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Even a dull day at the market can make money, says Real Money’s Paul Price.
Slow days can take many forms. Sometimes this means the market took a dip, with stocks reliably losing value. On other days, the market does nothing at all. You can’t even play a short game in a low volatility environment. How can you make money in such a market?
By paying attention to the four ways you can profit from stocks. Price says:
“I showed up for work on Monday, with no specific ideas that made me excited to go,” Price recently wrote on Real Money. “The future was slightly positive. I didn’t find any new ideas this weekend that really got me excited. On days like this, it often pays to sit back, relax and see what comes to mind as a good trading opportunity. “
Without much price action or future guidance, Price turns to his four principles for making money from stocks:
- Valuation – Increase their value and then sell the stock.
- Dividends – Holding the shares and collecting payments per share.
- Covered Call Income – Sell call options on stocks you already own.
- Naked Put Income – Sell put options on stocks you would like to own.
On a calm day, Price mainly focuses on writing calls and puts. These contracts generate immediate profits because of the premiums you earn for each contract sold, although none are without risk. After all, the whole reason anyone bought that contract is in hopes that it will benefit them in the future.
Get more trading strategies and investment insights from the real money contributors.
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Sources 2/ https://www.thestreet.com/investing/four-ways-to-make-money-on-stocks The mention sources can contact us to remove/changing this article |
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