Stock Market

  • Short Selling 101

    There is big money to be made on the short side of the stock market. But the public is not short-sell minded. We advise a toe-to-the-water approach. Try it slowly and see. It’s not so cold. In fact, it’s fine once you get in. You gain confidence that you can handle any market direction! But…


  • Internet Stock Screening

    Stock screening always boils down to finding the answer to one fundamental question: Which stock (among all stocks) should I purchase right now? Of course, finding the answer to this question requires asking many more specific questions about stocks – questions that are difficult to answer without the help of computerized databases. Stock Screening ‘Stock…


  • Dividends Do Not Matter

    The basis of the argument that dividends don’t matter is simple. The financial theory, referred to as the Miller-Modigliani Theorem, stats that the market value of a firm is determined by its earning power and the risk of its underlying assets, and is independent of the way it chooses to finance its investments or distribute…


  • Insider Trading Strategy

    Using the SEC definition of an insider as a director, manager or employee of the firm, you can compute the percent of stock held in a company by insiders. In companies like Microsoft [MSFT] and Oracle [ORCL], in which the founders still play a role in management and have substantial holdings, you will find insider…


  • Investor vs Trader

    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,…


  • Stock Market Scams

    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…


  • Purchasing Investments

    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…


  • Monitoring Investments

    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…


  • Analyzing Investment Prospects

    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…


  • Building Your Own Online Information System

    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.…