How To Invest

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Financial Strength Ratios for Investment Analysis

Financial strength ratios go by many names (liquidity, solvency, financial leverage), but they all point to the same thing: What is a business's financial strength and position? A balance sheet–oriented [more…]

Start Currency Trading with a Practice Account

For currency trading newbies, the best way to get a handle on currency trading is to open a practice account at any of the online foreign exchange (forex) brokers. Most online forex brokers offer practice [more…]

How to Roll Over Your 401(k)

If you leave your job, the most sensible thing to do with your 401(k) from a tax-management point of view is a 401(k) direct rollover (also known as a trustee-to-trustee transfer) of the money. With this [more…]

Returning to Work after Retirement: Social Security Benefit Reduction?

When you go back to work after you retired early and already started collecting Social Security, you could end up with reduced benefits. It all depends on whether you've reached your full retirement age [more…]

Introducing Basic Types of Hedge Funds

Hedge funds are designed to reduce an investment risk (called hedging) while maintaining a good return on investment. You can sort hedge funds into two basic categories: absolute-return funds and directional [more…]

How to Take Advantage of the Turmoil in a Down Market

You can’t control what happens in the markets, but you can turn market turbulence into opportunities. Consider actions like these during market declines: [more…]

How Roth IRAs Differ from Regular IRAs

The tax law of the United States allows a tax reduction on a limited amount of saving for retirement. The Roth IRA's principal difference from most other tax advantaged retirement plans is that, rather [more…]

Developing Strategies for Trading Stock

Categorizing the phases of the market enables you to adjust your trading strategies based on current market conditions. The idea: Trade aggressively when you're confident in your market assessment, but [more…]

529 College Savings Plan Contribution Limits

Contributing to a 529 plan may seem quite simple — you write the check or get the money automatically withdrawn from your checking account, and those funds get deposited into the 529 plan. [more…]

Taking Steady Investment First Steps

Before you invest in anything, you first must make sure that you have a strong economic foundation. If you don't, your situation is like building a brick house on shifting sand. You need to ensure that [more…]

Foreign Exchange Markets: 24-Hour Trading

The foreign exchange (forex) market is open and active 24 hours a day from Monday morning in New Zealand through Friday night in New York. At any given moment, currency trading desks in dozens of global [more…]

Liquidity and the Foreign Exchange Market

The foreign exchange (forex) market is often described as the world's most liquid financial market, and that's true. But it doesn't mean that currencies aren't subject to varying liquidity conditions that [more…]

Savings Bonds Pros and Cons

Returns on savings bonds are so low that they’ll never make you rich. In fact, returns are so low that large pension funds and other big investors don’t purchase savings bonds. However, for many individuals [more…]

The Evolution of Day Trading

With the advent of the telegraph, stocktraders could receive daily price quotes. Many cities had bucket shops — storefront businesses where traders could bet on changes in stock and commodity prices. They [more…]

Considering Annuity Investments for Retirement

As baby boomers enter retirement age, estate planning and sound investing loom large as they plan for a happy retirement and for leaving their children a legacy. Annuities offer a way to invest your money [more…]

Examining Fixed Deferred Annuity Investments

A fixed deferred annuity is the insurance industry's version of a savings account. It helps you earn a modest rate of interest safely and allows you to postpone the payment of income taxes on your earnings [more…]

The Art of Short Selling

Traditionally, investors and traders want to buy low and sell high. They buy a position in a security and then wait for the price to go up. It's not a bad way to make money, especially because if the country's [more…]

Stick to Investment Basics in a Down Market

Market turmoil causes investors to question their own judgment and seek different approaches, but the only thing investors really need to do is follow some fundamental principles. Consider the following [more…]

Investing in Corporate Bonds

Oh sure, the strength of our economy and the vigor of our industry rely much on the progress of science, the foundations of democracy, and the labors of a motivated and educated workforce. But what [more…]

Valuation Ratios for Investment Analysis

With valuation ratios, a company's stock price enters your investment analysis. Valuation ratios include the ever-popular price to earnings (P/E) ratio, along with price to sales [more…]

The Benefits of Mutual Fund Investment in an Uncertain Economy

People invest in mutual funds for four fundamental reasons: professional management, diversification, convenience, and marketability. The following sections outline these benefits, which make mutual funds [more…]

Short-Selling in an Uncertain Economy

Short selling involves selling a stock you don’t actually own in order to profit from a decline in price. So when you short a stock, you want the value to drop. [more…]

Investing for Income

Investing for income means investing in stocks that will provide you with regular money payments (dividends). Income stocks may not offer stellar growth, but they're good for a steady infusion of money [more…]

How to Defer or Discharge Student Loan Debt

Under special circumstances, you can receive a deferment on the repayment of your federal student loans. You may even get your entire student loan debt forgiven [more…]

Taxing Your Income from Day Trading

Income seems like a straightforward concept, but little about taxation is straightforward. To the IRS, the money you make as a day trader falls into different categories, with different tax rates, different [more…]

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