EDUCATION CENTER

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 [...]

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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 [...]

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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 [...]

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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. [...]

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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 [...]

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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 [...]

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A Lesson From Buffett’s $1 Million Bet – Hedge Fund vs. S&P Index Fund

Back in 2007, America’s most successful investor, Warren Buffett, claimed that you can’t outperform the S&P 500 by investing in a hedge fund. Buffett was so confident in his prediction he was willing to to offer $1 million to charity if any hedge fund manager could outperform his strategy of buying and holding a low-cost S&P Index Fund. Initially no on [...]

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How Are Stocks Bought And Sold

Stock trading online can be a bit intimidating for a beginner. By reading this article I will hopefully answer the question, "How are stocks bought and sold online". Go Long or Go Short To tell your broker whether you want to go long (your betting the price goes up) or go short (betting the price goes down) you will need to select the appropriate action. Use Buy (when you [...]

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