Special Financial Strategies For The Younger Generation!
Sunday, March 16th, 2008How fortunate are the children who grow up financially literate with solid financial values. How much more productive, efficient and enjoyable will their lives be without added financial stress. This topic is certainly an entire book
Covered Call Writing - Beware Of The Pitfalls
Wednesday, March 12th, 2008While there is much interest in trading equity and index options, it is also a well-known fact that the vast majority of these options expire worthless. By most estimates roughly 80% of these options expire worthless. With odds like that it is no wonder that thinking of being a seller of options is so enticing. But do they really give money away that easily on Wall Street, or in the case of most options, on LaSalle Street? What about the other 20% that don’t expire worthless? With a big chance of success but small profit objective, or a small chance of loss with essentially unlimited loss potential, the problem becomes evident. The risk reward on an outright option sale, or short option position, has an out of balance risk vs. reward ratio.
Weekly Markets Thoughts – September 02, 2007
Monday, March 10th, 2008It seems that people start ignoring again the accumulated debt. This is what I was thinking about when I was telling you that the financial debacle is not here yet. The average investor is an irrational specimen. When everyone buys he jumps on board as well and when the sell off amplifies he sells all his portfolio holdings and starts complaining about the incurred losses. You probably know that you have to buy when most people hesitate or are scared and sell when everybody around you is excited about the big potential profits. Easier said than done! As an economist I always watch
Creating Wealth With Mutual Funds
Tuesday, March 4th, 2008For ten years or more, U.S. investors in increasing numbers have depended on mutual funds to save for their retirement plans, creating wealth and other financial objectives. Mutual funds offer the benefit of diversification along with professional management. Diversification is obtained within the Mutual Fund. The fund manager buys and sells individual stocks from a variety of different market sectors thus diversifying the holdings within the fund. When you invest in mutual funds, as with other investments you are also taking a risk. For mutual funds, however, these risks are reduced by the diversification within the fund. As individual stocks may have large fluctuations in their value, the mutual fund helps smooth out these fluctuations by holding several different stocks from different market sectors.
Investments And The Ways To Make Money
Tuesday, February 26th, 2008Most people don’t spend much time wondering what money is. Their only major concern is how much they have, and how to get more!
What is money?
It is a medium of exchange.
What does it do?
It ensures the success of exchange by being the one item on offer that is ALWAYS acceptable.
Why is it necessary?
Because human beings must exchange to live together in peace, and to prosper!
That’s all!
On the other hand, without money, the production and exchange of anything but the most rudimentary goods and services is impossible. It is not difficult, or time consuming, or inefficient, it is IMPOSSIBLE!
The Stock Trading Robot - Is Marl All That Hes Cracked Up To Be?
Saturday, February 16th, 2008Marl, The Stock Trading Robot, contrary to what it’s creators would have you believe is not unique. There have been automated trading systems for years on the internet, be they in FOREX or the stock and bond markets. What is different about Marl is the way in which stocks are analyzed and the information relayed. I’m sure many of you (much like myself until a few years ago) possessed a very rudimentary knowledge of investment strategy and terminology. To me the stock market represented the boring few seconds before the newscaster got to sports. However, I now know that with a solid knowledge of the market and a tool like the stock trading robot the market can be a powerful money making tool.
How To Buy Penny Stocks - Information For The New Investor
Thursday, February 14th, 2008Are you an investment newbie who is intrigued by the idea of penny stocks? If so, you may be wondering exactly how to buy penny stocks. What do you do first?
Well, first you must locate a broker who will be a middleman between you and the market, or the other investor/buyer/sellers. You tell the broker what you want to buy, how many shares of what company, and the broker tries to fulfill your order. Brokers can be full-service or discount. Brokers charge a commission fee for each fulfilled trade, but with a discount broker, you can place your trades yourself through a computer interface so the commission fees are much less.
Financial Planning - Eight Easy Stock Picking Tips For Baby Boomers
Thursday, February 14th, 2008One of the biggest roadblocks to success in individual stock investing is the time to do the research. Below I have outlined eight stock picking tips that allow you to easily evaluate meaningful data in a reasonable period of time. With the internet there are numerous places to find data but my favorite is ‘Value Line’ which you can subscribe to or find in the reference section of your local library. All of the research information I discuss below can be easily found in Value Line for over 1700 stocks.
Understand the Price to Earnings ratio (PE) –
A Financial Analysis Of Valueclick Inc
Wednesday, February 13th, 2008Advertising is a large industry found in the equity Service sector with market-cap giants such as Yahoo! and Omnicom. These companies, through the advances of new technology continuously poor money into capital expenditures to gain market share against industry competitors. As advertising will continue to be a profitable service, even mid-cap companies like Catalina, R H Donnelley and aQuantive will generate business among other industries to market a variety of goods and services. While the aforementioned companies each have respective strengths and weaknesses, one mid-size company, ValueClick (VCLK), not only constructs and carries on a tremendous business model, but engenders financial figures, transcending into capital gains for investor portfolios.
Exercising Stock Options, Part 4
Friday, February 8th, 2008One of two things needs to happen in this situation. Either the stock’s current market value needs to rise quickly so that your call premium will be greater than the 5 you paid, or the stock’s market value has to rise enough points by expiration to offset time value (3 points) plus grow beyond the intrinsic value level.
This shows how option buyers need to evaluate risk. In the example, time value represents three-fifths of the total premium. If expiration comes up quickly, the stock will need to increase significantly in a short period of time to produce a profit. In thinking about whether it makes sense to buy such a call, consider these alternatives, especially if you believe that the stock will rise in value:
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