The aim of StockWatch is to teach beginners with no previous experience about investing. These articles will teach you why investing is important, the magic of compound interest, how to invest in shares, how to choose your own broker and how to buy your first parcel of shares.
Owning stocks is not rocket science, in fact, 46% of Australians own shares directly or indirectly*. All you need is a basic understanding of how the sharemarket works, the share language, patience and discipline.
These articles will familiarize you with the fundamentals of the sharemarket, so make sure you join the StockWatch share market game to put what you learn into practice. Other than the prizes on offer, the StockWatch share trading game will allow you to test out your own trading strategies without the stress of losing any money.
- New
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Call Options Explained with example. Call gives you the right to buy a stock, but you are not obligated to do so. The contract is worth a certain amount of money which we will call extrinsic value.
Put options are purchased when you feel the market is going to cool off. Let us go back to our real estate example that we started in part 1 to explain how a Put options contract works.
With so many different products on the market, why choose options? Here are a few compelling reasons: leverage, passive Income, risk Management, diversification, small capital outlay
Learn about the components of an option. What are Underlying Asset, size of contract, expiration date, exercise price
We will now walk through an actual example of trading a call option and a put option. Going through will give us exposure to how a trade really works, and the profit versus risk of each
Learn the fundamentals of options pricing. It is important that we clearly understand what factors go into an options premium or value. What is intrinsic value or time value?
Learn options trading strategies; covered call strategy to earn income, hedge to protect shares and use it to leverage
All investments carry risk. Although the risks are somewhat low in this example, the rewards are likewise comparative. What sorts of risks are associated with options trading?
Some may choose to buy a book and others prefer the person to person contact that can be had at an options trading seminar. What really takes place behind the closed doors of these elite training sessions?
- Derivatives
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This options trading series will teach you very important aspects of options. The part series 'Introduction to Options' will teach you tips and strategies for trading options
Is it possible to turn $13,000 into $30,000 in 3 months or pull in $65,000 in one week trading CFDs? Find out how CFD trading (Contract for Difference) is taking the financial world by storm
Trading CFDs profitably require a careful risk management plan. Learn how to systematically look at CFD’s in bite-sized portions to develop system that should make us money.
- Funds
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Before you can know how to best invest your money you need to first make a plan. Choose an investment vehicle/s that will best reach your invest goals.
Managed funds, also known as unit trust or mutual funds, allow investors to pool their money together and buy different companies.
An exchange traded fund (ETF) is a cross between an index fund and a stock. It combines the low fees and diversification of an index fund and the liquidity of stocks.
An index fund works by buying all the securities that make up a specific index, for example the S&P/ASX 200 index. Find out if you should invest in a Index Funds VS Managed Funds.
- Investing
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The 3 main type of asset classes includes shares, property, fixed interest. Which asset class should you invest in? Each of the asset classes above have their own risk/return profile.
Dollar cost averaging involves buying assets at different prices by making regular deposits. As a result, you purchase more units when prices are low and fewer when prices are high.
Unfortunately, finding a good financial advisor is not as simple as it should be. Where to look and questions to ask.
Before you can know how to best invest your money you need to first make a plan. Choose an investment vehicle/s that will best reach your invest goals.
Before you go straight ahead and invest your hard earned money, make sure you have an investment plan. What is your time frame? What is your risk appetite?
Albert Einstein called it the 8th Wonder of the World. Compound interest is one of the most basic and powerful concepts that can enhance the outcome of your investments.
- Shares
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The dividend imputation system allows investors who have been paid a dividend to take a personal tax credit (franking credit) since the company has already paid tax (30%) on this dividend.
It is important that you understand the language & jargon of shares, as your evaluation of a company may be dependent on one vital piece of information.
One of the most effective strategies to reduce risk is through diversification. Learn how to diversify your portfolio.
Dividends are the distributions that are paid using profits companies made during the year - it is like a reward to investors who have chosen correctly.
What does it means when a share goes ex-dividend? Learn the important dates of a dividend, ex-divided, record date, payable date and ensure you receive your dividends.
Whether you've read about it in the finance section of the newspaper or heard it on the news, have you ever wondered what they mean by "The Market"? Why is it so important?
There are many benefits to investing in shares and we will investigate how this common form of investment can be an effective way to make money and dilute the risk.
There are 2 main types of brokerage firms, full service brokerage firms and discount brokerage firms (Online Brokers). Deciding which brokerage firm to use will depend on your trading style.
Step by step instructions on how to buy your first parcel of shares. Learn what 'Bid', 'Offer' and 'Last' prices mean and how you can take advantage of them with your trades.
The aim of StockWatch is to help beginner's learn about investing. These articles will teach you why investing is important, how to invest in shares, finding a broker & how to buy shares.