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 [...]
Financial Risks To Avoid While Investing
Fiscal risk is the incapacity of a company to meet its financing liabilities, and the size of a company’s money risk measured by the quantity of debt the company holds in relation to its equity. A company with high percentage of debt relative to its assets has an increased chance that at some particular point [...]
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 [...]
Mutual Funds For Momentum Investors
Mutual funds are contrary to the whole idea of momentum investing. Those who are attracted to the momentum style of investing like a lot of action and want quick, substantial rewards, neither of which is likely to happen with mutual funds. The sheer size of most mutual funds makes momentum investing impractical. Most fund managers [...]
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 [...]
