Each week, my readers and I are generating an average return of 7.8% on margin. Here’s how you can do it too. For the seventh month in a row, the options trades I’ve recommended to my Income Trader readers have been profitable. How am I doing it? #-ad_banner-#You see, every time I make a trade, I get “Instant Income.” And when the options I use to make the trade expire worthless, that income is pure profit. My September contracts posted an annualized gain ranging from 25% to 98%. And, as I’ll explain in a moment, I think the future holds… Read More

Each week, my readers and I are generating an average return of 7.8% on margin. Here’s how you can do it too. For the seventh month in a row, the options trades I’ve recommended to my Income Trader readers have been profitable. How am I doing it? #-ad_banner-#You see, every time I make a trade, I get “Instant Income.” And when the options I use to make the trade expire worthless, that income is pure profit. My September contracts posted an annualized gain ranging from 25% to 98%. And, as I’ll explain in a moment, I think the future holds even higher returns for option traders. So, in case you aren’t familiar, how does my “Instant Income” strategy work? It involves one of the most misunderstood corners of the investing world. Many investors steer clear of options because they have a reputation for being risky, but that’s not always the case… While it is a fact that 80% to 90% of options buyers lose money, there’s a flip side… It means that 80% to 90% of options sellers (like me) make money. We have closed 25 options trades in Income Trader, and each one has been profitable. No trade has… Read More

Thanks to the 2012 Jumpstart Our Business Startups (JOBS) Act, the decades-long ban on hedge fund advertising ended Monday. The question you need to consider is whether you should pay attention. Hedge funds have almost been a secretive society in the investment world. Individual investors are largely prohibited from buying… Read More

Traders did not seem to be impressed by the newest products introduced by Apple (Nasdaq: AAPL).  A less expensive, more colorful iPhone and thumbprint security measures might not drive a significant sales increase for Apple, a company that reported… Read More

Investors define income stocks in different ways. We target those with dividend yields higher than the interest rate of the 10-year Treasury note, which is currently at about 2.7%. Safety can also be defined in different ways. We… Read More

Stocks are definitely overbought. Overbought markets occur when prices move up sharply, and based on current charts, prices appear to be too high.#-ad_banner-# This situation actually occurs fairly often. Traders might be tempted to enter a short trade expecting the gains to be at least partially reversed. But that idea has led to large losses for many traders over the years. Prices might be irrational, but as traders, we need to remember that the fact that behavior is irrational is irrelevant. Read More

Stocks are definitely overbought. Overbought markets occur when prices move up sharply, and based on current charts, prices appear to be too high.#-ad_banner-# This situation actually occurs fairly often. Traders might be tempted to enter a short trade expecting the gains to be at least partially reversed. But that idea has led to large losses for many traders over the years. Prices might be irrational, but as traders, we need to remember that the fact that behavior is irrational is irrelevant. Economist John Maynard Keynes supposedly said, “Markets can remain irrational longer than you can remain solvent.” Traders use momentum indicators like the stochastics to decide when prices are overbought. The monthly chart of SPDR Dow Jones Industrial Average (NYSE: DIA) is shown below, and we can see that stochastics has been overbought for more than a year. Based on the stochastics indicator, we can see that… Read More

One of the best income strategies in the world involves a “glitch” in the financial markets. It allows individual investors to generate “Instant Income” from the best companies in the world. The best part, more than 80% of the time, in my experience, investors don’t have to buy a single share of stock. I’ve been using this strategy to deliver winning income trades for readers during the past few months. So far, the results have been great — my strategy has… Read More

One of the best income strategies in the world involves a “glitch” in the financial markets. It allows individual investors to generate “Instant Income” from the best companies in the world. The best part, more than 80% of the time, in my experience, investors don’t have to buy a single share of stock. I’ve been using this strategy to deliver winning income trades for readers during the past few months. So far, the results have been great — my strategy has allowed Income Trader subscribers to enjoy thousands of dollars in “Instant Income” since I first launched my service in Februrary. But you don’t have to take my word for it, here’s what one subscriber had to say: “Great advice. Very clear to understand. [Income Trader] is a must for anyone interested in making money. No fluff, no hype. Just $$$$. I demo traded a few months before going live and was amazed at the results. I’ve been subscribing to newlsetters for years and this by far is the best one.” Using my strategy, subscribers… Read More

Stock prices are definitely overbought. Overbought markets occur when prices move up sharply, and based on current charts, prices appear to be too high. This situation actually occurs fairly often. Traders might be tempted to enter a short trade expecting the gains to be at least partially reversed. But that idea has led to large losses for many traders over the years. Prices might be irrational, but as traders, we need to remember that irrational behavior is irrelevant. Economist John Maynard… Read More

Stock prices are definitely overbought. Overbought markets occur when prices move up sharply, and based on current charts, prices appear to be too high. This situation actually occurs fairly often. Traders might be tempted to enter a short trade expecting the gains to be at least partially reversed. But that idea has led to large losses for many traders over the years. Prices might be irrational, but as traders, we need to remember that irrational behavior is irrelevant. Economist John Maynard Keynes supposedly said, “Markets can remain irrational longer than you can remain solvent.” Traders use momentum indicators like the stochastics to decide when prices are overbought. The monthly chart of SPDR Dow Jones Industrial Average (NYSE: DIA) is shown below, and we can see that stochastics has been overbought for more than a year. Based on the stochastics indicator, we can see that… Read More

In a bear market, diversification reduces losses. In a bull market, diversification can reduce your gains. This is the trade-off all investors face. The price of decreased risk is almost always lower returns. Despite its disadvantages, holding a diversified rather than a concentrated portfolio is usually the best choice for an individual investor. Diversification is also the best choice for many institutional investors, including the managers of large endowment… Read More

In a bear market, diversification reduces losses. In a bull market, diversification can reduce your gains. This is the trade-off all investors face. The price of decreased risk is almost always lower returns. Despite its disadvantages, holding a diversified rather than a concentrated portfolio is usually the best choice for an individual investor. Diversification is also the best choice for many institutional investors, including the managers of large endowment funds at colleges and charities. Managers of these funds must balance current income needs and demands for growth of capital that will allow the institution to continue meeting its goals in the future. Historically, diversification has been the best way to strike this balance. One of the research papers we recently read showed how profitable it would be to perfectly time the markets. If you could invest each… Read More

Successful investors buy low and sell high. It sounds simple, but neither task is easy to do in real time. I am constantly singing the praises of put selling as a strategy for generating consistent income, but it can also be used to buy stocks when prices fall to bargain levels. Buying low can be especially difficult when the market is selling off. Many investors decide to wait for even lower prices. The result is that… Read More

Successful investors buy low and sell high. It sounds simple, but neither task is easy to do in real time. I am constantly singing the praises of put selling as a strategy for generating consistent income, but it can also be used to buy stocks when prices fall to bargain levels. Buying low can be especially difficult when the market is selling off. Many investors decide to wait for even lower prices. The result is that many end up holding cash much longer than they expected.  But I know an easier way to buy low in a market that’s pulling back. By selling puts when prices are high, investors are forced to buy only when a stock is cheap — without letting emotion get in the way of a good investment decision.  Most investors have a list of great stocks they would like to own at the right price. Their… Read More

One of the best income strategies in the world involves a “glitch” in the financial markets. It allows individual investors to generate “Instant Income” from the best companies in the world. The best part, more than 80% of the time, in my experience, investors don’t have to buy a single share of stock. I’ve been using this strategy to deliver winning income trades for readers during the past few months. So far, the results have been great — my strategy has allowed us to enjoy thousands of dollars in “Instant Income.” For example, we made $2,700 “Instant Income” from a… Read More

One of the best income strategies in the world involves a “glitch” in the financial markets. It allows individual investors to generate “Instant Income” from the best companies in the world. The best part, more than 80% of the time, in my experience, investors don’t have to buy a single share of stock. I’ve been using this strategy to deliver winning income trades for readers during the past few months. So far, the results have been great — my strategy has allowed us to enjoy thousands of dollars in “Instant Income.” For example, we made $2,700 “Instant Income” from a $6,400 “down payment” on MasterCard (NYSE: MA) in July 2012. That’s an immediate return of 42.2%. Last September, I collected $710 from Amazon (Nasdaq: AMZN), a company that’s never paid a single dividend. And last October, I collected $125 “Instant Income” from Coach (NYSE: COH) for every $880 I set aside. It’s clear that this the strategy has a lot of income potential. Yet, less than 25% of investors are taking advantage of the “glitch” to generate income. And I think I know why… My “Instant Income” strategy involves one of the most misunderstood corners of the investing world: the… Read More