Understanding Investing

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How Does Technical Analysis Relate to Investing?

Technical analysis is the study of how securities prices behave and how to exploit that information to make money while avoiding losses. Basically, with technical analysis, you work to identify price trends [more…]

How to Draw a Market Profile

Structural theories — a category of technical analysis — include the broadest measures of market behavior, like seasonality. The most inclusive of the structural theories is market profile. [more…]

How Crowd Behavior Affects Investment Trading

Technical analysis involves identifying crowd behavior in order to join the crowd and take advantage of its momentum and direction. This is called the [more…]

Reading Market Sentiment — Bullish and Bearish

In technical analysis, sentiment comes in only two flavors — bullish (the price is going up) or bearish(the price is going down). At any moment in time, a bullish crowd can take a price upward or a bearish [more…]

Technical Analysis Tracks Trading Volume

Volume, the number of shares or contracts of a security traded in a period, is the most powerful confirming indicator of a price move, and confirmation [more…]

Using Technical Analysis to Track On-Balance Trading Volume

On-balance volume (OBV) is a running (cumulative) total of investment trading volume, calculated by adding the volume on days the price is higher than the day before and subtracting the volume on days [more…]

Examining Your Emergency Cash Reserves

Whether you have a substantial investment portfolio or haven’t started investing yet, you need to understand the fundamental building blocks of an investment portfolio. Keeping cash in hand to cover several [more…]

What Is Your Tolerance for Investment Risk?

When you think of risk in your investment portfolio, you may think of volatility (how much your investments go up and down). Most people do. However, risk is more accurately defined as the probability [more…]

Examining Your Investment Allocation

Your tolerance for investment risk is an important factor in deciding where you want to put your investment dollars, otherwise known as your portfolio allocation. [more…]

Improving Your Savings Rate

Knowing what you’re currently saving is an important part of making sure that you’ll achieve your financial objectives. What percentage of your gross income [more…]

How to Investigate a Business before Buying the Company

Research, observation, and common sense are powerful tools in the business valuation process. Here are some things to consider as you examine and analyze a company you want to buy: [more…]

How to Research Troubled Companies You Want to Purchase

Prospective buyers who are interested in purchasing a troubled company go through a due diligence process that involves gaining permission to see the business's operations. [more…]

Business Valuation For Dummies Cheat Sheet

If you’re considering buying a business, you will need to investigate the company to make an informed decision about the business's valuation. The valuation process involves research and observation — [more…]

How Financial Indexes Are Constructed

To help understand financial index changes, you should know how indexes are built. Indexes are not created equal (well . . . one is). Financial indexes are constructed in three different ways: [more…]

How Changing Stock Affects Indexes

A financial index is a measuring tool of prices for groups of stocks, bonds, or commodities. A change in one stock translates into index changes. Some examples are: [more…]

Trading Order Types

A variety of order types are available to you when trading stocks; some guarantee execution, others guarantee price. This brief list describes popular types of trading orders and some of the trading terminology [more…]

Charts Used for Tracking Investments

Price data is used in charts to give you a view of market trading activity for a certain period. The following list gives you the lowdown on some of the chart types you might encounter while you track [more…]

Reading List for Investors in the UK

Doing your research and knowing your subject before investing in shares is crucial. Here’s the literature that should be on your bedside table when investing in shares. [more…]

Looking at Four Important Parts of a Company’s Fundamentals

Knowing what aspects of a company to look at is crucial before you invest in shares. Cut through the jargon – this is what you should have in mind when inspecting a company’s performance. [more…]

Knowing the Best Financial Measures before Investing

When investing in shares, you need to know how a company is doing. Certain financial measures can help you more than others when analysing a company’s performance. Here are five of the best: [more…]

Nine Events That Could Spell Trouble for Your Share

Economic, fiscal and political changes can sometimes jeopardise your investment in shares. The following list of events should set alarm bells ringing, so stay alert and be attuned to [more…]

The Ten Most Important Points about Share Investing

When you decide to invest in shares, making the right decisions is crucial: The ten most important points you need to know about share investing are listed below. [more…]

Investing in Shares For Dummies Cheat Sheet

Considering share investing? There are some fundamental aspects you need to be aware of before jumping in as a share investor in the UK. Avoid potential catastrophes and make the right investment choices [more…]

What Is Day Trading?

Day traders are different from investors in that day traders hold their securities for only one day. They close out their positions at the end of every day and then start all over again the next day. By [more…]

The Language of Day Trading Profits

Like any specialized field, securities trading has a lingo all its own. Because day trading often deals with small shifts in the market, understanding the jargon of tiny price changes is important for [more…]

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