Understanding Investing

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An Introduction to Emotional Risks in Stock Investments

What does emotional risk have to do with stock investments? Emotions are important risk considerations because investors are human beings. Logic and discipline are critical factors in investment success [more…]

An Introduction to Volatility in Stock Investments

How often have you heard a financial guy analyzing stock investments on TV say, “Well it looks like a volatile day as the markets plunge 700 points. . . .”? Volatility has garnered a bad reputation because [more…]

Minimize Risk in Stock Investments through Knowledge, Practice, and Preparation

Now, before you go crazy thinking that stock investing carries so much risk that you may as well not get out of bed, take a breath. Minimizing your risk in stock investing is easier than you think. Although [more…]

Introduction to Price-to-Earnings Ratios for Stock Investors

The price-to-earnings (P/E) ratio is very important in analyzing a potential stock investment because it’s one of the most widely regarded barometers of a company’s value, and it’s usually reported along [more…]

Introduction to the Price to Sales Ratio for Stock Investors

The price to sales ratio (PSR) is a company’s stock price divided by its sales. Because the sales number is rarely expressed as a per-share figure, it’s easier to divide a company’s total market value [more…]

The Stock Market's at a Record High. Here's What You Should Do.

On Tuesday, March 5, the Dow Jones industrial average, one of the most popular measures of how the stock market is doing, closed at an all-time high. Then it kept going up on Wednesday. And on Thursday [more…]

Deciding What Kind of Investor You Are

Investors come in many forms. In very general terms, there are the low-risk, very cautious investors and then there are the higher risk and more adventurous investors. See which category you fall into [more…]

Realising the Risks Involved in Investing

Unfortunately, many investors look at risk in a very simplistic way. A typical query about risk may start with an investor asking, ‘How much capital may I lose if I invest in an asset?’ But risk involves [more…]

Ensuring Long-Term Investment Success: Keeping Costs Low

In addition to running focused trades and using well-thought-through strategies, the key to long-term investment success is keeping costs to the absolute minimum. Here are some of the costs to keep in [more…]

Understanding the Life of an Economic Bubble

Economists (or perhaps ‘bubblanalysts’) such as Hyman Minsky and Charles Kindleberger have identified five stages of an economic bubble. Take a look and see how you can identify and utilise these stages [more…]

Balancing Risk and Age: Lifecycle Investing

Your age impacts heavily on the type of investments you need to be making. Over your lifetime as an investor, your appetite for risk (and return) evolves. As your tolerance of risk changes, so too does [more…]

Managing Your Investment Portfolio For Dummies Cheat Sheet (UK Edition)

The most important thing to you as an investor is your portfolio - the range of assets held within your stock-broking or investing account. Learn how to diversify your portfolio and reduce your risk by [more…]

What Is a Hedge Fund?

In the investment world, "I run a hedge fund" has the same meaning as "I'm a consultant" in the rest of the business world. In general, a hedge fund is a private partnership that operates with little to [more…]

How to Calculate Return on Your Investments

When you make investments, you have the potential to make money (called a return). Money in a bank account pays interest, which is your return. You earn that small amount of interest for allowing the bank [more…]


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