Category: How To Invest

A picture by Mark Hirschey on

How Warren Buffett Makes So Much Money

Warren Buffet is one of the richest people on Earth (currently the 3rd) with his 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...

What Is Gold – History. How To Invest In Gold

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? 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 – The Basics

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 Trader

Trading is a great business! You don’t need equipment, machines, or even an office. Today, you can practically trade form any place with available Internet connection. You are not tied to a location, which means you can travel around the world while trading. And in the same time, you can earn pretty good income, if you are good at it. An there are so many thing 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 and...

investing tips

7 Basic Tips To Help You Be A Better Investor

You don’t need to be a genius, if you want to be a good investor. Actually, investing is boring and dummy thing and everyone can do it! You need to stick 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 fees! Investors often don’t pay much attention...

The chart shows the growth of The Dividend Aristocrats compared to the growth of SP500 index for the last 25 years. Source:

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 is 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 it 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 before 25 years 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 And How To Invest In It (Infographic)

ETFs are really popular financial instrument nowadays. But what is an ETF and what’s the big deal investing in such? ETF is an abbreviation from 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 exchanges,...

What futures are, a simple explanation.

What Are Dow Jones Futures And How To Invest In Them

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...

Real estate investment trusts

What Are Real Estate Investment Trusts (REITs)

Times have changed — what used to be an object of interest only to businessmen and financiers is now open today to a wider audience. Making good financial investments is a necessity. People have different reasons to invest: for financial freedom (making their money work for them), long-term financial goals (college savings, etc.), and retirement. Everybody has different risk tolerance when it comes to investing. Fortunately, there is a lot of options which people, not just businessmen, can invest on. What are real estate investment trusts (REITs)? Real estate investment trusts or funds are companies that own or manage income-generating...