|
|
understanding the stock market, trend trading stock
| Brought to you by Online Investment Services, LP.
Visit Our Flagship Website at MarketFN.com
|
 |
|
Informing Investors Around The World |
| Read In All 50 States And Over 100 Countries
| |
Weekend Newsletter for October 28, 2006 Please forward to a friend! (Subscribe)
The Week At A Glance According To The Charts
|
Knowing Your Broker
Knowing Your Broker -- by Bill Kraft 
Bill Kraft
Editor |
Many times, traders choose brokerages based solely on the commissions offered by the firm. They spend little time understanding requirements of the brokerages before signing on. I thought it might be helpful to review some of the brokerage requirements so that traders considering changing brokerages or opening new accounts may know some of the questions that are valuable to ask.
For example, each brokerage that permits option trading (and some don't) assigns each trader a trading level. The level assigned is ordinarily based upon factors such as trading experience, knowledge, income, age, and cash in the account. For example, one brokerage firm with which I deal has the following levels:
0 - Buy stocks, bonds, and/or mutual funds
1 - Covered calls and selling stock short
2 - Buying calls and puts or cash secured put writing
3 - Debit spreads
4 - Credit spreads and selling naked puts
5 - Selling naked calls and selling naked index puts and calls
These assignments of trading levels are not universal so when considering opening an account, you should speak with the brokerage firm to find what level is going to be assigned. You certainly would not want to be trading credit spreads where a level 4 is required only to find that you are only permitted to trade at level 3, debit spreads. Also, be aware that certain levels of trading at some brokerages require a minimum amount of cash in the account before the trade is permitted even though the trader may have been assigned the desired level.
Good Trading!
Bill Kraft
Mr. Kraft's past articles are posted on our website for your review.
* * * SCOTTRADE * * *
SUCCESS TRADING GROUP -- by the Success Trading Group Team
Our Success Trading service delivers quality trading ideas for the elite investor that has the financial wherewithal and market nimbleness to profit on small moves in a stock's price. Become a member and you will be provided with email and/or pager alerts intended to provide you with the opportunity to make many, many profitable trades.
Details Here.
OPTION TRADER -- by Bill Kraft
Our Option Trading Service is for conservative traders that understand leverage principles. We focus on powerful option trading strategies that place volatility and momentum in your favor. And we pride ourselves on minimizing our losses. We always know our downside potential in a trade.
Details Here.
TREND TRADER -- by Bill Kraft
Trend trading as we try to practice it is a form of momentum trading. We prefer to try to capture profit out of the middle of the trend rather than try to catch reversal at bottoms and tops.
Details Here.
$10 TRADER -- by Bill Kraft
We really enjoy trading stocks that are $10 and under. Often they provide the chance to enjoy high percentage gains and, of course, at worst, the risk is limited to what we paid for the stock.
Details Here.
DIVIDEND INVESTOR -- by the Dividend Investor Team
Perfect for your IRA! Our Dividend Investor service focuses solely on the "best of the best" dividend paying stocks. Many of the stocks that we will be buying in our Dividend Investor service raise their dividends almost every year. Year after year! This is powerful. We buy these stocks for their powerful dividend producing income; and we will also buy these with a purpose to make capital gains as the stock increases in value.
Details Here.
COVERED CALL SERVICE -- by the Covered Call Team
Details Here.
* * * SCOTTRADE * * *
| |
Success Trading Group Trade the same stocks over and over. 275 trades with only 8 losses on our Main Trade Table!
Trend Trader "The Trend Is Your Friend". Utilize trends and momentum in your stock trading!
Option Trader Use the power and leverage inherent in option trading to your advantage!
$10 Trader Focusing on stocks under $10 per share!
Dividend Investor Perfect for your IRA! Quality dividend paying stocks!
Covered Calls Conservative option writing -- Allowed in your IRA!
MARKETPLACE Investor's Business Daily: 2-week complimentary subscription delivered to your doorstep!
Block All Pop-Ups! Download this tool on a complimentary basis from Amazon.com.
|
|
|
The foregoing is commentary for informational purposes only. All statements and expressions are the opinions of Online Investment Services, LP. or the associated editor. This information is not meant to be a solicitation or recommendation to buy, sell, or hold securities. Past results do not guarantee future performance. Stock investing is risky. Option trading is risky. Futures trading entails great risk where one can lose more than his account balance. We are not licensed or registered in the securities or futures industries. The information presented herein and on the related web sites is presented "as is" without warranty of any kind either express or implied. Although the information has been obtained or derived from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolios of writers for this issue may, in some instances, include securities mentioned herein and on the related web site. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors. No one associated herewith receives compensation in any manner from any of the companies that are discussed in this newsletter or on the related websites. By accepting emails, including various paid subscriptions and free email reports and newsletters, you agree to the terms of the MarketFN.com's website Disclaimer, Privacy Policy and Terms of Use provisions as such may be amended from time to time.
|
|
|
|
|
| |
