Do You Run With the Stock Market Herd?

Finally you have some extra money that you can call your own above that required for living expenses. Your extra money is true risk capital as you could lose it and not have to adjust your lifestyle. Naturally, you want to see your extra money grow. At today’s low rates of interest saving your money in a bank doesn’t entice you as it offers too little growth potential. The interest return is even below the inflation rate so you are a sure loser. You want something that gives a little... Read more »

Ethanol Producing Companies as Stock Investments

There have been numerous initiatives by companies to develop the potential of different alternatives to crude oil such as natural gas and ethanol. In the bid for the world’s search for alternative sources of energy ethanol has played a prominent role. Given the supply and demand factors of crude oil, time is running out to develop suitable alternative energy sources. Ethanol is a colorless, clear liquid with an agreeable odor. This is the natural component of ethyl alcohol. Corn, wheat,... Read more »

Stock Trading Made Too Easy

Stock is ownership in a company. Each share of stock represents a small piece of ownership. The more shares a person holds, the more part of the company he owns. The more part of the company a person owns translates to more dividends he earns when the company profits. That is if the company pays dividends. Many do not these days as they want to use cash flow to build a bigger business rather than pay out cash to shareholders. A stock market is a market for the trading of publicly held company stock... Read more »

What Do You Need For Online Trading

You will need knowledge of the stock market. That is fundamental. But beyond that you will need a few other things too. Those are what we will discuss here. You will need a 3-in-1 online trading account for you to make investment through the internet. So what is a 3-in-1 online trading account? Or, to put it differently, what are these three accounts? Number one, a bank account which allows you to transact online. Number two, a de-mat account, a place where your electronic shares will be deposited... Read more »

Online Trading And The Basics Of Stocks And Shares

Many today prefer to buy stocks online because they don’t have the time to get involved in trading decisions during the day and want to take decisions only when they are free, that might even be at midnight. Also online trading service providers offer the individual a whole wealth of information to analyze and internalize before making the investment. Further the commission that these service providers charge on each transaction is much less than what on-floor brokers do. So the investor earns... Read more »

Day Trading Against System Trading

What a day trader does is he restricts his investments to a day. This means that whatever he buys on the day he sells on the same day. The philosophy is there is hardly any chance of a stocks hitting rock bottom over the space of a day. So even if there are losses, it will be marginal. Of course, the profits are also limited since stocks get hardly the time to gain value in just a day. Of course there are exceptions when stocks plummet or shoot-up in hours. But those are generally irregularities. However... Read more »

Top Mutual Fund Questions for 2008

There are many frequent questions that are common about mutual funds. This is probably because mutual funds are so popular these days that many people are already investing in funds or are at least thinking about it. Below are some questions and answers: How Long Have Mutual Funds Been Around? The Wellington Fund, made up of both stocks and bonds, was started in 1928. However, the Wellington Fund was preceded by investment trusts (which is what mutual funds are technically) all the way back to the... Read more »

New Bull Market Surge Underway?

One might wonder if a new bull market surge underway will be lasting as the stock market has put on quite a performance over recent trading sessions. Last Friday’s trading sessions on the NYSE and the NASDAQ were attention getting amazing. CitiGroup reported a huge $13 billion write down for the first quarter and that it was cutting 9,000 jobs. That was taken as good news as it might be the last of the bad news and Citi’s stock surges. What optimists the current largely untested in a... Read more »

Understanding And Investing In Common Stock

At a great penny worth pause awhile; many are ruined by buying bargains. -POOR RICHARD A corporation is an artificial entity, created by law, and endowed with certain rights and privileges, among which is the right to issue shares of ownership called “common stock.” The amount of stock authorized is stated in the corporate charter, and the amount to be issued and outstanding is determined by the board of directors. Such shares of stock represent ownership of the total assets and are... Read more »

Helpful Hints On Investing

The first step toward an anxiety-free, dollar-and-cents investing plan is to recognize the motives which impel you to buy common stocks and to differentiate between economic and emotional aims. Here is an equation which offers an investor peace of mind. $ plus P equals Serenity The “$” stands for all the economic factors in your life. The “P” stands for all the psychological factors, favorable and unfavorable. How does this apply to you as an investor today or in the future? (1)... Read more »