The Law of Demand

The Law of Demand

The law of demand and it’s application The law of demand and it’s application to fundamental analysis of commodities rests upon an understanding of consumer behavior. The factors which characterize consumer choice and how the market place reflects individual consumer responses are key components of this economic theory. Understanding what factors have affected demand in the past will help to develop expectations about demand in the future and its impact on market price. Demand for a particular product or service represents how much people are willing to purchase at various prices….

Gaps and Gap Analysis

Gaps and Gap Analysis

What are gaps and what do they mean? Have you ever wondered what causes gaps in price charts and what they mean? Well, you’ve come to the right place. Just in case, a gap is an area on a price chart in which there were no trades. Normally this occurs between the close of the market on one day and the next day’s open. Lot’s of things can cause this, such as an earnings report coming out after the stock market has closed for the day. If the earnings were…

Longtime Dividend Payers Trio

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:…

Bulls, Bears and the Farm

Bulls, Bears and the Farm

Bulls, Bears and the Farm On Wall Street, the bulls and bears are in a constant struggle. If you haven’t heard of these terms already, you undoubtedly will as you begin to invest. The Bulls A bull market is when everything in the economy is great, people are finding jobs, gross domestic product (GDP) is growing, and stocks are rising. Things are just plain rosy! Picking stocks during a bull market is easier because everything is going up. Bull markets cannot last forever though, and sometimes they can lead to dangerous situations if stocks become overvalued. If a…

Professional Forex Trading Strategies

Professional Forex Trading Strategies

Nial Fuller’s Professional Forex Trading Strategies About Nial Fuller: I’ve been trading the markets for over 10 years now, and I have learned every lesson you can imagine along the way. Perhaps the biggest lesson I’ve learned is that ‘simple is better’. This is the main point I try to convey to my students and it’s why I don’t use a ton of indicators or messy trading systems. My primary mission after becoming a successful trader has been to help other traders “see the light” of simple price action trading….

Trading Discipline Waste Of Time?

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….

What Is An Option?

What Is An Option?

For Options Beginners, What Is An Option? You heard the hype on TV infomercials. You may have seen full page advertisements in the newspaper or received mail filled with get-rich-quick promises. All you have to do is pay a few thousand dollars and attend some seminars. Forget it. That’s not a sound method for learning about the advantages of using options. But, what is an option? Options allow an investor to reduce risk and provide an improved chance to profit from stock market investments. But first, it’s necessary to understand the basic…

Stocks or Bonds

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

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…

You Bought the High

You Bought the High

Oops, You Bought the High I have seen and heard this many times from new traders. They buy right at or near the high of the day or sell at or near the low of the day and they can’t believe it. Either their emotions or trading strategy had them entering the market at the worst possible price, which is obviously not ideal. The focus of this piece is to understand why this happens and how we can correct that and also profit from it. As I mentioned above, there…