Five Stock Tips You Need to Know

If You Want to be Successful

These days it’s easy to open an online trading account and deposit funds. But what most stock market traders need is a financial education and strategies that will increase their stock market trading success in the short and long term.

Below are five stock tips that any trader can use in today’s market.

Stock Market Tip #1 :  You will reduce your risk when you trade stocks that are exclusively members of the Dow Jones Industrial Average or the S&P 500.

Here’s why:  Companies that are members of the Dow Jones Industrial Average or the S&P 500 have established top-line revenue growth that attracts institutional buyers. Contrary to popular belief, institutional buyers, like banks, insurance companies, hedge funds and college endowments, push share prices higher because they tend to buy in one million share blocks.

Stock Market Tip #2:  Trading and investing in stocks that pay dividends protects your money during down markets.

Here’s why:  Large institutions love guaranteed rates of return in the form of quarterly dividends. When a company pays a quarterly dividend of twenty cents or higher it is rare that Wall Street will completely sell off the stock during a market downturn.

Stock Market Tip #3:  Learn to Be a Covered Call Writer.

Here’s why:  Covered call writing is the single best trade for the non-professional trader and it’s available to anyone who has a financial education. Here's how it works: If you own shares of a stock, you can selling a call option against them. This means that you would be selling the right, not the obligation, to someone in the marketplace to buy that stock away from you at a later date.

Click below to watch this episode of Wealthy Investor TV.

Stock Market Tip #4:  You should have an online trading account at a large discount broker houses such as TD Ameritrade or Charles Schwab.

Here’s why:  The more you actively trade as a covered call writer, the more income you are going to generate. Very often you will have questions about trades you have executed or trades that you are waiting to execute. It is easy to overlook the importance of 24 hour customer service when you are an active trader. These large online trading companies have 24 hour customer service representatives who are standing by and able to answer most complex trading questions. Very often you will have questions about trades you have executed or trades that you are waiting to execute. Both TD Ameritrade and Charles Schwab both provide detailed account information for active traders.

Stock Market Tip #5:  Never let your feelings determine which stocks you’d like to invest in or trade.

Here’s why:  When it comes to stock selection you will benefit greatly from only trading or investing in stocks that have three year top-line revenue growth and four consecutive quarters of top-line revenue growth. Educated Wall Street investors know that revenue growth is the key to superior stock selection. Worldwide institutional investors are also on the hunt for companies who can demonstrate consistent revenue growth on a regular basis.

Take a look at the charts of these two stocks that have increased in value over 100% during  the last five years. Both of these companies are members of the S&P 500. If you were an investor in both of these companies, you would have benefited from the rise of their shares based on their revenue growth.

In WI Trade School I teach you three major strategies that work consistently in up and down markets. They are:

Covered Call Writing: Covered call writing allows any investor to generate $500 to $5,000 per month.

Dividend Capturing: Institutional investors collect millions of dollars per quarter collecting dividends on Dow components like Home Depot, Visa and Disney. 

Volatility Trading: Volatility allows you to purchase a stock and program a sell order in your online trading account which will sell the stock once the price rises a specified amount. As stock prices change throughout the day, you’re making money while you are out enjoying your life.

Click here to learn more about the Wealthy Investor program. 

Because the Wealthy Investor approach educates stock traders, it helps my students generate monthly income and create long-term wealth.