Shorting Stocks – The Basics, Part I of II (04 Jan 2006) This article explains the basic understanding into the process of shorting stocks. Part I of II, article II in this series gets into some examples.
Shorting Stocks – The Basics, Part II of II (04 Jan 2006) This article (the second part of a two-part series) explains the basics of shorting stocks by providing an example and covering most aspects into placing and closing the trade. Part I of this short series on shorting deals with the basic understanding into the process of shorting stocks.
Getting Even (04 Jan 2006) I know there are a lot of you out there who would like to "get even" with the stock market. Many are on the diet of "I hope, I hope". As a professional trader I can tell you that diet will make you very sick.
Good News? (04 Jan 2006) As the man said, "I've got some good news and I've got some bad news. What do you want to hear first?" It was replied, "Tell me the good news first". The good news is that they are going to make some changes in the mutual fund industry reporting to help the investor and the bad news is it isn't going to make any difference in your bottom line.
Hedge Funds (04 Jan 2006) You read and hear a lot about hedge funds. Unfortunately, most of what you hear is negative because it comes from the major media that has an interest in reporting negatives about them because the major media is supported by so-called standard mutual funds and brokerage companies that spend big bucks for
advertising. Hedge funds are NOT allowed to advertise.
The Holy Grail (of Investment) (04 Jan 2006) Every year I go to the Money Show in Orlando, Florida. Thousands attend. It is mostly an older crowd with the youngsters about 40 years of age. I have been saying for years that until you have lost enough money trying to make a fortune you will not become serious about investing. The under 40's are shooting for the moon and it has finally dawned on the over 40's (maybe it's the over 50's) that they must find a better way to get rich.
Gold Fever (04 Jan 2006) Those who understand the cycle of fear, yes, that is what it is, do manage to control their emotions and do very well. At first the logical, thinking people realize that everything is in place for a long term bull market so they mine (buy) early. As they continue to become richer and richer others see their success and start staking claims. Even these later comers do well as the hoard descends upon the gold fields and the early birds are happy to accommodate them by selling them part or all of their claims (stocks and bullion).
The Great Stock Market Secret (04 Jan 2006) When the stock market is going up and all your stocks and mutual funds are making money you feel like a genius. It is too bad that some folks don't remember what happened in 2000. Of course, right now we are in one of those genius phases.
Hill of Hope (04 Jan 2006) Just about now everyone is confused as to which way the stock market is going to go - up or down. For the past 3 years it has been headed south, but the Wall Street experts have told us that the market never goes down 4 years in a row so this has to be an up year. But no guarantees.
The Golden Goose is Sick (04 Jan 2006) It is finally catching up with them. The brokerage companies I mean. For years they have been feeding bad food to their flock and now the flock is rebelling. The customer has been low man on the totem pole for too long. That food has been the disinformation that has caused customers to lose large sums of money.
Gurgle Gurgle (04 Jan 2006) Caught in a whirlpool and being sucked under. No life vest or other device to save you. Gurgle, gurgle. Down you go.
Hold Em and Fold Em (04 Jan 2006) When most analysts, financial planners, fund specialists and investors try to decide whether to buy a particular stock they immediately go to the financial statements to determine the growth potential of the company. Numbers and more numbers. Then management analysis and industry speculation. Unless you are an experienced financial analyst (and there are not very many good ones) the numbers in the reported statements can be very misleading - just as the company Controller wants them to be.
How Much Information Do You Need? (04 Jan 2006) You have decided to buy some stock or mutual funds, but wonder which one to buy. You need more information so you call your broker for advice. A so-called "full service" broker will bury you with all kinds of reports, analysis sheets and other pretty pieces of paper, but will probably try to sell you something that makes him the most commission.
Economists (04 Jan 2006) In today's volatile and confusing stock markets everyone is searching for a guru who knows which way the market is going and when. Ask any economist and he will have an answer. Ask 2 economists and you will have 2 answers. Ask 3 economists - ad infinitum.
Emotional Involvement (04 Jan 2006) I'll bet with almost anyone that has stocks or mutual funds in his portfolio that he has losers, but he won't sell them because he "likes them" or some similar excuse. This is the philosophy of a loser.
Enron Cure (04 Jan 2006) Let's hope you did not have any of the Enron stock. Maybe you know someone who did and lost everything, but you certainly might know several people who owned stock that lost almost everything. They probably aren't talking about it.
The Importance of Gross Profit Margin (04 Jan 2006) To find the fair value of a common stock, we need to determine the net profit generated by a firm. Dissecting income statement will give us the steps required to find net profit. One of the critical component of income statement is gross profit.
Stock Markets Of The World (04 Jan 2006) There are stock exchanges located throughout the world, and it is possible to buy or sell stocks on any of them. Stocks are genrally seen as less risky than most trading vehicles because stock movements are usually more gradual. Most people view stocks as long term investments.
