CFI Blog

Top Down Analysis in Action

Top Down Analysis in Action.

One of the more popular avenues used by traders to discover trade ideas is top down analysis.  Consider it a multi-step process that begins on a broad level and gets progressively more specific with each step.  Here’s the gist of the approach: Assess the broad market Find the best sector Find the best stock within … Read more

Exit Strategies: Buy and Hold property

Exit Strategies: Buy and Hold property

Today, we are going to take a look at another profitable exit strategy – buy and hold property. Buying property to hold and rent is one of the best ways to create wealth because it generates ongoing cash flow and builds your net worth. Finding Properties Be creative while looking for prospective rental properties. Use … Read more

Option Trading and Leverage

Option Trading and Leverage

Of all the advantages provided by options trading perhaps none is as coveted by the little guy as the ability to use leverage. When used properly leverage can allow traders to grow their portfolios quicker. However – and this is extremely important to note – its misuse has driven many reckless traders to the poorhouse. … Read more

What is a Put Option?

put option

A put option is a contract that gives an investor the right, but not the obligation, to sell shares of stock at a specific price on or before the expiration date. Option contracts come in one of two flavors – calls and puts. Fortunately, the structure of both vehicles is identical with the exception of … Read more

Stock Market Trend Lines

Stock Market Trend Lines

In the last two articles of this CFI-BLOG.ORG Stock Market Trading Series, the concept of trends was introduced. The identification of trends is a simple yet powerful technique that traders of all experience levels can use to maximize the results in their trading.  Corporate Finance Institute’s elite training and mentoring educational offerings are all built on … Read more

How to Generate Income with Option trading

Option trading

Of the many unique advantages offered by option trading, perhaps none is as popular as their ability to generate passive income. That’s right. Just as a real estate investor can create cash flow with a rental property, a stock owner can create cash flow by adding option contracts to the mix. There is a well-known … Read more

How Traders Should Deal with Earnings Announcements?

How Traders Should Deal with Earnings Announcements

  In last week’s article, we highlighted some of the dynamics surrounding earnings season. Today we’ll explore how traders should behave around earnings announcements. Before any trader attempts to trade stocks around earnings, they must first accept one immutable truth – no one can consistently predict the direction a stock will gap following earnings. It’s … Read more

Historical Volatility vs Implied Volatility

Historical Volatility vs Implied Volatility.

In this article we will discuss about Historical volatility vs Implied volatility. Of all the drivers of an option contract’s price, perhaps none is as important as volatility. For most people thoughts of volatility are accompanied by visions of roller-coasters and see-saws, rapid rises interrupted by disturbing descents. And such imagery isn’t far off. The … Read more

Profits: Reinvest or Cash Flow?

Profits: Reinvest or Cash Flow

Our ultimate goal is to create cash flow that covers our expenses so we can get out of the rat race and on the fast track to financial freedom.  We are all in different financial places and for some with larger trading capital, the path may be shorter than those with a smaller nest egg … Read more