Owner: Investing 101 URL:http://investmentadvice101.blogspot.com/ Join Date: Thu, 04 Dec 2008 21:21:13 -0600 Rating:0 Site Description: Help provide sound information and education on basics of investing in the stock and commodity markets.
Site statistics:Click here
The Five Components of an Investors Required Rate of Return 2008-12-04 10:12:00 In financial theory, the rate of return at which an investment trades is the sum of five different components. They are:1. The Real Risk-Free Interest RateThis is the rate to which all other investments are compared. It is the rate of return an investor can earn without any risk in a world with no inflation.2. An Inflation PremiumThis is the rate that is added to an investment to adjust it for the Read more:Components
, Investors
, Return
Four Investing Mistakes to Avoid 2008-11-25 12:33:00 Investing Mistake 1: Spreading your investments too thinOver the past several decades, Wall Street has preached the virtues of diversification, drilling it into the minds of every investor within earshot. Everyone from the CEO to the delivery boy knows that you shouldn't keep all your eggs in one basket - but there's much more to it than that. In fact, many people are doing more damage than good i Read more:Avoid
, Investing
Surviving a Roller Coaster Stock Market 2008-11-19 15:14:00 Surviving a RollerCoasterStockMarket
There have been a number of research papers proving that investors, as a whole, experience far lower returns than the stock market itself as a result of frequent trading. It's not difficult to see why: Men and women, with no training in finance, attempting to manage their own 401k, Roth IRA, or Traditional IRA, or retirement accounts, panic when faced with vo Read more:Roller Coaster
, Stock Market
, Surviving
Why It Might Be a Horrible Mistake to Sell Out During a Down Market 2008-11-14 15:33:00 f you are more than five years away from retirement, your 401(k) was invested in a broadly diversified, low-cost index fund, and you’ve sold off your assets as the market has collapsed, you have made a very, very stupid long-term decision. Believe me, I wish it could be sugar coated, but you’ve effectively just dumped your ownership of great American businesses such as Johnson & Johnson, C Read more:Down Market
, Market
, Mistake
Mutual Funds 101: What They are and How They Work 2008-10-15 09:00:00 The brain-child of Wall Street, mutual funds are perhaps the easiest and least stressful way to invest in the market. In fact, more new money has been introduced into funds during the past few years than at any time in history. Before you jump into the pool and select a mutual fund in which to invest, you should know exactly what they are and how they work.What is a mutual fund?Put simply, a mutua Read more:Funds
, Mutual
, Mutual Funds
Understanding Bond Duration 2008-10-15 08:31:00 Holders of bonds face a distinct set of risks that may be less obvious to the uninitiated. Thankfully, one of the biggest risks in the bond market - interest rate risk - is easy to determine, using a concept called duration. It's possible to approximate how much a bond's price is likely to rise or fall when interest rates change, a level of certainty that stock investors will appreciate. So before Read more:Understanding
Bonds 101 2008-10-15 08:30:00 What Are They?Say you are in the grocery store with a friend on a Thursday afternoon and see something you need for your house; a broom for example. Although you get your paycheck the next day, you ask your shopping buddy to borrow a few dollars so you can purchase the broom now, in return for which you will not only pay them back tomorrow, but buy them dinner as well. Your friend, finding these t Read more:Bonds
Bracketed Orders 2008-09-15 12:09:00 One thing to consider: If you're planning on holding a particular investment for an extended period of time because you believe its long-term potential is substantial or that it is undervalued, placing a trailing stop order may not be a sensible course of action. As an asset class, stocks are notorious for their collective and individual volatility; the road is certainly bumpy. Yet, you may not be
No title 2008-09-15 12:09:00 Congratulations! You've reached the end of the stock trading tutorial postings. You now have the basic building blocks to help you make better decisions for your portfolio. This handy summary will serve as a cheat sheet in the future:· Market orders guarantee execution but not price.· Limit orders guarantee price but not execution.· All-or-none orders are only executed i
Trailing Stop Orders 2008-09-15 12:08:00 One way to protect gains and limit losses automatically is by placing a trailing stop order. With a trailing stop order, you set a stop price as either a spread in points or a percentage of current market value.Imagine you purchased 500 shares of Hershey Chocolate at $50 per share; the current price is $57. You want to lock-in at least $5 of the per share profit you’ve made but wish to continue
Day and GTC Orders and Extended Hours Trading 2008-09-15 12:07:00 When you place an order, you must give it an expiration date. Day orders are good until the end of the trading day, at which point they are cancelled; all market orders are placed as day orders. Good-till-Cancelled (GTC) orders, however, remain open until one of three things occurs: 1. They are completely filled2. You cancel the order3. Sixty calendar days pass There risks in using Good-till-Cance Read more:Extended
, Hours
, Trading
Selling Short and Buy to Cover Orders (Continued) 2008-09-15 12:06:00 To take advantage of the situation, you enter a short sell order for 1,000 shares, borrowing the $10,000 worth of ABC shares (1,000 shares x $10 each) from your broker, selling them on the open market, and pocketing the cash. You hope that the price of ABC common stock will fall, you'll be able to purchase the shares at a lower price and return them to your broker, pocketing the difference.If, for Read more:Cover
, Short
All Or None 2008-09-15 12:04:00 Normally, when you purchase a substantial amount of a company’s common stock, your broker will fill your order over the course of several hours, days, or even weeks, as opportunity arises. This will prevent you from “moving the market” – or drastically increasing (decreasing) the price of the stock by flooding the market with a single, huge order. At times, however, you may want to place a
Stop Order and Stop Limit Orders 2008-09-15 12:04:00 In common parlance, stop and stop limit orders are known as “stop loss” orders because speculators use them to lock in profits from profitable trades.A stop order automatically converts into a market order when a predetermined price is reached (this is referred to as the “stop price”). At that point, the ordinary rules of market orders apply; the order is guaranteed to be executed, you sim Read more:Limit
, Order
Limit Orders 2008-09-15 12:02:00 A limit order allows you to limit either the maximum price you pay or the minimum price you are willing to accept when buying or selling a stock.The primary difference between a market order and a limit order is that your broker cannot guarantee that the latter will be executed.Imagine you want to buy 300 shares of U.S. Bank stock. The current price is $29 per share. You do not want to pay more th Read more:Limit
Types of Market Orders 2008-09-15 12:00:00 The simplest and most common type, market orders simply tell your broker that you are willing to take whatever price is presented to you when your order is executed.These orders are often subject to the lowest commission since they are the easiest to execute.Imagine you want to buy 100 shares of Apple Computer, Inc. (Symbol: AAPL). The current market price is $53.95. You log into your brokerage ac Read more:Market
Investing Introduction 2008-04-28 11:04:00 Have you ever wondered how the rich got their wealth and then kept it growing? Do you dream of retiring early (or of being able to retire at all)? Do you know that you should invest, but don't know where to start?If you answered "yes" to any of the above questions, you've come to the right place. In this tutorial we will cover the practice of investing from the ground up. The world of finance can Read more:Introduction
, Investing
Recommend Site To A Friend
