fast personal loans that you need. When you have bad credit, the first thing that you should be looking for is a loan company that

How to Make Money in the Sharemarket====================================Isn't earning a good return on our money a very essentialconsideration? Yes I think most would agree. We want tobuild our retirement money-machine because we all knowyou need piles of the stuff and if we are going to enjoyretirement then we better have a GOOD PLAN!CONSIDERATIONS--------------------------------------------------------Real Estate: You make your money when you buy!Small Business: You make your moneywhen you sell your money-making system.Shares: You make your money when you can!-------------------------------------------------------- My favourite game is playing the sharemarket and I willadmit to you from the start it's not always money in yourbank account - why? Simply because it's a game where theone who who knows the most makes the money.If you want to join me then start your education now! Learnhow, do the training and master your emotions you you will do well. LOOKING BACKIt wasn't till I lost my advisor that I really learned aboutmaking money. Now I'm not saying sack your advisor - I wouldnever say that! You have to make your own decisions.An advisor can tap into situations that you would not be awareexisted. You can also learn from them. Just be careful as towho gives you advice and make your own decisions. Don't trust anyone to make money for you. No one cares aboutyour money the way you do. Advisors in most cases are justsales people who need to get clients so that they can pay theirbills. At the best of times you do not rate that highly intheir priorities. If you lose or win, it's nothing to them - they hope they willstill get to keep their jobs. It is easy to understand - makethem a lot of money and they might let you know what ishappening to your account, but this depends on who is moreimportant than you today. We all want advice and we all ask theopinions of others, but don't become dependent on someonesolving your problems - you are alone! Now live with it! Thesooner you take full responsibility the better.The people who make excellent returns are those that seetrading as a business and realize that they will always be apupil who needs to keep learning, be self-motivated andresilient, because losing at some stage is inevitable. There are going to be more people that lose money than makemoney. I have had strings of losses, where position afterposition has had to be closed. Now you don't need that tohappen too many times to wipe out your capital. This is thereason for keeping your positions small. You must decide howmuch time you will be willing to invest to learn how to makeyour fortune and keep it. The less time you're willing todevote to learning, the less money you should put into thesharemarket.The gambler will eventually give his winnings back to the house because they do not have a plan and trading rules whichhelp them develop self-discipline. The most important qualityto develop if you seriously wish to be successful in the sharemarket is self-discipline. Although this is easy to writein words I assure you that developing personal discipline isvery hard and to carry out actions without involving emotioncan be next to impossible. We are often ruled by emotion and we hate to admit we have made a loss - thus, often we won't do what we should to rescue our remaining capital. This is how a little loss becomes a big loss over time.Master yourself - your emotions will help you lose money. The more you think with your emotions and the more you makedecisions with your emotions, the more you will lose.NO ONE CAN PREDICT WHAT WILL HAPPEN IN THE MARKET!If anyone can predict with any accuracy it won't be you and if you must predict what is going to happen, don't put anymoney on your bet. Next, if your broker could predict what was going to happen he/she would not be a broker - they wouldbe living the life of Riley. If the money is coming out ofthe market then for god's sake take notice. This may be asclose as you get to insider trading.The stockmarket is like a sport. Everyone wants to see the great players and witness all the action, but not everyone is going to win the game. It is up to you to learn how to play the game. You need to learn the rules and learn thetactics and strategies to help you score more goals.There are many different plays you can make in the market, but learning the less risky plays and those that reduce riskwill make you more money.Less risky to some......using options to make moneyExamples might include:1. Writing puts when the market is going up instead ofbuying the stock. If you're exercised then you can decidewhether to buy the stock or act earlier to prevent theexercise by closing out your put position when the put pricedrops(buy the same put series and close it out).2. Writing calls over your shares when it looks like the stock price is ready to fall.3. Buy calls or puts depending on which way the market isgoing. Up market might indicate buying a call to cature theupside. A falling market may indicate buying a put to capturethe rising value created by people buying protection.The first strategy many people will see as too risky, but itreally depends on your level of education in options, whetheryou can handle the risk and how much spare cash you have tomeet your obligation if your puts are exercised. If the totalcost of exercise is $50 000 and you have the money then in thecase you do get exercised you will be able to buy the shares. Get protection for your sharesBuy PutsLet's say you protect your position by buying a put, then ifthe price drops you will cap your loss, or alternatively, youcould sell the put/s, which may result in a profit and thusmake up for any lost value in the share. Covering your positionmay be an on-going requirement. There will always be a price topay - that's life!Making money buying putsWrite PutsIf you write puts then you'll be obliged to buy the stock inthe event you are exercised and so having sufficient cash isessential. You can also buy another series to cap yourpotential loss to the spread between the two series.If you wrote $10.00 puts and bought $9.50 puts your loss wouldbe partly covered by having that cover if the price driftedlower.So we can make what looks risky, less risky, by knowing moreabout what is possible and then choosing our exit strategy. IfI am exercised my contingency plan might be to write calls overmy new shares and if I preferred, I could go back to putwriting, by letting myself be exercised. If I wanted to keep the shares then I would write calls thatare further out of the money. I can even buy calls in adifferent series so that in the case the share price goes up Icapture some of the increase, or I can cancel the contract bybuying calls in the same series.During May 2002 I used this same strategy with NCP. I wroteputs at $12.50. I watched the share go down to $9.68. I letmyself be exercised and met my obligation by paying$12.50/share - risky? You bet, because all the worst conditionsfor put writing came together in June 2002, the month I wroteputs. It fell to $8.44. NCP makes up 10% of the Australian All Ordinary Index,so you could expect such an important stock will get seriousattention. However at the time big media companies were not the flavour of the month - all the flavours had turned sour!Following the purchase of the stock I wrote covered calls.There is nothing wrong with the strategy, but timing is yourmost important variable - thus a contigency plan is required.Keep in mind that 1 month in the market is a long time and 3months is an eternity. Things can change very quickly frompanic to ecstacy for no apparent reason. Someone always raisestheir hand with an explanation to satisfy the crowd - wouldn'twe be disappointed if someone couldn't tell us. I thinkwe'd probably get very worried!Writing calls is a good idea when you think the stock pricewill fall. My contingency in the event I was exercised was towrite calls and make up the difference I had lost - I didn'tintend buying back the calls, as I felt there was little riskof losing the stock because the $10.50 level would remain outof the money. The resulting action suggested that a better plan would havebeen to buy/write regularly - buy the calls back sheep(cheap)and write deer(expensive). Waiting first for the stock to peakthen writing the call.I could have closed out my contract by purchasing puts in thesame series. I could have bought puts in another exercise priceseries to cap my loss. I chose a different way and regretted mychoice. Holding the stock was not the easiest choice I couldhave made and in fact it held me back from making a lot more money. Once I had the stock I had to protect it. If I then sold theprotection I could have found the stock slipping further invalue, so I kept the protection in place and missed the profitas the stock moved back up. So even though I inially lost byhaving been exercised I lost more by not being in a position to be more flexible. A further complication was my stock waspurchased with a margin loan.What should I have done?I could have sold the protection , made a profit and thenlooked at buying the same protection cheaper. I could have done this at least 4 times in 4 months. This brings us to the topic of increasing the flexibility ofour thinking.If you make money only in one direction you will reduce yourtrading results drastically. The market does not always go up!Sometimes it goes down or moves sideways.We all need to be on the right side of the market. Believe methe alternative is no fun!Happy Trading,Joseph Sgro_______________________________________________________________Copyright(C) Joseph Sgro 2003Further this discussion by reading: "10 Simple Rules to Make Serious Money in the Sharemarket and Keep it!"http://www.tutorhelp.com.au/sharemarket.htmlAffiliates:mailto:[email protected] for more articles:mailto:[email protected]=============================================================== Article Tags: Make Money, Could Have