8-10 Resources

Summary This lesson focused on hot topics in the investment world. Obviously, by the nature of discussing “hot” topics, conditions can change quickly, sometimes making hot topics cold and others newly hot. However, the issues in this lesson have been “hot” for some time and should continue to be important for the foreseeable future. Further, Read More…

               

8-09 Arbitrage

The subject of arbitrage Taking advantage of price differences in at least two different markets by buying the same security at the cheaper price and immediately selling it at the higher price. is a bit confusing for the new investor, but you will undoubtedly hear the term as you start reading more and more about Read More…

               

8-08 Investor Sentiment

Investor sentiment, sometimes also called market sentiment, typically relates to the stock market’s “attitude” towards specific securities, industries, or overall market conditions (bullish, bearish, or neutral. While of limited importance to a buy-and-hold investor, investor sentiment can be an effective tool if you decide to live in the fast lane by adopting a day or Read More…

               

8-07 Insider Transactions

Insider transactions and trading has become a sensitive topic in recent years. Most thoughts tend to be negative (images of Martha Stewart in prison may spring to mind), giving the impression that all insider transactions are illegal or unethical. Not true. Technically, insider transactions involve an employee of a company trading his own company’s stock Read More…

               

8-06 Growth at a Reasonable Price (GARP)

During the height of the dot.com explosion, a popular strategy – growth at any price – became the rallying cry for many investors. After the bubble burst, a more conservative strategy known as growth at a reasonable price, or GARP, became and remains a popular investing action plan. Paying a high price for a rapidly Read More…

               

8-05 Buy and Hold

The most popular investment strategy preached by brokers, fund managers and even famous investors like Warren Buffet is “buy and hold.” In its most basic form, this strategy believes that you should only buy stocks of solid, well managed companies that will deliver profits for decades to come; furthermore, that you should hold onto these Read More…

               

8-04 Penny Stocks

Penny stocks are often popular with the newer and smaller investor. These investments are classically defined as any stock that sells for less than $5.00, traded outside the major exchanges, and often traded on the OTCBB (Over-the-Counter Bulletin Board Stocks that trade on the NASD with tickers that end in an “.OB”, but have no Read More…

               

8-03 Swing Trading

Swing trading Identifying “channels” or “tunnels” of price movements on a stock’s chart and then buying when the price gets to the bottom of the channel and selling when it gets to the top, usually over a few days. is identifying “channels” or “tunnels” of price movements on a stock’s chart and then buying when Read More…

               

8-02 Day Trading

The buying and selling of investments (stocks, futures, stock options, commodities, currencies, etc.) within the same trading day, so that all positions are closed before the end of each day, is called day trading The buying and selling investments (stocks, futures, stock options, commodities, currencies, etc.) within the same trading day, so that all positions Read More…

               

8-01 Manias, Bubbles, and Crashes

  Your first order of business in looking at current investing trends is to see if the hot trend is worthy and justifiable, or whether it is just a mania leading to a bubble. While it can be profitable to ride the bubble as it is getting started, it is extremely important to make the leap Read More…