Category: How To Invest

Duration Of The Bear Markets And Percentage Drops of S&P500 During The Last Century

  S&P 500 percentage drops and duration of declines for the last 15 bear markets Bear markets are something inevitable and they are even good for the stock markets because they regulate and align it aligned with reality to ensure the most optimal allocation of capital in the changing economic environments. Bear markets come and go, and they will proceed to do so for the times markets exist. This is why it’s extremely important for any investor, trader, and market participant to know bear markets well so they can take advantage of them whenever they occur. Here is a nice...

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How Warren Buffett Makes So Much Money

Warren Buffet is one of the richest people on Earth (currently the 3rd) with a net worth of $73 billion. He has made a tremendous amount of money in his life. How much do you earn per year? How much do you work for your income? Do you like what you do? If you are not happy with your job and income, here is a simple way you can change this in your favor. I will show you how the greatest investor of our time makes billions of dollars every single year. After you read the following lines, you will...

The history of gold. How to invest in this precious metal and is it a good investment?

While it is highly incomprehensible why certain fictional creatures are so obsessed with golden treasures, very few can doubt its appeal to humans. Throughout history, it is seen as a sign of power and economic status. “Royals” and aristocrats of the ancient world dictated the market trends by using gold as a medium of currency for exchange and to store wealth. It is difficult to ascertain when exactly did humans start using it but evidence of mining can be traced as far back as 4700 B.C. Although most people would associate it only with coinage and jewelry, its chemical, electrical...

What Is Dow Jones Industrial Average? The Basics Of Stock Market Indexes – For Dummies

Dow Jones Industrial Average (DJIA) is one of the most important stock market indexes today, not only in North America but in the whole world. It’s a reliable indicator of stock market sentiment and it is used by lots of analysts, traders, companies, and investors from all around the globe every single day, for all kinds of purposes. That’s why it’s really important for everyone interested in the stock market to understand what The Dow Jones Index actually is and how it works. Below is a very simple explanation of this: What Is a Stock Market Index In the beginning,...

Mutual Funds - The Basics

What Is a Mutual Fund And How To Invest In It? Finding The Best Mutual Funds For Your Money

What Is A Mutual Fund And How Does It Work? A mutual fund is an investment company that allows a company to pool money from its investors and put it in various securities and financial instruments such as bonds, stocks, short-term debt, commodities, and stuff like these. All the holdings of any mutual fund are commonly referred to as a portfolio. Investors are allowed to buy shares in mutual funds and then each share the investor buys represents her portion of ownership in the fund and the revenue it generates. Mutual funds offer to ordinary people the opportunity for potential...

Stick to these rules, if you want to be a good trader.

9 Day Trading Rules On How To Become A Successful Daytrader

Trading is a great business! You don’t need equipment, machines, or even an office. Today, you can practically trade from any place with an available Internet connection. You are not tied to a location, which means you can travel around the world while trading. And at the same time, you can earn a pretty good income, if you are good at it. There are so many things you can trade… You can trade on any capital market – currencies on the FOREX market, stocks on the NYSE, commodities on the CBOT,… you name it. Trading is almost the same everywhere...

investing tips

7 Basic Tips To Help You Be A Better Investor And Make More Money From The Stock Market

You don’t need to be a genius if you want to be a good investor. Actually, investing is boring and a dummy thing, and everyone can do it! You need to stick to some rules and have some discipline, but it’s not rocket science at all. Here are some basic tips, that can significantly improve the performance of your portfolio. They are so simple and trivial, that many people would ignore them thinking they are too obvious to be true. But they are and can have some substantial effect on your returns. Don’t forget about the fees! Investors often don’t...

The basics of dividend investing.

How To Invest In The Dividend Aristocrats – Directly Or Through ETFs

This one is another interesting and lucrative investment strategy. The so-called dividend aristocrats are a group of stocks from the S&P 500 index, that have increased the dividends they pay to shareholders for at least 25 consecutive years. Sounds good, isn’t it? Not only these companies have paid dividends for a quarter of a century, but also they increased them every single year. For the last 25 years, a portfolio containing all Dividend Aristocrats would have beaten the SP500 index big time. If you invested $1 000 in the index 25 years ago, you would have made around $7 990...

Gold ETFs invest only in gold and follow the price of the precious metal.

What Is An ETF? How To Invest In Exchange Traded Funds (Infographic)

ETFs are really popular financial instruments nowadays. But what is an ETF and what’s the big deal about investing in such? ETF is an abbreviation of Exchange Traded Funds and actually is an investment company, that collects money by selling shares to the broad public and invests the collected money in different assets like shares of other public companies, commodities, and all other kinds of assets. This way people, who have shares in such a fund get their money managed professionally and without their participation. They are just like mutual funds, except that they are traded on a regulated stock...

What futures are, a simple explanation.

What Are Dow Jones Futures? How To Invest In Futures

What Are Dow Jones Futures? Futures are derivative instruments, which means that their value derives from the value of another financial instrument. In this case, the value of a Dow Jones Future contract derives from the value of The Dow Jones Industrial Average Index. In very simple words, a future contract is a negotiated deal between a buyer and a seller, on an exact day in the future. The buyer agrees to buy the contracted amount at a predetermined price and the seller agrees to sell under these conditions. So a Dow Jones Future is a standardized contract in which...