Sticking with the baseball theme, this article is going to look at the fascination with people wanting to find that ‘home run’ stock. It’s stupid. Quit doing it. It’s unnecessary and a really bad strategy.
…
One of the things I’ve learned in the past month is that diversification - the “holy grail” of investing, is not what it is cracked up to be. In fact, I’ve come to realize that one of my immediate investing goals should be to reduce the amount of diversification in my portfolio.
I realize that this statement will have many of you yelling and screaming, or immediately unsubscribing under the assumption I am a fool. But hear me out.
What a treat for investors or business owners! I wish I had this book when I started my first business - it would have certainly sped up my learning process at the time. And for investors who want a good solid background on reading financial statements, it’s hard to imagine a better introduction.
I found this interesting site through a link that came up on my Google Finance screen for Crystallex.
Ant & Sons Chart of the Week Video:
Ant & Sons has rolled out its updated Chart of the Week column with technical analysis video using the latest technology.
The video is hosted through YouTube and displayed on their site with YouTube’s distributed Flash player. I’ve seen a few of these video stock review sites cropping up and I think the model is tempting. I’m going to try to find some good screen capture software and a good microphone to set this up myself. Any suggestions?
I’m also going to be on the lookout for more stock review videos on YouTube. I’m starting with a simple search for “stock chart“.
p.s. Ant & Sons’ take on KRY is to watch to see if it can stay above the 50-day moving average and $3 level. The early day trading today shows KRY having trouble with that $3 resistance. I have a position in KRY, but won’t be adding to it until it trades a full day (open to close) above $3.
By the time I was 20 years of age I knew about Benjamin Graham, Warren Buffett and Philip Fisher and was a big fan of Malcolm Forbes Sr.. I would do spreadsheets by hand and can you believe it on paper! It was not until 1990 that I converted to my first PC so I had a good 15 years of reading books in order to learn my trade.
Is it possible to predict the quarterly earnings for a business, or a giant multi-billion dollar conglomerate accurately down to a single/narrow cent-per-share figure? A large number of investment analysts out there sure think so! After all, who wants to be the sucker who can only give you a broad earnings range, when “I” can give you the exact figure, so “I” must be better. So pay “me”, and hire “me”! And may god strike it down if that company misses “my” estimate by even one cent! It’s not “my” estimation error, it’s their fault! (Returning back to normal) I’m sorry, I don’t know what came over me just now!
adsense
But can you hear the analysts tooting their own horns as they predict earnings? And when did companies think it was a good idea to help these overpaid statisticans along with corporate guidances? Is it a good idea? I’d love to hear from you, but I’ll first share my perpsective!
I’ve been doing a little research on margin trading, because I’ve recently been using it to float purchases of stock while my sale of some mutual funds clear. So I had a bunch of questions, like “What’s buying power?” and “How much do I need to keep in my brokerage account?” Well, I was once again helped by a terrific tutorial on Margin Trading at Investopedia which answered most of my questions.
I hope you’ll head over there and read it, but let me address some potential questions for you here in case you don’t have time to check it out. (I’ll assume for brevity that you understand what margin trading is)
Almost all of us hear some variation of this from our credit card or car loan company: your interest rate is a variable rate of 14.99% based on Prime plus 6.74%. That means your current rate is 14.99% but may change at any time, so if the prime interest rate goes up or down 0.5% so will your card. Let’s look at the Prime rate closer, and I’ll share some tips to enhance your credit search.
Most people invest in bonds because they want to have stable fixed income. Because the performance of bonds are very stable, they also serve to reduce the volatility of the overall portfolio. Depending on the weighting from 0% to 100%, you can reduce your stock volatility correspondingly. With regular re-balancing between your stocks and bonds, you should be able to “sell high and buy low” in your stock portfolio, and use your bonds as a stable source of income.
Everything sounds good so far, but the most attractive feature of fixed income is also its greatest drawback — the income is FIXED. It does NOT increase as time goes on, and inflation keeps reducing your principle and interests into nothingness. Since inflation is almost always there, you’ve got a real problem especially when you’re investing long term in long term bonds.
I recently have been looking at the Bid/Ask Spread to help me determine the right time to add to my positions. Here are some tips I’ve picked up that you might find useful when looking at your stock’s spread.
 |
|
Know the best credit cards for bad credit? Looking for the cheapest cash-advance loans? Interested in FOREX trading?
|
| M | T | W | T | F | S | S |
|---|---|---|---|---|---|---|
| « Aug | ||||||
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| 8 | 9 | 10 | 11 | 12 | 13 | 14 |
| 15 | 16 | 17 | 18 | 19 | 20 | 21 |
| 22 | 23 | 24 | 25 | 26 | 27 | 28 |
| 29 | 30 | |||||
