Analysis Topic: Investor & Trader Education
The analysis published under this topic are as follows.Tuesday, October 21, 2008
Trading Crude Oil Using Trade Triangles / InvestorEducation / Learn to Trade
I just finished a new educational trading video on crude oil. This short video shows you all the Q3 trading signals that took place in this market. The results have been nothing short of spectacular. With gains of over 20,750 per contract, I think you'll understand why we are so excited about our "Trade Triangle" technology and this video.Read full article... Read full article...
Monday, October 20, 2008
Bonds Crash as Stock Markets Bounce / InvestorEducation / US Bonds
The bond market traded sharply lower again last week as tiny glimmers of hope appeared on the horizon indicating that the worst of the financial upheaval for this month might be behind us. After a record breaking crash in equities during the first third of October, stocks actually managed to show some gains last week as some metrics of financial distress such as elevated LIBOR levels, 0% Treasury Bill yields and record premiums for Credit Default Swaps managed to subside a tad. We are far from normal on most fronts but at least for the moment it appears that the sky has stopped falling!Read full article... Read full article...
Thursday, October 16, 2008
How to Trade Plunging 'Cheap' Financial Markets Video / InvestorEducation / Learn to Trade
Rushing into any market because it looks inexpensive or cheap is not the way to trade. Often times when you see weakness in the market, it means that the market is headed lower. The market we are looking at today is a classic case of a market that should have gone up (which it did), and then it turned dramatically lower.Read full article... Read full article...
Tuesday, October 14, 2008
Financial Markets Trading Fear- Trader Education Video / InvestorEducation / Futures Trading
"The only thing we have to fear is fear itself." Thus spoke Franklin D. Roosevelt 75 years ago.Looking back on Roosevelt's speech in 1933, 4 years after the infamous crash of '29, he was referring to the economic conditions of the time -- better known as The Great Depression. In essence he was saying that if we can't shake our pessimistic economic outlook, it will be tough to turn things around.
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Monday, October 06, 2008
Stock Market Investing Safety Over 5year and 10year Periods? / InvestorEducation / Investing
In a recent post , we studied 82 years of price change for the S&P 500. One of our readers commented, “I read somewhere that over 80% of all five year periods dating back to the Great Depression has seen the market ahead; over 95% for ten year periods.”
That rule of thumb isn't wrong, but it doesn't give a full picture. Let's add some dimension to the statistic.
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Tuesday, September 30, 2008
Credit Crisis Explained and What Happens Next- Online Video / InvestorEducation / Credit Crisis 2008
In a video interview monetary historian and precious metals expert Michael Maloney weighs in on why this current financial crisis was so predictable.• Why brokerage houses were allowed to combine with banks in the late 1990's and why this led to a financial bubble.
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Tuesday, September 30, 2008
Valuing Cyclical Companies by Using the Price/Sales Ratio / InvestorEducation / Corporate Earnings
The price/sales multiples is one of the most often quoted investment valuation ratios. Even the legendary James O'Shaughnessy is not immune to the ratio's charms; he even went as far as to call it “the king of the value factors”. I've always found the ratio's popularity strange as the measure is dangerously flawed.Read full article... Read full article...
Tuesday, September 30, 2008
Warrants – The Fed and the U.S. Government / InvestorEducation / Options & Warrants
Warrants have been frequently mentioned in the main stream news the last couple of weeks. Most recently warrants were being mentioned as a component in the failed $700 billion bailout plan. It is unlikely that most investors even know what warrants are, much less understand the financial implications and the benefits associated with warrants. So give us a few minutes and let us bring you up to speed.Read full article... Read full article...
Monday, September 29, 2008
Investors Reappraise Investment Risks to Include Credit Worthiness / InvestorEducation / Credit Crisis 2008
Investors, not just mortgage lenders, whether owning bonds or stocks, need to pay more attention to credit worthiness now and in the future than they have in the past.
Investors have become used to thinking of risk as merely volatility (standard deviation of return), but there is also absolute risk — the risk of permanent loss of value.
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Tuesday, September 23, 2008
How to Handle the Quicksand of Trading / InvestorEducation / Learn to Trade
In the past few weeks, have you felt like you were in quicksand?
By the markets' volatility causing a lot of uncertainly and P&L swings, does it feel like the harder you try, the worse things get?
Do you feel overwhelmed?
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Wednesday, September 17, 2008
Five Misunderstood Stock Market Terms / InvestorEducation / Learning to Invest
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...
Tuesday, September 09, 2008
Retirement Income Investment Planning - Step One / InvestorEducation / Pensions & Retirement
Your retirement income investment plan starts now, right now, no matter how old or well heeled you happen to be.Step One is to understand what a retirement plan is, and to identify the three large numbers you need to keep track of while you are developing your stash. With these three totals on your spreadsheet, it's much easier to develop long-range retirement income goals that make personal sense. A retirement plan is an income production plan. Guaranteed retirement income - projected expenses = the gap. No gap, add parents and children to the expense number. There's always a gap.
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Friday, August 29, 2008
Investor Psychology Cycle Swinging From Greed to Fear / InvestorEducation / Learning to Invest
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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Friday, August 29, 2008
Financial Markets Trading and the Olympic Games / InvestorEducation / Learn to Trade
I am fascinated to watch the Olympic Games. Athletes from all over the world come together and compete with each other. As you might have noticed, sometimes the winner surprises everyone. It is not the one who is most talented or most favored…
I was watching women's gymnastics. The two top teams were China and the U.S. After the 4th rotation, it seemed that the U.S. would win the gold medal.
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Thursday, August 21, 2008
Investor Declaration of Independence / InvestorEducation / Learning to Invest
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...
Thursday, August 21, 2008
A Brief History of Common Stock Warrants / InvestorEducation / Options & Warrants
Perhaps you have heard about warrants but have not taken the time to fully understand the potential which they can bring to your portfolio.
It's understandable for today there are so many different investment vehicles in which to invest. Most of our readers are interested in how to invest in the precious metals sector, so we have to consider, buying the gold and silver bullion, (if you can find it), mutual funds, ETF's (Exchange Traded Funds), mining shares, options, LEAPS, and warrants. All are great choices.
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Friday, August 15, 2008
Brainwashing of the American Investor / InvestorEducation / Credit Crisis 2008
Jefferson Airplane has never, ever, been mistaken for a band of financial advisors, but the White Rabbit lyrics can be incredibly instructional to the generation of investors who experienced the classic first hand--- as a description of their own college days' lifestyle. If only they had heeded the dormouse's call to "feed your head." For the sake of your retirement sanity and security, you just have to make income investing an intellectual exercise--- not an emotional one.Read full article... Read full article...
Monday, August 04, 2008
Preventing Investment Mistakes: Ten Risk Minimizers / InvestorEducation / Learning to Invest
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
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.
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Friday, July 25, 2008
Stock Market Returns – The Wonder of Compounding Dividends / InvestorEducation / Dividends
Albert Einstein described compound growth as the eighth wonder of the world. Although he may have passed away in 1955 – coincidentally the year when yours truly saw daylight for the first time – the concept of compounding remains the single most important principle governing investment.
Back to basics: Compounding simply means that you can earn interest on your principal investment amount, as well as earn interest on top of interest. The power of compounding can make an investment grow much faster than would otherwise have been the case, and is obviously based on the assumption that interest or dividends are reinvested in the same asset.
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