CANSLIM Trading Style Broken Down

CANSLIM Trading CANSLIM is Investor Business Daily’s (IBD) acronym for the seven common characteristics all great performing stocks have before they make their biggest gains. My trading foundation is rooted in CANSLIM although I use it differently than most beginners now that I have evolved into other styles and methods. CANSLIM Letter Breakdown Let’s start by understanding what each letter represents in the CANSLIM acronym as described by investors.com: C= Current earnings per share should be up 25% or more and in many cases accelerating in recent quarters. Quarterly sales should also…

Stop-Loss or Stop-Limit Orders

Which Order to Use? Stop-Loss or Stop-Limit Order Traders and investors who seek to limit potential losses can use several types of orders that can get them into and out of the market at times when they may not be able to place an order manually. Stop-loss and stop-limit orders are two such order types that can accomplish this. But it is critical to understand the difference. Stop Loss Orders There are two types of stop-loss orders: 1) Sell-stop orders protect long positions by triggering a market sell order if the price falls below a certain level.…

INCOME AND TAXATION

RETIREMENT INCOME AND TAXATION When you retire, you will need income to finance your normal living expenses. You should consider what the sources of that income will be, and how that income will be taxed. Knowing the general outlines of the taxation of different forms of income may influence your decisions about investing your savings. What do you need to know about income and taxation? Below are some of the typical types of retirement income and a description of how they are taxed. Although this list does include many common…

MUTUAL FUNDS INVESTING

WHEN MUTUAL FUNDS ARE YOUR ONLY CHOICE I recently discussed the idea of diversifying within your 401(k) or other defined-contribution employer-sponsored retirement plan. In most of those plans, mutual funds are your only investment choices. Mutual funds were a good idea, for their time. They allowed small investors to have diversified portfolios. They offered professional management of the funds. That frees investors from having to do as much work to study their investment choices. There are now better choices, in the form of exchange-traded funds (ETFs), that do the job of mutual…

Start Investing Easily

How to Start Investing Easily With Just $100 Investing your money into the stock market and bonds isn’t something you do later; it’s something you start doing as early on in your life as possible. Why? To give your money the most amount of time to work for you. You see, if you save $100 in your sock drawer, 30 years from now when you go to check on it, you will still only have $100. Conversely, if you invest $100 in a mutual fund, even if you never made…

Longtime Dividend Payers Trio

This trio of longtime dividend payers is offering up tasty yields, but are they good deals? A dividend yield alone doesn’t tell you the full story. But when you see reliable longtime dividend-paying companies like ExxonMobil Corporation (NYSE:XOM), Helmerich & Payne, Inc.(NYSE:HP) and Target Corporation (NYSE:TGT) offering up yields near the high end of their historical yield ranges, it’s time to do a deep dive. The real question investors need to ask is: Are the big yields a real bargain? Pain in the oil patch The situations at Exxon and Helmerich both have the same root cause:…

Trading Discipline Waste Of Time?

Is Trading Discipline a Waste Of Time? The greatest economist that ever lived was John Maynard Keynes. (All the Austrian School economists, indulge me for a minute). But besides saving capitalism and setting the foundation for our modern world, Keynes was a damn good trader. Here is how Keynes performed during the depth of the Great Depression managing the endowment of King College. He managed to increase it tenfold over a period of twenty years. As you can see, for a pointy headed academic, Keynes was a very skilled trader.…

Stocks or Bonds

Stocks or Bonds for Your Retirement Account? Stocks are riskier than bonds which is why they have a higher expected return. The right risks, taken Foolishly, can pay off in the long run. “Behold the turtle. He makes progress only when he sticks his neck out.” — James Bryant Conant, American diplomat In our Foolish Steps to Retirement, we recognize that we’re going to have to take risks to reap rewards. Market risk (the chance you will lose money) and reward (the chance that your investments will head skyward) travel…

Increasing Your Net Worth

6 Tips For Increasing Your Net Worth Your net worth can tell you many things, but it is simply a way to gauge your own financial success. Many have calculated their net worth and come to the conclusion that it is in need of a little spit-shine, yet improving it can seem very difficult. However, it only requires some guidance and a little willpower. Pay Off Your Debt Money you owe is money that could be used to grow your net worth. Pay off all your debt as soon as…

Park Your Cash in

Where to Park Your Cash in You have money, you need a place to park your cash in for a while and the financial institutions are lining up at the door. You may be tempted to fall for whatever suitor makes a good first impression, but remember: This choice is all about you. The best short-term savings account is the one that best matches your needs in the following areas: Access: How often will you need to dip into the account, and what’s your preferred method of access — ATM, checkwriting, online, and…