For April 8, 2015, here's how the stock market did today, the top stock market news, and stocks to watch based on today's market moves...
Dow: 17,902.51, +27.09, +0.15%
S&P 500: 2,081.90, +5.57, +0.27%
Nasdaq: 4,950.82, +40.59, +0.83%
The DJIA Index added 27 points Wednesday following a busy day of earnings reports and the release of minutes from the Federal Open Market Committee (FOMC) meeting in March.
The S&P 500 Volatility Index (VIX), the market's fear gauge, dipped 5.21% on the day.
[epom key="ddec3ef33420ef7c9964a4695c349764" redirect="" sourceid="" imported="false"]Every day we give investors a "tip of the day" to find their best profits. Today's tip comes from Money Morning Tech Expert Michael A. Robinson:
Turn market volatility to your advantage and earn more money on your investments by using a buying strategy called split entries.
The stock market has been volatile over the last several months. And we'll be dealing with this choppiness for the foreseeable future.
But you can turn these choppy markets into huge profits by using a tool called "split entries."
Here's how it works. Instead of buying your standard amount of a stock, you divide your entries into at least two tranches.
For example, say you want to invest in a company called Ultimate Tech Inc. at $50 a share. Start by investing half of your standard stock purchase at the current market price. In this case, 100 shares would cost you $5,000, but you cut that in half, starting with $2,500.
As soon as that market order fills, you put in what's known as a "lowball limit order." That's an order to purchase shares when they fall to a specified price.
I usually set mine at a 20% discount from my original entry price, but use your best judgment in each individual case.
In this case, you'd buy a second round of Ultimate Tech at $40 a share. When the stock falls to that price, your order automatically fills and you now have an average cost of $45, a 10% discount from your original order.
Now let's say Ultimate rallies all the way to $60. Based on your average price of $45, you have cumulative gains of 25%. Your original order has gains of 16.6%.
But your second half has earned twice as much - 33.3%.
This is a great way to bake extra profits into your portfolio when markets are volatile.
Go here for more profit tips and stock picks from Michael Robinson...