Investors cannot do much about the volatility of the markets with a short time horizon because the risk of potential loss is high with stocks and other real investment assets. Stocks are more volatile in price than bonds. With a holding period of 74 years, annual returns averaged 12.4 percent for large-cap stocks, 5.5 percent [...]
Exchange-Traded Funds (ETF) Trading
An exchange-traded fund (ETFs) is a fixed basket of stocks that trades on the stock market just like a stock. A global ETF can represent stocks of a specific country or region or a specific industry in a company or a region. The value of an ETF is determined on a continuous basis by calculating [...]
Stock Options: Hedge Your Trading To Increase Your Profits
Options can be used as a speculative investment in the stock market, a protective hedge, or an additional income source. In this article we are talking about equity options, not options on futures or commodities. Options derive their value from the value of the underlying security, but they also have value in and of [...]
Is Your Investing Style Not Working
Growth, value, and momentum investing styles perform differently in different stock market and consequently rotate into and out of favor with investors. Momentum investing was the hot style during the dot-com boom in 1998 and 1999. After the bubble burst in the spring of 2000, valuations tumble for stocks across the board, and as a [...]
How To Be An Active Trader and Chart Skills
Active trading – particularly day trading – is highly intense and action-oriented. Day traders are glue to their computer screen for most of the market day, ready to pull the trigger when their system says to enter or exit. In the stock market chart for a classis day trader, it has among the highest score [...]
Income Investing: Where is the money?
Equity income investors buy stocks that pay dividends; fixed income investors buy bonds, CDs, mortgages, and other fixed-income vehicles. The point is, both types of investors are seeking income, but since this is an article about investing is stocks, we will focus only on the equity income investor here. The greatest advantage of income investing, [...]
How To Get Your Investment Confidence Back
Fundamental investing is an offshoot of value investing, so the stock chart is going to look very much like that of the value investor. But there are differences. The fundamental investor must have a significant amount of time to spend on his or her portfolio in the stock market today because it takes a lot [...]
Does The Market Cap Leave An Impact In Your Investment?
Historically, the stock market has favored different-sized companies at different times, which creates a “rotation” of market caps into and out of favor. Market cap rotation can either enhance or negatively impact your ability to get good returns on your investments, so it might be a good idea to pay attention to which market cap [...]
10 Rules For Successful Stock Market Investing
Back-test your system. Develop a group of entry-exit rules that are based as much as is possible on back-testing. Learn your system. Study your system till you know it inside out. Study books and charts. Attend conventions. Confirm your system is trustworthy before you employ it. Be discipline. The most significant quality of a technician is [...]
Portfolio Investment Strategies
Here are some portfolio management strategies to keep in mind when you are building a portfolio of value stocks. Diversify stocks and industries Because of the low time commitment, a value investor should be able to comfortably maintain a portfolio of 10 to 15 stocks spread over several industries. Monitor your portfolio regularly Like growth [...]
