Stocks & Mutual Funds Articles

This article describes the model of a natural relationship between trading system performance, trade position size, stop loss settings and profit goals. The model consists of algebraic equations that specify the trade size and stop loss settings nee...

Money: the most charged word in the planet. It means something to everyone. For some, money means a blessing, for others it means a disaster. We all have heard stories of people who have lost their fortunes or their life savings trading in the stock ...

How do you make money without picking tops and bottoms? I am glad you asked... Successful trading is similar to a successful business. You see, every successful business has a business plan so do successful traders. The astute reader knows that, su...

If you have not back tested your trading system, you might as well trade with your eyes close. In fact, whatever technical analysis criterion you use to trade with, be it moving averages, candle sticks, volatility breakouts, fibonacci retracements ...

Should the market turn against you, it is important that you design a system that will produce as much loss as you are prepared to take. This loss, known as drawdown, is the maximum amount by which your trading float will temporarily drop at anytime...

You'd have had to be living on a desert island with no TV, newspaper or internet connection to have missed hearing about the great mutual fund scandal of 2003. The issue was that some mutual fund companies allowed certain hedge funds to engage in aft...

Every successful trader has a winning system. There are of course, as many systems out there, as there are traders. Some systems get you to buy on strength and sell on weakness others do the opposite. Some investors succeed as value investors , a ...

The thinking process of the brain relating to the psychology of trading involves: -- Beliefs -- Feelings -- Values -- Dispositions and -- Faith The positive or negative energy brings power to a person's actions, which ultimately determines ...

How many times has this happened to you? You're at a social function and the conversation turns to investing. Pretty soon, people are comparing how well their investments are doing. As you might imagine, being an investment advisor this happens to me...

There are red lights, green lights, blue lights and spot lights. There are orange lights, pink light and flash lights. There are search lights and micro lights. And the one you must obey is the stop light. If you don't stop when the light is red you ...

You remember (they show it on TV every year) the running of the wild bulls in Pamplona, Spain. Some of the nuttier people get out their capes and stand in their path as they come roaring down the street. Our would-be matadors wave their home made clo...

If you're a normal human being, your need to feel good about yourself probably causes you to sell your winners too soon - and -- your need to avoid feelings of regret, causes you to hang on to your losers too long. At one time or another, we're all g...

From the book 'The Stockopoly Plan' by the author Charles M. O'Melia There are several factors an investor in the stock market should consider: 1. All stock purchases should be commission-free. 2. All stocks purchased should be from a company that ...

There are many important things you need to know to trade and invest successfully in the stock market or any other market. 12 of the most important things that I can share with you based on many years of trading experience are enumerated below. 1. B...

Any online investor / trader seeks an excellent off or online future trading career opportunity. Despite this goal, did you know 95 percent of all traders go broke within the first two months? Why do investors lose vast amounts of wealth in one or m...

A common problem I often see when working with living trust beneficiaries and trustees is the lack of attention in rethinking income strategies in the event of the grantor's death. When the grantor of a living trust dies, the trustee (especially a fa...

Sometimes the best way of lowering exposure to risk is not to invest at all! However, when we make the decision to jump into the muddy waters of the stock market, its always a good idea to have a life jacket ready, just in case. We all have stories o...

The demand for world oil is increasing while world reserves are decreasing. This is a known fact. The current price of oil can certainly confirm this statement. Consensus also agrees that we will never see $25.00 oil again. The logical conclusion to ...

On the 40 year journey through the turmoil of a volatile stock market I've noticed "P/E Ratios," "Consensus Estimates," " Bull and Bear Markets," stock ratings of 1, 2, 3, 4, 5, star ratings of 1, 2, 3, 4, 5. Also, stock ratings of "buy," "strong...

I read a comment by a forum member on another site earlier today that suggested that every investor should back test their system for at least twenty years. I disagree and will now tell you why. Back testing and paper trading seem to be the most ov...

Are hedge funds a suitable investment for you? Hedge funds are an appropriate investment for qualified purchasers with a net worth above one million dollars and an annual income exceeding two hundred and fifty thousand dollars. Purchasers are often r...

Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics, chocaholics and other "-aholics". What about stockaholics? Stockaholics are people who are overly obsessive about their stock market investments. As appr...

When you understand the basic principles of technical analysis, you already have got some knowledge that will help you to trade well. Technical analysis is important, but what's even more important is something we refer to as money management. In o...

A 'stock option' is a contract between two parties giving the buyer (also known as the 'taker') the right, but not the obligation, to either buy or sell a specific quantity of shares at a pre-agreed price (known as the 'strike price' or 'exercise pri...

Profitable day traders recognize that momentum trading is among the fastest & most effective ways to harvest BIG piles of cash in the stock market. The problem is that if you don't know what stocks to look for and how to approach them while limiting ...

We've all heard of the stock market and probably have a general idea of what it is and how it works either from high school economics classes, television financial reports, and the countless film depictions of what happens on the floor of the New Yor...

If you were to find that you had some severe illness that required surgery, would you attempt to perform that surgery upon yourself? What if your car broke down and needed a valve job? Would you get out the Craftsman tool set you got for Christmas ...

Success in small cap & micro cap stock trading like with any other business in life comes from being able to see the big picture and from paying attention to the small details. Let's say for example that you are a business owner and you have a jewelr...

I was out of town this weekend in Southern NJ, Atlantic City to be exact. After finishing my business at the convention center, I traveled back to the newest casino, the Borgata where I was staying for the night. I don't consider myself a gambler a...

That sounds like good advice doesn't it? Don't lose all your money. After all what is an investor without funds in the brokerage account? Hint: BROKE! On the subject of investing, this means getting out of a trade when it goes against you. Don't lose...