Technical Analysis (4)

Historical Stock PricesI have posted charts showing annual stock market and bond market returns for various indices in recent years for the time periods from 1980-2006 , 1980-2007 , 1980-2008 , 1980-2009 , 1980-2010 , 1980-2011 , and 1980-2012 Shown below is an updated chart including returns from 2013 as shown below (click on the image for a larger view). Along with the symbol and the date of the quote, the file also contains summary data concerning implied volatility surface, option volume and option open interest. The goal of the formula is to estimate the implied volatility of an option for that stock as if it always expired 30 calendar days in the future and its strike exactly matched the underlying stock price.

Throughout history, stock prices have loosely gravitated around the fundamentals” of the underlying companies — namely, earnings. To succeed in investing or trading in the stock market, you have to read, practice and read more. When it comes to stock market trading, investing or speculating books, there are thousands of them. Over the years, I have read countless stock market books and can only think of a handful of them that have been really helpful. There are no get-rich-quick stock market type books listed here, because that doesn’t really exist, unless you get very lucky. The way you get rich in the stock market is by learning and learning more, and staying in the game.

Since the stock market does not always go up, these books will teach you how to profit during bear markets or stock market corrections. You will find yourself referring back to them again to make sure you understand each concept as you trade and invest in the stock market daily. The way the stock market fluctuates is enough to keep anyone awake at night wondering about their 401k plans, retirement and their stock portfolios. Finding a good dividend paying stock is not just finding the highest yields, since that can be very deceiving. If a stock has an uncommonly high yield for that industry, there is usually a reason.

And the reason could be that the stock price recently fell dramatically and sooner than later, the dividend will be cut or eliminated. Another benefit of good dividend paying stocks is that they are usually older more established companies and these companies will sometimes do a stock split, which means you end up with more stocks over time accumulating more dividends. When you buy a call, you believe the underlying stock or index is going to go up in price by a certain date.

Investing in companies that pay dividends and reinvesting those dividends along with stock splits can add up nicely. After reading this book, you will be as smart as any stock market advisor and competent to handle your own investments. Right now there is talk about another housing bubble already and the stock market has certainly gone almost straight up. Most think the market has only gone up during this slow economic period because of Federal Reserve policy and when that changes, the market will correct by a large percentage. Option trading can be very profitable and they can be used to hedge stock market volatility risks.Historical Stock Prices

Historical Stock Prices