| |
| |
|
Stocks & Mutual Funds Information |
|
|
|
Stocks: Understand What You Buy!
"There is nothing more frightful than ignorance in action!"Johann Wolfgang von Goethe (1749 - 1832) I don't really know how cars actually work. Not really! I know how to drive them, but if you asked me how they work, I would not really know how to definitely explain it. That small technical limitation on my part doesn't stop me from knowing whether XYZ Autos is a quality company or not. I don't understand the cars they make, but I do understand XYZ Autos. Moreover, that understanding is critical to making a decision about the value of their stock. There are many good and objective ways to value stocks and improve your finances. These involve looking at various financial ratios. However, one of my simplest rules for investing is that you always must understand what you are buying! This is by no means original with me. It is a basic part of fundamental analysis! How deeply you must research in order to understand a company before you invest in it is a rather personal decision! Some investors feel fine with just a general understanding, while others want to know everything there is to know about the company. I think that somewhere in between is perfect. But you must know what makes a company different from others and whether that difference adds any real value or not. Sometimes being different is not good ... Buy what you understand for a reasonable price and you will be well on your way towards successful investing! Copyright © 2005 I.E.C. Haramis Ioannis - Evangelos C. Haramis was born in Greece and he studied in Greece, USA and in Belgium. He has been active in the stock markets since 1972. Since 2002 he is New Business Development Managing Director at an Investment Bank.
MORE RESOURCES:
Stocks-Mutual-Funds - Google News |
|
|
|
RELATED ARTICLES
Learn to Calculate a Stock's Pivot Point Stocks breakout from properly formed bases everyday but many investors don't understand how to locate a pivot point or what patterns to study that may contain this very important buy signal. A pivot point can be described as the optimal buy point or the area at the end of a familiar base pattern where the stock breaks out into new high territory. Top 25 Growth Funds On Monday, November 25, 2000 Investor's Business Daily listed on page B1 the Top 25 Growth Mutual Funds for the last 36 months along with their performance for the year 2000 to date. Only four showed a profit this year of 21% and the other three had increases of 12%, 5%, and 5%. Boiler Room 7/17/00 On Friday or Saturday evening my wife gets a movie from Block Buster and after dinner we sit, hold hands and watch. This week she brought back one that I think every investor or anyone contemplating investing in the market should see. Complacency During the month of January the Dow Jones Industrial Average, usually referred to as the DOW, had an almost 1,000 point range, most of it down and the average investor has yawned and said 'so what, this has happened many times before'.Is there any reason to worry now?The terrible event of September 11 shocked investors who sold heavily and then watched the market climb back to where it was on September 10. No Load Mutual Funds or Exchange Traded Funds (ETFs)? If you are fed up with early redemption charges and ever increasing mutual fund management fees on top of bad-performing fund managers, read on. There is a quiet revolution going on in the no-load mutual fund industry and you, the individual investor, may benefit from it greatly. Making Outsized Returns in the Stock Market - Using the Dow Theory The Dow TheoryCharles H. DowRobert RheaE. Zero Sum Game Most people think the stock market is a zero sum game because there is a buyer for each seller and seller for each buyer so each cancels the other and everything is equal. Not quite. Structured Settlement; Lawyers in NY and Mutual Funds Minority Report the movie may not be far off if the Head of the SEC has anything to say about it. At a Senate Banking Committee hearing on CSPAN, William Donaldson said that the beloved SEC can no longer sit back and "mop-up" after scandals break. How Much Money Can I Make With Trading? What Account Size Do I Need To Start? What account size do I need?How much money can I make with trading?First of all, let's clarify a common misunderstanding: You never risk your full account size. You always have a "catastrophic stop", and it is important to define the "ruin" before you start trading. Advantages and Disadvantages of Mutual Funds Outlined below are some of the advantages and disadvantages of mutual funds. Every investment has advantages and disadvantages. KISS Formula There are formulas for just about everything,but it has been shown that the simpler theformula or method of doing a particular taskthe better it works. It has evolved down toKISS - Keep It Simple Stupid. "Fears Only Enemy Is Action" What a great statement!I just heard someone use it in the context of personal and financial success and it struck me as a brilliant summary of an issue we raise in the SMG Tutorials.Fear is a huge issue with a lot of traders. Momentum One of the basic laws of physics states that a body in motion will continue in motion in the direction it is going until interrupted by another force.That basic physics law also applies to stocks and mutual funds. Mutual Fund Honor Roll - Buy High, Sell Low by Chasing Performance Buy high and sell low -- It's not a typo.Millions of investors guarantee their failure by selecting mutual funds and stocks based on quarterly or annual performance records. Planning Your Dive and Diving Your Plan - Trading! A colleague of mine just returned from a scuba diving trip inCozumel, which just happens to be one of my favorite places todive. Anyway, she was telling me about an unexpected difficultyshe encountered while swimming around the corral reef down about85 feet. Tips to Finding Other People's Simple Trading Plans Did you know you can make money (and a lot of it) by simply modeling someone else's trading plan? Yes, it is true. Unbelievably, there are many of trading gurus doing it RIGHT NOW. Where Is The Beef? Where is the beef? Or maybe it should be where is the bull? Market, that is? The chief investment strategists and analysts of the major brokerage houses have been promising us a new bull market.So far the bull hasn't come in from the distant pasture. Analyzing Growth Stocks: An Important Focus For Any Investor Analyzing growth stocks is an important focus for any investor. This is especially important, since stocks are an irreplaceable part of any good investment plan, and since unbiased stock research is hard to find. Smart Day Trading Strategies to Help You Make Money in the Stock Market Stock trading can be a very profitable activity. You can make big amounts of cash in a short period of time. Oil Stocks As A Long Term Investment The demand for world oil is increasing while world reserves are decreasing. This is a known fact.
|
Sponsors: Chicago Paving Contractor | Remanufactured VTL | Religious Statues | Search Engine Specialist
