Stocks and mutual funds Articles
Forex Trading: Opportunity or Scam (q)
- ... sovereign states that have issued their own currencies, there have been changes as facilitator for trade.
Forex, as foreign exchange has been c...
Commodity Forex Online Trading
- ...arned money.
Firstly. Start off small.
While you are learning the ins and the outs of trading take time to get to know the market, th...
Secrets to Day Trading Success
- ...r you. Why? Because there are always subtleties in the way any method of trading is employed. After all, its the stocks YOU DON'T PLAY that make all...
HOW NEWS AFFECTS THE STOCK MARKET
- ... It reacts when an audit fraud is uncovered, and when a company
has a research breakthrough. And the market seems to react to every
Mutual Fund Families
- ...tual fund family. A fund complex is a group of funds that are under common management—it typically comprises one family, but can include more ...
Closed End Investment Companies
- ...ge commissions.
Unlike open-end funds, closed-end funds have no redemption privileges. You can't sell the shares back to the company as you ...
Mutual fund Investment Objective
- ...nt stocks as her portfolio, and adding a bond fund with, say, 25 percent of investable funds would provide an overall position of 75 percent stock...
Mutual fund Ratings
- ...ningstar ratings are widely used by investors, who often search for funds with at least four stars, and preferably five. They feel that such a rat...
Information on Mutual Funds
- ...ze, rank, and even recommend mutual funds. This includes Forbes, BusinessWeek, U.S. News & World Report, Kiplinger's Personal Finance Magazine...
Why Do Investors Own Mutual Funds
- ...ds is an important advantage. Very simply, they offer an easy means of pursuing investing goals. There are numerous types of mutual funds that can...
Considering a mutual fund
- ...s of shares—there are more than 13,000 possibilities. This is a problem for investors —sorting out the confusion that can exist over w...
A B and C Share Classes
- ...t eventually convert to Class A shares. Therefore, the distribution fee is not subsequently reduced as it is with Class B shares, but continues on...
Mutual Funds Performance Comparisons
- ...ndash;9 percent in 2000: How did this fund perform? On average, over the two years, it had a return of [(+75 –9) /2], or 33 percent, a seeming...
Taxes and the Mutual fund Investor
- ...losses forward. Funds send their shareholders a Form 1099-DIV which tells them the earnings to report on their income tax returns, classified as o...
Alternatives to Mutual Funds
- ...rokers and Internet brokerage accounts, more of the emphasis shifted to personal decision making. Brokerage costs were reduced substantially, but so...
- ...and provide investment results that typically correspond to the underlying index. Typically, there are no capital gains distributions. The expense...
Comparing ETFs and Mutual Funds
- ...ch is a group of selected stocks focusing on a concept or industry, such as biotech. Most HOLDRs are based on a group of 20 stocks, and the original...
Comparing Mutual Funds With Folios
- ...as there is with a mutual fund. Keep in mind that minimum account requirements have been rising for many mutual funds.
Mutual funds, as in...
- ... millions of dollars, have always had access to the personalized services of portfolio managers. Until very recently, investors with several hundr...
How to Use Mutual Funds Effectively
- ...ing mutual funds. The rewards of doing so, however, can be great.
We now know that the costs of owning funds can vary widely across funds, a...
Mutual funds considerations
- ...al funds.
Mutual funds have worked well for many investors for a long period of time. If success can be judged by dollars invested, mutual f...
Observing When to Buy Stocks Online
- ...lable changes in the market cycles happen practically every second which is extremely inevitable. The key players in the market are always watching on...
The Stock Market Explained
Before I go into explaining what the Dow or NASDAQ is, it will probably help to understand what a stock is in the first place:...
Stock Exchange for Beginners
- ...as the "Big Board" and brings in the highest volume dollar trades everyday. The NYSE reminds of figures of women and men flooding the floor selling an...
Hedge Funds vs. Mutual Funds
- ...t vehicle designated for sophisticated, also known as the "Accredited Investor".
Mutual funds gained popularity in the 1980's. Prior to thi...
Dos and Donts in Stock Market
- ...ry month, don't Buy All in 1 go. Let Say one has to invest 1 lac. Invest 10,000 Every Month For Next 10 Month in 5-10 Various Good Fundamentally Com...
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How stock indices work
(...) A stock index is nothing but the weighted mean of the price of the share of each company in the market, with the frequency of instance of a share being counted as the number of shareholders of that specific share.
Although the above procedure mentioned is the simplest of ways a stock index can be calculated, contrary indices use contrary methods. Most indices in the world use the weighting function as the market capitalization (a measure of the bigness of the company). (...)
Stocks: Industry Groups Are Leading the Market
Both Investor’s Business Daily and the Daily Graphs Online charting services offer an additional, proprietary source of information that will help you determine whether the stock you’re thinking about owning is in a top-flight industry group. The Industry Group Relative Strength Rating assigns a letter grade from A to E to each publicly traded company we follow, with A being best. A rating of A , A, or A– means the stock’s industry group is incorporated in the top 24 percent of all industry groups when it comes to price performance. (...)
Traditional building stocks and housing
Are you aware where the traditional building stocks were during 1971? They spent the year in the bottom half of all industry groups, while the newer building-related subgroups more than tripled! The mobile home group crossed into the top 100 industry groups on August 14, 1970, and stayed there until February 12, 1971. The group returned to the top 100 on May 14, 1971, and then fell into the bottom half again later the following year, on July 28, 1972. In the prior cycle, mobile homes were in the top 100 groups in December 1967 and dropped to the bottom half only within the next bear market. (...)
The exact Differentiation Maker
(...) That tracks and exhibits the daily presentation of 185 10-stock portfolios, tick-by-tick, by the initial bell so that you can the market's close. The documents out of every one day's performance is normally placed in a Derby Tote Board that permits people that will study the final presentation of all portfolio more than almost any specific duration period of time.Statement of the best through 5 performing stock portfolios to get the five-day periods of time assures a current market timing method unto by itself. (...)
Using Relative Price Strength Correctly
These areas of resistance represent prior purchases of a stock and serve to limit and frustrate its upward movement because the investors who made these purchases are motivated to sell when the price returns to their entry point. (See the chart for At Home.) For example, if a stock advances from $25 to $40, then declines back to $30, most people who bought it in the upper $30s and at $40 will have a loss in the stock unless they were quick to sell and cut their loss (which most people don’t do). (...)
Excellent Opportunities in Unfamiliar and Newer Stocks
(...) They provide a gold mine of information. It will require some time and study from you to become good at this, but interpreting charts is easier than you think.
A Loud Warning to the Wise about Bear Markets!!!
Let me offer one last bit of judicious guidance. (...)
Seek Stocks Showing Huge Current Earnings Increases
The earnings per share (EPS) number you want to focus on is calculated by dividing a company’s total after-tax profits by the number of common shares outstanding. This percentage change in EPS is the best element in stock selection today. The greater the percentage increase, the better. (...)
Set a Minimum Level for Current Earnings Increases
(...) Also, make sure to check consensus earnings estimates (projections that combine the earnings estimates of a large group of analysts) for the following several quarters but for the next year or two to ensure the company is projected to be on a positive track. Some earnings estimate services even show an estimated annual earnings growth rate for the next five years for many companies.
Many individuals and even some institutional investors buy stocks whose earnings were down in the most recently reported quarter because they like the company and think that its stock price is "cheap. (...)
Look for Accelerating Quarterly Earnings Growth
(...) You don’t would like to get impatient and sell your stock if it shows this kind of acceleration. Stick to your position. Some professional investors bought Waste Management at $50 in early 1998 because earnings had jumped three quarters consecutively from 24 percent to 75 percent and 268 percent. (...)
Understanding the principle of earnings acceleration or deceleration
(...) For top companies, plotting the most recent 12-month earnings each quarter should put the earnings per share point close to or already at new highs.
Check Other Stocks in the Group
For additional validation, check the earnings of other companies in your stock’s industry group. If you can’t find at least one other impressive stock displaying strong earnings in the group, then you may have selected the wrong investment. (...)
Just what Normal Stock Market Cycle
(...) In 1982, Chrysler and Ford were two such spirited turnaround plays. Cyclical and turnaround opportunities led on the market waves of 1953–1955, 1963–1965, and 1974–1975. Cyclicals including paper, aluminum, autos, chemicals, and plastics returned to the fore in 1987, and home-building stocks, which are also cyclical, have led in other periods. (...)
Why You Missed Some Fabulous Stocks
A long time ago, when I first began to study the market, I bought Northrop at 4 times earnings and watched in disbelief as the stock declined to a P/E ratio of 2.
How Price/Earnings Ratios Are Misused
Many Wall Street analysts put a stock on their "buy" list because it’s selling at the low end of its historical P/E range. They’ll also recommend a stock when the price starts to drop, thereby lowering the P/E and making it seem like an even bigger bargain. (...)
The wrong manner to Analyze Companies in an Industry
(...) He would travel to Europe and buy one-of-a-kind paintings by Rembrandt and others, paying more than the market price. He would then bring them back to america and sell them to Henry Ford and other industrialists of that era for substantially more than he had paid. In other words, Lord Duveen bought the one-of-a-kind masterpieces high and sold them much higher. (...)
The Correct Time to Begin Buying a Stock
(...) You can’t just buy the best stocks any old time. There’s a right time, and then there are all the other times.
Answers to the Market’s Great Paradox
Now you know the Great Paradox, would you still pick the same stock you did earlier in the article? The correct one to buy was Stock A, Syntex Corp. (...)
Buy The best 2 or 3 Stocks in a Group
(...) I mean the one with the best quarterly and annual earnings growth, the highest return on equity, the widest profit margins, the strongest sales growth, and the most dynamic stock-price action. This kind of company will also have a unique and superior service or product and be gaining market share from its older, less-innovative competitors.
Avoid Sympathy Stock Moves
Our studies show that very little in the stock exchange is really new; history just keeps repeating itself. (...)
How to Separate the Leaders from the Laggards
(...) That doesn’t mean that it can’t go up in price. It just means that if by some chance it does go up, it’ll probably go up less. From the early 1950s through 2008, the average RS Rating of the bestperforming stocks before their major run-ups was 87. (...)
What is the General Market
(...) This index consists of 30 widely traded big-cap stocks. Previously focus primarily on large, cyclical, industrial issues, but it has broadened a little in recent years to include companies such as Coca-Cola and Home Depot. It’s a simple but rather out-of-date average to study because it’s dominated by large, established, old-line companies that grow more slowly than today’s more entrepreneurial concerns. (...)
Why Is Skilled Careful Market Observation So Important
(...) To be highly accurate in any pursuit, you must observe and analyze the objects themselves carefully. If you wish to know about tigers, you have to watch tigers not the weather, not the vegetation, and not the other animals on the mountain.
Years ago, when Lou Brock set his mind to breaking baseball’s stolen base record, he had all the big-league pitchers photographed with high-speed film from the seats behind first base. (...)
The Stages of a Stock Market Cycle
(...) This is because stocks are anticipating, or "discounting," all economic, political, and worldwide events many months in advance. The stock market is a leading economic indicator, not a coincident or lagging indicator, in our government’s series of key economic indicators. The market is exceptionally perceptive, taking all events and basic conditions into account. (...)
How you can Learn to Identify Stock Market Tops
(...) Sometimes distribution can be spread over six weeks if the market attempts at some point to rally back to new highs. If you're asleep or unaware and you miss the topping signals given off by the S&P 500, the NYSE Composite, the Nasdaq, or the Dow (which is easy to do, since they sometimes occur on only a few days), you may be wrong about the market direction and therefore wrong on almost everything you do.
One of the biggest problems it's time it takes to reverse investors’ positive personal opinions and views. (...)
Ways to Spot Stock Market Bottoms
(...) For example, the Dow plummets 3 percent each morning but then recovers later in the day and closes higher. Or the Dow closes down 2 percent and then rebounds the next day. We typically call the session in which the Dow finally closes higher the very first day of the attempted rally, although there have been some exceptions. (...)
Watch Federal Reserve Board Rate Changes
(...) With the advent of program trading and various hedging devices, some funds now hedge portions of their portfolio in an attempt to provide some downside protection during risky markets. The degree to which these hedges are successful again depends greatly on skill and timing, but one possible effect for some managers may be to lessen the pressure to dump portfolio securities on the market.
Most funds operate with a policy of being widely diversified and fully or nearly fully invested at all times. (...)
The Fed Crushes the 1981 Economy
In fact, the subprime real estate mortgage meltdown and the financial credit crisis that resulted in the highly unusual market collapse of 2008 can be easily traced to moves in 1995 by the then-current administration to substantially beef up the Community Reinvestment Act (CRA) of 1977. These actions required banks to make more higher-risk loans in lower-income areas than they would otherwise have made. Failure to comply meant stiff penalties, lawsuits, and limits on getting approvals for mergers and branch expansion. (...)
General Market Indicators
(...) Every year or two, Wall Street appears to be of one mind, with everyone following each other like a herd of cattle. Either they all pile in or they all pile out. An index of "defensive" stocks more stable and supposedly safer issues, such as utilities, tobaccos, foods, and soaps may often show strength after a few years of bull market conditions. (...)
Are Successful People Lucky or Always Right
(...) Irving Berlin wrote more than 600 songs, but no more than 50 were hits. The Beatles were turned down by every record company in England before they made it big. Michael Jordan was once cut from his high school basketball team, and Albert Einstein made an F in math. (...)
Limit Losses to 7 percent or 8 percent of Your Cost
(...) I was curious and asked him if he always followed the 10 percent loss policy himself. "I would hope," he replied, "to be out long before they ever reach 10 percent." Loeb made millions on the market. (...)
All Common Stocks Are Speculative and Risky
(...) Decision and action should be instantaneous and simultaneous. To become a big winner, you need to learn to make decisions. I’ve known at least a dozen educated and otherwise intelligent people who were completely wiped out solely because they would not sell and cut a loss. (...)
Cutting Losses Is Like Buying an insurance policy
It’s exactly the same for the winning investor who cuts all losses quickly. It’s the only way to protect against the possible or probable chance of a much larger loss from which it may not be possible to recover.
If you hesitate and allow a loss to increase to 20 percent, you'll need a 25 percent gain just to break even. (...)
Are You a Speculator or an Investor
(...) " After reading this far, you should already know this is not the proper way to invest. There’s no such thing as a long-term investment once a stock drops into the loss column and you’re down 8 percent below your cost.
These definitions are a bit different from those you’ll read in Webster’s Dictionary, but they are far more accurate. (...)
Wall Street is human nature on daily display
To be a successful investor, you must face facts and stop rationalizing and hoping. No one emotionally wants to take losses, but to increase your odds of success in the stock exchange, you have to do many things you don’t want to do. Develop precise rules and hard-nosed selling disciplines, and you’ll gain a major advantage. (...)
When to Sell and Take Your Worthwhile Profits
Keep in mind the old saying: "Bulls make money and bears make money, but pigs get slaughtered."
The basic objective of every account must be to show a net profit. To retain worthwhile profits, you must sell and take them. (...)
Jack Dreyfus Was a Chartist
(...) Almost all the stocks that the Dreyfus and Fidelity funds bought also had strong increases in their quarterly earnings reports.
So the first buy rules I made in 1960 were as follows:
1. Concentrate on listed stocks that sell in excess of $20 a share with at least some institutional acceptance. (...)
Many leading stocks top in an explosive fashion
3. Exhaustion gap. If a stock that’s been advancing rapidly is greatly extended from its original base many months ago (usually at least 18 weeks out of a first- or second-stage base and 12 weeks or more if it’s out of a later-stage base) and then opens on a gap up in price from the previous day’s close, the advance is near its peak. (...)
Low Volume and Other Weak Action
(...) Third- or fourth-stage bases. Sell when your stock makes a new high in price off a third- or fourth-stage base. The third time is seldom a charm in the market. (...)
When to Be Patient and Hold a Stock
(...) In order to sell, big investors must have buyers to absorb their stock. Therefore, consider selling if a stock runs up and then good news or major publicity (a cover article in BusinessWeek, for example) is released.
How Many Stocks Should You Really Own
(...) How many different businesses and types of loans was New York’s Citigroup involved in from 2000 to 2008? The more you diversify, the less you know about any one area.
Many investors overdiversify. The best results are usually achieved through concentration, by putting your eggs in a few baskets you know well and watching them very carefully. (...)
How to Spread Your Purchases over Time
(...) This will also spare you the frustration of owning a stock that goes a lot higher but isn’t doing your portfolio much good because you own fewer shares of it than you do of your other, less-successful issues.
Simultaneously, sell and eliminate stocks that start to show losses before they become big losses.
Using this follow-up purchasing procedure should keep more of your money in just some of your best stock investments. (...)
Oil and Oil Service Stocks Top in 1980 1981
(...) We use supply-and-demand charts, facts, and historical precedents that now cover all common stocks and industries from the 1880s through 2008.
The choice to suggest that clients avoid or sell oil and oil service stocks from November 1980 to June 1981 was one of our institutional firm’s more valuable calls at the time. We even told a Houston seminar audience in October 1980 the entire oil sector had topped. (...)
What Are Options and Should You Invest in Them
(...) Conversely, if three months go by and your stock is down and didn’t perform as expected, you would not exercise the option; it expires worthless, and you lose the premium you paid. As you might expect, puts are handled in a similar manner, except that you’re making a bet that the price of the stock will decrease instead of increase.
Limiting Your Risk when it comes to Options
If you do consider options, you should definitely limit the percentage of your total portfolio committed to them. (...)
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