Planet Wealth – Australian Stock Market Education

October 15, 2009

With Great Profit, Comes Greater Risk

By Planet Wealth

So you have been trading stocks for quite some time. You feel that you have mastered the art of trading and want to go further. You think you can play with the big boys now.
Well then, step up to the plate and get ready for some advanced stock market trading.
For advanced traders, using margin, selling short, considering IPOs, and other sophisticated trading strategies can open a new world of trading experience and potential profits.
Understanding IPOs
IPOs or initial public offerings mark the transition of a company from a privately owned firm to a public held firm. Every incorporated business issues stock, although initially, to a few stockholders. In order for a company to raise capital without incurring debt, one way is to sell stock to the public.
There are two ways to make money from IPOs.
First, is to get in early and buy stocks, hope for a quick big increase in value, and then sell for a quick profit.
The other is to watch and wait. See if a stock is fairly priced. If it’s reasonable, grab the stock.
Shorting Stocks
Selling short is an advanced technique. Short sellers look for the best stock to sell. Short sellers sell stock they don’t actually own with a belief the value will come tumbling down in the near future.
When the price drops, they can buy the stock at the lower price, pocket the profit and return the shares to the owners.
Short selling is risky though. If the prices jump instead of drop, you will lose money. There is no way to easily speculate if a stock will fall. So the potential for loss is greater than the potential for profit.
Margin Trading
Margin accounts can allow you to borrow money to buy stock. Margin trading uses borrowed money to increase how much stock you can buy. This money can be supplied by a broker.
If you were to buy a stock worth $1,000 without the use of margin trading, you would have to dish out the $1,000 dollars. But if you margin trade, your broker can lend you half of the amount or $500 and you only need to shoulder the other $500.
If the stock gets you $10 per stock, profit will be based on the number of stocks you bought with $1,000. Then you can pay the broker back. If you did not margin trade, your profit would only have been for the number of stocks you could have initially afforded for $500.
Closing
As with everything in life, there is a flip side to every coin. The greater the profit, the greater the risk. Advanced trading is not for the faint of heart.
So you have been trading stocks for quite some time. You feel that you have mastered the art of trading and want to go further. You think you can play with the big boys now.
Well then, step up to the plate and get ready for some advanced stock market trading.
For advanced traders, using margin, selling short, considering IPOs, and other sophisticated trading strategies can open a new world of trading experience and potential profits.
Understanding IPOs
IPOs or initial public offerings mark the transition of a company from a privately owned firm to a public held firm. Every incorporated business issues stock, although initially, to a few stockholders. In order for a company to raise capital without incurring debt, one way is to sell stock to the public.
There are two ways to make money from IPOs.
First, is to get in early and buy stocks, hope for a quick big increase in value, and then sell for a quick profit.
The other is to watch and wait. See if a stock is fairly priced. If it’s reasonable, grab the stock.
Shorting Stocks
Selling short is an advanced technique. Short sellers look for the best stock to sell. Short sellers sell stock they don’t actually own with a belief the value will come tumbling down in the near future.
When the price drops, they can buy the stock at the lower price, pocket the profit and return the shares to the owners.
Short selling is risky though. If the prices jump instead of drop, you will lose money. There is no way to easily speculate if a stock will fall. So the potential for loss is greater than the potential for profit.
Margin Trading
Margin accounts can allow you to borrow money to buy stock. Margin trading uses borrowed money to increase how much stock you can buy. This money can be supplied by a broker.
If you were to buy a stock worth $1,000 without the use of margin trading, you would have to dish out the $1,000 dollars. But if you margin trade, your broker can lend you half of the amount or $500 and you only need to shoulder the other $500.
If the stock gets you $10 per stock, profit will be based on the number of stocks you bought with $1,000. Then you can pay the broker back. If you did not margin trade, your profit would only have been for the number of stocks you could have initially afforded for $500.
Closing
As with everything in life, there is a flip side to every coin. The greater the profit, the greater the risk. Advanced trading is not for the faint of heart.

Option Spreads Trading Diary by clicking here.

Alternatively you can sign up on our secure internet here: Join our live trading room to improve your trading results: Click Here to Access

Rent shares from the US market please visit our renting shares page.

For the Protected Equity, or Growth Plus Access Here

Topics: General Commentary, stock market | No Comments »

October 10, 2009

100% Finance – Growth Plus

By Planet Wealth

The Protected Equity strategy is aimed at generating substantial capital gains by using leverage from 100% finance, while still having our downside protected. We use a combination of shares and options in this portfolio.

We choose high growth companies that we expect to rise in price, and because we are trading this strategy over a longer time frame, we can ride out any short term volatility or share price weakness.

The beauty is we don’t use any of our own money to buy the shares, and we are protected from any fall in price – we have insurance which guarantees we can’t lose money from a share price drop. All we need to do is pay for the insurance upfront (just like you do when you insure your car or anything else) and we are fully protected.

In fact, if the share does drop, our insurance goes up in value, so we can still make a profit. And we still get all the profits from a rise in the share price, and all the dividends along the way – even though we often haven’t paid anything for the shares in the first place. All in all, a wonderful medium-long term strategy that has limited downside risk, but huge upside potential.

We have prepared an E-Book for your immediate download, which explains everything about the strategy including…

  • Exactly how we implement the strategy from start to finish
  • How we minimize our downside and have a fixed risk with every trade – yet we have UNLIMITED upside!
  • How we can borrow 100% of the purchase price of the shares – and anyone can do it.
  • How we share the exact trades we place on our account via the Protected Equity Trading Diary
  • Even how you can have the trades we place on our account copied to your account automatically – without even ringing your broker – through a new service call PROTECTED EQUITY AutoTrader.

The E-Book is available for IMMEDIATE download in a package that includes all six Planet Wealth E-Books – all for one low price. Simply click on the link below and you can have access to these strategies within minutes … Download Here

Topics: options trading, planet wealth, put options | No Comments »

September 11, 2009

What is a Futures Contract?

By Planet Wealth

A ‘Future’ is a Futures Contract – essentially a legally binding agreement to buy or sell a commodity for a specific price at a predetermined time in the future.

If you buy a futures contract, it means that you promise to pay the price of the asset at a specified time.

If you sell a futures contract, you effectively make a promise to transfer the asset to the buyer of the future at a specified price at a particular time.

Every futures contract has the following elements:

• A Buyer

• A Seller

• A fixed expiry date (or maturity) some time in the future

• A price agreed upon, between the buyer and the seller, at the time of trade

So, a futures contract is a legally binding agreement to buy or sell a specific commodity, such as soybeans, or a financial instrument, such as gold or the Euro currency, on a particular date in the future, and at an agreed upon price.

Futures belong to a category of financial instruments known as derivatives, because their prices are derived from the value of the underlying instruments, items, or products.

Check out the E-mini webpage here…

Topics: eminis | No Comments »

September 3, 2009

Planet Wealth Your Answer to Stock Market Success

By Planet Wealth

Our members have shared in our success – in fact since 2005 we have more than 5,000 members,

with many of them copying our trades automatically through a unique service called ‘AutoTrader’.

We are diversified across a number of strategies, one of which is Option Spreads. We recommend you

consider your own situation on whether this strategy is appropriate for you, and take a good look at how

your overall investment capital is allocated, to ensure you are properly diversified.

If you like what you see after reading and understanding this blog post you can sign up to the

Option Spreads Trading Diary by clicking here.

Alternatively you can sign up on our secure internet here: J
oin our live trading room to improve your trading results: Click Here to Access

Rent shares from the US market please visit our renting shares page.
For the Protected Equity, or Growth Plus Access Here

Topics: planet wealth, trading room | No Comments »

August 11, 2009

What Is an Emini?

By Planet Wealth

An E-mini is just one particular type of Future that is traded on global markets. We actually trade just one type of E-mini contract, called the S&P 500 E-mini. It’s a particularly heavy traded Future, with literally billions of dollars of value traded every week around the world.

AutoTrader will be available for both the E-mini Trading Room and the E-mini Trading Diary.

At Planet Wealth we have the Ultimate Emini solution find out more:
Check out the E-mini webpage here…

Topics: eminis | No Comments »

August 4, 2009

Eminis Trading Diary and Live Emini Trading Room

By Planet Wealth

It took a lot of preparation and a lot of work, but we have now officially launched both the E-mini Trading Diary and the Live Trading Room.

Even better, the E-mini AutoTrader launched last week – a world’s first!

That means you can have the trades of our professional trader, John Howell, copied directly to your own account – without lifting a finger.

Results since the start of 2008 are now running at 499%, which shows the massive profit potential of this strategy – but only when executed correctly!

We have written a detailed eBook which explains everything you need to know about E-mini’s, including how and why we trade them.  For a very limited time, we have made that eBook available to you completely free of charge.

You can pay several thousands of dollars for a decent E-mini course, but we believe this type of financial education should be available to everyone at an affordable price.

And you can’t get much more affordable than FREE!

So check out the new website, download the eBook right now, and view the amazing results John Howell has achieved trading his favourite strategy.

Check out the E-mini webpage here…

Regards

The Planet Wealth Team

PS. BONUS FREE TRIAL! For a limited time, both the Trading Diary and Live Trading Room come with a 7 day FREE trial.  So you can sign up now to secure your spot, then you have a full week to look around and get your accounts open.  That way you are ready to start trading and generating profits as soon as your subscription actually starts.

Topics: eminis | No Comments »

July 24, 2009

Buyers in Control of NWS

By Planet Wealth

NWS has been in a steep down trend for the past 18 months with the sellers in control. This month has given us a confirmation that the buyers have taken over control.

On the weekly chart, it can clearly be seen the down trend has been broken and a Higher Trough and Higher peak have formed above it. The trough that was confirmed with the close of today’s bar is being supported by the 50% Fibonacci Retracement and a past support line. This stock now has a high probability chance of reaching at least $15.00.

170709 nwsa1 Buyers in Control of NWS

Join our live trading room to improve your trading results: Click Here to Access
Rent shares from the US market please visit our renting shares page.
For the Protected Equity, or Growth Plus Access Here

Topics: bullish signal, trading patterns | No Comments »

July 12, 2009

XOA Shows Strong Bullish Signal

By Planet Wealth

The XAO rejected the Head and shoulder neckline we spotted last week and used past resistance and Moving Averages (MAV) as support for the bounce.

This is currently a strong bullish signal. The next resistance level is 4050. However if support at the Mav’s and weekly support line fail, the next area of support is 3500.

100709a xao XOA Shows Strong Bullish Signal

Join our live trading room to improve your trading results: Click Here to Access
Rent shares from the US market please visit our renting shares page.
For the Protected Equity, or Growth Plus Access Here

Topics: Technical Analysis, bullish signal, stock market | No Comments »

July 9, 2009

MAP Turning Bullish – Moving Averages Confirm Bull Signal

By Planet Wealth

MAP has been channelling down since October 2007. May 2009 saw the stock break up and out of the channel which was the first sign that a change of trend could be happening.

The second indication of a possible trend change was the Higher Major Peak. A higher major trough would confirm the bulls have taken control.

The third indication that the trend could be changing has happened in the last two week with the two well respected Moving Averages (MAV”s) crossing over to a bullish move.

080709 mapaa 11 MAP Turning Bullish Moving Averages Confirm Bull Signal

Join our live trading room to improve your trading results: Click Here to Access
Rent shares from the US market please visit our renting shares page.
For the Protected Equity, or Growth Plus Access Here

Topics: Stock Charts, bullish signal, candlesticks | No Comments »

July 4, 2009

XOA Still Showing Bullish Signals

By Planet Wealth

The XAO this week, retraced any ground made up last week. Alot are wondering if the is a sign of the bull run ending.

The short term trend is still up and this has not yet been broken. The two significant Moving Averages (MAV) have crossed over to a bullish indication. It currently sits on an area of four major supports. A weekly support line, a six month up trend line and two MAVs. This is showing the odds are stacked in favour of a rebound and trend continuation next week.

However, there is a small head and shoulder pattern on the daily chart which is a bearish signal if the neckline is broken. If the head and shoulders pattern was confirmed it would be in the opposite direction to the current trend. This makes it less likely to be confirmed, but is still a possibility.

For the moment the charts are still indicating bullish.

030709 xaoa XOA Still Showing Bullish Signals

Join our live trading room to improve your trading results: Click Here to Access
Rent shares from the US market please visit our renting shares page.
For the Protected Equity, or Growth Plus Access Here

Topics: Stock Charts, Technical Analysis, bullish signal | No Comments »

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