Stocks & Mutual Fund Information
How Covered Calls Turned a Trader Around
Sidney felt sick as she looked at her latest OptionsXpress trading statement. In just 8 months, she had managed to turn her $120,000 account balance into less than $70,000.
Struggling Stocks, Booming Commodities
Using Sector Funds to Construct Diversified Mutual Fund Portfolios
?Sector funds are too risky.? ?I doubled my money with Fidelity Select Technology in 12 months!? ?Avoid sector funds.? If all of this sounds confusing, you are not alone. Sector funds are among the more misused and misunderstood investments. So, how should you use sector funds?
Why Is The Macedonian Stock Exchange Unsuccessful?
The Macedonian Stock Exchange (MSE) is not operating successfully. True, some of the parameters which we use to measure the success of a stock exchange have lately improved in the MSE. For instance, the monthly money volume has increased together with the number of transactions. But this is a far cry from success.
Again With the Bubbles?
A few years back ? it seems like an eternity today ? the U.S. stock market experienced a severe bubble burst. Legitimate stocks rose beyond reasonable valuations and ideas merely in the germination stage sold for prices far beyond those of real proven companies. When the bubble burst, billions of dollars of shareholder value evaporated. One would have thought we?d learned our lesson.
A Personal Stock Market Investment Philosophy
∙ Make every investment in the stock market a
Commoditizing the world
Let?s discuss commodities; with the latest Enron situation, it is important to understand the way things work. A commodity is anything useful, especially a transportable agricultural product or mining product. This comes from the Latin word ?commoditas? meaning roughly advantage, convenience. So then what is a commodity? Well we consider Gold, Silver, wheat, corn, pork bellies, coffee, etc all commodities. If you look in the back of the WSJ or Investors Business Daily you will see a listing of all the commodities traded on the commodities exchange. Enron made some errors no doubt, but let?s not judge all commodity markets in haste.
Mutual Fund Expense Lies
When purchasing mutual funds we are cautioned
to read the prospectus, look at past
performance, check out the fund manager?s record
and see what their expense ratios have been.
Successful Trading ? Establish Your Risk Level
Before you embark upon a journey of trading stocks or futures, and before you make any trades, you MUST determine and establish your risk level. Traders that fail to do this are usually doomed from the start. The fact is that most trading accounts that go bust are because of the failure to determine at what point the trader will cut their losses and move on to the next trade. Rookie traders are particularly prone to do this. They hang on to losing positions hoping that they will turn around ? only to watch the price drop even further. Too much thought and effort are expended on the buying decision instead of the selling decision. The sad truth is that it?s the selling decision that will determine your fate as a successful trader. And successful trading is dependent on how long and how well you can protect your account against loss until the big profit comes your way. Setting a risk level for your account and for your trades will provide such protection.
Successful Trading ? Taking Profits - Part 1
So you?re started trading, you bought some positions with your online broker, you?ve set some reasonable stop-losses to protect your account and all of a sudden one of your positions move strongly in your favor ? so what do you do now? This my friend, is probably the hardest situation to deal with in trading the market ? believe it or not.
Successful Trading ? Taking Profits - Part 2
Suppose your position has made a big move and you moved your stop to your purchase price as recommended. Then let?s say your stock continues to make a big move and now we?re asking again the questions we asked back in the first paragraph. The first profit taking technique you can use is a trailing stop. If you moved your stop to your purchase price, then you?ve already used a trailing stop. Now you can continue to move your stop up as the price rises until the market ?stops? you out of the position. So in essence, what you?re doing is letting the market decide when to take profits.
What is a Mutual Fund?
Ever wondered what is a mutual fund? A mutual fund is a pool of money run by a professional or group of professionals called the ?investment adviser.?
Advantages and Disadvantages of Mutual Funds
Outlined below are some of the advantages and disadvantages of mutual funds. Every investment has advantages and disadvantages. But it's important to remember that features that matter to one investor may not be important to you. Whether any particular feature is an advantage for you will depend on your unique circumstances.
Different Types of Mutual Funds
This is a guide to the different types of mutual funds. When it comes to investing in mutual funds, investors have literally thousands of choices.
Price to Earnings Ratio - P/E
After finding the price of a particular stock, usually the next number everyone looks at is the P/E ratio.
More Articles from Stocks & Mutual Fund Information:
What Does it Take to be a Stock Trader?
It takes a total mental commitment to the task. It becomes a complete way of life. You cannot be a part timer. You cannot work at a regular job and trade stocks successfully.
Buy and Hold Investment Philosophy
Wall Street has been preaching the doctrine of Buy and Hold forever. The worst part about it is the small investor (and some big ones) actually believe it. Brokers and financial planners believe it, but when you show them they can get a better return by timing the market they just say, "It can't be done". They are either lazy or stupid.
What Can Model Airplanes Teach You About Trading?
I was devastated!
Do You Know What is the Single MOST Critical Mistake in Trading the Stock Market??
Well maybe that's overstating it a little, but it's certainly one of the most important.
Investing in the Stock Market
From the book 'The Stockopoly Plan' by the author Charles M. O'Melia
Let's hope you did not have any of the Enron stock. Maybe you know someone who did and lost everything, but you certainly might know several people who owned stock that lost almost everything. They probably aren't talking about it.
Smart Day Trading Strategies to Help You Make Money in the Stock Market
Stock trading can be a very profitable activity. You can make big amounts of cash in a short period of time. The problem is, that if you don't know what stocks to look for and how to approach them and leave everyting to chance, you could end up wasting money a lot of cash instead of making your profits grow.
The Holy Grail (of Investment)
Every year I go to the Money Show in Orlando, Florida. Thousands attend. It is mostly an older crowd with the youngsters about 40 years of age. I have been saying for years that until you have lost enough money trying to make a fortune you will not become serious about investing. The under 40's are shooting for the moon and it has finally dawned on the over 40's (maybe it's the over 50's) that they must find a better way to get rich.
Are you one of those many people who dread reading their 401K statements? You have been watching it decline for about 2 years and are wondering if will ever stop. Just about everyone says the market will come back. Brokers say you are in for the long haul so don't worry. Any account that drops to a 50% loss has to go up 100% to get "even" and that is a very difficult phenomenon. If you have an 80% loss as has already occurred in the Nasdaq you would need a 400% rally to get "even". At 90% you have to see a 900% rise to that mythical "even".
Swing Trading Strategies
Using Swing Trading Strategies and Technical Analysis when Trading Stocks to Make Consistent Trading Profits.
Stocks: Understand What You Buy!
"There is nothing more frightful than ignorance in action!"
Johann Wolfgang von Goethe (1749 - 1832)
Zero Sum Game
Most people think the stock market is a zero sum game because there is a buyer for each seller and seller for each buyer so each cancels the other and everything is equal. Not quite.
When is a dividend not a dividend?
I know there are a lot of you out there who would like to "get even" with the stock market. Many are on the diet of "I hope, I hope". As a professional trader I can tell you that diet will make you very sick.
Money, Insanity and Wall Street
Money: the most charged word in the planet. It means something to everyone. For some, money means a blessing, for others it means a disaster.
The Seven Mistakes All Novice Traders Make and How to Correct Them
We learnt the following the hard way! If any of these things applies to you, don't worry ? there is an easy solution!
One Way Street
Ever turn down a street, get half way and suddenly realize it is one way and you are going the wrong way? Is that the way you feel when you look at your stock brokerage statement?
Investment Capital Gains
Have you bought any mutual funds this year or late last year while the market was doing its skyrocket thing? Last year it was hard to lose money. This year it has been easy.
Today we are inundated with tons of information about the economy, stocks, government agencies and foreign governments. They show us charts and graphs of the increase/decrease in oil production over the last 5 years, the amount of maple syrup produced in Vermont for the past century, the time it takes to bounce a signal off the moon and all kinds of other nonsense that we can live without. The talking heads on the investment programs, both radio and TV, tell us how this is going to affect the price of certain stocks and the market in general. Well, maybe.
Economists know more about how the fragments of society work than anyone. In school they are taught to break down the economy into its tiniest parts and to quantify each minutiae so it can become part of a formula. Once done those econometric formulas should become a viable equation to predict how the total economy will react when a change occurs to any part of the formula.