Coca Cola Stock has been in my USA Stock Portfolio since 2009. In 2013 I earned 20.5% primarily through selling naked puts. Coca Cola Stock is a good example of why I see little need to chase Junior stocks or speculative stocks. If I can earn 20% a year in a stock like Coca Cola Stock why risk capital in a spec stock or junior that could wipe out any returns and place my capital in use at risk of additional losses.
Select Stocks You Can Make Mistakes In
When selecting stocks for selling puts against and for the odd Bollinger Bands Strategy Trade, you want to select a stock that you can make mistakes in. That might sound strange but one of the major problems with investing is ending up being assigned shares only to watch the stock collapse for not weeks or months but years. Here’s a great example.
An investor recently wrote to me about his position in Crocs Inc Stock which trades on the NASDAQ under the symbol CROX. CROX Stock is speculative in nature and yet this company earned revenue of $1.2 billion last year. You would think this would be a great company to trade in but here is the problem – no confidence.
FullyInformed Members Mentoring Tips Article
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