Category: How To Invest

How To Invest In Dow Jones

How To Invest In The Dow Jones Industrial Average Index

If you can’t beat the market – follow it! This is a popular maxim, briefly describing that it’s not so easy to beat the market, but it’s really easy to follow it. As you may know, “The Market” here means the overall performance of all traded shares which is measured by stock indexes, like the Dow Jones Industrial Average Index and S&P500 index for example. So, to follow the market you simply need to invest your money in a market index. But how could you do that? How can we put some money in the Dow 30 and take advantage...

The basics of markets...

How Does The Stock Market Work – For Dummies

Stock markets are one of the greatest inventions of our capitalistic world. They work so simply and at the same time, nobody can predict them. You trade financial instruments there, but at the same time, it’s more a social ecosystem than you can imagine. Its moves are driven by almost anything that happens to our society – from economic fundamentals to emotions in our brains and future expectations. The market reflects not only the financial world but its a barometer of our society as a whole. What Is A Stock Or A Share Before taking a look at how the...

What Is A Stock Market Crash? When Do Market Crashes Happen And How To Predict Them?

A stock market crash is a sharp and unexpected decline of stock market prices for a very short period of time, usually accompanied by the decline of many other assets’ prices. As a result, the most of the investors and speculators in the market realize significant capital losses. The losses themselves cause panic and fear among market participants, this deepens the contraction and causes more losses, they cause more panic, etc. This way a stock market crash is usually a self-reinforcing process that is totally uncontrollable. Stock market crashes are social events caused by both, economic conditions and human behavior....

The dogs of the Dow Strategy

The Dogs Of The Dow Investment Strategy

What would you say about an average annual return of 17.7% for the last 45 years? I don’t know about you, but I would say GREAT !!! This would have been the return on your money if you invested using the Dogs Of The Dow trading strategy. It’s an absolutely great return, especially because the overall average annual yield of the Dow Jones Index was 11.8% for the very same period. Not only would you have beaten the market, but also you would have made a fortune. On the pictures below, you can see the growth of an investment of...

investing tips

Investment Growth Calculator

You can use this simple and at the same time powerful investment calculator to see the magic of compounding, as Albert Einstein once said, it’s the 8th miracle of the world. Why is it called this way? If you want to enrich a bit your knowledge on the matter, you can check our cool topic about what compound interest is and how exactly it works. Then come back here to see it in action. The Investment Calculator Using this calculator you can calculate the return on your investment over a specified period of time, at a certain interest rate. Imagine...

This is the formula of compounding interest.

Compound Interest Formula Basics For Dummies

Compound interest is the foundation of investing. It’s even more important, the whole financial system in our world is based on compound interest. It’s everywhere, and this is why it’s so important to understand exactly what compounding is. Here I will talk about the most commonly used compounding interest formulas in our everyday life and this way I will show you how the 8th miracle of the world works. Everybody knows what interest is. If you have $100 and put it in a bank account for a year at 5%, at the end of the year you get: 5% x...

The basics of dividend investing.

How To Find The Best Dividend Stocks – 5 Key Things You Must Know

Investing in high dividend paying stocks is a cool way to put your money into work. Why? Because it has many advantages than its alternatives like bond investing. If you are interested in all of the pros and cons of dividend investing, you can check our article on the matter here, in this post we are going to explain some key and very basic things one should know about dividend paying stocks. If you are completely new in this field, you’d better check out our reading about the very basics of dividends. The current article is about the basic terms...

What Is A Dividend? How To Invest In Stocks That Pay Dividends

What Are Dividends? Dividends are a great way for companies to distribute their profit among their owners (shareholders). This is a way for shareholders to generate income from the companies they own. A dividend is simply a payment by a company to its shareholders, it’s usually calculated as a certain amount per share (55 cent per share for instance). So everyone who owns shares of a company that pays a dividend will get the per share amount multiplied by the number of his/her shares. Companies by default are not obliged to pay dividends, their management decides whether or not a...

An example of dividend announcement and dividend dates of Royal Dutch Shell. There are 2 dividend dates - one for the two types of shares (a and B) the company has. The other dates are the same for A and B shares.

When Are Dividends Payed – Declaration, Record, Ex-dividend, And Payment Date

In this article, I will explain in simple words the most important dividend dates. If you still don’t know what a dividend is, I strongly recommend to read this article first… Everybody who invests in dividend paying stock must know what each date means, and how it is used by investors. There are 4 important dates: declaration date, date of record, ex-dividend date, payment date. Here are some details about each and if you still don’t understand them, you can check out the example below. What These Dates Actually Mean Declaration date – this is when the board of directors...

Jim Rogers 2010

Who Are The Greatest Investors Of All Times – Infographic

Investing is a cool way to make so much money, that even your wife won’t be able to spend for a lifetime. However, it’s not that easy to be a successful investor, those who made it really big are only a few and a great way to enhance your chances of catching up with them is to learn from their experience. The Internet is full of information about the greatest investors of all times. You can find some cool articles on the matter on this site, by checking our famous investors’ stories section of the site. On this post, you can enjoy...