Dive into the Attractive Stock Season with The Blind Economist - Ride the High Tide of January Investment Splurge!
Michael Anthony Francis
Economic Advisor to The Five Diamond Group in Las Vegas The Blind Economist
Hey there, it's your friend Michael Anthony Francis, The Blind Economist, and the boss at Macroeconomic Solutions. We're entering the sales season for stocks, folks! This could be your chance to snatch up some valuable stocks at knockdown prices, and that's our hot topic today.
So here's a thing - the tech world might be just about to hop, skip and jump. This could be your golden ticket to ride the wave.?
Sure, nobody's got a crystal ball to foresee if the Middle East tension will blow into a full-scale war sending stocks tumbling. Predicting financial markets? Even trickier.
But let's face it, we all know two things for certain: stocks grow over time, plus, there are some yearly seasonal trends. If we focus on these truths instead of guessing the short-term future, we can make the best out of a seemingly bleak situation.
Come November, the big-money investors are stingy with risks - they are eyeing the year-end bonus check, their biggest paycheck. Taking risks? No, thank you!
Roll into January, and you will see these same folks, plus many more enthusiastic everyday investors coming back from holidays. And they are more gung-ho about buying, not selling, stocks. It's a new year, a fresh start and everyone's got the 'new year, new me' optimism. So hey, why not ride that waves folks?
January is a big month for investing! Everyone's buzzing about their predictions for 2024, recommending stocks to buy and making optimistic guesses. Since it's the new year, there's a feeling of "anything can happen" and so people are open to new ideas. With lots of investors holding onto their money, expect Wall Street to make a big noise this January because, let's face it, they don't make money from people keeping cash.
Want to ride the stock wave? Look for companies with strong basics. Microsoft, for example, is a good bet. It leads the market with its focus on cloud computing and artificial intelligence. These are big game-changers in the way we live and work.?
Sure, some folks worry that tech stocks like Microsoft have gone too high already. But Microsoft's strong footing doesn’t easily lose its stock momentum.?
Think the same way? Try the "hopscotch" options strategy. This strategy benefits from current doubts - rumors of short-term pullbacks - and from positive investor expectations in January.?
For aggressive investors with Microsoft's stock at $338.11, you can sell the November $320 put option for roughly $2.12. This lets you buy the stock at effectively $317.88.
Imagine you're playing a board game. You spin a number aiming to land on a good spot, but risky turns can roll you into the 'red zone.' Trading's almost the same! If the stock's price drops below the set price, investors need to buy the stock or tweak the trade to dodge the bullet. Contemplate this step only if you'd be happy keeping the stock for a few years.
Keen risk-takers can think of selling the put for Microsoft at around $9.50 and buying the call option at about $11.10. This strategy of balancing selling a put and buying a call, both having different prices, is like playing on a see-saw. It gives investors a chance to buy at a lower rate and profit from a sudden up-streak. Microsoft's stock, in the past year, has jived between $213.43 and $366.78.
Surely, these strategies are no magic spells, but they gift investors a clear idea of potential risks and rewards, especially when the market's turbulent. Like how tech and time work to fix things, our wounds and scars also mend with time.
Alright, let me give you another approach. So options trading can be like fumbling in the dark if you're not careful. Hence, as I hold the title of 'The Blind Economist,' I enjoy straightforward strategies. I track companies that I believe will hang around overtime, such as Microsoft, Google, McDonald's, and Walmart. I then place a 'limit trade' on these shares, which are good until cancelled. Here's an example: If McDonald's is trading at $253 per share, you might place a limit order at $235 per share. If the stock price tumbles down to your target, the order gets executed automatically. So, whether you're snoring away or hitting the golf course - the trade is done!
It's just like hunting for bargains at a garage sale. I usually wipe off around 5% to 10% off my target stock.
Imagine you're a thrift shopper, diving into corners of a store, looking for the greatest deals. You spot an item you love, slap a "Save for Me" sticker on it, and wait. The catch? Check on it every 60 days because the sticker magic expires! That's my tactic - my 'good to cancel' limit trades.?
With these trades, you can snatch stocks as easily as you'd grab those snappy discounts at a thrift shop - a whopping 5-15%! And then? These aren't jump-and-dump stocks. We hug them tight, tucked away, for 5 or even 10 years! This is my quaint little secret to bagging stocks at a steal.
Eager to know more of such fun tactics? Then be my guest at theblindeconomist.com. For more enchanting tales, hover over to our YouTube channel - 'The Blind Economist.'
Did this thrift shopping spree thrill you? Then holler at me! I'm Michael, your shopper buddy for stocks. Call me 'The Blind Economist,' and the skipper of the ship 'Macroeconomic Solutions.' Trace your owl's path to [email protected] or dial 702-355-9633 to get in touch.?
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