“Even if you’re on the right track, “you’ll get run over if you just sit there", said cowboy humorist Will Rogers. As an investor, you want to make progress. To succeed, you need to know: 1. Where you are headed, and; 2. What’s the best way to get ahead? Your answers will change accordingly. It ...
With a rising stock market, record low interest rates, and large gains in home value, some investors have taken out new mortgages, refinanced, or obtained line-of-credits secured by their homes for the specific purpose of investing in securities. The hope is that the investment will not only pay the mortgage, but also generate additional income. ...
Needless to say, a stock market is a very interesting playground; things change quite quickly and decisively. A few days ago we saw a bearish trend in the market and now the trend has changed to bullish. These were the levels and prices where everyone was selling and leaving the market; now, everyone's back on ...
In the past, the term "widows and orphans" was used to describe stocks with a relatively high degree of safety and dividend income. Because they had relatively minimal risk and provided income to feed the family, these kinds of stocks were literally thought to be the only investments suitable for widows and orphans. The term ...
Investing has always been a little like surfing. Successful investors spot key investment themes (waves) and ride them to profits. Sometimes the waves are shorter and smaller than we had expected. Other times the wave takes on a mind of its own and falls under its own weight. The hardest but most profitable thing to ...
There is nothing inherently wrong with short selling, which is permissible under the regulations of the Securities & Exchange Commission (SEC). But the short-and-distort type of short seller uses misinformation and a bear market to manipulate stocks. Short and distort is as illegal as the pump and dump, but is mainly used in a bear ...
In the Stock Market, the bulls and bears are in a constant struggle. If you haven't heard of these terms already, you undoubtedly will as you begin to invest. The Bulls A bull market is when everything in the economy is great, people are finding jobs, GDP is growing, and stocks are rising. Things are just plain ...
When times are tough in the market, companies will often announce stock buyback programs. Why would a company want to buy back its own shares? What does this mean for shareholders? Buyback Basics A stock buyback, also known as a "share repurchase", is a company's plan to buy back its own shares from the marketplace. You can ...
Types Of EPS Gertrude Stein said, "A rose is a rose is a rose," but the same cannot be said about earnings per share (EPS). While the math may be simple, there are many varieties of EPS being used these days, and investors must understand what each one represents if they're to make informed investment decisions. ...
Your psychological mind set may play a larger role in your trading career than your chosen technique or any other details associated with your day-to-day practice. Indeed, discipline is just one attribute of trading psychology, but it just so happens to be the most important psychological factor that affects a trader's success. There are four components ...
