Category: Learning to Invest
The analysis published under this category are as follows.
Friday, May 11, 2012
Is "Mastering the Gap" the new suckers trap? / InvestorEducation / Learning to Invest
By: Ron_Jaenisch
My email box is full offers for webinars that will teach me to master the gap. Some may provide useful information.
Could buying just because prices have filled the gap be a trap for uneducated investor that generates frustration and losses?
Thursday, May 03, 2012
Stock Market Turning Points: Has Wall Street Ever Warned You in Time? / InvestorEducation / Learning to Invest
By: EWI
In the play "The Secret to Freedom," Pulitzer prize writer Archibald MacLeish had a character say this:
The only thing about a man that is a man is his mind. Everything else you can find in a pig or a horse.Read full article... Read full article...
Tuesday, May 01, 2012
How to Invest Like the Market Oracle of Omaha, Warren Buffetts Rules / InvestorEducation / Learning to Invest
By: Money_Morning
Patrick Vail writes:
For months, the Obama administration has been using Berkshire Hathaway Inc. (BRK.A, BRK.B) Chairman and CEO Warren Buffett's considerable name recognition to try to change how America's top earners are taxed.
The fate of the so-called "Buffett Rule," which would apply a minimum tax of 30% to individuals making more than $1 million a year, still has yet to be determined. Chalk it up to politics as usual.
Read full article... Read full article...
Sunday, April 29, 2012
Why "Boring" Businesses Are More Profitable Than "Exciting" Ones / InvestorEducation / Learning to Invest
By: DailyWealth
Dan Ferris writes: This spring, a reader wrote to me with a complaint...
He was irritated with my coverage of "World Dominating Dividend Grower" stocks (WDDGs).
These stocks are too "boring," he said. Why pay to hear how these companies continue to do the same darn thing day in and day out?
Thursday, April 26, 2012
Investing Advice, Five Ways to Conquer Gambler's Ruin / InvestorEducation / Learning to Invest
By: Money_Morning
Keith Fitz-Gerald writes:
The relationship between investing and profits seems simple enough. You buy low, sell high and your portfolio grows -- or so goes the story.
In reality though, success comes down to something called "Gambler's Ruin."
Most investors have never heard the term but understanding its implications can mean the difference between heartache and success, especially now.
Read full article... Read full article...
Friday, April 20, 2012
Investing Diversification: Is It All It's Cracked Up To Be? / InvestorEducation / Learning to Invest
By: Charles_Carnevale
Investing Diversification: Is It All It's Cracked Up To Be?
There's an old cliché about real estate investing that states that the three cardinal rules are: location- location- location. Clever pundits have borrowed upon this refrain and glibly state that the three most important or cardinal rules of investing are: diversify- diversify- diversify. However, careful analysis will reveal that diversification is a multifaceted concept that has different meanings, benefits and even risks depending on how it's used and what its ultimate purpose is. Therefore, my goal is to examine this ubiquitous investing concept from various angles and perspectives.
Thursday, April 19, 2012
Are Share Rollbacks: Good or Bad for Investors / InvestorEducation / Learning to Invest
By: Dudley_Baker
As a general rule, we hate to see an announcement of a share rollback, however, there exceptions which we cover below. Investors should always be aware that if a company has, say over 150 million shares outstanding, in our opinion, it is a potential candidate for a rollback and the announcement should not come as a surprise.
Tuesday, April 17, 2012
A True Stock Investor’s Most Important Performance Measurement / InvestorEducation / Learning to Invest
By: Charles_Carnevale
Although most people either fail to realize it, or simply refused to accept it, every stock portfolio has two separate and distinct performances. The first, and in my opinion, the least important, is stock price movement. If you buy a stock at $10 a share and it goes to $15 a share it’s a good stock. In contrast, if you buy a stock at $15 a share and it goes to$10 a share it’s a bad stock. Meanwhile, the operating performance (earnings results) is mostly ignored while often irrational price gyrations are excessively fixated upon. Of course, I understand why people behave this way, but I still can’t help but be very frustrated by this behavior.
Saturday, April 07, 2012
It's Time to Change the Way You Think About the Stock Market / InvestorEducation / Learning to Invest
By: DailyWealth
The Daily Crux: What does it mean to value a stock as a business? How does it differ from the way most investors think about investing?
Friday, April 06, 2012
Don’t Look to the Stock Market for Advice / Stock-Markets / Learning to Invest
By: Vitaliy_Katsenelson
In the classic book The Wizard of Oz, the Wizard decreed that everyone who entered the Emerald City wear green-tinted glasses. Visitors and citizens were told that this was to protect them from the “brightness and glory.” In truth, though, the Wizard had lost his mojo and become a run-of-the-mill charlatan. There was no brightness and glory, just an ordinary city built out of stone and glass.
Tuesday, April 03, 2012
The Best Exit Strategy for Any Investment / InvestorEducation / Learning to Invest
By: DailyWealth
So... when do YOU sell?
What? You don't know? How could you not have any kind of plan?
Let's say you hold shares of Apple today at over $600 a share. You bought them a couple months ago below $400 a share. When is the right time to sell?
Monday, March 26, 2012
How to Think Like a Mad Man, Find your Edge & Risk Little for Lots / InvestorEducation / Learning to Invest
By: Aftab_Singh
The enigma that is eccentricity can be unravelled by grasping of this single statement; that which you perceive is both a matter of the object of your perception (in this case; the eccentric person) and your apparatus of perception. Eccentricity, then, is as much a quirk of the popular mind as it is of a particular person. So with the assumption that you seek creativeness and intrigue — here’s how to think eccentrically, find your edge and risk little for lots.
Friday, February 10, 2012
The Investment Lesson Behind the Kodak Bankruptcy / Companies / Learning to Invest
By: Money_Morning
Martin Hutchinson writes:
The recent bankruptcy of Eastman Kodak reminds investors they don't make companies like they used to.
Founded in 1892, Kodak shows that very few of these 19th century giants exist anymore.
Companies, like washing machines, just don't have the staying power they used to. Even the largest companies these days are unlikely to outlast a 40-year investing career.
Read full article... Read full article...
Wednesday, February 08, 2012
Do Low Interest Rates Power Stock Markets Higher? / Stock-Markets / Learning to Invest
By: EWI
Back in the day, one of the first things I "learned" about investing was that low or declining interest rates are good for stock prices.
I've since had to "unlearn" this.
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Tuesday, February 07, 2012
The Value Trap of Deeply Cyclical Stocks / InvestorEducation / Learning to Invest
By: Vitaliy_Katsenelson
Just as it is easier to draw straight lines than to think in nonlinear terms, it is simpler to buy stocks that have gone up a lot over the previous decade than to remain committed to the ones that have done nothing. However, linearity is for suckers. Success in investing comes from being able to see not what is in front of you but what is lurking just around the corner.
Thursday, December 29, 2011
Cause and Effect, the Stock Market Is Not Physics / InvestorEducation / Learning to Invest
By: EWI
The following series is excerpted from two classic issues of Robert Prechter's Elliott Wave Theorist. Although originally published in 2004, the valuable series has been re-released in the Independent Investor eBook, along with over 100 pages of other reports that challenge conventional economic thinking.
Friday, December 23, 2011
The Stock Market Is Not Physics: Part II / InvestorEducation / Learning to Invest
By: EWI
The following series is excerpted from two classic issues of Robert Prechter's Elliott Wave Theorist. Although originally published in 2004, the valuable series has been re-released in the Independent Investor eBook, along with over 100 pages of other reports that challenge conventional economic thinking.
Here is Part II of the series. You can read Part I here. Check back in a few days to read Part III, or you can download your free copy of the Independent Investor eBook here.
Read full article... Read full article...
Sunday, September 04, 2011
Money: How to Get It and Keep It / InvestorEducation / Learning to Invest
By: Casey_Research
Doug Casey, Casey Research writes: Even if you are already wealthy, some thought on this topic is worthwhile. What would you do if some act of God or of government, a catastrophic lawsuit or a really serious misjudgment took you back to Square One? One thing about a real depression is that everybody loses. As Richard Russell has quipped, the winners are those who lose the least. And as far as I’m concerned, the Greater Depression is looming, not just another cyclical downturn. You may find that, although you’re far ahead of your neighbors (you own precious metals, you’ve diversified internationally and you don’t believe much of what you hear from official sources), you’re still not as prepared as you’d like.
Friday, July 15, 2011
When To Buy A Stock That’s Been Correcting / InvestorEducation / Learning to Invest
By: David_Grandey
At some point, a stock that’s been on a big run, will turn tail and go into a correction. Such behavior is normal, it allows investors to take profits and buy again or add to their current position at lower prices.
But often the initial selling can be intense and scary, making it difficult to navigate the ideal time to buy the stock as no one likes catching a falling knife. For those who understand chart pattern recognition, the ideal time to buy eventually becomes clear. SLV below offers a good example:
Tuesday, July 12, 2011
Stock Sound Bases Vs. V-Shaped Bases / Companies / Learning to Invest
By: David_Grandey
Don’t get us wrong, we are all for buying breakouts into new highs. But we do so with a catch and that is — OFF OF SOUND BASES VS V SHAPED BREAKOUTS.
Below is TSCO which is a good example of a sound breakout.
Thursday, June 16, 2011
Lessons that Will Change the Way You Invest Forever / InvestorEducation / Learning to Invest
By: EWI
Greetings Investor,
"Successful market timing depends upon learning the patterns of crowd behavior. By anticipating the crowd, you can avoid becoming a part of it."
Read full article... Read full article...
Wednesday, May 11, 2011
Time to Get Rich, the Compounding Process / Personal_Finance / Learning to Invest
By: Gary_North
"If I had just known at age 18 what I know today!" That lament is among the most universal among people aged 50 or older. Is there any society in which it cannot be heard?
I was reminded of this when I watched a video of half a dozen of coach John Wooden's most talented basketball players. It was produced in 2010, just after his death at age 99. He had retired 35 years earlier, yet he was still remembered and admired.
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Tuesday, April 05, 2011
Confessions of an Investor, the Problems Modern Portfolio Theory / InvestorEducation / Learning to Invest
By: John_Mauldin
“Tail risk (the risk of large losses) is dramatically underestimated by many investors and the tools we have available to manage such risks are hopelessly inadequate. Financial theory which is taught at business schools and universities all over the world is plainly wrong.” This week we turn to my friend Niels Jensen of Absolute Return Partners in London for our Outside the Box offering, in which he looks at tail risk, Modern Portfolio Theory, and a risk he identifies as Birthday Risk. It is a lively and easy read, which is also designed to make you think about your basic investment principles.
Thursday, March 31, 2011
How to Beat the Stock Market by Following Five Simple Rules / InvestorEducation / Learning to Invest
By: Money_Morning
Keith Fitz-Gerald writes:
Most investors operate on some variation of the "set it and forget it strategy."
And that's why - more often than not - they're surprised by the terrible things that happen to their money when the stock market stumbles.
Read full article... Read full article...
Tuesday, March 22, 2011
The Seven Immutable Laws of Investing / InvestorEducation / Learning to Invest
By: John_Mauldin
I am in London this morning, just a few miles (in theory) from the writer of this week's Outside the Box. James Montier, now with GMO, is one of my favorite analysts. I read everything he writes, and my only complaint is that he does not write enough. Today he offers us his thoughts on what he calls the "7 Immutable Laws of Investing."
Thursday, March 10, 2011
Investing Mantra, Not to Convince, But to be Convinced / InvestorEducation / Learning to Invest
By: Victor_Chan_Wai_To
The most valuable mantra in investing goes by: “Not to convince, but to be convinced.” A good investor does not take unnecessary chances and then convince himself that everything would be alright. Rather, he would wait until the right opportunity comes by and convinces him that it is the choice to make. In other words, a winning investor always abides in stillness until a high-probability signal dawns on him.
Tuesday, February 15, 2011
Game-Changing Companies Eat People / InvestorEducation / Learning to Invest
By: John_Mauldin
This week’s Outside the Box is a little unusual, even for me. But it will be fun, informative, and thought-provoking. My friend Andy Kessler has written another irreverent, gonzo book called Eat People: And Other Unapologetic Rules for Game-Changing Entrepreneurs. He has graciously allowed me to copy his introduction as this week’s missive.
Andy gives us 12 Rules and a Bonus Rule that characterize game-changing companies. They are: Scale, Waste, Horizontal, Edge, Productive, Adaptive, Eat People, Markets, Exceptionalism, Market Entrepreneur, Zero Marginal Cost, Virtual Pipe, and Highest Return. Find a company that embodies these rules early, and you get in on the ground floor of the next Apple or Microsoft.
Monday, February 07, 2011
The Case Against Investor Portfolio Diversification / InvestorEducation / Learning to Invest
By: EWI
Talk with an investment advisor, and what's the first piece of advice you will hear? Diversify your portfolio. The case for diversification is repeated so often that it's come to be thought of as an indisputable rule. Hardly anyone makes the case against diversifying your portfolio. But because we believe that too much liquidity has made all markets act similar to one another, we make that case. Heresy? Not at all. Just because investment banks and stock brokerages say you should diversify doesn't make it true. After all, their analysts nearly always say that the markets look bullish and that people should buy more now. For a breath of fresh air on this subject, read what Bob Prechter thinks about diversification.
Thursday, January 13, 2011
Five Investor Strategies to Control Market Greed / InvestorEducation / Learning to Invest
By: Jared_Levy
Many of us (myself included) are drawn to the markets by the same force that can destroy our accounts: greed. While there are several ways in which greed can hurt us, there are five personal strategies that we can employ to control the market greed that is woven into our social fabric.
Thursday, January 06, 2011
Getting Rich Investing... No Special Skills Required / InvestorEducation / Learning to Invest
By: DailyWealth
Dr. Steve Sjuggerud writes: Want to get rich investing?
Today, I'll show you how I've succeeded... The great thing about what I do is you can do it too. No special skills are required.
You don't need to be a math or computer whiz. You don't need to spend all your waking hours watching stock quotes on your computer or CNBC.
Tuesday, January 04, 2011
New Year's Resolutions That Will Bolster Your 2011 Investment Portfolio / InvestorEducation / Learning to Invest
By: Money_Morning
Shah Gilani writes:
If everyone kept their New Year's resolutions, most of America would be thin, fit and rich.
That's because the three most popular resolutions tend to involve dieting, working out and improving the family finances.
Read full article... Read full article...
Friday, December 17, 2010
Why It's Dangerous to Diversify Your Investment Portfolio / InvestorEducation / Learning to Invest
By: EWI
A free report from Elliott Wave International reveals the risks of portfolio diversification
Despite near-unanimous endorsement among mainstream advisors, the strategy of portfolio diversification has a huge, glaring flaw: Namely, when large sums of liquidity begin to flow into global investment markets, formerly disparate trends become strongly correlated. And markets that go up together ultimately go down together; in turn, the value of diversified portfolios goes down with them.
Read full article... Read full article...
Wednesday, December 08, 2010
How the Banking Industry Works - Xtranormal Video / InvestorEducation / Learning to Invest
By: Mike_Hewitt
Julia Sanders interviews Thomas Lloyd, an investment banker of ABC Wealth Management, resulting in a satiric exposition of the banking industry.
Wednesday, November 24, 2010
Doug Casey’s Secret to Finding Winning Stocks / InvestorEducation / Learning to Invest
By: Casey_Research
Doug Casey – The Eight Ps of Resource Stock Evaluation : I’ve been asked “What’s the secret of finding winning gold, silver, and other natural resource stocks?” more times than I can even begin to count. And for over 20 years, my answer has remained pretty much the same: the Eight Ps.
Tuesday, November 09, 2010
Time to Fine Tune Your Investment Portfolio / Portfolio / Learning to Invest
By: Nilus_Mattive
In my last couple of columns, I told you about two different portfolios that I’ve been running, both of which contain dividend stocks and have been performing very strongly.
That prompted some of you to write in asking what differentiates these two portfolios. It’s a great question and it raises the bigger issue of how you can tweak your own portfolio to better suit your goals and individual tolerance for risk.
Read full article... Read full article...
Sunday, November 07, 2010
Understanding Contrarian Stock Market Analysis / InvestorEducation / Learning to Invest
By: Jeff_Neal
Traders have employed contrarian type analysis methods for years in an effort to garner market profits. Over the years the indicators that can be employed by the contrarian have grown but the major theme has remained the same and that is focus on what the majority is doing right now as well as what particular directional bias they currently possess. Contrarian analysis seeks out potential buying and selling strength by measuring investor expectations.
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Tuesday, November 02, 2010
How to Protect Your Portfolio with Stock Options Insurance Policy / InvestorEducation / Learning to Invest
By: Money_Morning
Larry D. Spears writes:If you don't deal a lot with stock options in your investments, you probably don't realize just how versatile options actually are.
In fact, stock options can be used:
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Thursday, October 28, 2010
Investor Portfolio Diversification is Essential, Don't Put All Your Eggs in One Basket / InvestorEducation / Learning to Invest
By: Dudley_Baker
The natural resource sector has been performing extremely well of late and we are of the opinion that we are still in the early stages of an explosion in share prices. Gains of 100's of percent will be common but not without some risk.
Each investor must decide their own level of comfort and risk tolerance as measured again the potential gains to be made in the coming months.
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Thursday, October 14, 2010
How to Invest for Just Half the Year And Beat The Stock Market / InvestorEducation / Learning to Invest
By: DailyWealth
Dr. Steve Sjuggerud writes: It's crazy, but true…
You can invest for just half the year and take the other half off… and beat the market.
It sounds crazy, but it's worked extremely well over the last 60 years.
Sunday, October 03, 2010
Flash Stock Market Crash, the Dark Side of Stop Loss Orders / InvestorEducation / Learning to Invest
By: Richard_Shaw
We are proponents of persistent percentage trailing stop loss orders to protect against significantly declining markets. If more investors used stop loss orders, fewer investors would have been devastated by the the 2008 stock market crash. Just like seat belts and airbags that save lives in auto crashes, stop loss orders save portfolios in market crashes. However, in a small minority of cases, seat belts or airbags are a partial cause of injury in an auto crash. Similarly, in a small minority of cases, stop loss orders are a partial cause of investment losses.
Friday, August 27, 2010
Three Elements of Investment Success / / Learning to Invest
By: Christopher_Quigley
1. Compounding
Success in a career in investing requires knowledge, patience, focus and discipline. It is not a path to “getting rich quick”. When you see such “quicky” schemes advertised for any investment “product” you should run a mile. “Quick rich” schemes aside, disciplined investing can offer excellent returns when married to the “magic” of compounding.
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Wednesday, August 11, 2010
Defensive Investing: Use Dollar-Cost Averaging to Reduce Volatility Risks / InvestorEducation / Learning to Invest
By: Money_Morning
Larry D. Spears writes: Dollar-cost averaging has long been a strategic staple among mutual fund buyers. Longer-term investors use it to smooth out the effects of short-term price fluctuations, but the tactic seldom has been practical for purchasers of individual stocks - that is until now.
Tuesday, August 10, 2010
How to 'Stress Test' Your Investment Portfolio / Portfolio / Learning to Invest
By: Money_Morning
Jack Barnes writes: Back when I was a portfolio manager, I was always looking at ways to "stress test" my portfolio. In other words, I was on the constant lookout for ways to hedge my holdings, guard against risk, and to anticipate anything the market could throw at the stocks, bonds, options and other investments contained in my portfolio.
Friday, July 30, 2010
Cruise Control Hedging: The Basics of Investing / InvestorEducation / Learning to Invest
By: Steve_Selengut
Most people enter the investment arena thinking that "Risk" is a board game they played in college. Today, I would guess that the majority of investors have never owned an individual share of common stock or a Municipal Bond.
The popularity of investment products has heightened the risk for all investors and has indirectly led to many of the policy errors that threaten both capitalism and the economic fabric of America. Market prices are increasingly and inappropriately influenced by decision-making based only on the derivatives that contain them.
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Friday, July 30, 2010
Ten Risk Minimization Strategies / InvestorEducation / Learning to Invest
By: Steve_Selengut
In the recent financial crisis, a very small percentage of (I bought my house to live in) homeowners stopped paying on their mortgages. Still, the hysteria over the bursting housing bubble (i.e., lower market values) led to financial institution road-kill because of ridiculous accounting rules.
When the dot-come bubble destroyed "new economy" gladiators in a gory spectacle destined to repeat itself over time, what investment portfolios cheered unscathed from the coliseum bleachers?
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Saturday, July 24, 2010
The Number One Reason You Should Learn How to Short Stocks / InvestorEducation / Learning to Invest
By: Justice_Litle
There are many good reasons to learn how to go short. One of the best ones is maintaining objectivity.
The vast majority of investors will never short a stock (or an index, a commodity or a currency for that matter). A modest contingent will experiment with options and inverse ETFs. But very few will ever take the time and effort to truly explore the “dark side” of financial markets.
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Tuesday, July 20, 2010
Investment Grading Equity Analysts: Failed & Over Bullish for 25 Years / InvestorEducation / Learning to Invest
By: Dian_L_Chu
Investment analysts' upgrades/downgrades have historically served as benchmarks for the markets, and could mean life or death to stock prices. However, the story of a 15% price swing in ATP Oil and Gas's (ATPG) stocks due to a $450-million math error by a JP Morgan (JPM) analyst probably has prompted some to question the value and validity of analysts' forecasts.
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Thursday, July 15, 2010
Seven Golden Investor Rules To Keep You Safe in Today’s ‘New Normal’ Stock Markets / InvestorEducation / Learning to Invest
By: Money_Morning
Shah Gilani writes:
Pundits are talking about the "New Normal," a not-so-subtle hint at the sub-par growth that's expected from the U.S. economy.
Those pundits have picked the right book. But as far as investors are concerned they're reading from the wrong chapter. The "New Normal" isn't just about the economy. It's an epic story about not-so-great expectations - for the financial markets.
Read full article... Read full article...
Monday, July 12, 2010
Habits for Confident Investors / / Learning to Invest
By: Frank_Holmes
A New York Times columnist is calling for another depression, volume is rising on the “double-dip” recession debate, and a well-known technical analyst is predicting that a 90 percent plunge is coming for the Dow Jones average.
Ambitious doom-and-gloomers are racing to the bottom to conjure up the most apocalyptic market scenarios – it’s small wonder why many investors are curled up in the fetal position.
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Tuesday, June 08, 2010
Eight Ways to Tell If You Should Hold or Fold Your Mutual Fund Investment / InvestorEducation / Learning to Invest
By: Money_Morning
Larry D. Spears writes: With the whipsaw patterns U.S. stocks have experienced in recent weeks - both the Dow Jones Industrial Average and Standard & Poor's 500 Index are down 12% from their highs for the year - even the most ardent buy-and-hold investors are studying their portfolios, searching for holdings to cull.
Monday, May 24, 2010
Stock Market Investors Don't Go with the Flow / / Learning to Invest
By: Douglas_French
Anyone who follows financial markets has to wonder at times, "What are people thinking? How did they come to make those decisions?"
It's hard to imagine that John Muth and Robert Lucas came up with what's known as the "rational-expectations theory," wherein, as explained in Wikipedia,
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Thursday, April 15, 2010
Stocks Sell Now, Buy Later the ABCs of Short Selling / Stock-Markets / Learning to Invest
By: Casey_Research
By Jake Weber, Editor, The Casey Report writes:
The catch phrases “Buy low, sell high” and “The market fluctuates” are probably the two most frequently used clichés of the investment world. The latter statement is hardly astute, and the former far easier said than done. What both of these simplistic ideas overlook is a third concept largely ignored by the investing public, “Sell now, buy later.”
Tuesday, April 13, 2010
How To Buy Stocks In An Extended Market / InvestorEducation / Learning to Invest
By: David_Grandey
What should you do with an extended market or shall we say a market that doesn't pullback? When you look at the indexes, that's what we have right now.
But first let's talk corrections and consolidations -- specifically of issues that are in clearly defined uptrends. We define clearly defined uptrends a stocks that make higher highs and trade above the 50-day moving average.
Saturday, April 10, 2010
How to Set Stop Loss Levels / InvestorEducation / Learning to Invest
By: Richard_Shaw
We increasingly receive questions about how to set stop loss levels. Let’s look at one objective, data driven way to do that.
You may be a better way, and that’s good thing, but if you don’t have a way, and you need a way, this discussion may be a helpful starting place to design your own stop loss setting method.
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Monday, March 22, 2010
Stock Market Lessons From Legendary Small Cap Investors / InvestorEducation / Learning to Invest
By: Joseph_Dancy
It has been said that Shelby Davis was one of the best investors the public has never heard of—unlike the well known Warren Buffett and Charlie Munger of Berkshire Hathaway fame.
Sunday, March 14, 2010
What's Your Investment IQ? / InvestorEducation / Learning to Invest
By: Steve_Selengut
Many of the things you think you know about investing are part of a mythology designed to make you bounce around between investment products. Modern day "conventional wisdom" just isn't all that its cracked up to be. Concepts you worship are inaccurate; indices and averages you trust do not tell the complete story; the basic investment concepts still work --- but Wall Street won't tell you what they are.
Thursday, March 04, 2010
How to be a Contrarian Stock Market Investor / InvestorEducation / Learning to Invest
By: Hans_Wagner
“Whenever you find yourself on the side of the majority, it’s time to pause and reflect.” – Mark Twain
Contrarian investors believe that following the crowd leads to losses and missed opportunities. When the crowd reacts to news or speculation about a stock or the market, the price can rise of fall so far, that has mis-priced the value of the company or the market.
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Tuesday, March 02, 2010
Buffets Berkshire Hathaway New Investing Lessons for 2010 / InvestorEducation / Learning to Invest
By: Nilus_Mattive
It’s no secret that I’m a huge fan of Warren Buffett (and his business partner Charlie Munger, too). That’s why I eagerly await the release of Berkshire Hathaway’s annual shareholder reports.
Thursday, February 18, 2010
Sign-up for Perfect Portfolio Investing 2010 Webinar this Friday / InvestorEducation / Learning to Invest
By: INO
On Friday, Adam is going to go into detail about this hypothetical
portfolio and it's conservative strategy. This set-up is "perfect"
for those of us who don't want to look at our brokerage accounts
every day.
Wednesday, February 17, 2010
Income Investing And What You Really Know About It - Survey Results / InvestorEducation / Learning to Invest
By: Steve_Selengut
The results are in! Roughly 260 people took the time to respond to the income investing survey and I thank y'all very much for being so generous with your time. First, the generalizations:
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Wednesday, January 20, 2010
How to Profit in Any Kind of Market / InvestorEducation / Learning to Invest
By: Money_Morning
Keith Fitz-Gerald writes: When it comes to the global financial crisis, many so-called "experts" think the worst is behind us. But I don't buy it.
And I'm not alone.
Wednesday, January 13, 2010
Stock and Bond Investors Perils of Relying on Black Box Price Data / InvestorEducation / Learning to Invest
By: Richard_Shaw
Investors today rely greatly on web data sources, but must for their own safety never forget that while most of the time most of the data is good, sometimes it is not — or is not what you think it is. Before taking capital risk based on web data, use basic logic as a reality check and alternative sources for confirmation that what you are viewing is reasonable.
Tuesday, December 29, 2009
The Market Cycle Investment Management (MCIM) Program / InvestorEducation / Learning to Invest
By: Steve_Selengut
During the past sixty years, most economic, market, and interest rate cycles have lasted from two to five years, peak-to-peak. Rarely have any of the cycle-tracking market indices moved in tandem, and none of the cycles are considered to be particularly predictable.
Saturday, December 26, 2009
End of Year Stock Market Portfolio Rebalancing 101 / InvestorEducation / Learning to Invest
By: Zeal_LLC
Year-end is always a time of reflection, a rare opportunity where the usual psychological boundaries of time crumble. For a couple weeks, the tyranny of the present yields to a heightened consideration of the past and the future. This rift in our everyday thought patterns leads many investors to ponder the composition of their portfolios, making this time of year the primary season for portfolio rebalancing.
Tuesday, December 22, 2009
Robert Prechter Exposes the Ten Most Dangerous Stock Market Myths / InvestorEducation / Learning to Invest
By: EWI
Free 33-page Investment eBook: Our friends over at Elliott Wave International have just released a brand-new ebook to help you sell and fold bad investment advice forever. EWI's 33-page Market Myths Exposed eBook takes the 10 most dangerous investment myths head on and exposes the truth about each in a way every investor can understand. Please learn more about the 33-page Market Myths Exposed eBook, and download your copy now.
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Monday, December 21, 2009
Stock Market Myths Exposed / InvestorEducation / Learning to Invest
By: EWI
Free 33-page Investment eBook: Our friends over at Elliott Wave International have just released a brand-new ebook to help you sell and fold bad investment advice forever. EWI's 33-page Market Myths Exposed eBook takes the 10 most dangerous investment myths head on and exposes the truth about each in a way every investor can understand. Please learn more about the 33-page Market Myths Exposed eBook, and download your copy now.
Wednesday, December 02, 2009
Stock Market Sector Equal Weight Investing Strategies / InvestorEducation / Learning to Invest
By: Hans_Wagner
Many successful investors follow sector investing. Some of the largest funds and ETFs including the SPDR S&P 500 Index ETF (SPY) base their portfolio allocation on the capitalization weighted S&P 500 index. This sector investing strategy allows you to match the market as defined by the S&P 500. Another sector investing method is to weight each sector equally.
Monday, November 30, 2009
Stocks & Bonds Price Returns vs Total Returns / InvestorEducation / Learning to Invest
By: Richard_Shaw
Price return is one thing, and total return is another. Most securities charts show price performance.
Total return for yielding securities is greater than price return, because it considers both price changes and investment income. Because some securities are yielding and some are not, and because some securities have low yields while others have high yields, total return is a better indicator of the value of owning a security than price return.
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Monday, November 23, 2009
Initial Public Offering, IPO Investors Primer / InvestorEducation / Learning to Invest
By: Jay_DeVincentis
Here's a stock and an education all wrapped up in one.
This week's stock update: Since March, the market has rallied strongly and leaves many stocks in various set ups. As I'm sure you're aware, it would be great to have a time machine and go back to March and bet the farm. In hindsight, that would be the best time to trade stocks breaking out of bases. We don't have the luxury of hindsight, but we do have stocks in various setups in the wake of this advance. We'll talk about them here and how best to trade them.
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Thursday, November 12, 2009
Top 10 Rules for Successful Investing / InvestorEducation / Learning to Invest
By: Money_Morning
Keith Fitz-Gerald writes: With all the financial woes in the global economy, the worst thing an investor can do is to “freeze up.” With all the ups and downs in the market, it’s all too easy for investors to allow their emotions to take control. That’s when the smallest mistakes turn into the biggest mistakes.
Sunday, November 08, 2009
Mistakes When Investing With A Commodity Trading Advisor / InvestorEducation / Learning to Invest
By: Andrew_Abraham
There are exist numerous mistakes when investing with a commodity trading advisor. After being on both sides of allocating to commodity trading advisors as well as being one myself it has become very clear to me some of the mistakes that investors make.
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Monday, October 26, 2009
Hedge Fund Investing / InvestorEducation / Learning to Invest
By: Money_and_Markets
Monty Agarwal writes: Hedge funds and the managers who run them have been getting a lot of publicity lately — and not of the flattering kind.
We have massive Ponzi schemes, equally massive losses and outsized systemic risks that are enough to frighten away even the hardiest of investors.
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Sunday, October 25, 2009
Forecasting and Trading, Nadeem Walayat's Trading Lesson's / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
Over time one learns the important difference between forecasting, which is scenario building and trading, which is reacting to price movements in real time. Why forecast ?
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Tuesday, October 13, 2009
Do You Really Have a Diversified Portfolio? / Portfolio / Learning to Invest
By: Andrew_Abraham
I have heard so many times when speaking to investors that they have a diversified portfolio. I ask further and I have been told that they maintain a diversified portfolio of stocks consisting of both domestic and international companies. My immediate question is, are you really reducing your risk? Especially in these times it is paramount to have a diversified portfolio and try to mitigate some of inherent risks.
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Friday, October 02, 2009
MEB, the Stock Market Investing System That Beats the Market / InvestorEducation / Learning to Invest
By: DailyWealth
Dr. Steve Sjuggerud writes: If I weren't working on the same research myself, I wouldn't have believed it's possible...
The results of this system are so powerful, I hesitate to share them with a large audience. But I get paid to share the best investment ideas I find. So I feel compelled to tell you about this one...
Thursday, September 10, 2009
How to Outsmart 75% of Other Investors / InvestorEducation / Learning to Invest
By: Money_Morning
Keith Fitz-Gerald writes: Back in mid-June, more than 75% of the investors responding to a CNNMoney poll said they were planning to buy stocks - many of them aggressively.
Of the 41,572 people polled, it now looks like those 31,179 bullish investors kept their word.
Wednesday, September 02, 2009
Investment Performance Expectations And Broker Account Statements / InvestorEducation / Learning to Invest
By: Steve_Selengut
As impossible as it is to predict the future of the markets, it's relatively easy to anticipate what you are going to experience when you view your next brokerage account statement.
Whether you go the discount route through Schwab, Ameritrade, Fidelity, etc., or enjoy a higher level of service through an independent like LMK Wealth Management, you should never be surprised by the market values reflected on your monthly statement.
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Wednesday, August 26, 2009
Golf and Investing: Optimism, Focus, and Education / InvestorEducation / Learning to Invest
By: Steve_Selengut
You knew it the moment it left the club, that spark at contact when you catch it just right. You look up. It's just reaching the top of its climb--- and heading down right at the pin, a pin positioned left of center on the elevated green, much too close to the water.
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Tuesday, August 11, 2009
Dollar Cost Averaging Stock Market Investment Strategy Still Works / InvestorEducation / Learning to Invest
By: Money_and_Markets
Nilus Mattive writes: More than a year ago — when the S&P 500 had begun to wobble but still sat comfortably near 1,400 — I wrote a column right here in Money and Markets talking about dollar-cost averaging.
I said that the strategy “puts time on your side, and allows you to kick back and relax a lot more in the process.” I went ahead to say that “it’s a great way to deal with the kind of bumpy markets we’re seeing right now.”
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Wednesday, July 29, 2009
Rocky Balboa on Investing / InvestorEducation / Learning to Invest
By: Richard_Shaw
Rocky Balboa actually never talked about investing, but while preparing for a fight he said ” It ain’t how hard you can hit. It’s how hard you can get hit.”
Those words from a simple man are a simple explanation of part of our approach to investment decisions for those of our clients who have completed the accumulation stage of their financial lives, and now rely on their assets to support lifestyle.
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Friday, July 24, 2009
Investment Portfolio Diversification & Risk / Portfolio / Learning to Invest
By: Andy_Sutton
The cliché’s are plentiful and well known. Putting all of one’s eggs in a single basket is probably the most popular example. One of the biggest manifestations is when an investor looks at their portfolio and realizes that it is grossly underperforming a particular market index or that the same portfolio has performed much worse than a given benchmark. Even if you’ve done everything right and selected the right themes, industries, and firms, if you get the portfolio mix wrong, you can still have problems. This is one of headaches that mutual funds are generally supposed to relieve investors of, but for a litany of reasons, it doesn’t seem to always work out that way. In truth, every individual portfolio is a mutual fund of sorts, and so the same rules apply.
Tuesday, July 14, 2009
Is Your Stock Portfolio Under Water? / Portfolio / Learning to Invest
By: Dudley_Baker
Let’s be honest, these are very challenging times to be an investor. Regardless of all of the positive spin from CNBC and from many newsletter writers and analysts this has not been the best of times to be ‘in the game’.
For those of us who are ‘in the game’ the question now is what do you do? How do you proceed today? How can you limit your risk going forward?
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Saturday, July 11, 2009
Basic Financial Markets Analysis Part3 / InvestorEducation / Learning to Invest
By: Andy_Sutton
Before we begin, it must be understood that there are many perceptions of value. In fact, if you took 10 investment professionals polled them individually; you’d likely get several very different definitions of value. If you put them together and forced them to come to a consensus, you would do well not holding your breath waiting for an answer. While there is no one right definition – especially in the investing world, what we are looking to do is select a metric or some group of metrics that applies to our particular situation. Again, investing should not be approached with a ‘one size fits all’ mentality. It must also be said that this list is not a comprehensive one, but rather a sampling of some of the methodologies available for ascertaining value.
Thursday, July 09, 2009
Three Investing Lessons From the Tour de France / InvestorEducation / Learning to Invest
By: Money_and_Markets
Ron Rowland writes: The Tour de France is underway! Here in Austin many of us are fans of local hero Lance Armstrong. His record-breaking seven Tour victories are an inspiration to anyone facing a big challenge.
Wednesday, July 08, 2009
Investors Follow the Herd? Or Reason? / InvestorEducation / Learning to Invest
By: Axel_Merk
Kieran Osborne writes: How do you diversify when all asset classes are moving in tandem? This was a key question many faced at the height of the financial crisis, when all asset classes were plunging together, but is an issue that remains today. We have long held concerns over the increased tendency for the values of different asset classes to move in the same direction simultaneously, as was the case leading up to the crisis, throughout the crisis, and today. In fact, according to Bloomberg, the correlation coefficient that measures how closely markets rise and fall together has reached the highest level ever.
Thursday, July 02, 2009
Basic Financial Markets Analysis Part2 / InvestorEducation / Learning to Invest
By: Andy_Sutton
Last time we discussed the concept of valuation for some different types of investments and the formation of themes that can be used to help zero in on potential areas for focus. This week we’ll take a look at some ways of breaking down industries and sectors, sizing companies, then connecting the dots between economic themes and investment needs.
Thursday, July 02, 2009
Understanding The Dangers of Leveraged ETFs / InvestorEducation / Learning to Invest
By: Money_and_Markets
Ron Rowland writes: You’ve probably heard about leveraged ETFs: Funds designed to deliver twice or even three times the return of their benchmarks.
Just last week, ProShares launched the first triple-leveraged ETFs tied to the S&P 500 index. ProShares UltraPro S&P 500 (UPRO) is a 3x ETF for bulls, while ProShares UltraPro Bear S&P 500 (SPXU) is a 3x leveraged inverse ETF.
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Tuesday, June 30, 2009
May The Investment Force Be With You / InvestorEducation / Learning to Invest
By: Steve_Selengut
Investment markets got you down, Bunkie? Been blown away by derivative stun guns? When will portfolio market values move back to 2007 levels--- and then what will you do about it?
Wednesday, June 24, 2009
Stock Market Investing Long-term Buy and Hold Still Bad Advice / InvestorEducation / Learning to Invest
By: Mike_Shedlock
In spite of what you hear from main stream media and self-serving advice from Wall Street, an investment philosophy of long term buy and hold is not what it's cracked up to be.
Unfortunately, many boomers headed into retirement are finding that out now, at the worst possible time. Moreover, looking ahead, I doubt the next decade is not going to be much better than the last.
Wednesday, June 24, 2009
Investors Don't Get Trapped in the Next Asset Bubble / InvestorEducation / Learning to Invest
By: LewRockwell
Gary North writes: I have identified the next bubble. It has already begun. It is in full swing.
Investors want to identify the next big bubble. Some investors want to buy in now, maybe using borrowed money (margin loans) to make a killing. They are confident that they will sell out near the top. They won't. Other investors just want to avoid getting trapped. They prefer to let the first group bear the uncertainty of profiting from a bubble sector.
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Saturday, June 20, 2009
Investor Downside Risk Protection, Stop Loss Orders vs. Protective Put Options / InvestorEducation / Learning to Invest
By: Hans_Wagner
If you have been investing for a while, you know it is good practice to have a stop loss in place. You might have heard that pros use protective put options to reduce their downside risk. It is always important to have downside protection on any stock position you own. Investors use stop loss orders and protective put options to provide this protection. The stop loss is the most popular. However, many professional investors use protective puts to insure against losses. Which is the best method for you?
Saturday, June 20, 2009
Basic Financial Markets Analysis – PartI / InvestorEducation / Learning to Invest
By: Andy_Sutton
In an age of green shoots, fluff, and spin, it is probably worthwhile to put our feet on the ground every so often and take a look at some old fashioned ways that we might value a project, a firm, or capital stock. Too many times over the past 15 years in particular, investors have been lured into various valuation traps. Probably the most noteworthy was the dotcom era of the late 1990’s and the first part of the 21st century. Not a great start to a new millennium. And so the trend has been that each time the investing public deviates from the ‘old fashioned’ rules of finance and analysis, there is always a good whipping waiting just around the bend.
Wednesday, June 03, 2009
Managing Your Investment Expectations / InvestorEducation / Learning to Invest
By: Dudley_Baker
In all aspects of our lives we need a plan, an objective or a roadmap for managing our expectations. This extends to our investing and financial objectives as well as expectations and challenges of dealing with family issues. Here we would like to chat about investor’s expectations, especially those investors in the natural resource sector.
Friday, May 29, 2009
How to Stay Safe in this Stock Market / InvestorEducation / Learning to Invest
By: Q1_Publishing
Is this a “normal” market?
GM is bankrupt. Unemployment is rising every month. Oil prices are up 90% in six months. And the market goes up.
Read full article... Read full article...
Tuesday, April 28, 2009
I Hate Reverse Stock Splits / InvestorEducation / Learning to Invest
By: Dudley_Baker
I started to title this piece, ‘These Guys Are Killing Us’. Where I am coming from is that over the last eight months or so many of the junior mining companies have required additional financing to meet current requirements. In better times and at substantially higher prices, the raising of additional monies and the issuance of more shares and warrants could have been accepted, at least reluctantly, by shareholders.
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Thursday, April 23, 2009
Investment Performance Evaluation Re-Evaluated: Part Two / InvestorEducation / Learning to Invest
By: Steve_Selengut
The Working Capital Model (WCM) looks at investment performance differently, less emotionally, and without a whole lot of concern for short-term market value movements. Market value performance evaluation techniques are only used to analyze peak-to-peak market cycle movements over significant time periods.
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Wednesday, April 22, 2009
Investment Performance Evaluation Re-Evaluated: Part One / InvestorEducation / Learning to Invest
By: Steve_Selengut
It matters not what lines, numbers, indices, or gurus you worship, you just can't know for certain where the stock market is going or when it will change direction. Too much investor time and analytical effort is wasted trying to predict course corrections--- even more is squandered comparing portfolio market values with a handful of unrelated indices and averages.
Read full article... Read full article...
Thursday, April 16, 2009
Why Warren Buffett Doesn’t Matter, Lessons in Investor Sheep Herding / InvestorEducation / Learning to Invest
By: Mike_Stathis
Without a doubt, Warren Buffet is one of the leading investors in the world. There’s no disputing that. But let’s face it. His skills have been over-exaggerated by the media. Of more detriment, the media continues to deliver the message that what Buffett invests in matters to you. As you will see, he has been made into a god-like figure by the financial media for very precise reasons.
Friday, April 10, 2009
Wall Street's Secret to Investing Success / InvestorEducation / Learning to Invest
By: Money_Morning
Keith Fitz-Gerald writes: Studies show that most investors - even ultra-wealthy ones - lose money over time because they don't, or can't, stick to a well-defined set of rules. For some, this is driven by reckless personal behavior in search of profits. For others, it's the constant shift between bad decisions and bad advice that creates whopping errors and poor performance. Read full article... Read full article...
Wednesday, April 01, 2009
Stock Market Investing, Careful Risk Taking / InvestorEducation / Learning to Invest
By: Richard_Shaw
What is “risk” for investors? We think it is a broader, more important and more perilous issue than most investors have recognized for many years.
A typical “measure” of risk in stock markets has been standard deviation of return (the variability of returns around a long-term mean). Yet, a typical “measure” of risk in the bond market has been credit quality (the likelihood of payment default or bankruptcy).
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Friday, March 20, 2009
Stock Market Investing Risk versus Financial Condition and Financial Stage of Life / InvestorEducation / Learning to Invest
By: Richard_Shaw
Here are several archetypal situations that illustrate the differences in appropriate risk taking with respect to stocks depending on the financial condition and financial life stage of the investor — there are, of course, more profiles, but these cross a wide spectrum: Read full article... Read full article...
Thursday, March 19, 2009
Investors Guard Yourself Against Wall Street Deception / InvestorEducation / Learning to Invest
By: Money_Morning
Keith Fitz-Gerald writes: If you're like many investors, you are probably sitting on the sidelines right now, unsure of what to do. If you want to buy, you may be thinking “let's wait a little longer.” If you want to sell, you might be concerned about “missing out.”
Either way (and even if you don't plan on making either move anytime soon), having a sense of what got us here can keep you from repeating the same mistakes and even help you make smarter financial decisions - particularly when it comes to repairing your portfolio and even growing it in the years ahead.
Read full article... Read full article...
Monday, March 09, 2009
Filling the Investment Education Void With Web Workshops / InvestorEducation / Learning to Invest
By: Steve_Selengut
Now more than ever, you can appreciate the need for comprehensive investment education. All of a sudden, fifty percent of your nest egg has disappeared--- and the bad news? There never was a plan for income generation. Ouch!Read full article... Read full article...
Monday, March 02, 2009
Why Watching CNBC Could Destroy Your Portfolio / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
August 2007 - Dow Jones 13,000 - What did the CNBC Talking Heads Recommend Investors Should do ?
Wednesday, February 18, 2009
Stock Index Trading: Learn to Trade with the Trend / InvestorEducation / Learning to Invest
By: INO
Today we looking at trends and how important they are in trading.In particular, we're going to be looking at the DOW (DJI) and how it has continued to trend since June of '08.
Read full article... Read full article...
Friday, February 13, 2009
Investment Performance Expectations: Fine Tuning Working Capital Model / Stock-Markets / Learning to Invest
By: Steve_Selengut
Contrary to popular belief and Wall Street propaganda, investing is not a competitive event. Rather, it is a uniquely personal, goal-directed activity that individuals must organize and control for themselves. Too few appreciate that it is a long-term enterprise and only a handful, at best, have discovered that DJIA and S & P 500 numbers are only useful at their extremes.Read full article... Read full article...
Thursday, February 12, 2009
Is the Media the Perfect Contrary Stock Market Investing Indicator? / InvestorEducation / Learning to Invest
By: Joseph_Toronto
Capitulation theory holds that when everyone throws in the towel and is “sure” the market is going further down, that it will then actually go up. A derivative theory, the front page/cartoonist theory holds that when you finally see doom and gloom on the front page of newsmagazines or in the cartoonist's columns, then literally everyone “knows” the market is going down further and, yep, at that point it starts to go up… or so goes the theory.Read full article... Read full article...
Wednesday, February 04, 2009
Working Capital Model Portfolio Investment Strategy / Portfolio / Learning to Invest
By: Steve_Selengut
No investor should ever be surprised by the changes in market value that appear on his or her monthly brokerage account statements. In general, media noise throughout the month should lead to a feel for what has been going on and investors should understand that the market prices of investment securities are constantly changing.Read full article... Read full article...
Monday, February 02, 2009
Mike Shedlock (Mish) Vs Peter Schiff: Analysts Clash / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
Mike Shedlock last week fired a broadside attack onto Peter Schiff (Dr Doom's) record of financial forecasts for 2008, which culminated with a statement that illustrated and implied that many of Peter Schiff's clients may have actually lost between 30% to 60% of the value of their portfolios during the volatile trading and investment environment of 2008. Read full article... Read full article...
Thursday, January 29, 2009
Investing in 2009, Six Mistakes You Must Avoid / InvestorEducation / Learning to Invest
By: Q1_Publishing
“Our first priority is managing risk.”
Seven months ago I had a chance to attend a presentation by investment manager David Burrows. You're not going to find his name in the Wall Street Journal or a quote in a Bloomberg news article, but that doesn't mean he's not worth listening to. He is.
Read full article... Read full article...
Tuesday, January 27, 2009
Stock Selection Fundamental vs Technical Analysis / InvestorEducation / Learning to Invest
By: INO
Every once in a while, I like to flip the TV channels and watch Jim Cramer on CNBC. It's not that I think that Jim Cramer is a spectacular trader, I just think he is a talented and amusing guy. The last time I tuned on the tube, CNBC's Jim Cramer was naming his top five picks to get you through these recessionary times. Read full article... Read full article...
Thursday, January 22, 2009
How to Ponzi Scam Proof Your Stocks Portfolio / InvestorEducation / Learning to Invest
By: INO
I've been in the financial arena for over 30 years. I must say I that I am appalled to see scum like Bernie Madoff stealing money from honest people. In many ways he's committing one of the most heinous of crimes. He's destroying the financial standings of unsuspecting victims for his own selfish greed. Read full article... Read full article...
Tuesday, January 20, 2009
Dumb and Dumber, Taking Investment Advice from Wall Street / InvestorEducation / Learning to Invest
By: Oxbury_Research
Dumb and Dumber is the title of the 1994 comedy film starring Jim Carrey and Jeff Daniels. The title could also be applied to the current behavior of both institutional and individual investors. Both type of investors are cowering in the corner, afraid of the bogeyman – deflation. Both types of investors are eagerly purchasing Treasuries at zero per cent or even negative interest rates. Read full article... Read full article...
Saturday, January 03, 2009
Stock Market Index Investing Using Moving Averages / InvestorEducation / Learning to Invest
By: Donald_W_Dony
The art of index investing. How to optimize index funds with simple moving averages.
Warren Buffet got it right. Arguably, the world's best know investor has for years been advocating to both private and professional investors that the simple index funds offer superior returns to actively managed portfolios. Read full article... Read full article...
Friday, December 26, 2008
The Working Capital Model Investment Process / InvestorEducation / Learning to Invest
By: Steve_Selengut
Most people enter the investment process tip first. They hear something, grab an idea from a popular blog, accept a Cramerism or some motley foolishness, and think that they are making investment decisions. Rarely, will the right-now, instant-gratification, Internet-generation speculator think in terms that go beyond tomorrow's breaking news.Read full article... Read full article...
Wednesday, December 03, 2008
Portfolio Investment Management Strategy- Put More Smart Cash In Your Future / Portfolio / Learning to Invest
By: Steve_Selengut
The stock market is a dynamic place where investors can consistently make reasonable returns on their capital if they comply with the basic principles of the endeavor and if they don't measure their progress too frequently against irrelevant indices.
The income securities market is most often a less dynamic place where investors can consistently make reasonable returns on their capital if they understand the basic principles of the endeavor and if they focus steadfastly on the income produced by their holdings.
Read full article... Read full article...
Monday, November 17, 2008
FINANCIAL PLANNING: My Guess Or Yours? Why It’s Absurd And Doomed To Fail From The Very Start / Personal_Finance / Learning to Invest
By: David_Haas
Upon reading that title, I'm sure some of you are thinking that I must have completely lost my mind. Well, of course that's not true. But, how could something as universally accepted, widely followed, and apparently “innocent and necessary” as financial planning be setting so many of those who unquestioningly apply it on a course toward a miserable financial future? Read full article... Read full article...
Tuesday, November 04, 2008
This Stock is Getting Ready to Fly / Companies / Learning to Invest
By: INO
This stock may be getting ready to fly. I was looking through our email alerts recently and this stock just jumped out at me. I want to share my thoughts about what I expect will happened to this market in this short video. We've discussed this pattern before on several other videos and all have worked out very successfully.
Read full article... Read full article...
Wednesday, September 17, 2008
Five Misunderstood Stock Market Terms / InvestorEducation / Learning to Invest
By: Money_and_Markets
Nilus Mattive writes: There's a lot of confusion out there in the markets right now. But I want you to know that my stance hasn't changed one bit — I continue to think dividend superstar stocks are a great way for income investors to lock-in attractive yields right now, and potentially reap even bigger gains down the line.Read full article... Read full article...
Friday, August 29, 2008
Investor Psychology Cycle Swinging From Greed to Fear / InvestorEducation / Learning to Invest
By: Prieur_du_Plessis
As the pendulum swings between greed and fear, investors typically become over-enthusiastic during bull markets and over-despondent as the bear's growl grows louder.
It stands to reason that in order to be a successful investor, it is important to distance yourself from the herd mentality and to take objective decisions based on fundamental reasons.
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Thursday, August 21, 2008
Investor Declaration of Independence / InvestorEducation / Learning to Invest
By: King_Orry
Yesterday I was talking to a moderately wealthy business acquaintance in Sydney, Australia, he was complaining that the shares in his Super Annuation (pension) account with Insurance and Pension giant AMP had lost $30,000 in value in the last 2 weeks and so he had taken all his funds away from AMP and placed them in cash deposits at the bank. Read full article... Read full article...
Monday, August 04, 2008
Preventing Investment Mistakes: Ten Risk Minimizers / InvestorEducation / Learning to Invest
By: Steve_Selengut
Most investment mistakes are caused by basic misunderstandings of the securities markets and by invalid performance expectations. The markets move in totally unpredictable cyclical patterns of varying duration and amplitude. Evaluating the performance of the two major classes of investment securities needs to be done separately because they are owned for differing purposes. Stock market equity investments are expected to produce realized capital gains; income-producing investments are expected to generate cash flow.Read full article... Read full article...
Friday, July 25, 2008
Importance of Long-term Trending Markets in Investment Risk Management / InvestorEducation / Learning to Invest
By: Chris_Ciovacco
Long-Term Investors Need Trends to Make Money - Most of us would prefer to be investors instead of traders. Investors, with an intermediate to long-term time horizon, must be aligned with a positive trend in order to make money. This is true even for value investors who focus on a company's valuation rather than a trend that can be seen on a chart. For the value investor to make money, eventually the position must turn up.
The chart above is not designed to convey that spotting a trend reversal is easy. It is not, but as more evidence gathers as to the probable legitimacy of the new trend, the less risk you need endure to participate. If the stock or market does not trend upward for a significant period of time, long-term investors do not want to participate.
Read full article... Read full article...
Wednesday, July 23, 2008
Stocks Boosted by Tracker Buying on Entering Major Indices / InvestorEducation / Learning to Invest
By: Money_and_Markets
Nilus Mattive writes: I love scouring the market for attractive stocks with smaller market capitalizations (the number of shares outstanding times the current stock price), especially ones that pay nice dividends.
That's because smaller stocks tend to have better growth prospects. After all, it's easier to post big gains when you're starting from a smaller baseline. Most investors recognize this simple concept.
Read full article... Read full article...
Wednesday, July 16, 2008
Good News For Income Investors / InvestorEducation / Learning to Invest
By: Steve_Selengut
Looking for good news in today's markets is like searching for the proverbial needle in a haystack. Needless to say, practically all investment grade equities and nearly all closed end funds that specialize in providing regular recurring monthly income have been reduced in market value by this prolonged correction. The quake has spread in all directions form its financial epicenter, and the mounting doom and gloom has taken its toll on even the most rational investment decision makers. Try to keep in mind that the purpose of income investing is the income that your portfolio produces not an increase in the securities' market values---Read full article... Read full article...
Saturday, July 05, 2008
Advice from Warren Buffet for Investing in Difficult Times / InvestorEducation / Learning to Invest
By: Richard_Shaw
There is an alleged ancient Chinese curse, “May you live in interesting times.”
While there is no historical proof of the origin of that curse, there is ample current proof in the securities markets that we are living in interesting times. It's simply nasty out there — or at least it feels that way.
Read full article... Read full article...
Thursday, July 03, 2008
Secrets to Succeeding at Stocks Bear Market Investing / Stock-Markets / Learning to Invest
By: Keith_Fitz-Gerald
The Dow Jones Industrial Average is already in the bear's grasp. And the U.S. economy may well be headed for a recession. But here's the ultimate irony: Bear-market investing offers a direct pathway to the biggest profit opportunities most investors will ever see.
History shows time and again that the worst returns come to those who buy at - or even near - market peaks, like those of 1928, 1969, 1999 and 2007, when Price/Earnings (P/E) ratios are typically higher than “normal.”
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Friday, June 20, 2008
Learn to invest by Recognising Our Mistakes / InvestorEducation / Learning to Invest
By: Hans_Wagner
Each of us believes we learn to invest by recognizing our mistakes. When we make a losing investment, do we recognize our mistake and learn from it, or do we attribute it to some outside factor, like bad luck or the market? To beat the market, we must recognize our mistakes and then learn from them. Unfortunately, learning from these mistakes is much harder than it seems. Read full article... Read full article...
Wednesday, June 18, 2008
Put Your Portfolio on Autopilot And Ride Out the Market Turbulence! / InvestorEducation / Learning to Invest
By: Money_and_Markets
Nilus Mattive writes: My daughter Vela turned one last week. We had a great little island-theme party complete with grilled mahi-mahi, coconut cake, and pineapple ice cream. I'm not sure if Vela knew what the heck was going on, but the rest of us had a great time.
Of course, underneath our grass-skirt celebration was a simple, indisputable fact: Time ain't waiting around for any of us. If anything, it's flying by at a seemingly faster and faster pace.
Read full article... Read full article...
Sunday, June 08, 2008
How to Deal with Knee-Jerk Market Reactions / InvestorEducation / Learning to Invest
By: Money_and_Markets
Jack Crooks writes: This past week was a roller coaster ride in the currency markets, and it sure ended with a bang. I'll get to the big news in a second. And I'll also tell you what to make of this market.
But first, I want to do a quick day-by-day rundown of what happened in the currency markets ...
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Sunday, June 08, 2008
Secrets to Successful Investing- Special / News_Letter / Learning to Invest
By: NewsLetter
Many small investors seem to repeatedly make the same old mistakes of either getting on board of a trend just as the trend ends or holding onto to losing investments in the hope of an eventual bounce back.
Therefore this weeks newsletter has a mix of education as well as up to date examples of strategies that illustrate how investors need to gear their thought processes towards key elements of successful investing which include :
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Monday, June 02, 2008
Preservation of Principal Is of Paramount Importance During Bear Markets / InvestorEducation / Learning to Invest
By: Paul_Lamont
We hope you have a chance to read our rebuttal to CNNMoney.com's recent Great Depression article . While we have described the 1930 peak before (all the way back in October of 2006 ), we feel our analysis has been vindicated. We may take some flak for getting too far out ahead of the parade back in 2006; but our readers know we discuss long term trends. (Check our chart below on personal savings!) The reasoning in October was correct; Read full article... Read full article...
Tuesday, May 27, 2008
The Holy Grail Investment Cocktail / Portfolio / Learning to Invest
By: Steve_Selengut
So what do your Investment Manager and your neighborhood bartender have in common, other than the probability that you spend more time with the latter during market corrections? Antoine Tedesco, in his "The History of Cocktails" article, lists three things that mixologists consider important to remember and to understand when making a cocktail: Read full article... Read full article...
Wednesday, May 14, 2008
Use Stock Screeners to find Great Stocks / InvestorEducation / Learning to Invest
By: Money_and_Markets
Nilus Mattive writes:There are thousands of stocks trading on U.S. exchanges right now. And there are thousands more trading on major foreign exchanges. So there are clearly lots of opportunities out there at any given time.
The million-dollar question: How do you separate the wheat from the chaff? Heck, I spend every single day following the markets and researching great income investments ... and there's still no way I can easily study a fraction of the stocks out there!
Read full article... Read full article...
Sunday, May 11, 2008
Secrets to Successful Investing- Special / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
Many small investors seem to repeatedly make the same old mistakes of either getting on board of a trend just as the trend ends or holding onto to losing investments in the hope of an eventual bounce back.
Therefore this weeks newsletter has a mix of education as well as up to date examples of strategies that illustrate how investors need to gear their thought processes towards key elements of successful investing which include :
Read full article... Read full article...
Saturday, May 10, 2008
Why Most Investors Fail and How to Invest Successfully / InvestorEducation / Learning to Invest
By: John_Mauldin
- Why Investors Fail: Analyzing Risk
- Investors Behaving Badly
- Tails You Lose, Heads I Win
- Ergodicity
- Why Investors Fail
- Becoming a Top 20% Investor
- Investors Behaving Badly
This week I am in South Africa and am not as connected as I would like to be due to meetings and slow Internet, so we are going to look at some material from my book, Bull's Eye Investing, which I think is more pertinent than ever. And since lately there has been rather large growth in the readership, there are a significant number of new readers for whom this material will be fresh. When I originally wrote much of this, the markets were coming out of the bear phase of 2001-2. I am adding a few comments in [brackets]. I trust you will find value as we look at the problems that investors face in the struggle to maximize portfolio value.
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Monday, May 05, 2008
Investor Survival Message / InvestorEducation / Learning to Invest
By: Neil_Charnock
I am a private investor, a writer (to state the obvious), a gold trader, Investment Newsletter Editor and now a web site manager of sorts. All of these activities are related to investment. Part of my purpose is to educate investors about gold / silver and gold related opportunities such as the mining sector. From what I have seen over the past six months I just have to write this essay for many of my subscribers and potential subscribers. Highly experienced investors might like to skip down to market comments below as the following may not apply to you.Read full article... Read full article...
Friday, May 02, 2008
Patience is an Successful Investor's Virtue / InvestorEducation / Learning to Invest
By: Hans_Wagner
Patience is one of the most difficult skills to learn as an investor and trader. The best investors and traders understand the importance of patience. As one of Warren Buffett's rules of investing states:
"The Stock Market is designed to transfer money from the Active to the Patient." The best returns come from those who wait for the best opportunity to show it self before making a commitment. Those that chase the current hot stock are destined to loose more than they gain. Remain active in your analysis looking for quality companies at discounted prices, but be patient waiting for them to reach their discounted price before buying.
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Monday, April 14, 2008
Predicting Stock Market Movements / InvestorEducation / Learning to Invest
By: Steve_Selengut
I've been thinking about starting a stock market prediction business. Clearly, there is a huge market for timely and accurate information of this type, and just as clearly, predicting the future is much easier than dealing with the realities of whatever is actually happening at the moment. If investors could know what's going to happen next, they could develop a plan to deal with it in the present. Maybe Wall Street could help me get this new business up and running! Read full article... Read full article...
Saturday, April 12, 2008
Sentiment Analysis: How Investor Perception Drives Market Prices / InvestorEducation / Learning to Invest
By: Money_and_Markets
Jack Crooks writes: Topsy-turvy markets like these can easily make your head spin. I mean, we're currently dealing with overdone trends, implosive fundamentals, government regulation and an increasingly globalized world economy.
And as if simply understanding those complex dynamics wasn't enough, we still have the difficult task of trying to make money.
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Monday, March 24, 2008
Balancing a Portfolio with Commodities / Commodities / Learning to Invest
By: Frank_Holmes
With all of the volatility we're seeing in 2008, this is one of those times when investors really value assets that are not correlated to the broader markets.
That explains much of the current interest in commodities – investors are looking for ways to protect themselves through diversification.
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Wednesday, March 12, 2008
The Stock Market Rally Is Coming! The Rally Is Coming / InvestorEducation / Learning to Invest
By: Steve_Selengut
Always buy too soon--- because no one will tell you either when the rally will start or, more importantly, how long it will last. Of course those are the two things you want to know, but all you really have to go on is the experience of the past. This is not going to be a technical analysis of a series of numbers or chart formations that have predictive capabilities. Instead, it is intended to be a mild sedative to calm your collective fears and to allow for a relaxed analysis of the corrections of the past. You have to prepare yourself for the rally that is surely coming, and it may just arrive sooner than you think--- today, even. Read full article... Read full article...
Tuesday, March 04, 2008
Investment Portfolio Performance and The Working Capital Model / InvestorEducation / Learning to Invest
By: Steve_Selengut
Ouch! The mighty Dow has fallen to within a financial heart beat of its 1999 high water mark, boasting an average per year gain of less than one half of one percent in spite of several interim manipulations designed to improve the performance picture. The S & P 500 Average, an equally prestigious indicator of broader market movements, is nearly 13% below where it was at approximately the same time. Both figures reflect no investment expenses at all. So, in spite of the mostly ignored fact that neither index includes any income securities (bonds, preferred stocks, REITs, etc.), a reasonable person could well expect his or her portfolio market value to be well below where it was nearly ten years ago! Now that's a fairly dismal scenario, but it's the in-your-face reality for most investors as we move forward into what we all hope will be a more spring-like investment climate. Read full article... Read full article...
Monday, March 03, 2008
How to Make Money in Super Cycle Stocks Bear Markets / InvestorEducation / Learning to Invest
By: Bob_Bronson
The stock market has essentially gone sideways since its March 24, 2000 high almost eight years ago. In fact, it has spent 99% of the time below that high and because profitable market timing is so difficult for most investors they have typically lost money during this time period. Read full article... Read full article...
Thursday, January 31, 2008
Income Investing - Why Isn't This Easy? / InvestorEducation / Learning to Invest
By: Steve_Selengut
Most people (including myself) would insist that Equity Investing is the most difficult to master. After all, that is the venue for: erratic price fluctuations caused by an endless supply of social, economic, and political variables; the standard Wall Street misinformation, corporate malfeasance, self- serving financial gurus, and product sales persons; a myriad of popular and market moving speculations from IPOs to Option and Margin strategies; thousands of media talk shows and their financial markets' experts. When you think you understand the stock market brother, you are in serious trouble. Read full article... Read full article...
Wednesday, January 30, 2008
Asset Allocation Investment Planning to Beat Inflation: Investing by the Numbers / InvestorEducation / Learning to Invest
By: Steve_Selengut
Uno. Asset Allocation is an investment planning tool, not an investment strategy... few investment professionals understand the distinction. Investment strategies are used to implement the asset allocation formula that investment planning produces. Many investors incorrectly believe that investment planning and financial planning are one and the same. Financial planning is the broader concept, one that involves such non-investment considerations as: Wills and Estates, insurances, budgeting, trusts, etc. Investment Planning takes place within the Trusts, Endowments, IRAs, and other Brokerage Accounts that come into existence as a result of, or without, Financial Planning. Read full article... Read full article...
Monday, January 28, 2008
How To Invest During Economic Downturns: Commodities versus Stocks / Commodities / Learning to Invest
By: Mary_Rivas
In an article published yesterday (January 23, 2008) in the Financial Times , George Soros stated that a recession in the U.S. is now more or less inevitable. He noted that China , India and some of the oil-producing countries however are in a very strong countertrend. Soros went on to explain that “the current financial crisis is less likely to cause a global recession than a radical realignment of the global economy, with a relative decline of the U.S. and the rise of China and other countries in the developing world. “Read full article... Read full article...
Wednesday, January 23, 2008
Five Investment Mistakes to Avoid in 2008- LIVE Web broadcast 4.30pm EST - Today! / InvestorEducation / Learning to Invest
By: Nadeem_Walayat
Five investment mistakes you will probably make in 2008 ...
Unless YOU attend this FREE, LIVE webinar!
Have you ever looked back on an investment and asked yourself, "What in the world was I thinking?!" The obvious reply is "Yes!", and that is because...
Tuesday, January 22, 2008
The Key to Successful Investing - Calculating Your Investment IQ / InvestorEducation / Learning to Invest
By: Steve_Selengut
Stocks, bonds, index funds; averages, recessions, market rallies and corrections; mutual funds, technical analysis, financial statements; commissions, taxes, and discount brokers. Just how much do you know about investing, or perhaps a better question: is there any "know" in the investment vocabulary? So many terms, ideas, and strategies; so little time and money! Here's a list of thirty mostly-true or mostly-false comments for you to kick around with your friends and fellow investment bloggers: Read full article... Read full article...
Thursday, January 17, 2008
Investment Performance Analysis Using the Working Capital Asset Allocation Model / InvestorEducation / Learning to Invest
By: Steve_Selengut
It matters not what lines, numbers, indices, or gurus you worship, you just can't know where the stock market is going or when it will change direction. Too much investor time and analytical effort is wasted trying to predict course corrections... even more is squandered comparing portfolio Market Values with a handful of unrelated indices and averages. If we reconcile in our minds that we can't predict the future (or change the past), we can move through the uncertainty more productively. Let's simplify portfolio performance evaluation by using information that we don't have to speculate about, and which is related to our own personal investment programs. Read full article... Read full article...
Friday, January 11, 2008
Financial Market Myths Video Series Learn How to Interpret The Financial Markets / InvestorEducation / Learning to Invest
By: EWI
Have You Watched Market Myths Exposed?
You can see EWl's Chief Market Analyst Steven Hochberg debunk some of the most widely held market myths and answers some of today's toughest questions for traders and investors, including:
Read full article... Read full article...
Wednesday, January 09, 2008
The Reality of Stock Market Corrections and What to Consider / InvestorEducation / Learning to Invest
By: Steve_Selengut
Every correction is the same, a normal downturn in one or more of the Markets where we invest. There has never been a correction that has not proven to be an investment opportunity. You can be confident that the Federal Reserve, as hypnotized as it is with keeping inflation under control, is not going to cause either a financial panic or a prolonged recession with tight money and high interest rate policies. While everything is down in price, as it is now, there is little to worry about. When the going gets tough, the tough go shopping. Read full article... Read full article...
Tuesday, December 25, 2007
Dragons' Den – The Survival Guide - Chrismas Day Special / InvestorEducation / Learning to Invest
By: BBC
A festive special from the
Dragons on BBC2 at 8pm - Christmas day – Photo (L-R) James Caan, Duncan Bannatyne, Deborah
Meaden, Peter Jones and
Theo Paphitis
Evan Davis presents this 90-minute Christmas special of Dragons' Den, which revels in the very best of all five series. Evan also reveals the 10 rules for success as the show relives the best and worst moments in the Den.
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Friday, December 07, 2007
Common Sense Indicators For Making Money Investing / InvestorEducation / Learning to Invest
By: Investmentscore.com
Should we add to our metals positions? To help answer this question we ask ourselves important questions such as "what does the end of a bull market look like"? Clearly gold and silver have been in a bull market as their prices have roughly tripled from their lows earlier this decade. So we want to know, 'What would the end of a mega bull market look like?' to help us gain confidence in our decisions today. If we are in a bull market in precious metals are we likely at the end of this current bull-run?Before we continue let us clarify that there are no absolute rules to the financial markets and we are only providing our opinion, however we have found that with common sense analysis and research our probability of successful and profitable investing is greatly improved.
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Friday, November 23, 2007
How to Select and Trade Stocks and Shares / InvestorEducation / Learning to Invest
By: Zeal_LLC
Are you interested in trading in the stock markets? Do you have questions about getting started? You are certainly not alone. Almost weekly I hear from ordinary folks with basic questions about trading stocks. After addressing these on a consulting basis for years, I'll outline some of the basics in this essay.
The Rewards of Stock Trading
Trading stocks is an incredibly rewarding journey. Everyone is intrigued by the stock markets because traders can make big money there. This is certainly true. But the potentially extraordinary financial winnings are not the most gratifying part of trading stocks. The best part is really the endless learning and personal growth that trading naturally generates. Trading is a most-fascinating voyage of discovery.
Wednesday, October 31, 2007
The Money Programme – Britain's Brilliant Ideas Boom - Friday 2 November 7.00-7.30pm BBC TWO / Companies / Learning to Invest
By: BBC
Libby Potter reveals how to
turn a eureka moment into a
fortune
Britain has become a nation of inventors and the number of people submitting ideas for patents has never been higher. The boom is being fuelled by programmes like Dragons' Den, but how easy is it to cash in on your "eureka" moment?
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Wednesday, October 24, 2007
To Beat the Stock Market, Be in the Right Sector - Part 3 / InvestorEducation / Learning to Invest
By: Hans_Wagner
What stock market sector have you been in lately? The sectors that are beating the market or the ones that are trailing behind? Being in the right sectors will make a significant difference in the performance of your portfolio. However, finding the right sector can be a difficult proposition. In Part 1 I introduced the basic theory behind sector rotation as described by Stan Stovell in Standard & Poor's Guide to Sector Investing 1995 (this is an expensive book). Read full article... Read full article...
Tuesday, October 23, 2007
Asset Class Behavior Following Fed Interest Rate Cuts - Part 4 of 4 / InvestorEducation / Learning to Invest
By: Chris_Ciovacco
Editor's Note: This article is Part IV in a four-part series.
In Part III of this four-part series, I concluded the periods following the first Fed rate cut in July 1995, September 1998, and January of 2001 were most similar to today's economic landscape. We can use the information from Part III as one of many factors when determining our asset allocation for the coming year. The next logical step is to explore how different asset classes performed relative to each other in each of the three respective historical periods (1995-1996, 1998-1999, 2001-2002).
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Monday, October 22, 2007
Lower Interest Rates and the Relative Performance of Investments - Part 3 of 4 / InvestorEducation / Learning to Invest
By: Chris_Ciovacco
To recap the main points :
- Wall Street places a strong emphasis on the impact of the Fed’s actions on asset prices.
- Lower interest rates help fuel inflation and hurt the U.S. dollar.
- The current Fed is not afraid to make significant interest rate cuts and we can expect them to act swiftly in the face of any continued deterioration in housing, financial markets, or the general economy.
Wednesday, October 17, 2007
To Beat the Stock Market, Be in the Right Sector - Part 2 / InvestorEducation / Learning to Invest
By: Hans_Wagner
What stock market sector have you been in lately? The sectors that are beating the market or the ones that are trailing behind? Being in the right sectors will make a significant difference in the performance of your portfolio. However, finding the right sector can be a difficult proposition. In part one I introduced the basic theory behind sector rotation as described by Stan Stovell in Standard & Poor's Guide to Sector Investing 1995 
. Read full article... Read full article...
Tuesday, October 09, 2007
To Beat the Stock Market, Be in the Right Sector - Part 1 / Stock-Markets / Learning to Invest
By: Hans_Wagner
What stock market sector have you been in lately? The sectors that are beating the market or the ones that are trailing behind? Being in the right sectors will make a significant difference in the performance of your portfolio. However, finding the right sector can be a difficult proposition. First let's examine a couple of recent studies on sector rotation that help illuminate the opportunities and the problems for investors. In a follow up article we will then provide some guidelines for investors and traders on how to use sector rotation to achieve better investing results. Read full article... Read full article...
Sunday, September 30, 2007
Contrary Stock Market Investing / InvestorEducation / Learning to Invest
By: Roger_Conrad
Good businesses are what I like to buy. That means stocks, bonds, preferred shares and other securities backed by healthy, growing companies, which are becoming more valuable over time.
Even buying good businesses won't save you entirely from bear markets. The best companies can and do occasionally stumble. And no matter how well you research something, you're going to get it wrong sometimes—with the result that you're stuck with a dog.
Read full article... Read full article...
Friday, September 14, 2007
Interest Rates & Investing - Investing Simplified – Part One / Interest-Rates / Learning to Invest
By: Investmentscore.com
If you were playing a competitive game of chess for a grand prize of a million dollars, would you ask your opponent what strategic move you should take next? No. So why do investors and analysts ridicule and blame the banks for offering poor advice on the future direction of interest rates? If a bank is going to lend you money for their profit, what is their incentive to give advice that is in your best possible interest? Read full article... Read full article...
Sunday, September 09, 2007
The Risks of Doubling Down on Falling Stocks / InvestorEducation / Learning to Invest
By: Roger_Conrad
I know a few people who know when to double down in Blackjack. A lot more, however, lose their shirts in an emotional attempt to make back losses.
Even those who usually succeed will freely admit doubling down isn't a risk-reduction technique. On the contrary, you've got twice the money at stake, betting on the same situation. You may recoup your losses in one fell swoop. But the penalty for failure is twice what it was before, and it's hard not to get a little emotional.
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Tuesday, August 07, 2007
Will the Stock Market PE Ratio Expand or Contract? / InvestorEducation / Learning to Invest
By: Hans_Wagner
Knowing whether the PE ratio is going to expand or contract is an important factor when trying to beat the market . This is the first of a four part series on which direction the PE ratio for the S&P 500 will go over the next couple of years. First, let's briefly go over how to use the PE ratio and then we will look at ways to get the underlying PE ratio for the S&P 500. It is not as easy as one might first think. In the later parts we will examine the potential for the S&P 500 PE ratio to expand, contract and then provide an opinion on what investors should do.
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Thursday, June 07, 2007
Patience, An Investors Virtue / InvestorEducation / Learning to Invest
By: Hans_Wagner
Patience is one of the most difficult skills to learn as an investor and trader. The best investors and traders understand the importance of patience. One of Warren Buffett's rules of investing isRead full article... Read full article...
Wednesday, May 30, 2007
Value Plus Growth Stock Market Investing (Part 2) / InvestorEducation / Learning to Invest
By: Hans_Wagner
Value and growth investors who want to beat the market need to have a good understanding of a company's fundamentals before they can make a stock picking decision. Fortunately, there are a number of methods that are commonly used to examine the financial statements of a company. Basically there are three types of financial statements, the Bal ance Sheet, the Income Statement and the Cash Flow Statement.
Financial Statements
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Monday, May 28, 2007
The Difference Between Stock Market Investment and Speculation / InvestorEducation / Learning to Invest
By: Christopher_Quigley
The issue of successful stock market investment affects us all. Even if we are not directly engaged in the industry, all of us will need some form of pension to fund our retirement. Whether we like it or not most of our retirement funds will find their way into the financial markets. For this very reason, the issue of pensions has moved politically centre stage, in particular the investment strategies used to direct pension funds. Due to mismanagement over the last seven years, many retirement portfolios have become under-funded at best, or, at worst, totally bust.Read full article... Read full article...
Tuesday, April 24, 2007
Why Investors Lose Money / InvestorEducation / Learning to Invest
By: Investmentscore.com
Investors have a number of weaknesses which often result in investment failure. Identifying these weaknesses is the first step to reducing them. Our Investment Scoring and Timing System is designed to help minimize these weaknesses in order to give us a potential advantage over the market. The following are some key reasons why we believe investors lose money.Read full article... Read full article...
Monday, April 23, 2007
Investment Analysis - Simple, Simple, Simple... but powerful? / InvestorEducation / Learning to Invest
By: Investmentscore.com
The objective of this article is to illustrate a powerful investment analysis technique by first examining a simplified hypothetical scenario. We will then explore this concept on the markets of today. To do this we will:
1) Outline some basic investing rules to be used as guidelines.
2) Present a hypothetical scenario for analysis.
3) Guided by our rules, form a conclusion for the purpose of understanding the markets.
4) Explain how we think this analysis applies to the markets of today.