Although buy low and sell high is a strategy that has resulted in big accumulations of wealth, this isn't how the professionals find their success. Instead, a savvy investor strategically deploys their money, in order to allow it to work in more than one way; they multitask their money.
The retail investor who is accustomed to working with stocks can simultaneously put their money to work in three ways:
1. Price Action - The stock will hopefully rise in value
2. Dividend - The fee a company pays you in exchange for using your money.
3. Call Revenue - The money an investor pays you when you sell a covered call against your stock.
Source: Investopedia
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Posted by D4L | Wednesday, November 16, 2011 | ArticleLinks | 0 comments »________________________________________________________________
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