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Dow theory : 3 phases of major trends.

There are 3 phases of Dow Theory major trends: 1-  Accumulation phase :- If the previous trend was down then this is the phase where ...

Friday, June 17, 2016

7 Best Investing Advices of Warren Buffet

warren buffet quote

Everyone listens when Warren Buffet offers an investing advice. Warren Buffet had never been shy to tell his strategies to come up with a $72 billion net worth and grow his company, Berkshire Hathaway, into valued at $212 billion.

Here's the 7 Best Investing Advices of Warren Buffet:

1. Cash is the worst investment that you can make over time.

Cash is a bad investment over time. We always keep enough cash around so I feel very comfortable and don't worry about sleeping at night. You always want to have enough so that nobody else can determine your future essentially.

2. Invest in a broad-based index fund that tracks the S&P 500.

If you're professional with a confidence, then I would advocate lots of concentration. For everyone else, if it’s not your game, participate in total diversification. The economy will do fine over time. Make sure you don’t buy at the wrong price or the wrong time. That’s what most people should do, buy a cheap index fund, and slowly dollar cost average into it. If you try to be just a little bit smart, spending an hour a week investing, you’re liable to be really dumb.

3. Invest in yourself.

The best investment that you can make is to invest in yourself. Anything that can improve yourself to develop your own abilities will be helpful to achieve success.

4. If you’re determined to pick stocks, don’t buy into a business you don’t understand.

It is very significant that when you buy stocks, make sure that you understand the business. Make a comprehensive research to the fundamental analysis of the company before you put your money to invest.

5. Focus on the competition as well.

“Competition is always a good thing. It forces us to do our best. A monopoly renders people complacent and satisfied with mediocrity.” 

6. Invest for the long haul.

"If you are not willing to own stock for 10 years, don't even think that owning it for 10 minutes."

7. The hardest part about investing: trusting yourself.

Trusting yourself is the hardest part about investing if and only if you do not understand the company to invest. That's why you need to study the company so that you gain confidence to trust yourself the stock picks you choose. To be successful investor, you need to get away from fears and greed of the people around you and keep on trusting yourself.

Source: Yahoo! Finance

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Wednesday, June 08, 2016

25 Golden Rules of Investing

Rules of investing

25 Golden Rules of Investing

Rule 1: Bulls, Bears Make Money, Pigs Get Slaughtered

It is important for both investors and traders to know when to buy and sell and make money from stock market.

Rule 2: It Is Good To Pay Taxes

Stop to afraid from paying your taxes and start fearing the loss.

Rule 3: Don't Buy All At Once

Warren Buffet said that "Do not put all eggs in one basket".

Rule 4: Buy Broken Stocks, Not Broken Companies

There is no refund in trading, make your own research and buy undervalued stocks, not the broken companies.

Rule 5: Diversify Your Portfolio To Manage Risk

Make a diversification of your stock portfolio so that you can control the risk.

Thursday, June 02, 2016

Learn the Basics of Forex Trading

Learn the Basics of Forex Trading

What is FOREX?

FOREX (FX) is the another short term for Foreign Exchange. It is the market exchange of the different currencies around the world. 

Wednesday, June 01, 2016

Learn How To Invest in Mutual Funds

Learn How To Invest in Mutual Funds

A mutual fund is a collective investment that pools together the money of large number of investors purchase a variety of stocks, and bonds. When you buy a share in a mutual fund, you've a small stake of all investments included in that fund. Think of a mutual fund like a basket of investments, when you buy a share of mutual fund, you're buying a share in a mutual fund, and therefore you have a stake of one small fraction of all the investment.

There are benefits of a mutual fund:

  • It is an easy way to make a diversified investment.
  • It managed by the fund managers/professionals.
  • It allows investors to participate in a wide form of investments.