Owner: BeWarrenBuffett URL:http://bewarrenbuffett.com Join Date: Thu, 26 Jul 2007 03:56:31 -0500 Rating:0 Site Description: Free Investment education website. Site statistics:Click here
Does Value Investing Still Work? 2007-07-25 11:30:53 The essence of technical analysis involves
studying of past financial market data to forecast price trends and
make an investment decision based on this. Technical analysis only
takes into consideration price behavior of the market. Unlike in value
investing, technical analysis doesnt care about the value of a company.
What's
the use of analyzing past market data when the market is random. There
can be a 50% chance of going up and another 50% of going down, why do
we still need to study Technical Analysis.
As I explained in the
earlier article about how psychology affects investment, investors move
in a crowd approach (causing a trend) and this cause support (lowest
price point of this trend) and resistance (highest price point of this
trend) levels to be formed until something drives the stock higher or
even lower.
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Technical analysis is useful only if you want to
'predict' short Read more:Value
, Investing
How Psychology Can Influence Your Investment Judgement 2007-07-23 09:49:10 Studies have shown that human have shown patterns of irrationality, inconsistency and incompetence when arrriving at decisions and choices when they are faced with uncertainty.
This field is better known as behavioral finance. This field explains how emotions influence investors and the markets. This explains why prices can go much lower or higher than the actual value when the companies faced with temporary setbacks or business opportunities. This also explains why there are market bubbles and crashes.
This is when value investing comes into picture. Warren Buffett believes in finding out the intristic value of a stock and buys large amount of it when the price falls below the actual value of the stock.
When a stock falls, most investors would not cut loses and withdraw his/her stocks. Instead, to avoid the pain and regret of making a bad investment, they might hold on to the stock until the stocks fall even lower until it worths nothing. An investor tends to follow the ma
Turbocharge Your Investment with Options Trading 2007-07-21 09:01:31 What is options trading?
There are two choices in options tradings, the puts and the calls.
You buy puts when you think the stock or index is about go go lower quickly in short period of time. As for calls, you buy them when you think a stock or index is about to go higher quickly in a short period of time.
Instead of buying the actual stock, you are actually speculating on the direction of ths stock. This is a significant advantage for investors with limited investment funds and yet can participate in investing based on the growth and fall of ths stocks of companies that interest them.
Call options (puts and calls) are actually contracts with a delivery date (expiry date). Call options are the right but not the obligation to purchase an agreed upon amount of stock at a particular price in the future.
1 call option = the rights to purchase 100 stocks of common stock.
How do you make money with options trading?
For example, you want to capture the rise of the next Read more:Options
, Trading
Sector Investing with Jim Cramer 2007-07-18 04:37:24 I just finished reading this great book by Jim Cramer
- 'Jim Cramer's Mad Money. Sane Investing
in an insane world'.
If you are from the states, you probably heard of him because he is the host of the TV show Mad Money. In this book, he illustrates that its lucrative and possible to invest using sector rotation strategy.
Below are some of the questions we should ask ourself before we purchase some brand new stocks in additional to what we are already having inside our portfolio
1. What's going to make this stock go up?
2. Why is it going to go up when you think it is?
3. Is this really the best time to buy it?
4. Havent we missed a lot of the move?
5. Shouldnt we wait until it comes down a little more?
6. What do you know about this stock that others don't
7. What's your edge
8. Do you like this stock any more than any of the others you own and why? (LOOK FOR REASONS WHY YOU SHOULDNT BUY A STOCK cos these reasons will pop up once you buy a stock
Golden Rules of Momentum Investing 2007-07-27 23:07:11 Why do people still agressively buy stocks even when prices are overvalued? The reason is simple, the market is full of greedy investors who believe that the prices will go even higher and thus end up buying more, pushing the prices to be even higher. This is the magic of demand and supply. Momentum stocks are very popular among fund managers, investors ang the general public. It is usually due to sector rotations that the stocks in these hot industries become popular and overvalued and yet you can still make money out of this.
As you know the big players of these momentum stocks are the fund managers Therefore, when the sector rotate or a hotter stock emerges, these fund managers move their funds from one to the other, causing the prior stock to dive in price.
In order to earn money from momentum stocks, it is very important to buy and sell at the right time or you could easily burn your fingers.
There are 7 golden rules of investing in momentum stocks.
(1). Read more:Golden
, Rules
, Investing
Review on Options Trading Secrets 2007-07-31 04:16:21 I'm really excited today as I'll like to introduce you to a very good friend of mine, David
Rivera (http://keith55.dr1007.hop.clickbank.net/) .
He has taught me a lot about what I know about investing. Before I met him, I have been spending lots of money on any single investment book and system I can find. My experience is that most of these are rip offs or contains techniques that are OUTDATED and DON'T WORK at all in today's market. Some of them even fall in the category of dummies guides. Its a total waste of my time and money. You can imagine my frustration.
He developed his own system on how to trade options and I managed to be one of the lucky ones to see it!!! The best hing about options trading is that you can trade with minimum amount of money and yet have leverage. on your investment. In the study course, other than imparting his technique of options trading to you. He also answers questions that many option traders have like
When is Read more:Options
, Trading
, Secrets
What Small, Medium and Large Cap Stocks Mean To You 2007-08-04 17:32:47 Stocks can be classified in terms of their size, small, medium and large cap stocks. Capitalisation can be referred to as the market value of teh company. We derived the market value of a company by multiplying market price of stock by the numebr of outstanding shares.
Large cap stocks refers to stocks oflarge companies with considerable earnings and large amount of common stocks.
Large cap stocks refers to companies that are listed on the Dow Jones Industrial Average and S&P 500 index. Examples of such companies include IBM, Intel and Microsoft. Large cap companies have a market capitalization of more than $5 billion. These stocks are often overpriced and overspeculated. These companies usually pay higher dividend, the prices of stock are generally less volatile and the prices of these stocks have less growth rate. This is of course with the exception of internet companies like Google who is in an industry which is extremely volatile.
Medium
cap companies have a market capit Read more:Stocks
, Small
Don't enter the stock market until you read this 2007-08-07 12:51:18 How many of you actually had the time to watch the stocker tickers every minute or even every second to monitor the prices when the stock market is bullish?
What if you forgot to watch the stock prices and the bullish market take a reverse and becomes bearish instead. If you sell too early, you lose out on greater profits. Sounds familar eh? Read more:enter
Anyone Can Effectively Predict a Market Downtrend 2007-08-13 12:59:00 Have you been losing money because the market turns against you when you least expect it? Do you know that the market actually gives you signals before its turns bearish from a bullish trend.
Watch the market for signals closely and you can cut your losses fast before stock prices plunges rock bottom. You can also use this signals to sell short and make money from the stock market!!
The signals are all around you. You just need to know where to look. Follow on with me and I'll show you how to make money in a bearish market or even cut loses before the market trend turns against you. Read more:Anyone
, Effectively
, Market
How can you make heaps of money from the stock market while keeping risks to the minimum? 2007-08-21 13:29:33 How can you make heaps of money from the stock market while keeping risks to the minimum?
I always believe that you should never put your money in something you do not know about eventhough everyone is dumping their money in this particular stock and prices are rushing like mad.. That would be speculating or gambling. Sounds weird. Remember the internet bubble where a lot of investors buy internet stocks like crazy just because they had been going up and up.
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