What is a popular options strategy for traders?
Question: What is a popular options strategy for traders? Response: Covered Calls – Generating additional income from your stocks This options strategy provides a way to increase income from stocks you already hold, using what is known as the ‘Covered Call’ strategy. This strategy supplements the return on a share investment, which is typically capital…
How do I calculate my gains and/or losses when I sell a CFD?
This is a good question for anyone who is considering using CFDs within their trading strategy. Equity CFDs not only replicate a share trade but have the additional benefits of leverage and the ability to go short. Using CFDs it is possible to profit from a rising or falling market by only making a small…
What is the formula to determine the total % return on a fully franked dividend?
Question: What is the formula to determine the total % return on a fully franked dividend? Response: If a dividend is 100% Franked, then for every $30.00 of tax paid by the company, a franked dividend of $70.00 can be paid. Company Profit: $100.00 Tax Paid: $ 30.00 Dividend Paid: $ 70.00…
How do I know where to place my stop loss on a forex trade?
Question: How do I know where to place my stop loss on a forex trade? Answer: Kathy Lien, Director of Currency Research, GFT I am so glad you are asking this question, because the number one rule of trading is “always use a stop.” This is particularly true when trading forex, because trends can last…
Can I make a living trading forex?
“Make $20,000 per month in income trading currencies! Trade on autopilot and rake in the cash!” If you have ever received any of these colorful junk e-mail messages, you are not alone. Across the world, smooth-talking swindlers with get-rich-quick schemes bombard internet users with stories that sound entirely too good to be true. If you…
Can I make a living trading forex?
“Make $20,000 per month in income trading currencies! Trade on autopilot and rake in the cash!” If you have ever received any of these colorful junk e-mail messages, you are not alone. Across the world, smooth-talking swindlers with get-rich-quick schemes bombard internet users with stories that sound entirely too good to be true. If you…
Software review: AmiBroker
By Will Kraa Years ago some time after I first started ‘trading’ I acquired charting software and as I got used to it I got to like it more and more. There were some upgrades which introduced functions that made things easier and it seemed to me that this was just about all I would…
Best countries for junior gold explorers
Since most countries accurately report mine output, and several agencies catalog this information, we know where in the world gold is being produced. But where in the world are the juniors exploring for gold? Are they spinning their drills proportionate in geography to where the miners are operating? I hear questions like this all the…
How do you tell whether a share is undervalued or overvalued?
Typically when we refer to value in the stock market we’re talking about the value of the underlying company. This is different to terms like ‘overbought’ or ‘oversold’ which we often hear in technical analysis focusing purely on price movement. Today we’ll be focussing on the fundamental value of a company. PE Ratio…
What is the loan to value ratio of a share?
Question: What is the loan to value ratio of a share, and how does this change as the share price changes? Response: A loan to value ratio or Lending Value Ratio (LVR) is a percentage measurement of the amount that can be borrowed against a share or a managed fund, using a margin loan. For…
