Analysis Topic: Investor & Trader Education
The analysis published under this topic are as follows.Wednesday, April 09, 2008
Trading Rules / InvestorEducation / Learn to Trade
Rules Of The Trade
Rule 1. To trade successfully you must develop your own system and approach. To do this you must work the market out for yourself. The best way to start this process is to first learn how others before you mastered this task successfully. Thus become educated, informed and aware and stay that way.
Read full article... Read full article...
Tuesday, April 08, 2008
Understanding Contracts For Difference (CFD's) / InvestorEducation / Derivatives
ONE of the most innovative financial instruments that has been developed over the last decade or so is the CONTRACT FOR DIFFENCE, better know as a CFD. The explosion in the use of this product is one of the reasons why London , as opposed to New York , is becoming the financial location of preference for many financial managers and hedge traders. CFD's are not allowed in the U.S. due to legal restrictions imposed by the American Regulators.Read full article... Read full article...
Thursday, April 03, 2008
How To Develop Your Mental Trading Edge / InvestorEducation / Trader Psychology
I was in Vegas speaking at a recent Trader's Expo. There were a lot of exhibitors, speakers and attendees. All were talking about how traders and investment managers could make more money.
There were various systems, numerous indicators to use, and various news sources to listen to.
Read full article... Read full article...
Monday, March 31, 2008
Return Persistence & Future Stock Performance: Are Momentum Strategies Effective? / InvestorEducation / Sector Analysis
Return persistence – the tendency for stocks to trend in the same direction – has been the topic of a number of academic studies. Many academics, and a number of portfolio managers, adhere to the theory that the market is reasonably efficient. As such, historical stock prices should reflect the sum of public knowledge and should have little predictive value of future stock price movements. Many value managers adhere to this theory. The fact that some studies show that stocks tend to trend on one direction is therefore puzzling to these researchers.Read full article... Read full article...
Tuesday, March 25, 2008
How To Match Your Trading Style With Your Personality / InvestorEducation / Learn to Trade
Have you ever noticed that traders with seemingly the same skills are not making the same amount of money?
Have you ever attributed success to being in the right place at the right time, or just being lucky?
Read full article... Read full article...
Sunday, March 23, 2008
The Complete TurtleTrader - Book Review / InvestorEducation / Resources & Reviews
Buy and hold is dead! The extreme market volatility over the last decade should make this abundantly clear to even casual market watchers, but it is something that good traders have known all along: You trade securities, you don't marry them. Buying a stock is not a commitment "until death do you part." A friend once told me the story of a man he knew who worked at Worldcom during the go-go 90's and had his entire 401(k) invested in the company stock. He was waiting for his account to hit $2 million, and then he was going to cash out. It was almost there - $1.8m, $1.9m - something like that when the stock began its terminal decline. Instead of selling, he held on until the bitter end, until all was lost. Moral of the story: The market is the utlimate authority. It does not listen to you, nor care about your dreams & desires, so you had best learn to listen to it.Read full article... Read full article...
Saturday, March 22, 2008
Five Common Mistakes in Commodities Investing / InvestorEducation / Resources Investing
Take a deep breath. The rout may be over. It may not be. This is a time when commodities investors have seen their mettle tested once again. This is nothing new. As recently as June 2006, we saw the price of silver drop precipitously from nearly $14.50 an ounce to under $10; a drop of nearly 35%. Granted, this most recent correction may not be over yet, but so far, it has only claimed damage in the area of 19%. These types of corrections are perfectly normal in the commodity markets and given what we've been seeing in the equity markets, should not be at all surprising. That's the bad news. The good news is that there is once again a tremendous opportunity to pick up both bullion and related stocks at fire sale prices.Read full article... Read full article...
Saturday, March 15, 2008
Economy and PE Ratio Impact on Long-term Stock Market Investment Returns / InvestorEducation / Stock Market Valuations
- Muddle Through Gets A Boost
- Honey, I Vaporized My Customers
- Consumer Spending is Going, Going...South
- The Boomers Break the Deal
Today we drop back to take a look at the economy and its long term effect on our portfolio returns. I am in Orlando this week, speaking at the Newport Advisor Conference sponsored by the Newport Group. The attendees are primarily investment advisors focused on larger retirement accounts and pensions. This week's letter is the gist of my speech I gave yesterday, as the entire speech would be way too long for a weekly letter. I want to thank the Newport Group for letting me do this, and thanks for the very kind way they have hosted me. Note: this week's letter will print a little longer as there are a lot of graphs. And next week I will address the housing market, as was my intention this week.
Read full article... Read full article...
Thursday, March 13, 2008
How to ‘Invest' In Precious Metals and Commodities with $5,000 to $10,000 / InvestorEducation / Options & Warrants
There are many ways to invest in the precious metals and natural resource sector. Many analysts would first suggest investors purchase gold and silver bullion or coins, then focus on some of the larger capitalized mining companies (most of which are selling for over $35 per share). You might consider the GLD or the SLV, the Exchange Traded Funds for gold and silver currently selling for $96 and $197, respectively. Not all investors have the financial resources necessary to purchase these alternatives.Read full article... Read full article...
Wednesday, March 12, 2008
The Stock Market Rally Is Coming! The Rally Is Coming / InvestorEducation / Learning to Invest
Always buy too soon--- because no one will tell you either when the rally will start or, more importantly, how long it will last. Of course those are the two things you want to know, but all you really have to go on is the experience of the past. This is not going to be a technical analysis of a series of numbers or chart formations that have predictive capabilities. Instead, it is intended to be a mild sedative to calm your collective fears and to allow for a relaxed analysis of the corrections of the past. You have to prepare yourself for the rally that is surely coming, and it may just arrive sooner than you think--- today, even.Read full article... Read full article...
Wednesday, March 05, 2008
Brainwashing of the American Investor - Academic Investment Book Reviews / InvestorEducation / Resources & Reviews
Steve Selengut's "Brainwashing of the American Investor" is an eye-opening and intelligent book, which offers an analysis of the investment industry and a smart and practical guide to non-professional investors. Selengut is wary of the conventional wisdom of investing professionals, who appear to have abandoned the tried and true principles of investment, in favor of super-hype, organizational conformity, and greed. Selengut's back-to-basics approach builds on his critique of the Wall Street hypsters and their bandwagon mentalities. Instead, he serves up a clear set of economic principles, mixed with sound commonsensical advice.Read full article... Read full article...
Tuesday, March 04, 2008
Investment Portfolio Performance and The Working Capital Model / InvestorEducation / Learning to Invest
Ouch! The mighty Dow has fallen to within a financial heart beat of its 1999 high water mark, boasting an average per year gain of less than one half of one percent in spite of several interim manipulations designed to improve the performance picture. The S & P 500 Average, an equally prestigious indicator of broader market movements, is nearly 13% below where it was at approximately the same time. Both figures reflect no investment expenses at all. So, in spite of the mostly ignored fact that neither index includes any income securities (bonds, preferred stocks, REITs, etc.), a reasonable person could well expect his or her portfolio market value to be well below where it was nearly ten years ago! Now that's a fairly dismal scenario, but it's the in-your-face reality for most investors as we move forward into what we all hope will be a more spring-like investment climate.
Read full article... Read full article...
Monday, March 03, 2008
How to Make Money in Super Cycle Stocks Bear Markets / InvestorEducation / Learning to Invest
The stock market has essentially gone sideways since its March 24, 2000 high almost eight years ago. In fact, it has spent 99% of the time below that high and because profitable market timing is so difficult for most investors they have typically lost money during this time period.Read full article... Read full article...
Saturday, March 01, 2008
Put Option Strategies to Protect Your Stocks Portfolio / InvestorEducation / Options & Warrants
We all want to beat the market. The recent volatility in the markets is causing many investors to question if they should sell their favorite companies and wait for a better day. Others are just resigned to ride it out, believing in the buy and hold approach. After all that is what they have been told by their brokers, or read in various publications and books. So is there a way to hold on to the best companies and just buy some down side risk insurance to protect against potential losses. As it turns out you can have cake and eat it too. Buying put options that protect against a stocks decline offers just this type of insurance.Read full article... Read full article...
Friday, February 22, 2008
Four Steps to Maintain Discipline in Volatile Markets / InvestorEducation / Learn to Trade
Have you told yourself, “I know exactly what is wrong and how to fix it, but I can't?”
Have you ever blamed yourself for not having enough discipline to follow your plans?
If so, you are not alone. People think that if you don't have self-discipline, you don't have control. They forget about the fear that creeps in.
Read full article... Read full article...
Friday, February 15, 2008
Asset Allocation for Foundation and Endowment Investment Portfolios / InvestorEducation / Investment Funds
Foundations, Endowments and other Not-for-Profit organizations come in all shapes and sizes. The assets that they control and manage for the benefit of countless projects, charities, and causes is staggering in total and it has become a primary market for the vast array of investment products developed by Wall Street financial institutions. One can only speculate about how much "Bubble Paper" finds its way into the these portfolios, but nearly all of them are managed by the major brokerage firms, and all such firms bonus their brokers on the basis of product sales. It is not uncommon for Wall Street to re-write the syllabus for Investments 101, redefining Quality, Diversification, and Income to suit its own dark purposes…
Read full article... Read full article...
Saturday, February 09, 2008
Healthcare, Industrials and Consumer Discretionary Investing Themes 2008: A Tale of Two Halves - Part 5 / InvestorEducation / Sector Analysis
The beginning of a new year is a good time to make a new assessment of the important investment drivers and themes for the year. If you want to beat the market it is important to understand what is driving the markets and where the best sectors are to find good opportunities. By identifying these factors you will have a solid framework to assess the impact market movements and news events on your investment strategy. This is the fourth of a five part series on the outlook for the 2008 markets. The first part discussed the key drivers ending with a mention of what sectors will benefit and those that will be hurt. This Part discusses the Materials and Utilities sectors. Part 2 discussed Energy and Financials, Part 3 reviewed Technology and Consumer Staples. Part 4 presented the Materials and Utilities sectors.Read full article... Read full article...
Thursday, January 31, 2008
Income Investing - Why Isn't This Easy? / InvestorEducation / Learning to Invest
Most people (including myself) would insist that Equity Investing is the most difficult to master. After all, that is the venue for: erratic price fluctuations caused by an endless supply of social, economic, and political variables; the standard Wall Street misinformation, corporate malfeasance, self- serving financial gurus, and product sales persons; a myriad of popular and market moving speculations from IPOs to Option and Margin strategies; thousands of media talk shows and their financial markets' experts. When you think you understand the stock market brother, you are in serious trouble.Read full article... Read full article...
Wednesday, January 30, 2008
Asset Allocation Investment Planning to Beat Inflation: Investing by the Numbers / InvestorEducation / Learning to Invest
Uno. Asset Allocation is an investment planning tool, not an investment strategy... few investment professionals understand the distinction. Investment strategies are used to implement the asset allocation formula that investment planning produces. Many investors incorrectly believe that investment planning and financial planning are one and the same. Financial planning is the broader concept, one that involves such non-investment considerations as: Wills and Estates, insurances, budgeting, trusts, etc. Investment Planning takes place within the Trusts, Endowments, IRAs, and other Brokerage Accounts that come into existence as a result of, or without, Financial Planning.
Read full article... Read full article...
Tuesday, January 29, 2008
Trade Canadian Stocks & Warrants Online / InvestorEducation / Options & Warrants
The prices of gold and silver have recently been hitting new highs with gold now over $900 an ounce and silver over $16.50 an ounce. Many investors, me included, had been looking for this rally to carry our mining shares to much higher prices. Unfortunately this has not happen and it is only normal to ask why? Virtually none of us have a reasonable explanation for this terrible market sentiment. Are investors fearful of a potential meltdown in the financial markets?Read full article... Read full article...