If you are a producer or consumer of any commodity, you can buy or sell derivatives to hedge against fluctuations in the movement of underlying commodity prices. You can use options, futures or swap agreements to minimize uncertainties in your business. If you want to learn more check out these resources: A Total Beginner’s Guide […]
Archives for December 2014
5 Personal Finance Habits That Will Make You Rich
Looking to get rich next year? Unfortunately for you, nobody becomes rich overnight. Those “overnight successes” you see are normally the results of years and years of hard and deliberate work. The good news is that when it comes to building wealth there are no secrets. The same set of principles will work for absolutely […]
Investing Tip #244: Use the Index Future to Hedge Your Portfolio
You can buy and sell stock index futures such as the S&P 500 Index Future which is based on the performance of the S&P 500 Index. You can use it to hedge your portfolio against market risk. You can settle the future by cash payment. The expense is similar to the insurance premium you pay […]
Why Do You Pay More For The Same Thing?
Do you shop around when buying stuff? Do you drive to a different gas station to fill up to save a few cents? At what price does it make a difference to shop around for you? I’ll be the first to admit, I rarely shop around. For most things, it’s just not worth it to […]
Investing Tip #243: Trading in Futures is Not Gambling
Trading in futures is like trading in stocks. If you want to invest or trade in the stock exchange or derivative market, you need to develop an understanding of the market. Trading in futures is not gambling and your outcome does not depend on your luck. Always follow basic rules and strategies, as derivatives are […]
Investing Tip #242: Scan and Filter Information
You have different sources of information such as newspapers, magazines, research reports, company’s annual reports, television channels, internet and social media. You have a wide access to a vast pool of information. Here is a word of caution. Many sources carry biased, false and misleading information. Scan and filter information. If you want to learn […]
Investing Tip #241: New Investors Shouldn’t Invest in the Global Markets
When you can earn a good return in the US stock exchange, why invest in foreign stocks? You can understand US companies better. You will need extra time to understand foreign markets. Your investment abroad will be subject to political and economic uncertainties especially due to changes in government policies. New investors shouldn’t invest in […]
2 Easy Ways to Make Money While Searching the Internet
There are many ways to make money online these days, from writing, to virtual assisting, web testing, selling things on eBay or Craigslist, and more. But one of the easiest ways college students can make money requires little effort, doing something they already do: search the internet. So how can you make money searching the […]
Investing Tip #240: Which Fund Should You Choose?
You will find different types of funds such as an equity fund, bond fund, income fund, balanced fund, sector fund and so on. Within each category there ate sub categories and the list goes on. You have about 10,000 Mutual Funds and ETFs, making your task of selection even more challenging. Go for an S&P […]
Flipping a House in College: What You Need to Know
You’ve seen the shows – buy an ugly house for pennies on the dollar, fix a few rooms, turn around and sell that same house for quadruple what you have in it. But does it really work like that? The truth is flipping a house takes some serious work and is extremely risky. However, it […]
Investing Tip #239: Pick a Mutual Fund and Stick With It
Select a good equity fund. It can be a diversified value or growth fund. Pick it and invest. Don’t sell. Let it grow with time and watch the magic of compounding. The S&P 500 increased tenfold from 170 to 1700 in last 30 years. Historically, a good diversified equity fund quadruples every 10 to 15 […]
Merry Christmas Eve! Recapping The Best Of The College Investor
Merry Christmas Eve! I hope you’re enjoying some great family time. This time of year everything slows down – both online and offline. Well, to give you some reading for your Christmas break, I wanted to recap some of the top articles here on The College Investor in 2014. This has been such an amazing […]
Investing Tip #238: Don’t Be an Overconfident Investor
In the market one person sells and another person buys. Both think that they are smarter. Do not try to prove you are smarter than the market. You are in the market to earn some reasonable returns, not to show your strength by beating the market. If you want to learn more check out these […]
Investing Tip #237: Apply What You Learn
One common shortcoming among investors is that they know investing rules but ignore them while investing. It’s like knowing traffic rules but not following while traveling. Use your learning to be a successful investor. If you want to learn more check out these resources: The Top 10 Investors of All Time How Shark Tank Makes […]
Do Store Loyalty Programs Make You More Loyal?
I’ve been venturing out into the malls over the last few weeks to finish my Christmas shopping, and I’ve noticed a trend – more and more stores are pushing their loyalty programs onto consumers. To me, I feel like this is a bigger push than ever before. From signing and marketing throughout the stores, to […]
Investing Tip #236: Learn from Other Investors’ Mistakes
There are ample examples of unsuccessful investors. Read their case studies and find out common mistakes and strategic errors committed by them. Learn from other investors’ mistakes and avoid making such mistakes. If you want to learn more check out these resources: Review: The Neatest Little Guide to Stock Market Investing Mistakes that Cost These […]
Investing Tip #235: Focus on the Company’s Cashflow
Cash Flow statements reflect more realistic figures of a company’s financial performance. Read and analyze them. There are other financial statements such as the Income Statement, the Balance Sheet, and the Management Discussion and Analysis. These, however, are more prone to manipulation by the company’s management. They may be misleading. It’s not possible to manipulate […]
Investing Tip #234: Manage Your Ego and Emotions When Investing
Behavior Finance says ego and emotion are the greatest enemy in the stock exchange. Losses are always painful. But admit mistakes and accept your losses. This will reduce your further losses. Prompt corrective action is required. This is more true in trading, especially in the derivative market. Time is money. Make sure to manage your […]
What Happens If I Don’t Pay My Student Loans?
I was reading an article yesterday about how 13% of student loan borrowers don’t even consider their student loans to be debt. Crazy? Well, if that didn’t surprise you, it probably also doesn’t surprise you that 13% of all student loans are in default. That works out to 7 million student loans that are behind an […]
Investing Tip #233: Learn from Your Profits and Loss
Periodically review your previous transactions. See what went right and what went wrong. Remember all decisions need not be correct to be a successful investor. Work hard and learn lessons. This will improve your success rate. If you want to learn more check out these resources: The Biggest Investing Mistakes You Can Make How to […]
5 Things to Consider When Choosing a College
Choosing which college to attend can be an exciting and difficult decision. After all, it’s where you will be spending the next four years of your life, where friendships will blossom, and where your formative adult years occur. But there are things to consider when making the decision to attend college, aside from where your […]
Investing Tip #232: Record the Reason for Selling a Stock
Warren Buffett says hold a stock longer, may be even forever. But if you want to sell, record reasons for selling a stock. This will force you to rethink before you decide. It will also create a history sheet to look back n for future reference. If you want to learn more check out these […]