Stock Trading Strategies, Tips & Software | Stocks & Exchange Traded Funds (ETFs): Buy Low Sell High

This section is under development.

Look for new content here soon
Check back in a week or so
In the meantime, look for other related content at:
Core Position Trading - CPT/AIM and
Wealth Now

Stop Orders, Limit Orders, and Stop Limit Orders

This section is for those who want to trade stocks and exchange-traded funds (ETFs).  However, since I am more interested in, and recommend, options trading techniques, this section will focus on stock selection as a basis for use with options, such as covered calls, or pure options plays.  In any case, you need to decide on underlying stocks upon which to base your stock and/or option plays.

Some topics that may be included may be some on the effects of commissions, order types and when to use them, when to be wary of entering positions, effects of news, and more.

Core Position Trading, Including "AIM" as an Alternative to Buy and Hold

If you do want to accumulate a stock over a long period of time, there is an alternative to leaving yourself to the mercies of buy and hold (buy and hope).  It is a longer term trading strategy called Core Position Trading (CPT).  Possibly the best known method is called Automatic Investment Management (AIM), created by Robert Lichello.  I use a variation of that for accumulation of various resource stocks.  And that's it; I am not into accumulating or buying and holding industrial, consumer, or financial services related stocks (or ETFs) in general at all.
Core Position Trading - CPT/AIM.

More about Options Trading

As far as I am concerned, with very few exceptions, long-term investing, especially with the buy and hold method (actually, that is the lack of a method) is dead.  Deterioration of our institutions has forced us to become traders to survive and thrive.  As I mentioned at the top of this page, the trading vehicle for me is stock options.

One of the reasons I have created this site is to force myself to be very specific in mastering the basics and selected methods of generating consistent and substantial income trading stock options  As this site grows, there will be included detailed information on and explanations of stock options trading methods that I have found that have demonstrated the best reward/risk ratios for consistent profits.

The first of these will likely be calendar spreads (aka horizontal spreads, time-only spreads, or time-value spreads) and their analogy to covered calls.  Next, perhaps condors and butterflies or vertical and diagonal spreads.  Bookmark this site and check back every month or so.

In the meantime...
Stock Options - The Very Basics

Regards,
DB

A Core Position is defined as a core or basic position in a readily tradable item, including such things as precious metal (PM) bullion or coins, stocks, mutual funds, exchange traded funds (ETFs), etc.  Whatever it is you are trading will here be called the "item".

A Core Position Account comprises a quantity of the item AND a cash reserve position.  The cash reserve position enables purchases adding to the quantity of the item from time to time.  Proceeds of the sales of some of the item, from time to time, are added to the cash reserve position.  The cash reserve position enables purchases adding to the quantity of the item from time to time...

Core Position Trading™  (CPT) is defined as buying or selling, adding to or subtracting from, the core position of the item in such a manner as to, over time, increase both the amount of the item AND the cash in the account.

More about Core Position Trading

Glossary of Stock and Options Trading Terms

Core Position Trading
  AIM Stock Buy & Sell Calculator

Technical Analysis
  Risk/Reward Calculator User Doc

Stocks and ETFs
  Stop, Limit, Stop Limit Orders

Stock Options
  Options - The Very Basics
  Options Premium Intrinsic & Time Value

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