How do you see the world? Do you consider yourself an investor or a trader? Most people think of themselves as investors. However, if you knew that big winners in the markets call themselves traders, wouldn’t you want to know why? Simply put, they don’t invest, they trade. What are Investors? Investors put their money, … Read more
As an investor, you must be aware of the stock market scams. The following are two of the most common stock scams. The Pump and Dump The pump and dump is one of the easiest and most common ways of taking money away from unsuspecting investors. Although it is illegal, the use of the pump … Read more
Investment planning is almost impossible without a thorough understanding of risk. There is a risk/return trade-off. That is, the greater risk accepted, the greater must be the potential return as reward for committing one’s funds to an uncertain outcome. Generally, as the level of risk rises, the rate of return should also rise, and vice … Read more
If you have more than one investment, you likely want to monitor and compare their performances to the market and to similar investments. Here are a few examples of the information and the software you need to accomplish this objective: Market-monitoring tools send alerts that you determine. For example, if your stock increases by 25 … Read more
Deciding on the proper time to purchase a security that you would like to add to your holdings can be a daunting task. If the price drops immediately after you buy, it may seem as if you missed out on a better buying opportunity. If the price jumps right before you make your move, you … Read more
The process of analyzing investment prospects includes examining groups of investments or individual securities. For this task, you need information to forecast the timing and amount of future cash flows of investment candidates. That is, the price you pay today is based on the future income of the asset. Figuring out what the asset will … Read more
Before investing, you need to clearly state your financial goals and objectives, and know your risk-tolerance level. This information can help you determine your required rate of return. By doing this type of homework, you can determine which categories of financial assets you may want to consider investing in. For example, if you’re selecting investments … Read more
Investments provide opportunities to make money in both a bull market (up market) and a bear (down) market (read more about bulls vs bears). No one ever knows for certain whether the market will go up or down, but investors can develop an information system to watch indicators for potential price changes and investment opportunities. … Read more
Can You Turn Bad News Into a Lucrative Opportunity for Your Portfolio? Even the best companies, industries, and sectors fall out of favor from time to time. A fully-informed investor, with a pocket full of cash and a firm understanding of the situation, can calmly stride into a turbulent market and buy up shares of … Read more
Market timing is the most important expertise you must master to become a successful trader. This is where the majority of stock market traders fall by the wayside. Buy too early and you are squeezed out on any temporary falls. Sell short too early and you are squeezed out on any up moves, even if, … Read more
Wealth Warning: It has been determined that listening to the news may be bad for your wealth! From a very early age we are bombarded with news from television, radio and newspapers. We live in the ‘Information Age’ and are presented with a mass of information any time of the day or night. Most of … Read more
Anyone who has spent much time reading about personal finance knows the value of diversification in a portfolio. If you put all your money into just one or two investments – stocks, bonds, or anything else – you run the risk that something will go wrong and wipe out a big chunk of your nest … Read more
Terminology used by stock brokers and Wall Street insiders tends to be rather complicated what with jargon such as margins, small cap, and indices, it can be difficult to tell what the devil these people are talking about. Still, the most basic of stock market terms, “bull” and “bear,” date back to the 19th century … Read more
Why the world’s greatest stock picker stopped picking stocks, and why you should, too. The most dangerous investment advice is often that which seems most sensible, which is why the worst investing counsel you will likely ever receive is that you should try to pick “good” stocks and sell “bad” ones. You will get this … Read more