The No. 1 Strategy for Retiring Wealthy Or how to make a million in the Stock Market
This is not a “get rich quick” strategy, or “buying” a “secret” stock which will make you rich next year. It all starts with the “power of compound returns”. Ask Warren Buffett for the single most powerful factor behind his investing success, and he’d respond “compound interest”. He has been preaching this for 60 years and it has made him a billionaire.
Every year Buffet writes a letter “To the Shareholders of Berkshire Hathaway Inc”. In his first lesson on compound interest to the investors he questioned the “Queen Isabella’s decision to fund Christopher Columbus’s expedition to find a new route to Asia”...
Best Ways to Manage Risk and Emotions on Wall Street
A good trading or investing system delivers greater profits than losses over a period of time, but even the most advanced system does not guarantee success in every trade.
The inability to manage losses is one of the worst pitfalls in trading and investing. Beginners freeze like a deer in headlights when stock price starts falling and wiping out profits. It is a general human tendency to take profits quickly but wait losing trades to come back to even. By the time the despairing amateur gives up hope and closes his trade with painful loss, his or hers account has been badly damaged.
2018-02-23 Risk Management
How To Invest In Stocks
What is investing? Simply put, it is the act of using money to make money. If you don't invest your money, it will never increase. Your alternatives are to spend it, give it away, or basically stuff it under the mattress. You can start investing with any amount, and the sooner you start, the better. As the saying goes, "A year from now, you will wish you'd started today." You don't have to wait till the economy improves, you don't have to wait till you're rich. Investing in the stock market is not hard as you think. You don’t have to be a financial expert in order to invest and make money.
There is a documented prove that with a little training and discipline – most of us can become successful investors.
2018-02-09 Getting Started
What is a Santa Claus Rally
A santa claus rally is a surge in the price of stocks that often occurs in the last week of December through the first two trading days in January. There are numerous explanations for the Santa Claus Rally phenomenon, including tax considerations, happiness around Wall Street, people investing their Christmas bonuses and the fact that the pessimists are usually on vacation this week.
Many consider the Santa Claus rally to be a result of people buying stocks in anticipation of the rise in stock prices during the month of January, otherwise known as the January effect.
Dogs of the Dow
The Dogs of the Dow is an investing strategy – based on the 30 DJIA components – that was popularized by Michael O’Higgins in his book, Beating the Dow. The strategy is simple: After the stock market closes on the last day of the year, select the 10 highest-dividend–yielding DJIA stocks. Then, on the first trading day of the new year, invest an equal dollar amount in each of them. Hold the portfolio for a year and then repeat the process at the beginning of each subsequent year. It’s important to note that this is a long-term strategy: There have been years when the Dow has outperformed the Dogs (you should never expect the Dogs to outperform the Dow). It’s the long-term averages that investors rely on for positive results over time...