What is Protective Put? A protective put is a risk-management strategy using options contracts that investors employ to guard against the loss of owning a stock or other asset. Here’s how it works: Remember that protective puts are commonly used when investors are still bullish on a stock but wish to hedge against potential losses … Read more
Passive income is money earned with little to no effort on your part once the initial setup is complete. While it often requires upfront work, time, or financial investment, it can be a great way to generate additional income streams. Here are some passive income ideas to consider: Remember that while passive income can be … Read more
In his book The New Trading for a Living by Alexander Elder Alexander Elder emphasizes the crucial role of trading psychology in achieving success as a trader. According to Elder, trading is not solely about analyzing charts and indicators but also about understanding and managing the emotions and mindset that influence trading decisions. Here are … Read more
Importance of Trading Psychology The psychology of stock tracking is important because it can help you make better investment decisions. When you understand the psychology of the market, you can better understand why prices move the way they do. This can help you identify opportunities to buy and sell stocks at the right time. Here … Read more
Here are five popular investing books you should read Please note that these book summaries are simplified and condensed versions. Each book provides a wealth of knowledge and should be read in its entirety to fully grasp the concepts and principles presented by the authors.
In Alexander Elder’s book The New Trading for a Living by Alexander Elder he introduces a trading strategy known as the “Triple Screen Trading System.” This approach is designed to help traders identify high-probability trading opportunities while minimizing risk. The Triple Screen Trading System consists of three screens or steps that traders should go through … Read more
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The CPI is calculated and published monthly by the Bureau of Labor Statistics (BLS). The CPI is used to track inflation, which is the rate … Read more
When the CPI increases, it means that the cost of living is rising. This can have a number of effects on the economy, including: The effects of a rising CPI can vary depending on the specific circumstances. However, in general, a rising CPI can have a negative impact on the economy. Here are some specific … Read more
Inflation refers to the general increase in prices of goods and services over time. When inflation occurs, the purchasing power of money decreases, which means that you can buy less with the same amount of money. Imagine you have $10, and you could buy a sandwich with that money. However, if inflation happens, the price … Read more
Inflation is a sustained upward movement in the overall price level of goods and services in an economy. It means that the general level of prices is going up, and it takes more currency units to buy the same amount of goods and services. Inflation is measured as the rate of change of prices Inflation … Read more