Updates from February, 2011 Toggle Comment Threads | Keyboard Shortcuts

  • Trader Lyn

    Trader Lyn 12:01 pm on February 23, 2011 Permalink | Log in to leave a Comment
    Tags: breakfast, expo, international womens day, newtork, success womens network, women   

    International Women’s Day 100th Anniversary 

    IWD

    With all of the turmoil happening in the world right now, as I covered in yesterday’s blog, today I thought I would take a break from my usual topic of trading (it’s worth it I promise) and blog about an upcoming event that I am very passionate about.

    Each year around the world, International Women’s Day (IWD) is celebrated on March 8. Hundreds of events occur not just on this day but throughout March to mark the economic, political and social achievements of women. This year is particularly special as it is the 100th Anniversary of International Women’s Day.

    I will be celebrating this special day with a wonderful bunch of ladies from the Success Womens Network at their International Women’s Day 100th Anniversary Breakfast event in Five Dock Sydney. Cindy and Natalie from the Success Women’s Network (SWN) have been working very hard to make this one of their biggest and best events yet.

    The SWN is run by business women, for business women, they provide a forum for open networking and connecting like minded business women throughout Australia. Whether you want to grow your business, or are a trader and just want to get out and meet new people- I encourage you to check it out. I know myself as a trader and business owner too often I am behind the computer screen, (doing what I love) trading and teaching webinars, so it is nice to get out, have a delicious lunch and meet some new friends.

    This is a fabulous, monumental and historic event and I encourage you to come along and join us! There will be a delicious breakfast with 2 inspiring guest speakers and many great women (and men) to network with. All of the proceeds of this event also go to charity which is another great reason to come along.

    For more information or to book your ticket please go to: http://www.successwomensnetwork.com.au/Events/InternationalWomensDayBreakfast.aspx and don’t forget to bring a friend! (You don’t need to be a SWN member to attend.)

    If you can not make this event, they also have a number of events on throughout Sydney in celebration of IWD during March.

    Check out http://www.sucesswomensnetwork.com.au for more details.

    Successful Trading ( and networking!)

    Trader Lyn,

    PS. This is a photo of my daughter Rebecca and I at a Success Women’s Network Event a few months ago. The Success Women’s Network also run expos through their sister company Business Expos http://www.businessexpos.com.au/

    We will be exhibiting at all 6 of their expos this year, so we encourage you to come along as they will be fantastic events- we would love to see you there!

     
  • Trader Lyn

    Trader Lyn 4:27 pm on February 22, 2011 Permalink | Log in to leave a Comment
    Tags: , Global, , Libya, , , ,   

    Tensions in the middle east & turmoil from Mother Nature 

    WorldTensions in the middle east now are now spreading to the Arab countries, with Libya erupting in violence and extreme unrest. The protests have taken many lives and disrupted any signs of future peace.

    The rising tensions have sparked a surge in oil prices, to the highest they have been in two years, proving it has nothing to do with supplies- it’s all caused by uncertainty in the market. Gold and silver futures are also higher while all the world markets are in the red.

    Closer to us home, the city of Christ Church, New Zealand has just been hit by an earthquake with a magnitude of 6.3. The earthquake has caused severe, devastation however the full damage is yet to be known. This has also weakened the NZ Dollar. NZ is in our thoughts and prayers as they work hard to rescue people to safety.

    In Australia,we have experienced mass flooding in Queensland and Victoria, Cyclones in North Queensland and the Northern Territory, bushfires and even heat waves. 2011 has started off to be a very challenging year for the world as a whole. It seems mother nature has not been sending us some big signs.

    Through understanding what is happening globally, we can better understand the direction of the Stock Markets, including what sectors to go long on and which ones to stay clear of, or to short. Join me on my market update on Monday night as I cover how this has affected the market and what is in store for the week ahead: http://www.stockcourse.net/welcome.

     
  • Trader Lyn

    Trader Lyn 9:33 am on February 17, 2011 Permalink | Log in to leave a Comment
    Tags: option, profit, , , strike price, vertical spread   

    Trading with Options can be safer than shares…. 

    Have you wished you could profit from a stock price rise without owning the shares?

    Then let me show you a way, using options, which will limit your losses and carries less risk than owning the shares outright.

    How would you like to rent that option out at the same time, receiving additional income, and reducing the amount you have at risk even more?

    Let me introduce you to a “Vertical Spread”.

    It’s a bull-call spread option trading strategy, so when you think that the price of a stock will go up moderately in the near term, you can reduce your risk.

    To construct a Bull call spread you buy an at-the-money call option and sell an out-of-the-money call option, of the same expiration month. It is also known as the “bull call debit spread” as a debit is taken upon entering the trade.

    The maximum gain is reached for the bull call spread options strategy, when the stock price moves above the higher strike price of the two calls, and it is equal to the difference between the strike price of the two call options minus the initial debit taken to enter the position.

    To put it simply, a Vertical Spread is an options trading strategy with which a trader makes a simultaneous purchase and sale of two options of the same type that have the same expiration dates, but different strike prices. The widening or narrowing of the difference between the option premiums on the two positions, determines the profits.

    The formula for calculating maximum profit is given below:

    •    Max Profit = Strike Price of Short Call – Strike Price of Long Call – Net Premium Paid – Commissions Paid

    •    Max Profit Achieved When Price of Underlying >= Strike Price of Short Call

    The bull call spread strategy will result in a loss if the stock price declines at expiration. The maximum loss cannot be more than the initial debit taken to enter the spread position.

    The formula for calculating maximum loss is given below:

    •    Max Loss = Net Premium Paid + Commissions Paid

    •    Max Loss Occurs When Price of Underlying <= Strike Price of Long Call

    Bull Call Spread Example

    If you believe that XYZ stock trading at $42 is going to rally soon, you buy a March 40 call for $300 and sell a March 45 call for $100. The net investment required to put on the spread is a debit of $200.

    If you bought the equivalent of 100 shares your investment would be $420.

    The stock price of XYZ begins to rise and closes at $46 on expiration date. Both options expire in-the-money with the March 40 call having an intrinsic value of $600 and the March 45 call having an intrinsic value of $100. This means that the spread is now worth $500 at expiration. Since the debit was $200 to enter the trade the net profit is $300.

    If the price of XYZ had declined to $38 instead, both options expire worthless. You will lose the entire investment of $200, which is also the maximum possible loss.

    If you owned the shares at $42 and it is at $38.00 you would incur a $400 loss so using the option has reduced your loss.

    To find out more about this strategy, join our 3-hour vertical spread training webinar, including 4 weeks of follow up live-trading sessions, starting on Wednesday 222nd February.

    This is an excellent opportunity to expand your knowledge and have another strategy available to make you a more profitable trader. We hold these training webinars only once a year and run them live to keep the information current and relevant to the market right now. This is great strategy for a conservative trader with limited funds. You will learn how to create a trading plan using the strategy that suits your risk profile. Visit https://www.stockcourse.net/wl?3i9=7t16325 to learn more.

     
  • Lyn Summers

    Lyn Summers 10:32 am on February 1, 2011 Permalink | Log in to leave a Comment
    Tags: Dow Jones, egypt, Global News, investors, Market Update, middle east, , , unrest   

    Anti-government riots in Egypt could destabilize the Middle East, keeping investors on edge. 

    There is a big worry that Egypt’s unrest could spread to other countries in the Middle East, which is home to the world’s top oil exporters, as a result we saw oil rise 4% higher on Friday.
    So far more than 100 people have been killed in Egypt, after five days of protesting the government of Hosni Mubarak. Protesting in other nations has investors worrying about destabilization in the region.This is something that began in Tunisia and now spread to Egypt. There are other countries in a very similar position.

    If a democracy movement manages to overthrow the Mubarak regime in Egypt, then reports so far suggest that a new government would not necessarily reject the country’s positive posture toward Europe, the United States and Israel, so crude oil would not be in jeopardy.
    But if some radical group hostile to Western interests were to take power, then all bets are off, Energy prices will soar as the threat of reduced supplies, will lift oil and gas stocks.
    The opposite will happen on industrial and consumer stocks, they will decline as investors bet on constrained consumption amid higher prices and fear of the future.

    The Stock Markets in Egypt are closed and all world markets are red today. The Dow Jones industrial average broke an eight-week streak of gains on Friday and the S&P 500 and Nasdaq also ended with losses for the week.
    The majority of companies continue to beat expectations of the 207 companies in the S&P 500 that have reported earnings, 71 percent have beaten analysts’ expectations, 102 S&P 500 companies are expected to report this week. It will be the impact of the outcome in Egypt that investors are focused on this week.

     

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