Stocks in 2017: Predictions Vs. “Mental Bets”

Boy, people love predictions.

Whenever I see a title like “Best Stocks for 2017” I must check it out. I never act on predictions or take what is being said at face value, but I click anyway.

In fact, half of the time I click with an attitude: “Yeah, yeah, let’s see what you have to say…” Even if there are 100 stocks on a list, I feel compelled to check them all (I guess I am a list junkie).

Most predictions go unverified – that’s how predictors get away with them year after year.

When was the last time you checked a “Best Stocks for 2017,” or “2016,” list to see how the picks panned out? We don’t care: that was then, we care about now. We just might find something useful. Continue reading Stocks in 2017: Predictions Vs. “Mental Bets”

The Stock Market Investing Guide

When people are talking about the stock market, the first thing that usually comes to mind is the New York Stock Exchange.

But what are stocks? Why is the stock market such a big thing? How do you invest in the stock market?

What are stocks?

Before you delve into the intricacies of the stock market, the first thing you should understand is what exactly a stock is.

Stocks, which are also known as shares, are portions of companies that people can buy, and therefore own part of the company. Continue reading The Stock Market Investing Guide

The risks in the derivatives markets are growing

The Wall Street Journal published an article on titled “Credit Derivatives And Their Risks Are On The Table” by Henny Sender.

In the article, Sender advised that the Fed was gathering the big Wall Street players to discuss the rising concerns about risk in what is known as the credit-derivatives markets.

Sender goes on to make the case that the clearing structure of the dealers and hedge funds is not keeping pace with the exploding growth in these complex financial instruments.

Confirmations of these trades are falling behind the growth of the trades and the paper is stacking up both at the dealers and the hedge funds. Continue reading The risks in the derivatives markets are growing

Beginners guide to investing in stocks

You need to begin your beginner investing by performing an assessment of your personal finances. If you wish to invest in stocks, bonds, mutual funds or even real estate, you need capital to invest.

Construct a net worth statement which will list your assets (cash, private property, savings, etc) as well as your debts (loans, credit cards, mortgage, etc).

Look closely at your debt position and determine if you can afford to invest now. It is much better to pay off high interest debt (12% or higher) that it is to invest the same money and earn 10% per year.

If you need help with this net worth statement, simply go to Microsoft’s’ site and download a free evaluation copy of Money.

It explains step by step how to create this statement.

Now for the next step in Investing for Beginners… Continue reading Beginners guide to investing in stocks

The key things about trading trends in the market that you did not know!

Although everybody is behind trends and invests lot of money in IT-systems to identify them, most traders fail in the end.

How come that happens? Investors often forget the basic principles and tools in identify trading trends.

Having said that, it is not easy! Continue reading The key things about trading trends in the market that you did not know!