Investing and gambling

Investing and Gambling are not the same thing It’s the Monday following the second leg of the Triple Crown and a whole bunch of people lost money betting on the Preakness. Like the stock market, the allure of gambling is strong because many people think that having more money will solve most of their problems. And while there are some similarities between investing and gambling we should be clear that they are not nearly as similar as some people might believe. First, some definitions: “Gambling is placing capital at risk…

Financial Gains

Two Ingredients to Financial Gains From a young age, we are conditioned to trade and invest incorrectly. We naturally run from things we are fearful of and are drawn to things that make us feel good.  If you take this action in trading, you are headed for trouble which in the trading world means losses. For example, if your invitation to buy into a market comes only after an uptrend is well underway, all the indicators are pointed up, and the news is good on that market, where do you…

Increase Your Average Profit

How Simple Maths Can Increase Your Average Profit Per Trade 10-Fold You’ve probably read trading articles that talk about how your “winners need to be greater than your losers”, it’s used so much that it’s become cliché. It is NOT as simple as having a series of trades and just keeping your risk at 1r and your average profit objective of 2r, that is never going to be the case in real world trading. There are several situations where maths is applied to trades I personally take that can dramatically…

Bear Put Spread

What Is a Bear Put Spread? Here’s the basic setup of a bear put spread, along with how to calculate the position’s maximum gain, maximum loss, and breakeven point. There are plenty of ways to profit on a stock‘s movement, beyond investing in the actual stock itself. Options provide a nearly endless array of strategies, due to the countless ways you can combine buying and selling call option(s) and put option(s) at different strike prices and expirations. A call is an options contract that gives the owner the right to…

Comfortable Retirement With Higher Dividends

12 Stocks Building A Comfortable Retirement With Higher Dividends Forget about those “Make 534% On Every Trade” ads that you see on many financial websites. Real wealth is built with sweat equity and a sound financial plan. A long-term buy-and-hold investing approach focusing on quality dividend growth stocks has provided the means for many investors to enjoy a comfortable retirement. If you start early enough, you will go beyond a comfortable retirement into the realm of building long-term wealth. Below are several companies that are helping their shareholders build a comfortable retirement…

Best Dividend-Paying Funds

3 Best Dividend-Paying U.S. Financial Mutual Funds (FSVLX, PRISX, RYSFX) After a strong performance in 2015, the financial sector is off to a rocky start in 2016. Through March 17, 2016, the sector was down 5.71%. After an initial surge following the lead up to the Federal Reserve Board interest rate hike, bank stocks have come under pressure from concerns over low oil prices and troubling emerging markets debt. Banks and other financial institutions are expected to perform better with higher interest rates, but they may not rise fast enough to turn…

Value Investing

What Is Value Investing? Unlike some investment strategies, value investing is pretty simple. It doesn’t require that you have an extensive background in finance (although understanding the basics will definitely help), sign up for an expensive subscription service or understand how to analyze squiggly lines on charts. If you have common sense, patience, money to invest and the willingness to do some reading and accounting, you can become a value investor. Here are five fundamental concepts you’ll need to understand before getting started. The Concepts Value Investing Fundamental No. 1:…

Pyramid Trading Strategy

Pyramid Trading Strategy – How To Turn Small Trades into Huge Trades “Let your winners run” they always say. Great! But, HOW do I do that? How do I turn small trades into big winners? You’ve probably asked yourself this many times. As great as all these old trading aphorisms are, they do seem a bit vague and don’t really give us any specifics or details on how exactly one accomplishes the wonderful things they imply. Today, we are going to discuss how you can turn small trades into big…

Visa Stock Buy

If you’re a reader of my blog, you know that I typically invest in companies with dividend yields above 2%. Visa Stock doesn’t fit this investment strategy. I do on occasion take chances on riskier investments regardless of yield, or in companies with a fantastic growth opportunity regardless of yield. In this case it’s the latter. I bought 25 shares of Visa Stock at a per share price of $79.11. The total invested amount of this purchase is $1,977.75.Visa Stock pays a very low yield of 0.69%. There’s not much near-term dividend income with this…