Why leveraged ETFs don’t match the market performance of the indexes they are supposed to track, and how that makes them bad investments.
Investing is a great way to save for the future. This guide to investing is designed to help young adults get started investing in college.
Technology has made it easier than ever to buy stocks online for free, you just have to know what broker to use to get the best deal.
Students looking for new ways of earning money to pay off their college debt is a commonplace; however, many a times students fall for risky ways of making quick cash and end up losing even more money. Online CFD trading is one of the most sought after ways and yet the simplest of them all […]
Every brokerage account has what is called a “sweep” feature or sweep account. It can be both a benefit or a detriment depending on how you use it and what options you selected when you set it up. When you setup a new brokerage account, you usually have to assign what you do with your […]
A big part of investing is knowing what NOT to invest in. For me, I like to invest in companies with a solid plan to profitability, that even a monkey could run, like utility stocks. However, it is essential to avoid companies that have no solid profitability plans, like Best Buy. Here is what I’m […]
In short selling, you sell the stocks you own with the intention to repurchase them when the price declines.
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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 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
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 […]
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 […]
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.
Have you ever heard of momentum investing? Basically, this is the belief that when a stock goes up, it will continue to go up. And, if the stock is taking a dive, you would expect it to continue to go down, and you would invest accordingly. This term has been quite popular as of late, […]
One way to find a good stock is to find one that is trading below net cash value. Sometimes you can find a company’s market capitalization may be less than the cash it holds. Its stock is trading below its net cash value. It is like buying higher cash value by paying less cash. It […]