Analysis Topic: Investor & Trader Education
The analysis published under this topic are as follows.Wednesday, July 23, 2008
Stocks Boosted by Tracker Buying on Entering Major Indices / InvestorEducation / Learning to Invest
Nilus Mattive writes: I love scouring the market for attractive stocks with smaller market capitalizations (the number of shares outstanding times the current stock price), especially ones that pay nice dividends.
That's because smaller stocks tend to have better growth prospects. After all, it's easier to post big gains when you're starting from a smaller baseline. Most investors recognize this simple concept.
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Friday, July 18, 2008
Stock Market Forecasting Made Simple / InvestorEducation / Learn to Trade
By now I hope you're beginning to see how things play out in a bubble meltdown. If you didn't learn how the drama, deceit, panic and denial pummeled the market piece by piece during the dotcom bubble collapse, you have a chance to learn first hand from the current implosion in the real estate driven credit bubble. You would be wise to learn the typical course of these asset blow outs since it appears as if the Fed intends to keep creating bubbles and letting them implode as its only way to create reasonable, but fictitious GDP growth.Read full article... Read full article...
Wednesday, July 16, 2008
Good News For Income Investors / InvestorEducation / Learning to Invest
Looking for good news in today's markets is like searching for the proverbial needle in a haystack. Needless to say, practically all investment grade equities and nearly all closed end funds that specialize in providing regular recurring monthly income have been reduced in market value by this prolonged correction. The quake has spread in all directions form its financial epicenter, and the mounting doom and gloom has taken its toll on even the most rational investment decision makers. Try to keep in mind that the purpose of income investing is the income that your portfolio produces not an increase in the securities' market values---Read full article... Read full article...
Saturday, July 05, 2008
Advice from Warren Buffet for Investing in Difficult Times / InvestorEducation / Learning to Invest
There is an alleged ancient Chinese curse, “May you live in interesting times.”
While there is no historical proof of the origin of that curse, there is ample current proof in the securities markets that we are living in interesting times. It's simply nasty out there — or at least it feels that way.
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Friday, July 04, 2008
The 5 C's of Trading Consistency / InvestorEducation / Learn to Trade
How many times have you heard that one of the keys to trading success is consistency?
Probably too many times. Well, it is true.
How do you define trading consistency? What are the elements of it?
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Wednesday, July 02, 2008
Investors Enticed With New Derivatives Investment Products / InvestorEducation / Scams
How to Multiply Asia 's Gains by 230% - "...Whatever you think investing should taste of, it no longer just comes in vanilla..."
DID YOU KNOW...? Private investors like you can make 230% of emerging Asia 's super-soar-away gains between now and 2014. You're only tied in for three years. An early exit will return 130% of your initial investment.
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Friday, June 20, 2008
Learn to invest by Recognising Our Mistakes / InvestorEducation / Learning to Invest
Each of us believes we learn to invest by recognizing our mistakes. When we make a losing investment, do we recognize our mistake and learn from it, or do we attribute it to some outside factor, like bad luck or the market? To beat the market, we must recognize our mistakes and then learn from them. Unfortunately, learning from these mistakes is much harder than it seems.Read full article... Read full article...
Wednesday, June 18, 2008
Put Your Portfolio on Autopilot And Ride Out the Market Turbulence! / InvestorEducation / Learning to Invest
Nilus Mattive writes: My daughter Vela turned one last week. We had a great little island-theme party complete with grilled mahi-mahi, coconut cake, and pineapple ice cream. I'm not sure if Vela knew what the heck was going on, but the rest of us had a great time.
Of course, underneath our grass-skirt celebration was a simple, indisputable fact: Time ain't waiting around for any of us. If anything, it's flying by at a seemingly faster and faster pace.
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Monday, June 16, 2008
Protect Yourselves from the Triple Crisis of Surging Inflation, Unemployment and Credit Contraction / InvestorEducation / Credit Crisis 2008
Martin D. Weiss writes: I've lived through four U.S. recessions, two bouts of surging inflation, and at least two close encounters with a Wall Street meltdown.
But this is the first time in my lifetime — and probably yours — that all three have converged in one time and place.
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Friday, June 13, 2008
Dividend Reinvestment Is One of the Most Powerful Wealth-Building Strategies Out There! / InvestorEducation / Dividends
Nilus Mattive writes: I recently got a question on my blog asking whether it's better to cash in dividend checks or reinvest them.
It's a great topic, and I have a very definitive answer: If you're an income investor who could really use the dividends to live right now, by all means cash those checks.
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Tuesday, June 10, 2008
How to Survive and Profit from Stagflation / InvestorEducation / Stagflation
Increasingly in recent weeks commentators have begun speculating about the dreaded “S-word”- stagflation- and whether or not such a protracted period featuring both high prices and high unemployment would blight the U.S. economy.
The stagflation debate arose anew on Friday when a worse-than-expected employment report and a record single-day surge in crude oil prices made economists once again consider the possibility that the U.S. economy could drop into a recession even as inflationary pressures spiraled higher.
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Sunday, June 08, 2008
How to Deal with Knee-Jerk Market Reactions / InvestorEducation / Learning to Invest
Jack Crooks writes: This past week was a roller coaster ride in the currency markets, and it sure ended with a bang. I'll get to the big news in a second. And I'll also tell you what to make of this market.
But first, I want to do a quick day-by-day rundown of what happened in the currency markets ...
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Tuesday, June 03, 2008
Trading Doctor- The Danger of Overconfidence / InvestorEducation / Learn to Trade
There are two kinds of people that lose money: those that know nothing and those that know everything. With two Nobel Prize winners in the house, Long Term Capital Management fits the second case…R. Lenzner, Forbes Magazine, October 19, 1998
Once upon a time there was a secretive hedge fund called Long-Term Capital Management (LTCM). Over a period of four years—from 1994-1998 this hedge fund returned approximately 40% per year. Then, in 1998, the LTCM portfolio dropped from US$100 billion to US$600 million. In order to avoid a potential market crash the U.S. Federal Reserve organized a consortium of investment banks to take over LTCM's positions in various financial instruments. The failure of LTCM is a cautionary tale about hubris, arrogance, overconfidence and the limits of modern financial theory.
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Monday, June 02, 2008
Preservation of Principal Is of Paramount Importance During Bear Markets / InvestorEducation / Learning to Invest
We hope you have a chance to read our rebuttal to CNNMoney.com's recent Great Depression article . While we have described the 1930 peak before (all the way back in October of 2006 ), we feel our analysis has been vindicated. We may take some flak for getting too far out ahead of the parade back in 2006; but our readers know we discuss long term trends. (Check our chart below on personal savings!) The reasoning in October was correct;Read full article... Read full article...
Saturday, May 31, 2008
Trigger Trading- Strategic Command and Control / InvestorEducation / Learn to Trade
Traders Quandary in Finding a Consistent and Accurate Edge: When considering the implied benefits of obtaining exclusive-access to a self-proclaimed, highly accurate charting service, (of which we are one) how is one to make heads or tails in turning the professed profit-packed price-charts into an actionable trading plan?Read full article... Read full article...
Thursday, May 29, 2008
Lessons from the Great Depression - Stock Market Crash! / InvestorEducation / Economic Depression
Today I think it is appropriate to look at the actual crash of 1929 and how it unfolded. The importance of this post will examine the multiple interventions that entered into the market trying to prop it up while the market steadily unfolded for four years before bottoming out. When we look at a number such as 1929-1933, we seem to compartmentalize that these four years somehow went quicker than our future four years of say 2008-2012.
Try to imagine for a moment, how 2012 will look. Does this seem like tomorrow? Does this seem like a quick turn of a chapter? Of course not. So when we examine the crash of 1929, we realize that the market declined both abruptly and quickly at times but took years. It wasn't for lack of intervention or from motivation. There were those perma-bulls back then that couldn't foresee a world without new credit devices that emerged during the early part of the century.
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Tuesday, May 27, 2008
How to Identify Stocks to Sell Short / InvestorEducation / Stocks Bear Market
Is the market over-valued? In this week's Outside the Box, one of my favorite global equity analyst's (and no stranger to regular readers), James Montier of Societe Generale does some very interesting analysis on the European and US markets and finds the number of stocks which make his list as possible for being a "short" is at very high levels. This is a remarkable read and re-enforces my view that we are in a "sell in May and go away" summer. This is really a great Outside the Box. Enjoy.Read full article... Read full article...
Thursday, May 22, 2008
Leadership and Trading / InvestorEducation / Trader Psychology
I was participating in a meeting the other day and the speaker was talking about leadership.
When I was thinking of leadership, it occurred to me that as traders, we own our business and we set its direction. We are leaders and how we run our business is very essential to our success.
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Wednesday, May 14, 2008
Use Stock Screeners to find Great Stocks / InvestorEducation / Learning to Invest
Nilus Mattive writes:There are thousands of stocks trading on U.S. exchanges right now. And there are thousands more trading on major foreign exchanges. So there are clearly lots of opportunities out there at any given time.
The million-dollar question: How do you separate the wheat from the chaff? Heck, I spend every single day following the markets and researching great income investments ... and there's still no way I can easily study a fraction of the stocks out there!
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Monday, May 12, 2008
Compound Stock Earnings Programs - Caveat Investor / InvestorEducation / Options & Warrants
The caller seemed surprised that I had never heard about Compound Stock Earnings Programs, or CSEs. "People are earning three to six percent per month with little or no risk", she continued, "I'm thinking of attending a seminar". A wise man once said: "If it sounds too good to be true, it probably is", but this sure is a creative euphemism for what has to be a rather complicated options strategy.Read full article... Read full article...