Some people define themselves as fundamentally-based investors, but in practice they are technically-based traders. If you intend to be a fundamental investor, you need to be aware of four practices or habits worth avoiding.
Tracking a financial trend seems easy enough. When researching investments, monitoring certain indicators, like a company’s net profits, for example, or its stock price, over a number of years to detect any patterns sounds like a no-brainer. But the fact is, the methods investors and traders employ to track trends — and their assumptions — are easily misunderstood.
It’s a question I hear all the time: “I have this investment that has lost money. Should I sell now or wait for it to go back up?” The right question is: “Say someone took away your investment and gave you the current market value in cash. Would you use the cash to buy the investment back?”
Gold prices are at all-time highs, and historical experience tells us that investing in gold has been an excellent way to hedge against severe market downturns or economic crises. Here are the answers to some of the most frequently asked questions posed by beginner gold investors about building your pot of gold.
Mining is a risky business for practitioners. Though 33 Chilean miners were recently rescued after surviving more than two months underground, in the past week alone a mine collapse in Ecuador and a mine blast in China have led to fatalities. Yet, the minerals under the earth’s surface – from coal to copper – are in high demand and the pace of mining is heating up.
Investors rely on accurate financial information to pick companies. But are you getting truly accurate information from a company’s balance sheet? Can you tell what a company is really worth based on a list of assets and liabilities? No.
I want you to call Mom and Dad to warn them about a bad investment. They’ve probably already been invited to a free dinner and sales pitch, and if they believe what the guy in the suit tells them, that free steak could end up costing them a chunk of their life savings.
There’s a silver lining to living in a time of financial insecurity: you can actually buy more shares of stock at attractive prices. Remember the investor’s mantra: “buy low, sell high.” Stock shares that we accumulate during this period can be worth much more once the market recovers. For those thinking about investing, here’s what some popular financial bloggers have to say in our latest roundup.