Category Archives: Finance

Choosing a Financial Advisor to Guide You Through Futures Charts and Other Investing Basics

Investing is usually an area that most people don’t want to deal with by themselves. Most people are afraid of losing money in cases where they may make poor investment decisions. Secondly, the plethora of investment options can confuse newcomers in the stock market. Today, hiring a financial advisor appeals to many investors because these experts are able to help them understand investing basics; like trading stocks, futures charts, and commodity charts, among others.

However, choosing a financial advisor is no easy task. A common fear among investors is that their financial advisor would only push for investment options in order for the advisor to earn a profit through commissions. Investors who want to make the best investing decisions possible must be very careful when screening and choosing a financial advisor.

Finding a financial advisor often begins with personal referrals. Colleagues, friends, and family members are usually those that refer financial advisors. The risk in finding financial advisors through referrals, however, is that people tend to make referrals not based on the experience or competence of a financial advisor, but more on the issue of personality. People refer financial advisors that they like or that they are fond of to their friends and family members.

When evaluating a prospective financial advisor, one should thoroughly scrutinize the advisor. There are many questions that an investor can ask, such as the amount of experience and the background of the prospective financial advisor. The investor should also inquire about the style of the advisor in terms of planning and investing.

Likewise, the investor must see to it that the financial advisor would only be charging on a fee-only basis rather than commissions. It is normal for advisors that are compensated through commissions to frequently recommend transactions in order to earn more. On the other hand, advisors who are charged on a fee-only basis are likely to protect the interests of their clients by recommending only the most appropriate investments.

The advisor must also work with the investor when it comes to setting profit targets. Great financial advisors are those that show and explain various investment models to their clients. The advisor will also write an investment policy statement that enumerates details like target returns, tax issues, and risk tolerance among others.

Hiring a financial advisor may be difficult at first, especially for investors who have no idea about the qualities that make a good financial advisor. Nonetheless, the services of an advisor are often worth the effort and cost in the long run. More than explaining the basics of investing and details like futures charts and commodity charts, a capable financial advisor will be able to maximize the earning potentials of his clients. For some excellent online guidance, visit barchart.com. This financial website offers insights into all aspects of the stock market free of charge.

 

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Using Futures and Commodity Charts When Investing in Equity Markets

Futures trading has become more complex as the years go by because traders have come up with different commodities to trade. However, the most basic aim of managing price risks remains the same. With the help of websites like Barchart that feature a wide array of indicators and tools like futures charts and commodity charts, traders are better equipped to maximize their earning potential.

The futures market has emerged as one of the more robust financial markets in the world. Those engaged in this market are of diverse backgrounds: Banks, financial institutions, multinational corporations, importers, merchants and farmers among others. Most of the participants, however, are speculators who have no intention of physically owning the commodities. The speculators are there solely to make a profit from the changes in the prices of commodities. These speculators buy commodities when the prices are low and sell the commodities when the prices rise. These market participants all make futures trading active and flourishing.

In the past, buyers and sellers in the future markets were fully dependent on their professional trading advisors or brokers when it came to making investment decisions. They were only able to rely on the information given to them by their brokers and trading experts. That has changed tremendously with the introduction of websites like Barchart, which specializes in market information. Barchart has charts, indicators, and powerful tools that buyers and sellers can use as references. Buyers and sellers alike are now in a better position to get the information they need to guide them through the process of buying and selling a particular commodity.

Since futures trading is mainly used as protection against adverse price changes, traders engaged in the futures markets need all the information they can get to aid in their investment decisions. Information like how a certain commodity has been priced in the past years and events that could affect commodity prices, like typhoons or other natural disaster, come into play when traders contemplate whether to buy or sell a commodity.

Barchart has been providing updated and relevant information to futures markets participants for many years now. It remains one of the top choices for people looking for futures charts, commodity charts, and other futures markets indicators. Become a member at barchart.com for more information.

How a Covered Call Generates Additional Income

Stock market investing has become a preferred option for individuals who have disposable liquidity. By purchasing shares of stocks of companies, individual investors can possibly earn extra income. It is a common practice in the stock market for investors to buy shares of stocks when prices are low and then sell these shares when prices suddenly increase. However, other strategies have also been developed to maximize the earning potential of stock market investors. One of these strategies include selling covered calls, a strategy wherein an investor sells covered call options in an attempt to earn extra income from the stock that has been sold.

Purchasing stocks allows stockholders to gain a small share of a company’s ownership with the ability to earn money from dividends. As part owners of a firm, stockholders are given voting rights during stockholders’ meetings. More importantly, stockholders are given a share of the income generated by a firm through dividends.

However, the purchase of stocks is not the only way an individual can earn a profit. Trading stocks can actually yield more income for an investor. For example, an individual who buys a share of stocks for a low price and then sells it for a higher price tag gains additional income. There are also investors who opt for futures stocks, which means they sell a stock for an agreed price at a future date.

Then there are investors that sell covered calls. With covered calls, holders of stocks can generate extra income and lower the volatility of their portfolios. With covered calls, an investor sells call options on a publicly traded stock. Investors who have a short-term neutral view on the stock – meaning the investor does not expect the price of the stock to fluctuate in the next couple of months – are often those that employ this strategy.

An investor can sell a stock currently priced at $25 for a strike price of $26. If the shares trade below the strike price, the call option will expire and the investor keeps the premium. The same case happens if the share prices fall. However, if the shares rise above the strike price, the option is exercised but the investor’s upside is kept at $26.

Making a covered call is an easy way for stockholders to earn extra income. With the help of websites that have covered call services like Barchart.com, stockholders can have a better idea concerning their covered call options. For more information about covered calls and stock market investing, visit Barchart’s website at barchart.com.