Stock picking involves actively choosing stocks to invest in with the goal of earning greater returns than would be earned with a passive strategy (e.g. index funds). Many investors open brokerage accounts for stock picking, but very few live up to their own expectations. Over the course of decades, index …
Fundamental and technical analysis have, for a long time, been considered the only two schools of thought when it came to analyzing stocks. That’s not necessarily the case anymore. However, these two methods are still the most popular with a majority of investors falling on one team or the other. …
Updated 03/26/21 Feedback? Let me know on Twitter. Some penny stocks might be substituted as they move above the $5.00 threshold. Also, those penny stocks that consistently have $0 in revenue or a lack of available financial information. This is the most up-to-date financial information that could be found on …
Investors make money in stocks through capital gains (change in share price) or dividends. Money can be made quickly or slowly. It can also be lost. Most stocks are purchased through a brokerage (e.g. Charles Schwab, Fidelity Investments, TD Ameritrade). The simplicity of buying/selling and the potential for big returns …
Can you get rich from the stock market? Video summary Not only can you get rich by buying stocks, you don’t even need to make a bunch of great stock picks in order to do so. In fact, one exceptional stock pick can make up for a lot of poor …
“What is a dividend safety score?” Simply Safe Dividends has developed a system to quantify the safety of a stock’s dividend payments. This score specifies the likelihood of a stock’s dividend being cut in the future. A broad range of factors are analyzed to calculate the safety of a stock’s …
“Which is the cheapest source of financing?” Debt is generally considered to be a cheaper source of financing than equity. Particularly during times (such as these) when interest rates are low. Beyond the “low cost of money,” debt also benefits from a tax advantage that equity does not. Debt, in …
“What is a safe harbor statement?” It is a forward-looking statement that doesn’t pretend to be a fact. It is merely speculation about future events and therefore should not be relied upon as a certainty. Before I delve into this subject, the distinction must be made between actual forward-looking statements …
“What are the benefits of a long-term strategy?” All things being equal, buying and holding is easier than frequent trading. If you decide to buy and hold for the long-term, then you want to invest in a company with a long-term outlook. This will ensure that they are operating on …
What are some limitations of risk assessment? Not gathering enough information. Not being able to accurately analyze the information gathered. Not knowing what information to gather. Risk management consists of three components – identifying, assessing, and controlling. Failure can occur at any of these three stages. In previous posts, I …