Losses, not Profits, will Stop You from Trading in the Market (21 Mar 2006) It is very unlikely that you will stop trading if your system is trading profitably. However, if you are in a trading year that takes too big a loss, you are likely to stop trading, even if your system has been tested and shown to make a profit over a longer time period. Therefore, it is important to understand why losses not profits will stop you from trading.
Low Expense Ratio (21 Mar 2006) One of the big advertising kicks today from mutual funds is to tell how low their expense ratio is and that you will make a great deal more money if you buy and hold with them. Partly true, but that is not the whole story.
Low Tide (21 Mar 2006) When you stand on the ocean shore and watch the waves breaking you might become aware that the tide is coming in or going out. It is a slow process to watch the water retreat and when it finally gets to its lowest point it is almost impossible to tell if it has stopped or will retreat further. Plenty of wave action, but going nowhere.
Making a Stock Watch List (21 Mar 2006) This article breaks down the simple steps to making a solid stock watch list using both fundamental and technical analysis.
Managing Investing and Stock Market Risks (21 Mar 2006) If you have the time to be patient, you can benefit from time diversification. The more numerous good years for stocks outweigh the bad, pulling your return up.
Market Experience of a Naïve Stock Operator (21 Mar 2006) I wrote this article based on my real life experience with the stock market. I wrote it with humorous slant, but still hope you can learn a few
things about how stock market works...
Market Frustrations (21 Mar 2006) "I bought that stock a month ago and it hasn't done anything. My broker said it was going to take off." Yes, and pigs can fly.
Market Globalization (21 Mar 2006) Just 30 years ago the stock market was a shadow of what it is today. There were many fewer shareholders and the daily volume was a fraction of what it is at present. No one thought you would every be able to trade a billion or more shares in one day. Of course that was in the old days when they had tickers and the word digital was something you did with your fingers.
Market Psychology (21 Mar 2006) Today we are inundated with tons of information about the economy, stocks, government agencies and foreign governments. They show us charts and graphs of the increase/decrease in oil production over the last 5 years, the amount of maple syrup produced in Vermont for the past century, the time it takes to bounce a signal off the moon and all kinds of other nonsense that we can live without. The talking heads on the investment programs, both radio and TV, tell us how this is going to affect the price of certain stocks and the market in general. Well, maybe.
Market Success (21 Mar 2006) Who are the successful investors?
