Stock-Picking Strategies: Value Investing

Value investing is one of the best known stock-picking methods. In the 1930s, Benjamin Graham and David Dodd, finance professors at Columbia University, laid out what many consider to be the framework for value investing. The concept is actually very simple: find companies trading below their inherent worth.The value investor looks for stocks with strong fundamentals - including earnings, dividends, book value, and cash flow - that are selling at a bargain price, given their quality. The value investor seeks companies that seem to be incorrectly valued (undervalued) by the market and therefore have the potential to increase in share price when the market corrects its error in valuation.  Value, Not Junk!Before we get too far into the discussion...

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Stock-Picking Strategies: Qualitative Analysis

Fundamental analysis has a very wide scope. Valuing a company involves not only crunching numbers and predicting cash flows but also looking at the general, more subjective qualities of a company. Here we will look at how the analysis of qualitative factors is used for picking a stock.  ManagementThe backbone of any successful company is strong management. The people at the top ultimately make the strategic decisions and therefore serve as a crucial factor determining the fate of the company. To assess the strength of management, investors can simply ask the standard five Ws: who, where, what, when and why?Who? Do some research, and find out who is running the company. Among other things, you should know who its CEO, CFO, COO and CIO are....

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Stock-Picking Strategies: Fundamental Analysis

Ever hear someone say that a company has "strong fundamentals"? The phrase is so overused that it's become somewhat of a cliché. Any analyst can refer to a company's fundamentals without actually saying anything meaningful. So here we define exactly what fundamentals are, how and why they are analyzed, and why fundamental analysis is often a great starting point to picking good companies.  The Theory  Doing basic fundamental valuation is quite straightforward; all it takes is a little time and energy. The goal of analyzing a company's fundamentals is to find a stock's intrinsic value, a fancy...

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Stock-Picking Strategies: Introduction

When it comes to personal finance and the accumulation of wealth, few subjects are more talked about than stocks. It's easy to understand why: playing the stock market is thrilling. But on this financial roller-coaster ride, we all want to experience the ups without the downs.  In this tutorial, we examine some of the most popular strategies for finding good stocks (or at least avoiding bad ones). In other words, we'll explore the art of stock-picking - selecting stocks based on a certain set of criteria, with the aim of achieving a rate of return that is greater than the market's overall average.  Before exploring the vast world of stock-picking methodologies, we should address a few misconceptions. Many investors new to the stock-picking scene believe that there is...

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Low Capital to Start Investing with?

One of the biggest problems for new investors is the amount needed to start investing. They often want to get started investing with very little money but find out that it is hard to do this and give up. The fact is that if you want to invest in stocks, you usually need more money to start with than you need for a mutual fund. The reason for this is because if you invest with a small amount, a large percent would be eaten up in commissions. On the other hand you can just keep setting aside money every once in a while until you have enough to make a larger investment. But if you want to invest in stocks rather than...

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Calculate Your Lifetime Earnings

Do you want to know how much money you will make throughout your entire career? Determining your lifetime earnings is important as it can give you a concrete idea of just how much money you will make in your lifetime. In many situations, you may not realize how financially healthy you are until you view this total. Additionally, knowing your lifetime earnings calculator can help you to plan out your financial future. Of course, knowing this sum, can also serve as a reminder of how much money you may lose if you are unable to work due to an illness or other reason. To determine your lifetime earnings, all you have to do is input...

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Well Managed Investing Risks ... Bring Rewards!

"Risk comes from not knowing what you're doing!" Warren Buffett (1930 - ) We often listen to people who hesitate to invest in the stock market because they fear risk. There are older people who fear that a stock crash could leave them destitute. There are young couples who pine for a new home but worry that an investment loss could kill their chances. For any investor, risk is a fact of life! Whenever an opportunity opens up for you to make an investment profit, you also face the fear of the possibility of suffering an investment loss. Even with "safe" kinds of investments, such as bank deposits, there is...

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Stock Markets and Trailing Stops

Once you bought a stock and has started moving up, you do need to get as much profit as possible. Not being able to do so will make you a losing trader in the long run! How can you lose if you only take small profits at a time? Isn't a profit always a profit? Well ... Not exactly! A profit of 200 is not the same as a profit of 500. If your 200 profit is followed by two losses of 190 each, your 200 profit will become an 180 loss, while an i.e. profit of 500 will just become an 120 win. Do you get the point? Profits are always followed by losses and if the profits are small they will not make up for the losses that will eventually and...

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MC2 $50 Cash Vouchers for FREE!!

Like our Facebook Page :  http://www.facebook.com/pages/I-Love-Online-Trading/192692060771378 Term and Condition of Cash Voucher : Non-refundable and non-exchangeable for cash Voucher is valid from 12 Sept to 12 Dec 2011 Voucher must be fully utilized when making payment Voucher is applicable for Purchase of Notebook, Tablet, Desktop, Camera, Handycam & Netbook only Any unutilized amount of the voucher will be forfeited and shall not be refundable The Management will not be responsible for the loss or damage of this voucher Voucher deemed void if serial number is defected Limited to one voucher per customer per transaction Redeem...

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