The Truth About Penny Stocks

 

There are numerous investment vehicles available to the individual investor, each with its own myths and generalizations attached. Mutual funds will always go up (aside from the times they trend downwards), government bonds are as good as gold (except when gold outperforms them like a race car does a tricycle). A property is always secure (unless it tanks completely). A  penny stock is one of these options, but unlike CDs or the money market, a greater amount of investor acumen is required to avoid these pitfalls.…

A Checklist Before Investing In The Stock Market

 

 

There are a few roads to wealth that don’t involve an investment of some sort, whether in a vanilla retirement fund or riskier but potentially more lucrative instruments such as publicly traded shares. A “stock” can be shared in a company, but a “stock market” is also where meat animals are bought and sold. In both usages of the term, some of those involved are going to get slaughtered.…

2008: Why Are People Still Not Sure Of What Happened?

 

 

Television news tends to say the same words over and over again without actually discussing the real issues. This is called consensus. If you ask the typical man in the street, he will tell you that the subprime mortgage crisis involved banks and investment businesses losing a bunch of the public’s money, at which point, it was necessary to give them more public money in order to protect the public. Simple, right? The effects of the worst economic crisis since the Great Depression in a nutshell. As investors, we should know that simplistic explanations are rarely fully correct and we should take the time to dig a little deeper.…

The Differences Between Speculating And Investing

 

 

Every field has its jargon. This is not a way to exclude outsiders from the discussion, but simply how language has evolved to deal with concepts that can’t adequately be described using existing terms. Just as “profit” and “return” aren’t the same thing, investing and speculating are subtly different activities.

Essentially, investing is simply more conservative than speculating. There’s no definite line separating the two, and the same investor may follow a strategy incorporating aspects of both. The essential difference is that investing is most concerned with securing the value of the principal, while speculating means being willing to run greater risks, betting that the investor’s superior knowledge, market access or system will be enough to “beat the market” and generate returns that others can’t match.…

4 Mental Traps Investors Should Never Fall Into

 

 

Baseball, flirting and investing all have a large mental or psychological component. In the first two cases, everything is about confidence, but in investing, confidence can be a burden if it’s not justified.

You can choose your lottery numbers in any way you wish, but making and liquidating investments should be done based on facts and nothing else. Our minds evolved to deal with the threats and opportunities found on the Serengeti plain, not the NYSE, yet we still try to apply the same mental paradigms to things like investing. In addition, our subconscious fears and hopes influence our decisions to a greater degree than most of us realize. Mechanisms like these have an effect on every investor, but a few of the most common psychological pitfalls deserve a special mention.

Until you can manage your mind, do not expect to manage money.” – Warren Buffet

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Basic Rules In Stock Market Investment

 

People invest in the stock market primarily because they want their money to grow and have enough savings for their future. Since we have the so called “inflation rate”, where in the common commodity prices sort of eats the value of our money, we invest in the stock market so that we can earn extra.

If you are a beginner in investing in the stock market, the following advises or suggestions will be helpful to you in learning the trade. There are potential wins and losses in the trade and so, it is vital that you be guided by the following rules:

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