I break down the differences in this article and make it very easy for beginners to understand how they work.
Call options are bullish bets a stock will go up while put options are a bearish bet a stock will go down.
You will also want to familiarize yourself with the meanings of OTM (out the money), ITM (in the money), and ATM (at the money), also explained in this same article.
And lastly, you will need to use a broker that allows you to trade options.
Webull has to be the best platform to trade options as it has one of the easiest navigation layouts in the game.
NOTE: you will need to open a margin account and not a cash account to trade options with Webull.
If you’re part of the community newsletter, you received an email regarding a new 3-part video options trading series I have coming very soon.
I’ve completed Part 1 and Part 2 already and will be publishing a video on my personal day-trading strategy in August as Part 3.
I show you the basics; how to buy a ‘call’ option and ‘put’ option step-by-step during a real-life trade.
I will wrap up the third video with the trading strategies that I personally use that no one else is talking about.
Some of you caught the clip I posted on my IG story this morning on calls that printed from CEI.
This 3-part video series will be made available in our private community if you’re interested in learning more about trading options.
Here’s what happens when you trade options
You gain control of your finances
A confidence emerges that was previously dormant
You unlock the ability to multiply your money at will
Something clicks when you realize that you can literally turn money into more money without relying on an employer.
Those of you reading this who already trade options know exactly what I mean.
By the end of my course, most of you will be able to wake up every morning and make a trade that will yield gains.
GPC has paid $3.42 per share but is currently paying investors during this bear market $0.90 per share.
Genuine Parts Company is an American service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials.
#3. VNQ (Real Estate REIT)
Dividend Yield: 3.53%
VNQ has paid $2.86 per share but is currently paying investors approximately $0.56 per share in today’s bear market.
VNQ is Vanguard’s real estate ETF which invests in stocks issued by real estate investment trusts (REITs), companies that purchase office buildings, hotels, and other real property.
#4. OMF (One Main Holdings, Inc.)
Dividend Yield: 7.96%
OMF currently pays investors $0.95 per share but has paid them as much as $6.80 per share during the bull market.
OneMain Holdings, Inc. is an American financial services holding company that provides loan products, offers credit cards, and other personal loans.
#5. T (AT&T)
Dividend Yield: 9.71%
AT&T is currently paying shareholders $0.28 per share but has paid investors $1.60 in the past.
AT&T Inc. is an American multinational telecommunications holding company offering internet and cellular services.
#6. NRZ (Real Estate REIT)
Dividend Yield: 9.85%
NRZ stock is currently paying investors $0.25 per share but has paid $1 per share before.
New Residential is a publicly traded mortgage real estate investment trust with a diversified portfolio and a strong track record of performance.
#7. EMR (Emerson Electric Co.)
Dividend Yield: 2.45%
EMR pays shareholders $0.51 per share but has paid investors $2.05 per share prior to today’s bear market.
Emerson Electric Co. is an American multinational corporation headquartered in Ferguson, Missouri.
The Fortune 500 company manufactures products and provides engineering services for industrial, commercial, and consumer markets.
#8. ESGV (ETF)
Dividend Yield: 1.26%
ESGV currently pays shareholders $0.20 but has paid investors $0.88 per share in the past.
ESGV tracks the performance of large-, mid-, and small-capitalization stocks.
The ETF specifically excludes stocks of certain companies related to the following: adult entertainment, alcohol, tobacco, cannabis, gambling, chemical and biological weapons, cluster munitions, anti-personnel landmines, nuclear weapons, conventional military weapons, civilian firearms, nuclear power, and coal, oil, or gas.
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AMC now has positive EBITDA
‘The Batman’ – AMCStock Reddit
AMC Entertainment announced during their Q4 earnings call that the company now has positive cash flow for the first time in two years.
EBITDA provides investors with a snapshot of a company’s overall financial performance.
AMC currently has a positive net cash flow of $160 million.
Why is this important?
The company almost went bankrupt during the lockdowns during the pandemic.
This is massive progress for any company to stand up after almost being defeated.
It demonstrates the will to succeed.
AMC box office grosses improved each and every quarter of 2020 and 2021 as the number of movie titles increased.
The company hosted approximately 60 million guests in the United States, Europe, and Middle East in Q4 of 2021 alone.
The recovery for AMC has been incredible in such a short period of time.
Now that the company has positive cash flow, AMC Entertainment will be able to provide more value to its guests and shareholders alike.
AMC futures
AMCStock Reddit
AMC Entertainment saw more than $1.8 billion in liquidity its fourth quarter of 2021 and anticipates doubling its revenue this year 2022.
With more movie titles coming to the big screen this new year, CEO and President Adam Aron says the $1.8 billion will provide AMC with more security and flexibility to go on the offense.
AMC Entertainment doesn’t plan on sitting on this money, but rather on using it to play offense and innovate.
Adam Aron says he plans on obtaining licensing agreements to feature live movie concerts and live sports events in theatres.
If you’re betting on AMC long term you might want to become an owner of the company by purchasing the stock.
The company has a strong and loyal shareholder base that even played a major role in resuscitating the company when it faced bankruptcy.
Adam Aron praises his shareholders as they are the majority owners of the company.
It’s a first in history where shareholders have a massive ownership of a company this big.
The CEO communicates with shareholders on Twitter where he takes ideas from the public to better structure certain areas of the company.
The number of AMC shareholder has increased from 3 million last year to now more than 4 million this new year 2022.
Innovation and revenue streams
AMC Perfectly Popcorn Brand – AMCStock Reddit
AMC Entertainment has really transformed its business model and is now taking form of a modern-type business.
This leading movie industry chain is now accepting cryptocurrencies as a form of online payment for movie theatre tickets, gift cards, and other accessories.
Not only have they cultivated the crypto movement, but the company is also releasing NFTs when new movie titles are released.
With NFTs, AMC Entertainment will earn a royalty every time an NFT is sold or traded in the marketplace.
This opens opportunity in the marketplace for both AMC Entertainment the company and the asset owner.
AMC Perfectly Popcorn brand is on track to hit retail stores and supermarkets this year too.
They will be selling AMC Perfectly Popcorn brand microwavable popcorn at your favorite grocery stores and outlets.
Adam Aron announced during the Q4 earnings call that AMC and UberEATS are working on making it possible to order pre-packaged popcorn for home-delivery services.
So even if you’re not going out to the movies, you can order AMC Perfectly Branded popcorn for that movie night at home.
This is just one way the company is hedging against online streaming.
Once the theatre chain has access to exclusively release live concerts and sports events, the theatrical experience is going to transform how we look at movie theatres today.
Although online streaming has blown up, the theatre experience is something you cannot replicate anywhere else.
And the data has spoken for it.
Does AMC have debt?
AMC Entertainment, like many companies has debt.
However, unlike the previous year when they had debt and negative cash flow, the company has eliminated most of its debt and created positive EBITDA.
AMC paid $61 million of deferred (postponed) rent in Q4 of 2021, reducing their total deferred rent to $315 million.
It reduced a total of $155 million of deferred rent over the last 9 months of 2021.
They plan to reduce the deferred rent by $150-$200 million in 2022 leaving them with $160-$115 million left for 2023.
This amount could be paid in full that same year.
So, while they still owe money, the execution is being handled with vigorous accountability and success.
AMC Entertainment should have no problem paying this off while maintaining a positive EBITDA through its multiple revenue streams.
Last year the company sold a $950 million junk bond which they used to pay down debt and refinance certain interests to much lower rates.
This has given the company much more flexibility than needed.
I think it’s fair to say the company has proved that it can handle its use of money quite well.
CEO Adam Aron also donated $1 million dollars of his personal money to charity in both stocks and cash.
“I benefited greatly as retail investors have embraced AMC. That makes it time for me to step up and personally give back.”
But even he hasn’t gotten involved in NFTs like Adam Aron has, with all respect to Mr. Musk.
AMC shareholders who signed up before December 31st of 2021 also received a series 1 “I Own AMC” NFT.
More than half a million of these NFTs were created and sent to shareholders for free.
I believe these series 1 NFTs will be worth a lot of money years down the road as the company releases a variety of series NFTs with series 1 being AMC’s ‘originals‘.
The concept is incredible but only time will tell.
It’s relatively high meaning short sellers continue to bet on AMC’s stock price to go down.
In fact, the Department of Justice is investigating short sellers and big-time hedge funds for illegally driving AMC and GameStop’s share prices down.
Elon Musk spoke out against short sellers with Adam Aron mocking them for the second time when the announcements were made public.
Short sellers have been long accused by the retail community of tampering with AMC’s share price as the demand for the stock has not been accurately reflecting on the price.
Once called conspiracy theorists, major publications and regulators have now confirmed every allegation.
Predatorial strategies in the market are real and AMC has been abused by them.
The retail community is fighting to lift the market manipulation imposed on so called ‘meme stocks’.
The lift would allow the stocks to naturally surge based on supply and demand.
Is AMC a good stock to short?
Absolutely not.
Hedge funds have lost billions of dollars betting against AMC Entertainment and now the Justice Department has gotten involved.
The number of activists in the retail community has multiplied over the months and year.
Can AMC still squeeze?
AMC’s current short interest is more than enough to send the share price to an all-time high.
The company’s stock reached $72 per share when the short interest was only at 20%.
The short interest came down to around 14% shortly after the price surge but has since gone up to now 21%.
When AMC climbed to $72 per share it was with only 6% short interest out of 20%.
Is it worth buying AMC for a short squeeze trade?
90% of retail investors holding the stock certainly think so.
For many, the reward outweighs the risk involved.
Though a wise man did once say, the only risk is not taking a risk at all.
Join my discord where many community members are discussing the data.
Is AMC a good stock to buy today?
AMCStock Reddit – is AMC a good stock to buy?
What makes AMC so different from most stocks is the peculiar spot it’s in.
The company is working extremely hard to improve its fundamentals by innovating, paying off its debt, and increasing its revenue streams.
In the meantime, you have a loyal shareholder base looking to squeeze shorts from their positions while keep their ties to the company after successfully doing so.
Moody’s recently upgraded AMC to Caa2 rating saying the outlook on the company is positive amid the cinema industry’s recovery.
And while corporate (mainstream) media might tell you otherwise, it’s important to note that these companies are often times influenced and bought by hedge funds.
There’s no narrative here, only data.
Is AMC a good stock to buy?
The stock could be a great buy whether you’re looking at a long-term fundamental investment or whether you’re diving into a short squeeze trade.
Just remember, this is not financial advice, and my suggestion as always is to never put more money in the market than you can afford to lose.
Always do your due diligence and stick true to your conviction.
Don’t forget..
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What is a call option?
What is a call option? – Calls vs puts explained
A call option is a bullish strategy that allows a trader to profit from a trade on the upside.
The trader essentially bets that the price of a stock is going to go up by buying call options.
How does a call option work?
When you open the options chain, you will have many contracts to choose from, ITM, ATM, or OTM, which I’ll use as a quick example for now.
If you are betting on the price of a stock to go up, you might buy a contract with a strike price of a few dollars above the underlying securities’ current price, depending on your risk.
If the stock does indeed move up in price, you will begin to see gains on your contract.
You may then sell your contract and profit from your play when you are ready.
What is a put option?
What is a put option? – calls vs puts options – puts vs calls stocks
A put option is a bearish strategy that allows a trader to profit off a trade on the downside.
Unlike calls, traders buying put options are betting the price of a security will drop.
How does a put option work?
I’ll use another OTM example for now and explain the other scenarios below.
You will have many options in the options chain to choose from.
Here you will be able to select a contract to buy based on the ‘strike’ price you’ve selected.
The strike price you’ve selected is where you believe the price of a security will go down to.
If a price of a stock is at $20 and you buy a contract for a strike price of $17, you’re betting that the price of the stock will fall in the future.
If the stock falls to $19 then $18, you will begin to see gains on your bet.
The closer the price of the underlying security gets to $17, the more gains you will see.
You can then close your position at any moment before the contract’s expiration date and take profits.
Both these examples are examples of an OTM contract which I’ll explain more below.
Here are other examples of how calls vs puts work.
What is ATM and ITM?
Options trading: ATM vs ITM
ATM stands for “at the money”.
At the money (ATM) is the current price a stock/security is trading at.
When your strike price is near the current share price this is considered to be “at the money” (ATM) for both calls and put options.
ITM puts
ITM stands for “in the money” and will be a little different for puts vs calls.
When a strike price is in the money for put options, it means the price is above the “at the money” (ATM) price.
Example: You’re betting the price of a stock will go down, so you buy a put options contract “ITM” for $11 while the stock is currently trading at $10 (ATM).
You contract has a higher probability to earn gains since the current share price (ATM) is already below your strike price (ITM).
The further the price of a stock goes down from your strike price, the more money you make.
ITM calls
When a strike price is in the money for call options, it means the price is below the ATM price.
Example: You’re betting the price of a stock will go higher so you buy a call option contact “ITM” at $9 while the stock is trading at $10 (ATM).
Your call option contract has a better probability of making money from the start since the current share price is already above your strike price.
If the price of that stock continues to surge, then you will continue to make gains.
“In the money” (ITM) contracts are a little more expensive to buy since your probability to make money is higher.
“At the money” (ATM) contracts which are closer to the “current” share price had a medium risk factor and are cheaper than ITM contracts.
So then what are OTM contracts?
OTM “out the money” explained
Calls vs puts explained – OTM – Calls vs Puts options
OTM, or “out the money” is the strike price above the ATM for calls, and the strike price below the ATM for puts.
Call option example: If you buy a call options contract OTM at $12 and the price of the stock is currently at $10 “at the money” (ATM), you are betting the price of a stock will rise above $10 per share.
Put option example: If you buy a put options contact “out the money” (OTM) at $8 and the price is currently at $10 “at the money” (ATM), you are betting the price of a stock will go below $10.
Remember, the closer a stock’s price gets to your strike price, the more gains you will reap.
So, the further out the money your strike price is, the higher the reward may be.
Should you buy ATM, ITM, or OTM?
Every trader will use the strategy that best tailors to their risk.
Out The Money (OTM) = High Risk / High Reward
At The Money (ATM) = Medium Risk / Medium Reward
In The Money (ITM) = Low Risk / Low Reward
Traders will need to study the performance of an underlying asset to get a feel and understanding of where the price may go.
Once you have determined whether you will be buying puts vs calls or vice versa, then you may begin to look at the contracts available.
Options contracts explained
Every 1 contract equates to 100 shares of a particular stock.
OTM contracts are usually less expensive.
With these contracts you can buy 100 shares of a stock for only cents.
ITM contracts are more expensive because they are the safest choice.
ATM contracts are in between ITM and OTM in pricing.
The options chain will allow you to choose when contracts based on short-term or long-term expiration dates.
You can go short or long on both a call and put options contract.
These expiration dates may vary from only a few days to weeks, to months, and even years.
Whether you should trade short-term or longer-term expiration options contracts is a strategy that will be highly based on your trading goals.
Where can you trade options?
Options trading with Webull – calls vs puts options – calls vs puts explained
The most popular platform to trade options is Webull.
Webull is where I personally began learning reading charts and familiarizing myself with the options chain and data.
Here traders will be able to purchase calls vs puts or vice versa.
Some traders use both strategies to make money during a bull and bear market.
Other platforms where you can trade options include:
TD Ameritrade
ETrade
Robinhood
Fidelity
If you’re already invested in stocks, you might already be using one of these platforms.
The difference between trading stocks and trading options is that you will need to open a margin account for options.
A cash account will not allow you to buy calls vs puts.
You can earn 5 free stocks from Webull when you sign up using my affiliate link.
If you choose not to keep these 5 stocks, you can sell them and fund your margin account to trade options.
Puts VS Calls: Why trade options?
Puts vs Calls stocks – calls vs puts options – calls vs puts explained
Buying puts or buying calls allow traders to bulk up on stock and use leverage to make money in the stock market.
There are 4 different ways you can trade options.
Buy Calls
Sell Calls
Buy Puts
Sell Puts
All four essentially allow you to use leverage and make money whichever side of the play you want to begin trading options.
However, selling calls and selling puts from the get-go will require further in-depth explanation, which I will do in another article.
For today’s breakdown, I’ve explained buying both calls and puts.
There are a variety of things that attract investors to trading options.
Short-term gains
Big returns
Losses are limited to what you put in your contract
Quick accumulation of cash / shares
If you’re here today, it’s because you’ve probably seen people in your space talk about how much money they’ve made playing options.
And while options can yield a full-time income stream, new traders should also be aware of the risks.
Is trading options risky?
Calls vs puts options – puts vs calls stocks –
Trading options has its risks as bets aren’t 100% guaranteed to play in your favor.
However, there are a few things you can do to increase your chances at becoming profitable.
Familiarize yourself with technical analysis / chart patterns
Only buy what you can afford to lose
While traders can certainly trade based on market sentiment, it would be wise to gain some understanding of how prices move through technical analysis.
TA can help traders determine the trajectory of a stock’s price moves in the coming minutes, hours, days, and even weeks.
It’s best to armor yourself up and learn as much as you can to properly set yourself up for success.
If you’d like me to do a write-up on bullish and bearish patterns leave me a comment below.
When it comes to choosing between calls vs puts, it really comes down to adapting to the changes in the market to help you increase your income potential.
If you have any questions, be sure to leave a comment below.
Robinhood is an online investing platform that offers commission-free stocks with high-yield cash management offerings.
This popular stock market trading app does not charge commission for stocks and cryptocurrency trading.
Robinhood, the financial technology company offers trading in stocks, ETFs, other options, and cryptocurrency.
Moreover, this online brokerage provides web and mobile-based services which will allow you to invest and trade easily.
Additionally, the mobile-based services of this platform have made it stand out from its other competitors.
You may be wondering about many questions arising in your head about Robinhood & Robinhood stock.
No worries!
Here in this article, you’ll find the answers to your queries and get to know all the details about this popular online brokerage like- How does it make money, the pros & cons of Robinhood, Robinhood stock price, the behavior of Robinhood in cryptocurrency & its future, and benefits of long-term investing in stocks & cryptos.
Keep scrolling to read more.
Let’s begin!
Overall Rating: 3 / 5 OPEN AN ACCOUNTAccount Minimum: $0 Fees: $0
Robinhood Review – Robinhood Trading app
Understanding Robinhood
With more than 13 million users, Robinhood is the best platform for active investors or younger investors who want commission-free trading and investing on mobile.
If you want to invest in cryptocurrencies like Bitcoin, Ethereum, Dogecoin, you can use this mobile and web trading platform to invest long term.
Apart from it, Robinhood (a popular stock trading app) went public in July 2021 and its share price was set at $38 for IPO (Initial Public Offering).
Also, Robinhood was listed on the Nasdaq stock exchange under the symbol “HOOD.”
Recently, Robinhood’s CEO Vlad Tenev said that the company is planning to release the feature that allows customers to trade stocks outside of market hours.
The company named this feature, “Hyper-extended hours.”
According to Bloomberg, Robinhood stock is the favorite stock of Cathie Wood’s ARK funds and they’re purchasing the stocks every week since October 2021.
Last week, ARK Funds have bought about 2.45 million shares of Robinhood markets.
Robinhood Business Model- How the company generates income
With no minimum and no fees for trading in stocks, cryptos, and ETFs, the company has to generate income as a business to be sustainable.
This online brokerage makes money from market makers and some other ways.
Here are the ways through which the company generates revenue.
Payment for Order Flow
In 2021, the company generated 75% revenue through the process payment for order flow (PFOF), in which the company directs their customer’s orders equity and options to a particular market maker and the company receives payment for this compensation.
Hence, PFOF is the major income stream for the company.
Payment for order flow unfortunately plays against retail investors.
The SEC has talked about banning the practice since it allows market makers to manipulate the stock prices.
Stock Loan Income
Robinhood generates revenue by lending margin securities to counterparties.
Furthermore, the company keeps all money it generates from lending your stock and does not share it with you.
This is a big problem because large financial institutions make more money from the user while orders are processed through dark pools.
Borrowing Uninvested Cash
Robinhood generates income by borrowing uninvested cash and depositing this cash in interest-bearing accounts.
Membership Fees for Robinhood Gold
Robinhood Gold program is a paid subscription service that allows users to benefit from premium features like margin trading, Level II Market Data, professional research, and enhanced quick access to deposits.
It is also one of the income sources of the company.
Robinhood Gold costs $5 per month.
Also, it gives a free trial of 30 days.
What can you invest in on Robinhood?
Robinhood Review 2022 – Robinhood trading app
Robinhood is a popular trading platform that allows the user to invest in stocks, cryptocurrencies, Exchange Traded Funds (ETFs), and options.
If you want to do commission-free trading in stocks, ETFs, and cryptocurrencies, then Robinhood is great for you.
Moreover, the company allows the investors to buy portions of stocks without paying the full share price.
It gives a free stock upon making referrals and opening the account.
When it comes to investing in cryptocurrencies, Robinhood allows to trade in several digital currencies including Bitcoin, BitcoinCash, Ethereum, Ethereum Classic, Litecoin, Bitcoin SV, and Dogecoin.
Most importantly, Robinhood has introduced IPO access for traders.
Besides, Robinhood does not offer the ability to invest in mutual funds, forex, bonds, and futures options.
The pros and cons
Pros
Simple, Easy to Use, and Easy to navigate
Free stock, ETFs, Cryptocurrency Trading
No account minimum
IPO access
Cash management accounts
Margin investing and Fractional shares
Cons
Limited customer support
No mutual funds and retirement accounts
Limited investment offerings
Limited investing research and trading tools
The Pros explained
Robinhood, the popular brokerage in the US, is extremely easy to use and accessible for people of any age and any income.
Robinhood is a mobile-first company that differentiates it from other companies.
Its trading app and web-based platform are well-designed and more than enough to trade.
The new investors or inexperienced users can easily trade on it due to its simple and user-friendly features.
When it comes to costs, Robinhood provides commission-less trading with no minimum fees.
You can invest in stocks, cryptos, options, and ETFs for free.
Furthermore, the company offers fractional share trading, and you can invest in expensive stocks without much capital.
Additionally, it gives quick access to deposited cash.
The account opening process in Robinhood is fully digital and free.
Rather you get free stock upon opening the account and by referring the new members.
Last but not least, the company offered IPO access in July 2021 to benefit its users.
If you trade often, the savings can be huge on this platform due to the lower cost.
The Cons explained
Along with plenty of advantages, there are a few cons of it.
Robinhood does not offer to trade in mutual funds, bonds, and futures trading.
The research, educational resources of this financial company is limited.
It provides basic tools for the services and users can access professional research by purchasing paid membership of Robinhood Gold.
The customer support available in this stock trading app is limited.
Although, the company had made necessary improvements to its customer service in the last year.
The Robinhood scandal has blown up after the freezing of buying ‘meme stocks’ in 2021.
The company lacks full trust from retail investors after restricting the rights to buy specific stocks from its users.
Robinhood, one of the best online stockbrokers generated huge transaction-based revenue within cryptocurrencies in Q4 2021.
It has a fast-growing cryptocurrency business as the company launched crypto gifts.
Most importantly, the company has introduced cryptocurrency wallets to 1,000 users as a part of the beta test.
Crypto wallets will help the users to transfer digital currencies in and out of the Robinhood app.
The rollout of crypto wallets may be expanded to 10,000 users in March.
Adding a wallet will help the traders to transfer their digital assets out of the online platform to invest.
Moreover, the company is planning to test new crypto-related functionality on its stock trading app which will allow the user to get statistics, transactions on blockchain at a glance.
The introduction of crypto wallets closed the gap among Robinhood app and cryptocurrency exchanges which will increase the trading in crypto markets.
Most of the US brokers don’t offer crypto wallets, therefore the rollout of crypto wallets on Robinhood will have positive impacts on Robinhood accounts opening in the future.
When it comes to Coinbase vs Robinhood, our personal choice when it comes to investing in cryptocurrency is Coinbase.
Investing in stocks and cryptos is great in so many ways.
If you’re thinking, why should you invest in stocks and cryptos?
Here we’ve discussed the importance and benefits of long-term investing.
Read on to find ways to become financially independent.
Importance of Long-term Investing in Stocks & Cryptos
A long-term investment strategy is like holding assets such as stocks and cryptos for more than a full year.
Anything under a year is a short-term investment.
Long-term investment requires patience and discipline, but it gives incredible outcomes.
Market volatility is a prime matter in investment as the prices fluctuate regularly.
The higher the volatility, the higher the investment’s price fluctuation and the higher the risk.
Here is why you should go for long-term investment.
Long-term holdings in stocks and cryptos exhibit lower volatility, greater profits as compared to short-term.
Assets such as stocks & crypto give higher returns over a long time. It maximizes the growth potential of your savings.
Now, investment in US stocks and digital currencies is far better than bonds and gold investment.
When you watch your investment portfolio grow, your satisfaction increases more.
Stocks are long-term investments and generate better long-term returns.
The longer you invest in stocks, the longer your money will grow.
Among asset classes, the stocks have surpassed all other asset classes.
If you want to keep your money multiplying and become a better investor, it’s wise to go for long-term investment so that the market bump can’t knock you.
Because, when the prices go up and down, you can handle it by remaining patient.
Apart from making you financially strong, the investment makes you disciplined with your money.
It’s a necessary rule to succeed in your life financially.
Long-term holding means fewer trading fees because you will need to pay the fees every time you trade.
Also, it’s easy to do, you can start trading in Robinhood stock-trading app, just by implementing the strategy and patience to make the most of your returns.
Or through a more traditional broker like Vanguard.
Through investment in the stock market, you can benefit from various trading strategies.
Apart from stocks, cryptocurrency is an attractive investment and future of technology that gives high returns.
Long-term investment in cryptocurrency is good for investors to recover and get profits.
You can invest in crypto on Robinhood or cryptocurrency exchanges.
Long-term holding in popular cryptocurrencies such as Bitcoin, Ethereum can harvest good returns in 2022.
If you’re a new investor and can’t tolerate big risks, short-term investment cannot work for you, rather you must go with long-term holding.
Digital currencies are rising globally, and the number of investors is investing in them.
They provide a safe and long-term store of value.
Like other assets, cryptocurrency also exhibits volatility.
If you’ll invest in stocks & cryptos for the long term, there would be less fear, less risk, less trading cost, lower tax rates, and more returns.
Also, you’ll be able to buy the future house, vacation, and can save your education or retirement.
Along with your regular income, trading is the way by which your money keeps multiplying, and you can earn more and do more.
The Bottom Line
Robinhood Review – Robinhood trading app review
Robinhood, the US-regulated broker is best for active traders who want to invest in assets with no commission.
Whether you’re looking to invest in cryptocurrencies or stocks, Robinhood could be an option for you due to its minimalistic trading platform that has made it easy to buy and sell assets.
The biggest perk of trading on Robinhood is a lack of fees with no costs.
However, payment for order flow is affecting the entire stock market as a whole.
Retail investors are ditching the trading app.
Whether you’re in school or college or doing a corporate job, start investing today to achieve financial wellness.
Start with a positive mindset and stay flexible because your today’s decision can make a huge difference in your life.
Become financially literate and learn how to invest in the stock market and crypto, and how to start an online business here.
I’m committed to guiding you on your journey to achieve financial freedom.
In a nutshell, long-term investment and business allows you to become financially independent and follow your dreams.
This year’s first triple witching event happens on Friday, March 18th
The triple witching event is already upon us.
It’s the first one this year.
With so much uncertainty and volatility occurring in the markets, what can we expect from this year’s triple witching event?
Well, it can go one of two ways and I’m going to break it down below.
Welcome to Franknez.com – if you haven’t heard the term triple witching event before you’re about to learn something new in the markets. This event only happens three times in the entire year.
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What is the ‘triple witching event’?
The triple witching event is an event that occurs only three times a year, and it’s when all options contracts expire at the same time.
This is the time where traders will have to decide if they will rollover their contracts and maintain an open position on their bets, or if they will close those bets.
We can expect this event to happen on March 18th, June 17th, and September 16th of this year.
Whether investors are buying or selling, both futures and options contracts expire on this day.
This is what’s referred to as the triple witching event.
Options traders also find out if their options expire in or out of the money.
Will stocks go up or down?
Whether your portfolio goes up or down will depend heavily upon how many calls or puts expired in the money.
The price of securities won’t reflect until the following week when those ‘in the money’ expired calls or puts have been accounted for.
The triple witching event tends to be day of high volatility due to a surge in volume and trading activity.
If short sellers’ contracts expire in the money at lower bets, then we can expect the markets to be lower the following trading week.
It’s the contrary for investors going long on their bets.
If stocks outperform the market and a variety of calls expire in the money, then we can expect more bullish price action to follow.
Enough bull momentum could trigger a gamma squeeze, or a series of gains in a security.
Continued momentum could cause short sellers to a) close their positions or b) start a new short.
Trading is about to get riskier
During the triple witching event trading gets riskier.
See, short sellers are using all the tactics they can to ensure their call option needs are met.
Retail on the other hand is buying the dips.
However, with today’s global news affecting the entire markets, uncertainty only increases.
Does the triple witching event matter on the long run?
Not really.
But it can play in favor of traders whose bets expire in the money.
Is your stock portfolio down? 3 Tips to navigate the bad weather
Nothing is more dissatisfying than seeing your portfolio down.
You work so hard to earn the money to invest it, finally begin to see some growth, and then the market dumps.
Now your stock portfolio is down.
Most of you aren’t ‘hedging’ against your losses like most financial institutions are either.
So, what can you do to navigate this bad weather?
Here are 3 tips that will get you through it.
Welcome to Franknez.com – if your stock portfolio is down right now some of you might be wondering whether you should cut your losses or not. Here’s what I’m personally doing.
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#1. Increase your position(s)
Increase your position when your stock portfolio is down
One way I personally take advantage of the market when my stock portfolio is down is by increasing my positions.
If you’re a long-term stockholder like I am then you understand the current market situation is only temporary and the market always tends to bounce right back up.
This means that any stock that’s red in my portfolio is at a discount.
Some of you who are part of my private community have received alerts and notifications of when I’ve bought a dip (both stock and crypto).
It’s these types of strategies that have allowed me to weather the bad storm when my portfolios are down.
Why buy on red days?
Why buy when the market is down?
Buying on red days even if your portfolio is down means you will profit as soon as the market begins to trend upwards again.
If a stock you purchased is down -5% then it goes down to -10%, you can take advantage of buying the asset cheaper at -10% if you anticipate its value will go back up.
In this scenario, if the value goes up again and the original stock you purchased has broken even, then the other share(s) you bought low are up +5%.
If your conviction towards a stock or company is strong, buying heavy during the lows could significantly increase your portfolio’s value as the stock begins to climb again.
While many novice investors might panic at the sight of their assets declining in value, it’s best to stay calm and rely on your conviction and have a strategy in mind.
Other assets you can invest your money in when your portfolio is down could be a business, a crypto wallet, or even in yourself.
One way I’ve invested my money during this bear market aside from stocks and cryptocurrencies has been in my business and in my health.
The reason we invest is to get a return.
So why not invest in a startup or even in yourself?
Because ultimately you are the vehicle that’s going to take you to where you want to be.
Think about how else you can make a return on the money you’re about to invest.
Nothing is ever certain, not even in the stock market.
Take a risk and invest in yourself.
Assets you can invest in other than stocks
Cryptocurrencies
NFTs
Startup/Side Hustle/ Business
Health
You’ll find that once you invest in other income generating opportunities, those same opportunities will eventually allow you to invest more into the markets and within one another.
This form of diversification is going to armor you up for when your stock portfolio is down.
Keep track of your net worth as well as the sources growing it to build your portfolio’s confidence.
#3. You can always play it passively
Long-term investing
When your stock portfolio is down, you can always choose to play it passively and do nothing.
You understand building your net worth is going to take time despite what the market is going through.
Perhaps you don’t find cryptocurrencies or startups attractive, and that’s okay.
This third tip is to be patient and let your portfolio go through the growing pains.
Believe me when I say I’ve been there too.
The important thing here is to stay calm and not let your feelings control your financial decisions.
I know too well this is one of the hardest things about having money planted in the stock market.
But in the end, this all about taking in that learning experience so you can do better the next time an opportunity comes your way.
When should you cut your losses?
You should cut your losses only when you’ve identified an investment is a dead play or you are not seeing results after 1-2 years, especially if you’re going long on a stock or company.
Day traders cut their losses quick because they’re in the stock market for short-term gains.
Long-term investors should keep a close eye on what they’re investing in to identify whether there is future growth of a stock.
One way I’ve identified a potentially great long-term stock is by looking at the stock’s history chart.
If there’s been consistent growth for over a period of a few years, then you can assume the trajectory will follow in the coming years.
I created a list of these type of long-term stocks here.
I cut my losses on SPRT shortly after the merge with Greenridge because at that point I didn’t trust the company nor its partners.
Another stock I sold was AT&T because after a little over a year all it did was consolidate and its performance was not on parr with my expectations.
These are just my personal experiences selling stocks in the market.
AT&T has a great dividend, and I might create a portfolio specifically based on dividend stocks in the near future to further amp up my portfolio strategy.
Is your portfolio down?
Let’s start a discussion in the comment section below.
Is your portfolio down?
And if so, how are you navigating through today’s bear market?
Why are the markets down? Don’t panic, here’s what to do
Both the stock and crypto markets are tanking.
If you’re following me on Twitter you know I’m an advocate for both stock and crypto investing.
Now, many of you are new retail investors and have only just started buying into the stock and crypto markets.
And if you’re worried about the markets tanking right now, don’t be.
I’m going to walk you through the best thing you can do when the markets are down.
Welcome to Franknez.com – the blog that provides you with market news and trending investing topics. The markets are tanking, here’s how you and I can handle it.
When the markets are going down it’s the perfect time to strategize and identify buying opportunities.
Your risk tolerance will guide you here.
The markets tend to naturally bounce back during a correction.
Will you take the opportunity to buy assets at a discount or will you miss these buying opportunities?
Most retail investors fail to identify the massive opportunity at hand when the markets begin to tank.
And while no one will ever truly be able to identify the bottom, go based on your instincts to secure a fire sale even if it continues to further dip.
Because even if you miss a lower bottom, that discount will eventually profit in the long-term.
When Bitcoin dipped to $30k during the summer of 2021, I bought the dip and doubled my investment when it surged to $60k again.
So what if the crypto market is going down again?
The futures of the crypto market are incredibly high to not buy even during a bull run.
Strategize and you’ll be okay
And there you have it ladies and gentlemen.
These 3 strategies are going to help you make a lot of money in the long-term whether you invest in stocks or crypto.
The stock and crypto markets may be going down but that does not mean you cannot take advantage of the dips.
Always have a plan and never invest more than you can afford to lose at the moment.
If you enjoyed this article, please give it a social share and be sure to join the newsletter for my free stock and crypto list, a Patreon exclusive yours free.
One of the best ways to have your money work for you in 2022 is by putting it in a safe index fund such as the S&P 500 where it will earn you 8%-10% per year.
Investing your money is easy!
Most people have just never been exposed to how simple the process truly is.
Depending on your level of risk, you could invest in individual stocks that you think will go up in value over a period of time (e.g., Apple, Tesla, etc..).
The S&P 500 for example invests in the top 500 companies in the U.S. so it’s very well diversified: hence making it a safer investment.
I recommend you download the app “Mint” by intuit to track all of your accounts and see how they grow in real-time throughout 2022!
Create a plan to how much of your income you will be allocating towards investments every month.
I suggest having an emergency fund set aside first so that you’re always ready to tackle any unprecedented challenges this 2022.
#2. Diversify with cryptocurrency
Ways to invest your money
Cryptocurrency is here to stay and if you think it’s too late to invest in crypto, think again.
Crypto has made a loud statement, but analysts have massive predictions for many of the popular cryptocurrencies, meaning there’s a lot of room for growth.
Another way you can have your money work for you is by allocating a small percentage into digital assets.
Two cryptos I’m personally long on are Cardano (ADA), and Shiba (SHIB).
Because these two digital assets are very affordable, planting seeds now could bear incredible fruits sometime during this decade.
So even though you might only be able to double or triple your investment this decade with Bitcoin, the opportunity for massive gains with other cryptocurrencies are still out there.
You can view when I buy both stocks and crypto exclusively on the Patreon.
Roblox has literally taken over every household that has a child in it.
I don’t know about you buy my son is in love with this game.
This game company makes its revenue through in-game purchases such as ‘Robux’ which allow kids to customize their characters or get access to benefits.
The ticker symbol for Roblox is RBLX.
The stock is currently trading at $120 or so per share and is up almost 80% year-to-date.
#2. AMC Entertainment (AMC)
AMC Entertainment survived the pandemic like a champ.
The company is going to be accepting cryptocurrency as a form of payment and is also in the works to getting licensing agreements that will allow it to premier live sports events and even live concerts.
