EDUCATION CENTER

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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Best Stock Investments In A Bear Market

The markets are crashing, how can you profit from this? I never recommend going short on a stock. Way too risky and your broker can kick you out of the trade right before it's about to rebound. I recommend going to a savings account, buying an inverse ETF, or buying stock puts. If you must invest, in this post you'll discover how to pick the best stock investments in a bear [...]

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The Myth Behind Leveraged ETF’s

In late 2008 leveraged ETF's were introduced to the public. Maybe you have read about these investment vehicles. Experts are claim that buying and holding a leveraged ETF is wrong and claims leveraged ETF’s are only good for day trading. Are they telling you the truth or feeding you a bunch of bull and keeping the best secrets for themselves? I decided to do a littl [...]

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4 Popular Investing Styles

Before you start looking for buy and sell signals, you need to choose which of the popular investing styles you will use. The style you choose to trade will determine which buy and sell signals to look for. For the Average Joe who doesn’t have a lot of money and needs to make quick profits, Swing Trading is the trading style of choice in volatile times. Stocks g [...]

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