What Is Index Trading?
What Is Index Trading? Since 2007 investors have quietly been leaving stocks and putting their money into Index Funds. Here at StockLocater.com, we have pretty much given up stock trading and exclusively trade indices. What is Index Trading? Index trading is trading the ups and downs of a stock index rather than trade the ups and downs of a stock. You can trade the DO [...]
Top 5 Stock Market Investing Basics
5 Stock Market Investing Basics You’ve saved some money and you want to invest it in the stock market. You’ll first need to understand some stock market investing basics. I hope you enjoyed the 5 basics rules of stock market investing. Please read the next article in the series The 4 Popular Investing Styles [...]
How To Make Extra Profits From Your Stocks
Let's examine a typical stock investment and I'll show you how to make extra profits from your stock. First off, every investor should have an exit strategy BEFORE they buy. This means you have a target price in mind that you will sell at. In my example, I'll use Walmart as an example. At the time of this writing, Walmart (WMT) is currently trading at $50. If you look u [...]
How To Do Market Timing
We all have a choice, we can take the slow buy and hold approach to retirement wealth, or we can learn how to do market timing and accelerate our returns. By tripling your returns over buy and hold, you can retire a lot sooner. It is my goal in the post to have you tripling your market returns by understanding how to do market timing. I will reveal how I time the ups and [...]
Leveraged ETF Basics
Leveraged (long) ETFs intend to deliver 2x or 3x the daily performance of the underlying index. Contra-ETFs (or inverse ETFs) intend to replicate 1x, 2x, or 3x the daily inverse performance of the underlying index. The leveraged feature magnifies the performance of the underlying index. I use leveraged ETFs when I feel the market is going down because it is much easier than [...]
Be Careful Of The Pump And Dump!
Pump and dump is a form of stock fraud in which people artificially inflate the price of stock in order to profit. It is most commonly used to target microcap stocks and penny stocks, stocks in companies with a low value. Stocks of this nature are very easy to manipulate, and their prices are notoriously volatile, so consumers expect some irregularity in these types of stocks. [...]
What Is Intrinsic Value Of A Stock
In An Owner's Manual that Warren Buffett sends to all new Berkshire Hathaway investors, he wrote that the intrinsic value of a stock is "the discounted value of the cash that can be taken out of a business during its remaining life." This leads to three questions. The simplest answer to Question 1 is that "cash" refers to dividends. Obviously this does not work for [...]
How To Calculate The Value Of A Stock
Warren Buffet loves to invest in companies whose stock he feels is at bargain prices. But what makes that stock a bargain? To determine that, an investor needs to know how to calculate the value a stock. If the true value is higher than what the stock is currently trading at, than that stock is said to be undervalued and that stock would make a great buy (if current market [...]