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Fellow Investors
& Traders,
“Due
Diligence (Research, An Investigation or Audit of a Potential
Investment)”
That is exactly what Due
Diligence is all about when it comes to finding opportunities in the
stock market. “The Research to know what to buy, decide on
buying the Stocks or Stock Options, and most importantly “WHEN TO
BUY”! You either do it yourself – or you pay someone (a lot
of money) to do it for you!
Nevertheless – it is one activity that has to happen if you
plan to make any money in the stock market.
There are a lot of
different ways people do their research. The best way is the one that
works best for YOU. The only common
factor is the “information” – however you get it can vary
tremendously, so we won’t spend a lot of time on that. Just try to
keep your approach simple and use good common sense – that’s what
works best for me!
Define some time each
day (or night) to check on what’s happening in the stock market –
that’s the best way to get prepared for investment opportunities that
you might be considering.
Before I invest in
any opportunity, one of the first things I do is look for is “price
movement”!! That’s one of the most important aspects for my
investment criteria. I look for investment opportunities with a track
record of significant price movement – that’s where you make
your profits!
One of the TOP
Investment Index Funds that most of the major investors look for
opportunity is the “CBOE
Nasdaq 100 Index” (NDX) or ($NDX.X) if you use Ameritrade! If you haven’t heard about
this Index – don’t worry, it’s not widely advertised on any of the
financial news channels, but major investor keep it quiet and consistently
make a killing every month as the price moves up and down.
The Nasdaq-100 Index is a
capitalization-weighted index composed of 100 of the largest
non-financial securities listed on the Nasdaq Stock Market.
The actual share
price for the index is quite high – instead, take a look at the Stock
Options for the index. (See the free weblink info below)! The price
valuation for the options can be much more affordable, and you get
the benefit of the same type of “price movement” as the underlying stock.
If you want to see
the list of companies that make up the Nasdaq 100 Index, you can go
to www.yahoo.com , look for the
“Finance” link on the home page – enter “^NDX” in the quotes entry field and press enter. When the
information page for NDX comes up, look for the word Components (on
the left side of the screen) -- click on “Components” to bring up the current list of companies for
this index.
Here’s a free weblink
that you can use to see the actual “Stock Options” for NDX. www.marketwatch.com. Enter NDX in the search entry field and press Enter. One of the
selections on the screen will be
“Options”, click on the word “Options” to see the available Strike Prices Options
List. Scroll down the page and
look for the options closest to the actual Index price. Example, if the index price is $1625.45,
then look for the stock option strike prices closest to $1625, $1600,
or $1650. These particular strike prices generally have the best
price movements. Choose one or
two of the CALL Options and track the price movement for a few weeks
as you also track the overall price movements of the general market
(The DOW and S&P 500) as they close each day!
NDX has a lot of
price movement each week, so you need to keep up with the stock
market activity to help determine the best buying opportunity. When the stock market takes a
downturn, that’s when you look to buy into stock option positions on NDX.
Looking for an “advantage”
to buy at a low price or on a “dip” (as they say) when the stock
market trades down is how the major investors and institutional
buyers make the majority of their profits. This is what you have to
do also. If you take a little time to learn how to do some research
on the companies you are interested in, you will make some good
buying decisions for sure!
Click
Here! to
see a few of my actual stock option profit buys for NDX!
Just like other
strategies – “It’s All About Timing” – and Planning! That’s the key to getting in
position to take advantage of stock price movements whether you are
buying the actual stock shares or the stock options.
You need to have a
good, simple, easy to use stock price calculation program that
quickly performs all of your potential price calculation scenarios so
you will see first hand what your projected costs, percentages, gains
or potential loss would be before you place your buy transactions. My Stock Calculation Program is an
excellent tool to handle all of your stock price calculations quickly
and easily.
You can take the
7-day FREE Trial to play with the calculation tool, then order your
full version copy to have for a complete program of tools for all
your future buy opportunities. Click here! To
see all of the Software Program Advantages!
If you have not taken the 7-Day Free Trial! Download your free
copy today -- play around with some calculations and see how much
simpler the program makes all of your cost, profit and exit planning
calculations.
See the
7-Day Free Trial link on
the homepage!
www.newstocksoftware.com
If you
have any questions or need some “one-on-one” guidance to help with
your research and planning, let me know – I’ll respond as quickly as
I can!!!!
To
your success!
Jimmie V. Smith
markettrading@juno.com
Copyright
2007 Market Trading Technologies
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