Frequent Investment Questions

Help Category: Frequent Investment Questions

Are options risky?

There is a menacing notion that options are always coupled with high risk. This truly is not the case. In fact, trading with options can be less risky than dealing with regular stocks. One of the biggest advantages to options trading is that you often know in advance how much you could lose if the trade goes awry. The primary difference between stock trading and options trading is that when an investor purchases options, they then have the RIGHT — but not the OBLIGATION — to buy or sell the underlying stock at a given date.

Options are unique in that they do not shut down when the market closes, nor do they require as much financial commitment as stock trading does. Another pivotal point when dealing with options: There is a 100% guarantee that you cannot lose more money than you have invested in the options contract.

While investing always involves risk, our editors and analysts do a fine job at delivering the most up-to-date alerts to you as needed — from buy or sell to expirations. Options tutorials, paper-trading platform reports and video series are resources we provide with our publications as well.

At Paradigm Press, we are diligent in citing sources and checking facts. Still, we cannot guarantee that we won’t occasionally print information that is unintentionally inaccurate in some way. You should always double-check any important financial information, such as stock prices or balance sheet facts, before making final decisions. We do our absolute best to never make errors, but we are not responsible for any losses you may suffer as a result of errors.


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How can I break down an options ticker symbol?

The schematic representation below simplifies an options ticker symbol. This format is standardized for all options ticker symbols. Our loyal customers have indicated on numerous occasions that this breakdown is extremely helpful. We recommended using this when beginning your options trading.


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How can I make an options trade?

Each options recommendation we publish is purposefully concise. They are worded and structured in such a way that you can go into your brokerage account and carry out the trades by following the step-by-step instructions.

All of our options publications provide additional tools to help execute the trades.

For example, our publications  Weekly Cash Alert and Rich Dad’s Weekly Cash Flow have video presentations, that give a brief but informative representation of exactly how to execute an options trade. These videos will assuredly ease any fears you may have going forward.

Also, our publications Jim Rickards’ Currency Wars Alert and Jim Rickards’ Project Prophesy administer free model brokerage platforms to demonstrate how to paper trade. By paper trading, you can accomplish two things: First, you can test the trades without risking a single penny. Second, you can prove to yourself that this is the real deal.

It is important to keep in mind that every trading platform is different. If you have any other questions above and beyond our help section, please call your broker’s customer service team for more help. They’ll be happy to guide you through the process.

 


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Can investing be risky?

Investing, of course, also involves risk. The amount of investment risk varies among the newsletters we publish. Some are conservative, some aggressive. Some of the investments you will see recommended in our pages will cause losses. Past results never guarantee future returns—and our work cannot be and is not guaranteed. You are responsible for your own investments. Caveat emptor applies, at all times, to the investment research we sell.

At Paradigm Press, we are diligent in citing sources and checking facts. Still, we cannot guarantee that we won’t occasionally print information that is unintentionally inaccurate in some way. You should always double-check any important financial information, such as stock prices or balance sheet facts, before making final decisions. We do our absolute best to never make errors, but we are not responsible for any losses you may suffer as a result of errors.

Some of the strategies we endorse in our pages may not be legal where you live. Or they may have tax consequences that are unknown and unanticipated by our analysts. We urge all subscribers to consult with licensed brokers and asset managers for questions regarding investments.

In much of our work, we use “price limits,” which means buying a stock below a certain price, or selling it above a certain price. This information is frequently critical to our specific recommendations. Never rely on our advertisements for financial information. Always consult the most recent editions of our publications for the current status of any recommendation.

Many of our publications also contain “model” portfolios that attempt to approximate the results a subscriber may have obtained by following the strategies and the recommendations discussed in the publication. We do not make any claim that our subscribers will achieve results that are even approximate to these examples. The model portfolios serve only to track the hypothetical results of a newsletter recommendation at the time it is made, not an actual portfolio.


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I am new to investing in stocks. Do you have any resources I can use?

Below are several different resources to help in your continuing education regarding the stock market.

Types of Investments — Learn all about the different strategies available to a potential investor.

Investopedia — This is similar to Wikipedia, but for the stock market. A great resource to search for terms and concepts for a quick answer to an inquiry.

Yahoo Finance — For updates on the price of a current open position in one of the portfolios, Yahoo Finance is a good place to quickly look up a ticker symbol.


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The stock I invested in is not doing well. What should I do?

The Paradigm Press editors will send out a Sell Alert via email if they feel the stock will not recover and it is time to get out of the play. Of course, you are in control of your own portfolio and you should make all investment decisions based on your personal finances. If you are concerned about holding onto a specific position, you should consult your broker or financial adviser.


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I have some investments that I have owned for a while and I don’t know what to do with them. Can I send in my portfolio information for someone to tell me what to do with my existing positions?

We appreciate your confidence in us, but we recommend that you consult with your personal financial adviser on questions of this nature. Our specialty is in offering general investment analysis and recommendations, not personalized investment advice.


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Will Paradigm Press make the trades for me? Do I need a brokerage account?

Paradigm Press is a publishing house and is not licensed to invest on your behalf. Due to Securities and Exchange Commission (SEC) regulations, Paradigm Press cannot recommend or back any particular brokers. A select few of our subscriptions include a list of recommended brokers, and you can find this information under the “Report” section of the website. If you need help finding a broker that fits your investment style, the free resources provided by Yahoo Finance are a good place to start.


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Where can I find a broker?

Due to Securities and Exchange Commission regulations, Paradigm Press cannot recommend or back any particular brokers. A select few of our subscriptions include a list of recommended brokers. If you need help finding a broker that fits your investment style, the free resources provided by Yahoo Finance are a good place to start.


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