Why Leveraged ETFs Don’t Match Market Performance

No product on Wall Street draws more criticism than leveraged ETFs. Leverage funds are designed to multiply the performance of indexes, but often do so poorly in the long run. The ProShares Ultra S&P500 ETF (SSO) tracks twice the daily return of the S&P500 index every day. If the S&P 500 is up 1%, then […]

The College Student’s Guide to Investing

So, you worked all summer and now you have some extra cash on hand, maybe $1,000 or more. If so, nice job! Now, do you take that $1,000 and spent it on beer all year? Or do you take that money and invest it? Well, if you spent it on beer, you will drink fine […]

Investing Tip #255: Avoid the Naked Option in the Derivative Market

The Naked Option is an uncovered option and there is no cover to protect you if the market goes against your expectation. If you sell a Naked Call or Put Option, you should have underlying assets or an open position in the futures market to protect you from an unlimited loss arising out of adverse […]

Investing Tip #188: Use e-trading Platforms

E-trading is very fast. You need a computer and high-speed internet to get started. Open an account with a broker to avail the online trading facility. You can place buy/sell orders with the use of a brokerage’s internet-based trading platforms. The broker software helps you to monitor you accounts also. Generally a broker’s website provides […]

How Shark Tank is Making Me a Better Investor

I’m enjoying the new season of Shark Tank, a reality show where entrepreneurs pitch their businesses to venture capitalists who decide whether or not to invest in a business. The show provides some great investment lessons from very successful business leaders, entrepreneurs, and venture capitalists. Here are just a few reminders that Shark Tank gives […]

Do You Make These 6 Investing Mistakes?

Everyone makes mistakes.  But if you learn from those mistakes, it never a bad thing.  However, it is even better if you can learn from others’ mistakes and avoid making them in the first place.  Here are six common investing mistakes that you could be making right now!  Read up, and try to avoid them […]

Why the Street Hates Utility Stocks

Utilities are the classic defensive investment.  Generally slow growing, but high-yielding and inexpensive relative to earnings, utilities are the traditional dividend value stock. Now Wall Street seems to have turned on the utilities business.  Should you listen?   What Utilities Really Are An understanding of what utilities actually do really helps to explain why Wall […]

The Riskiest Investments You Can Make

Investing is a game that involves balancing the risk and reward of the thing you’re investing it.  However, there are some investments that are much riskier than others.  And these are investments that you should really think carefully about before jumping in.  Because, even though they’re risky, when they do yield rewards, the rewards are […]

The Easiest Way To Find Great Companies To Invest In

Thinking and finding companies to invest in can be hard.  That’s why I wanted to share with you the best way to find great companies that you can invest in right now.  It doesn’t require diligent research; it doesn’t require vast investment knowledge; and it doesn’t require any special skills.  All it requires is a […]

Weird Stock Market Indicators

There are a lot of odd hypotheses and weird indicators when it comes to stock market performance over time.  I thought it would be fun to share a few that have actually been pretty successful over time (there are, of course, thousands of others that are not as successful).   Who knows, maybe there is some […]

Investing Tip #109: Learn Technical Analysis Before Trading

Technical analysis is based on the study of charts and graphs of trading patterns and prices to forecast the future movement of prices through the study of past market data. Statistical tools provide technical indicators based on price and/or volume data. They use current and past market data to indicate market trends and to estimate […]

Investing Tip #108: Investing is Not Trading

Investing is not trading. They are quite different ways of making gains from the market. They have different risk profile and need different strategies. If you are a long term investor avoid trading. If you want to learn more check out these resources: What Do You Tell the Successful Stock Picker? Stay Lazy, My Friend

How You Can Use SWOT Analysis for Investments

SWOT analysis is a strategic planning method that looks at: Strengths Weaknesses Opportunities Threats It is commonly used in business development and marketing, but it is a great tool to apply to long term investing strategies as well.  When making any investment decisions about a company, you should carefully analyze these points.  As such, here […]

The Value Investing Cheat Sheet

Value investing is the investing idea that you can buy a company that is “under-valued” relative to its true value.  The reason that its stock is undervalued relative to its fundamentals could be market movements or other outside trends.  However, you want to make sure that you avoid value traps, which could mean the company […]

Key Value Stock Fundamentals for Screening Stocks

The hardest part of deciding where to invest is actually deciding what criteria you want to look for in a company. I am a huge value investor, and look for solid companies that can be purchased at a discounted price (maybe due to bad short-term news). The trick to finding these companies is to use a stock screener. Most online brokerages have them, as does Yahoo! Finance or Money.com. What I highlight below are some key fundamentals you may want to look at when investing in a company. Remember, a number or ratio may look good, but it is important to understand why that number looks good, or if it looks “too” good.

Research The CEO and Board of Directors Of Your Company!

If you’re going to invest in a company, you need to know what the leaders of that company are all about.  Do they have integrity, or have they been investigated for being unscrupulous in the past?  These are important questions, because as a shareholder, you’re essentially trusting the people with your money.  You expect them […]

Groupon’s Woes Can’t Be Solved by “Friendly” Hedge Funds

Over the past month, shareholders of famed internet deals site Groupon (GRPN) have encountered a wild ride up and down more than 50% as top-performing hedge funds claimed a stake in the company. One of the best performing funds in the last two years, Tiger Global, disclosed it owned 9.9% of the company. Someone close […]