Let's face it, we're ALL looking for discounts. I don't care if you're rich, poor, hurt by the economy, or not...everyone loves a discount. And since this is a site that focuses on trading/investing, what better then to learn about how to get a discount for a stock! To help us learn the art of the discount, I've asked Phil Davis from PhilStockWorld.com to come and enlighten us. Enjoy the article and tell us where you've found great discounts!
------------------------------------------------------------------------------------
If this market hasn’t convinced you that buy and hold is a gamble - I don’t know what will.
Holding any stock for more than a day has been a sure recipe for heartache (sometimes just an hour will do it) but it’s possible to regularly get much better prices than the ones paid by the average retail investor using a very basic option strategy. This strategy, which we call a "buy/write" – buying the stock and writing options against it - is one of our most effective tools for dealing with a choppy market.
There are, of course, many, many stocks trading near multi-year lows and it’s still important to select ones that have strong underlying fundamentals that we actually don’t mind holding long-term but, as long as you’re willing to own 200 shares of a stock, this system can reliably give you a 10-20% discount off the current market price. It’s simple, easy to follow and is ideal for trading in a volatile market.
