Investing

Doubts about covered call options

Question: I am looking for information on covered call options, –           who or what sets the call premium  on a particular share –          Can I use any e- broker or is it only some brokers.  –          What is the usual broker cost –          Any possible down side for shares I already have in my portfolio. Response: Covered call writing…

Where should I place my trailing stop?

The momentum-based trailing stop Choosing to close a position is often more difficult than choosing to open one. The decision to open a position can often be made for you – when some moving averages cross, when a breakout occurs, or when there is an economic or company announcement. In an unsuccessful trade, your stop…

How can I invest in commodities via ETFs?

Question: How can I invest in commodities via ETFs? What are the options and what are the risks involved? Response: Investors can gain exposure to commodities via ETFs in two ways – either via ETFs which track the price of a particular commodity such as gold or through ETFs which track the performance of the…

Why would I buy an ETF rather than a managed fund? What are the advantages of ETFs?

By Drew Corbett, Head of Investment Strategy and Distribution of BetaShares There are some major differences and advantages of ETFs over managed funds which investors should be aware of. The primary differences are summarised in the table below: #FOTO:1012:600# Expanding on these characteristics: Risk Diversification – ETFs usually provide all the diversification benefits of traditional…

Should I borrow in Asia at low interest rates and invest in Aussie fixed interest?

My daughter-in-law’s mother lives in Taiwan. She would like to borrow against a house she owns in Taiwan $120,000 and invest in fixed interest in Australia. Is this possible? Is this risky? Would she earn enough extra money to make it worthwhile? I have been asked this question numerous times, and again just recently. It…

What’s the difference between top down and bottom up investing?

There are many different approaches an investor can take when looking at buying shares, and whilst top down and bottom up are completely different in their strategies, their desired result is exactly the same – to pick out the stocks which are guaranteed to deliver the best returns. The top down approach focuses on the…

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