Owner: Rant About It URL:http://rantaboutit.blogspot.com Join Date: Tue, 13 Feb 2007 00:13:47 -0600 Rating:0 Site Description: The purpose of this blog is to educate every reader including me about trading in stocks by understanding the fundamentals and techicals behind it... Site statistics:Click here
Foreign Investment in United States 2007-03-07 05:25:00 In 2004, the total foreign direct investment (FDI) in the UnitedStates
(U.S.) stood at $1.5 trillion, equivalent to $2.7 trillion in today's market value which represents approximately 10% of the total current market value of all publicly traded companies in U.S.Geographic BreakdownEuropean companies made up 65-70% of direct investment in the U.S., with United Kingdom (UK) leading the way. 1/3rd of the total investment from Europe came from UK, with $250 billion invested in 2004. UK, Germany, Netherlands and France were the top four investors in U.S. in that particular order.Asian and the Pacific firms had the next highest level of investment in the U.S., at approximately $219 billion in 2004. Japan accounted for 75% of the investment. Chinese & Indian investments in 2004 were minimal. However that is bound to change with a number of acquistions by Chinese and Indian firms.Canada finished in the third spot.Direct investment from Latin American investors totals $86 billion. The bigge Read more:Foreign
, Foreign Investment
, United States
Citigroup On a Buying Spree 2007-03-11 01:49:00 Citigroup (C) bought the largest online bank in the world, Egg Banking at $ 1.13 billion. Citi got in return 3 million credit card customer and $ 18.6 billion in assets. Citi's total asset stands at $1.8 trillion.So did Citigroup get a great deal ? In 2004, Bank of America (BAC) paid $48 billion for FleetBoston which had $ 196 billion in assets, J.P. Morgan Chase (JPM) paid $58 billion for Bank One which had $320 billion in assets, Wachovia (WB) paid $14.3 billion for SouthTrust which had $54 billion in assets. In 2005, Bank of America paid $35 billon for MBNA which had $ 123 billion in credit loans. In 2006, Wachovia paid $25B for Golden West which had $125 billion in assets, Regions Financial (RF) paid $10 billion for AmSouth which had $58 billion in assets.When you compare all the recent mergers on cash paid/dollar assets acquired, it seems like Citigroup got a very good deal with minimum risk. It is acquiring an online bank with online assets, which can be combined with Citi’s Read more:Citigroup
, Buying
, Spree
What is ExxonMobile Upto 2007-03-12 00:51:00 Last year ExxonMobil (XOM) produced about 4.2 million barrels of oil/day. Is that enough ? Probably not. To add to their existing production volume, ExxonMobil has decided to invest in more than 20 new projects around the world over the next 3 years. This would bring in an additional 1 million barrels of oil/day to its volumes at peak production.Capital SpendingCapital spending is projected to be around $20 billion/year through the rest of this decade. Isnt this something to worry about ? $20 billion/year for an extra one million barrels a day in production ? So what does Exxon have to say about that ? Probably nothing...Just that Exxon's volume will keep growing through the end of the decade.So where does Exxon plan to invest ?Exxon has an ownership interest in 40 refineries located in 20 countries. 20 new projects the company plans to invest in will be mature markets such as North America, Australia and the North Sea, as well as growth areas like the Middle East, Russia and West Af
China Gets Aggressive With Forex Reserves 2007-03-13 05:40:00 Did you know China
has more than $1 trillion in foreign currency reserves after posting huge trade surpluses year after year !! Add to that China's reserves is growing at $20 billion every month !! For China, that is simply spectacular, for U.S. well...sigh*So what does China do with the 1$ trillion ? Right now they have invested approximately 75% in low-yielding U.S. Treasury securities and other dollar-denominated assets. The rest in euros and a small amount in yen. Returns on this investment has been less than 3% last year. Not quite exciting. But that is going to change....Need a ChangeChina now plans to make better use of their reserves and reap in more profits. One way to do that is create an investment company, and that is exactly what they are upto. China will soon create one of the world's largest investment funds, with diversification in global stocks, bonds and commodities markets. It is estimated that they will allocate somewhere between $200 to $400 billion to this new Read more:Aggressive
, Forex
Highest Rated Sectors: Did Analyst Get It Right ? 2007-03-13 09:23:00 What are we looking at here ? The most popular S&P 1500 groups. The table is self explanatory, so i will just point out few interesting things. The first column is the list of sectors most recommended by the Wall Street Analyst
. The sixth column gives the overall percentage of buy recommendation. The last column is the stock that is most favored in that particular sector. As you can see Contruction Materials topped the table with 61.1% buy recommendation. Analyst are most bullish on Vulcan Materials Company VMC.Construction Material SectorVulcan Materials Company VMC is currently trading at $116.01P/E = 24.76 (ranked #2 in the construction materials sector)EPS = 4.69PEG =2.31 (ranked #2)Dividend = 1.50% (ranked #9)Market Capital = $11.02 billion (ranked #2)Analyst recommendation of 1.4/5.0All in all, pretty impressive record. Add to that their 1-year return was whooping +49.75%. No wonder analyst love it. Construction Raw Materials sector performance ? Last one year returns was +25%. P Read more:Sectors
, Right
Subprime Lenders: Screwed Real Bad 2007-03-15 06:00:00 Last few days the market is full of news about how the number of foreclosures are increasing around U.S. and how badly subprime lenders are screwed. I do not want to reiterate the same point again and again. Instead i will list a few interesting pointers/takeaways from this whole episode. But just before doing that for those who do not know what subprime is...What is a subprime loan ? This is a loan to someone with a bad credit history. These people pay higher interest rates, earning more money for lenders, so long as the mortgage payments keep coming.Delinquencies & ForeclosuresThe delinquency rate for one-to-four-family houses rose to 4.95% of all loans outstanding compared with 4.67% during the 3rd quarter. The North Central region had an overall delinquency rate of 5.68%, the South 5.71%, the Northeast 4.59% and the West 3.18%. A record high number of homeowners faced a serious threat of foreclosure during the 4th quarter of 2006. Foreclosures were highest in the North Central regi Read more:Subprime
, Lenders
, Screwed
Investing in ETF Options: Perspective of a Trader 2007-03-17 09:55:00 I found an enlightening interview of a trader talk about investing in ETF options. Let us have a quick look at what ETFs and Options
are before we move to the interview...What are ETFsA security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day as it is bought and sold.What are OptionsA privilege sold by one party to another that offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed-upon price (strike price) during a certain period of time or on a specific date. Options are extremely versatile securities that can be used in many different ways. Trader
s use options to speculate, which is a relatively risky practice, while hedgers use options to reduce the risk of holding an asset.Naked calls increase in value as the underlying stock increases in value. Likewise naked puts increase in value as the underlying stock decreases Read more:Investing
, Perspective
Stock Option Backdating: Turn Back Time 2007-03-19 05:44:00 Every now and then you come across some scandal in the news about stock option backdating. Media ranting about how the company management cheated the investors by backdating the stock options. Whether you understand stock options backdating or not, one thing you know for sure, that a bunch of crooks did something wrong and tried to dupe everyone and finally got caught. If you are not aware what that means or vaguely understand it...this would be good time to get it right.Some executives would love to turn back time when it comes to their stock options. Do you know why ? Pretty straight-forward actually. The day the option is granted, some executives would love to backdate them, that is set them to an earlier date when the stock was trading at a lower price. What is the Result...Instant Profits !!Lets explore what options backdating is and what it means for companies and their investors.Company Do's and Dont'sCompanies can issue and price stock option grants as they see fit, but this Read more:Stock
, Turn Back
Money Markets: Reduce Your Risks - Part 1 2007-03-21 05:17:00 Most investors are hypocrites when it comes to the stock market. In the bull market they are raving about the stock market, where as in the bear market, they cannot stop cursing it. In the bear market alot of investors get out of the stock market and park their money in the money market, that offers an alternative to high risk investments.Introduction to Money
MarketMoney market is one of the significant type of fixed income market. Money market securities are issued by governments, financial institutions and large corporations. These instruments are very liquid and considered safe. They are better known as a place for large institutions and government to manage their short-term cash needs. Because they are extremely conservative, money market securities offer significantly lower returns than most other securities.How is Money Market different from Bond Market ?The difference between the money market and the bond market is that the money market specializes in very short-term debt secur Read more:Markets
, Risks
Interesting Stories That You Missed 2007-03-19 22:53:00 Over the past few days i came across some interesting news/facts which deserves some limelight.Basic Material ETFsETFs that focus on large-cap companies with exposure to basic materials have had nice returns for the year. Why is that so ? Analyst believe U.S. economy is growing and a growing economy needs materials. Returns on the 2 popular ETFs areVanguard Materials ETF (VAW) = 8.3%Materials Select Sector SPDR (XLB) = 7.5%Top companies in both of these ETFs are: Du Pont (DD), Dow Chemical (DOW), Alcoa (AA), Monsanto (MON), and Phelps Dodge (PD).Tax Efficient ETFsMany of the newer ETFs are more specialized which could effect their tax efficiency in different ways.Here are 5 funds that are top-rated for consistent returns and tax efficiency:iShares MSCI Austria Index (EWO): 5-year return of 36% and over that time lost 0.4% to tax costs.iShares Russell 2000 Value Index (IWN): 5-year return of 13% and over that time lost 0.5% to tax costs.Vanguard Small Cap Value Index (VBR): 3-year Read more:Stories
Money Markets: Reduce Your Risks - Part 2 2007-03-23 06:34:00 As part of the money market post, let us have a look at few worthy money market instruments. Just before doing that let me do a quick recap from the previous post.The money market specializes in debt securities that mature in less than a year. Money
market securities are liquid and considered very safe resulting in lower returns than other securities. Money market mutual fund is the easiest way to gain access to money markets. T-bills are short-term government securities that mature in one year or less. Certificate of deposit (CD) is a time deposit with a bank, which are safe investments with not so great returns. Commercial paper is an unsecured, short-term loan issued by a corporation with higher returns than T-bills because of the risk factor.Bankers Acceptance (BA)A bankers acceptance is a short-term discount instrument that usually arises in the course of international trade. Bankers Acceptance starts as an order to a bank by importer X to pay an amount to exporter Y at the futur Read more:Markets
, Risks
With So Many Options Where Does One Start 2007-03-24 09:48:00 Last time I checked, the Nasdaq had more than 3200 companies listed. Following all of them is simply impossible. So what do most investors do ? Short-list a bunch of stocks they like and stick to them. How do you short-list which ones to invest from so many options ? Where do you start ? Frankly, there is no straight answer to that. The best thing would be to break these stocks into smaller groups and then decide how to proceed. Ok so lets break them into smaller groups. But wait...what criteria to use to break them into smaller groups. I found few of the important criterias that make the selection process much more easy.Company SizeBreak up based on company size. By company size, i mean their market capital. Market capital is nothing but the total dollar value of the company's outstanding shares. Based on market capital a stock can be a large cap, mid cap or a small cap.Large Cap = Market cap of anything more than $10 billionMid Cap = Market cap valued between $1 billion and $ 10 bil Read more:Options
, Start
The Art of Making Money in the Bear Market 2007-03-27 05:28:00 In the bull market most of us makes money, and in the bear market most of us loses money. Wouldn't it be nice to change that, and make money in the bear market. With the advanced investing technique called short selling, it is possible.However the concept of short selling doesnt come easy to everyone. In general, people think of investing as buying an asset, holding it while it appreciates in value, and then eventually selling to make a profit. Shorting is the exact opposite where you make money when the asset falls in value. The return rates can be high from short selling, but its comes with the added high risk.The Basics of Short SellingWhen you sell a stock (say X number), that you do not own, but are promised to be delivered in future, it is called Short Selling. So how can you sell a stock you do not own ? Basically your broker will lend it to you. Sooner or later you must buy back the same X number of stocks (covering) and return them back to your broker. When you buy back the Read more:Money
, Market
Bankruptcy: Good, Bad and the Ugly 2007-03-28 10:58:00 When a person or a firm is unable to pay their ever-increasing debts, they can file for bankruptcy. Let us say Mr X filed for bankruptcy. This means Mr X's existing assets will be liquidated and he will be relieved of any liability. The reason why most people file bankruptcy is that their debts have reached a level where they cannot pay them back and only way out of it is a fresh start.Last year in U.S. more than a million filed for bankruptcy. That number will increase this year due toBad housing market (which leads to foreclosures & delinquencies)Bear stock market (with housing & subprime lending stocks leading the way)Possibility of a recession (as per Greenspan's comment)Energy prices (ever increasing oil prices putting extra burden on everyone)Increased inflation (driving up the prices of goods and services)Americans save less money leading to high debt to income ratioTypes of BankruptcyChapter 7: Mr X can file for Chapter 7, which basically means that all his assets will be
Democrats for Stem Cell Research 2007-01-17 23:57:00 Stem cell research has been a hot topic for quite a long time, but it has now become the center of attention as Democrats
, who took both chambers of Congress for the first time in twelve years, have pledged to increase federal support for stem cell research. The House of Representatives passed a bill that would reduce restrictions on federal funding for embryonic stem cell research.Besides favorable public opinion, local and state governments appear to be jumping on the stem cell bandwagon and will be pushing in my more money in the research.So what is a stem cell ??A stem cell is a generic cell that can make exact copies of itself indefinitely. It is also a precursor cell that has the ability to make specialized cells for various tissues in the body (such as heart muscle, brain tissue and liver tissue). Stem cell research is expected to impact advances in curing diseases such as Alzheimer’s and Parkinson’s disease, diabetes, spinal cord injury, heart disease, stroke, arthritis, an Read more:Research
, Stem Cell
How to Determine Your Returns in the Stock Market 2007-03-31 02:46:00 With all of the volatility in the stock market over the past several years, it can be difficult to determine how to devise an investment strategy to maximize your returns. To help you determine a reasonable rate of return to expect on your stock investments, it might be helpful to review some facts about the stock market.Historical ReturnsStock
market is a one place where you can make alot of money very fast as well as lose money at the same pace. Most of us make money on some stocks and lose on some others. What matters in the end is what returns can you expect on an annual basis. If you look at the history,1926 - 2004, the average return from the stock market was 10.4%1955 - 2004, the average return from the stock market was 10.9%1980 - 2004, the average return from the stock market was 13.5%1995 - 2004, the average return from the stock market was 12.1%The stock market's historical return can change dramatically depending on the period considered. But over a period of time, on aver Read more:Market
Selling Your Investment: Five Mistakes to Avoid 2007-04-04 05:49:00 When the security you bought has increased in value, you can make a profit over it, provided you sell the security. How much profits you reaped-in depends not on the current price of the security, but at what price did you sell the security. Unfortunately, many investors sell based on emotional factors, making one of several mistakes.I have listed five mistakes most investors make when it comes to selling. Along with that i will also discuss how to avoid those mistakes.1. Holding on to an investment with a lossSay you bought stocks worth $10,000, at $100/share. Few days after buying them, the stock price dropped to $90/share. You decide to hold on to the investment till the investment atleast gets back to a break-even level of $100/share.Problem: It is generally difficult for investors to sell off their investment with a loss. They would rather prefer to wait until they see some positive numbers. However, that may never happen or may take a long time to do so.Solution: You should re-ev Read more:Avoid
Dollar Cost Average: Stay away from Predicting 2007-04-01 02:58:00 The truth about making money in the stock market is buy low and sell high. Quite simple eh ! But hold on, how do you really know when the market has hit bottom ? Can an investor really predict the bottom ? As a matter of fact hedge fund managers, mutual fund managers, private investment managers, market gurus, CEOs and analysts can't predict the bottom, nor can you and me. So how should we approach this problem ? It is actually a tough one. Predicting if the market has reached its bottom it not that simple. However using the Dollar
Cost Average
investing technique, you could protect yourself in a falling market. Let us learn how.What is Dollar Cost Average (DCA)Dollar Cost Average is simply putting a X amount of money each month into an investment such as a stock, index fund or mutual fund. Most banks will even set up a monthly automatic-withdrawals service. Dollar Cost Average is also ideal for the investor who doesn't have that big lump sum at the start but can invest small amount
Royalty Trusts: Another Attractive Investment 2007-04-06 07:11:00 Trust is a very important term in the world of investing. To put it in simple words, a trust is nothing but an arrangement whereby money or property is owned and managed by an individual or entity for the benefit of another. The money is invested in companies with operating assets, which produce income and cash flow that is eventually passed to the investors. These trusts are neither stocks nor bonds but investment trusts. A trust investment that uses a trust to hold ownership of an asset and pass through income to investors is called a securitization or an asset-backed security.Royalty TrustsRoyalty trusts buy the right to royalties on the production and sales of a natural resource company and pass on the profits to trust unit holders. Royalty trusts typically own oil or natural gas wells, or the mineral rights of wells.Royalty trusts are found in Canada and the United States. Canadian royalty trusts, called CanRoys, typically trade on the Toronto Stock Exchange, while some of the l
ADRs: Invest In Foreign Companies With Ease 2007-04-07 11:03:00 For U.S. investors, investing in the Nasdaq, NYSE or AMEX is relatively simple. Place a trade order by calling your broker or simply by doing it through an online account. But how about investing in a company that is listed on a foreign exchange ? Would you even know where to start ? How do you find a broker that can provide such a service ? How do you trade at different prices and currency values ? In short, it is much more difficult to do that.This problem was solved by U.S. banks and brokerage firms with the introduction of American Depositary Receipts (ADRs). U.S. banks simply purchase a bulk lot of shares from the foreign company, bundle the shares into groups, and reissues them as an ADR stock on American stock markets. In return, the foreign company must provide detailed financial information to the sponsor bank/brokerage firms. This makes investing in foreign companies as easy as investing in U.S. companies.An ADR ExampleADR is a medium in which foreign stocks trade on U.S. sto Read more:Foreign
, Companies
Stop-Loss Order: Minimize Your Loss 2007-04-10 10:27:00 Until you sell your stock, you do not make money, be it at a profit or loss. That makes selling one of the most important things for any investor, yet it is also one the hardest thing to do. Factors like ego, insufficient knowledge and emotional attachment makes it difficult for investors to sell, specially at the right time. But even bigger factor why investors do not sell at the right time is due to lack of exit strategy. Many investors enter a trade without any idea of what their exit strategy is. They more likely take premature profits or worse, let their losses run to the downside, at times completely burning their portfolio. To be successful investor, one must understand what exits are available to them and know how to create an exit strategy that will help minimize losses and lock in profits. One such strategy is the stop-loss order.What Is a Stop-loss Order
?Stop-loss order is simply an order placed with a broker to sell off the stock at a set price level. A stop-loss is design
Short Guide On Earnings & Current Volatile Stocks 2007-04-11 09:42:00 What Are Company Earnings
Earnings can be defined as the net income/profit produced by the company after-tax and other expenses. Company earnings is one of the most important factor for analyst when they are analyzing a company. The future growth of the company is estimated based on its current earnings. Most savvy investors keep a close watch on the company earnings before trading in it. This is because company earnings will determine how the share prices will unfold in the near future.What is Earnings ReportCompanies provide their financial information to their investors to report their performance on a quarterly basis. This is nothing but an earnings report. Earnings report carries information like net income, earnings per share (EPS), earnings from continuing operations and net sales. Most companies file in January, April, July and October. It is through these reports that companies let shareholders know how well they have performed over the past time period. Investors compare c Read more:Short
, Guide
, Current
, Volatile
, Stocks
Options Trading: How To Read The Options Table 2007-04-14 04:48:00 The power of options lies in their versatility. They give you the power the adjust your position according to the present situation. However just like any other security, options have their own set of problems. Options
are complex securities and can be sometimes extremely risky. Option trading is therefore not for everyone. However if you do decide to trade in options, the first thing you should know is how to read the options table.Before taking a look at an options table, let us understand what are options and what are calls/puts.An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date. An option, just like a stock or bond, is a security.The two types of options are calls and puts.A call gives the holder the right to buy an asset at a certain price within a specific period of time. Calls are similar to having a long position on a stock. Buyers of calls hope that the stock will in Read more:Trading
, Table
Close-End Funds: A Steady Income Vehicle 2007-04-17 10:28:00 Every now and then you hear analyst and investors talk about Close
-End Funds
. So what are these funds ? What do they do ? Who manages them ? Who can invest in them ? Why would someone invest in them ? Let us find out.What are Close-End FundsClose-End funds are usually sponsored by a fund management company, which will control how the money pooled-in by the investors will be invested. Fund managers create a portfolio for the fund depending on the type of fund. Some funds invest in stocks, others in bonds, others in emerging market, and some in very specific things. Investors choose to place their assets in closed-end funds in the hope that the fund managers will use their management skills and deliver better returns.The fund management company will issue a fixed number of shares to the investors in form of an IPO. These shares are given to the investors based on their initial investment. New shares are rarely issued after the fund is launched. These shares cannot be redeemable for cash Read more:Income
, Vehicle
I Have Got A Yen For You 2007-04-17 01:35:00 Guest Author: My name is Mazy Hedayat, a lawyer in Chicago. I work with entrepreneurs and business people including software, Internet, and financial professionals. Futures and options are big in Chicago so it ought to come as no surprise that this post is from one of my clients who is a futures trader. Let's call him Frank. Frank began buying stocks with money from his paper route in the early 70's and parlayed that into a house and lifestyle within a decade. In 1982 he started trading the newly minted S&P 500 contract and hasn't looked back. Nowadays he trades commodity-based futures in addition to stock index contracts like the S&P 500, NASDAQ, and Dow. He also trades the Yen ...Yen Carry TradeThe term carry trade refers to the practice of borrowing money in low interest markets like Japan, converting those funds into U.S. dollars, and buying financial assets in America such as treasury bonds, notes, DLLs and, for more aggressive types, hedge funds that invest in stocks or c
Interesting Stories That You Missed - 2 2007-04-19 03:10:00 Over the past few days i came across some interesting news/facts which deserves some limelight.Fannie & Freddie Help OutGovernment-backed mortgage finance companies Fannie Mae (FNM) and Freddie Mac (FRE) will help out struggling mortgage holders to avoid foreclosures. Fannie Mae has planned to give borrowers the option of refinancing out of adjustable loans especially for subprime lenders. Fannie Mae will also ease its credit requirements to allow more borrowers to qualify. Fannie Mae will also buy 40-year loans as well as 30-year loans in the secondary market, which will help reduce the monthly payment by about 5%. Freddie Mac will be putting 30- and 40-year subprime loans with reduced margins and longer fixed-rate periods into the market by the summer.Anti-Trust ViolationGoogle (GOOG) recently acquired online ad network DoubleClick for $3.1 billion. This deal will put Google far ahead of the field in the $28.8 billion global online ad market and giving it the capability to provide a Read more:Stories
ETF Special: Variety Of Options 2007-04-21 23:19:00 For those of you that do not know what Exchange Traded Funds (ETFs) are here is a short description.What are ETFsThink of an ETF as a mutual fund that trades like a stock thus experiencing price changes throughout the day as it is bought and sold. You can short sell them or buy them on margin as well. ETF tracks an index, a commodity or an index fund.ETFs offer diversification, high trading flexibility, low expense ratio and tax efficiency in a flexible investment. An ETF does not have its net asset value (NAV) calculated every day like a mutual fund does. When buying and selling ETFs, you have to pay the same commission to your broker that you'd pay on any regular order.With the basic knowledge of ETFs, let us look at different variety of ETFs available in the market. You will be surprized by the options one has.Metal ETFInvestors in ETFs with a copper or mining focus should be aware that the demand for this metal will continue. Economic expansion in BRIC countries such as India and Read more:Special
, Variety
, Options
Margin Trading: Amplify Your Gain/Loss 2007-04-24 11:02:00 Let us say someone told you to buy stocks on margin. Do you really know what it means ? Do you need to know about margin trading ? Do you really understand margin trading ? Do you understand all the pros and cons of margin trading ? If you have answered No to anyone of them, it is time you understand one of the most powerful investment tool in the stock market.Buying stocks on margin is nothing but buying stocks by borrowing money from your broker. Think of it as a loan given to you by your broker. Why would you want to borrow money from your broker ? Obviously to buy more stocks. Generally novice investors begin with a cash account which only uses the money deposited in their account. For margin trading you need to open a margin account, which can be opened during the time of opening a cash account. Margin
account generally requires a minimum deposit of $2,000. Once the margin account is opened you can borrow upto 50% of the purchase price of a stock from your broker. However you can Read more:Trading
Investor v/s Trader: What Is The Difference ? 2007-04-26 11:43:00 The words investors and traders are commonly used in the world of stock market. Many people actually use them interchangeably as if they mean the same. Infact it is not true. Both words have different meaning. Even though investors and traders buy/sell stocks, they perform two very different tasks using very different strategies. Nonetheless, both of them are needed for the market to function smoothly.So are you an investor or a trader ? Confused ? Let us find out the difference between an investor and a trader and then judge for yourself, which one you fit into.Who Is an Investor
?An investor is someone who buys stocks of a company based on fundamental analysis. They hold the stock for long term with the belief that the company will have a strong growth in the future. They derive this based on two basic things. Value: Investors consider whether a company's shares represent a good value. This can be determined by looking at the price to earnings ratio and comparing it with similar comp Read more:Trader
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