All Entries in the "Market 101" Category
Think You Know How To Invest / Trade Stocks?
If you can answer the following questions correctly, then you are very aware about the human behavior of buying and selling stocks…
Question #1:
A friend tells you that he made 90% on a certain stock from the beginning of the year! Chances are:
a) If the stock achieved 90% so fast then it will most likely [...]
Sweet Honey in the Stock Market
Years ago, my friend Bob Meier told me that bears start every bull market. Sounded strange. But it’s true.
Bulls push rallies farther and higher on big hopes, but they’re not the ones to start them. But bulls are like adolescents. They don’t handle adversity well. And just about the time the bulls are upset because [...]
Investing in Stocks : What Is the VIX Index and Why Should I Pay Attention To It?
The VIX Index is the Chicago Board Options Exchange future volatility measure for the S&P 500. There are three different types of volatility indexes - the VXN for the Nasdaq 100, the VXD for the Dow Jones Industrial Average, and the VIX for the S&P 500. This volatility index shows the market’s expectations for the [...]
Warren Buffett : Learning the Stock Trade from the Greats
In any practice of life, be it boxing or painting, those who want to be the greatest look to learn from those who’ve already become the greatest. By watching legends in action, you can also study what they do and determine why they do it and apply it to your own practices. Investing is no [...]
Hedge Funds : Hedging the Market
Hedge Funds have been gaining more attention in the investment world lately, likely due to the volatile state of the market. Hedge funds have been around since 1949-when journalist Alfred W. Jones created the first one.
The name “hedge fund” was coined because these funds are notorious for “hedging” off losses in unstable markets by implementing [...]
Portfolio Diversification : Make Your Money Work for You
It is difficult to build something without having a solid foundation to work on. Choosing to build a home atop a sink hole is as apt to failure as building a town without a fire station. In order to move on to bigger and better things, you must first make sure that what you’ve already [...]
Russell 3000 Index : An Overview
The Russell 3000 Index contains listings of the 3000 largest and most liquid U.S. based traded companies. It is constructed to provide a comprehensive, unbiased, and stable barometer of the broad market and is completely reconstituted annually to ensure new and growing equities are reflected. Because it is such a diverse and broad index, representing [...]
Candlestick Charts and the Stock Market : From Rice to Riches
The concept of candlestick charts is said to have originated in the 18th Century by a Japanese rice trader named Homma Munehisa as a way to analyze rice prices over periods of time. Homma’s method was immediately popular with other rice traders because it allowed five data points to be displayed simultaneously. [...]
Small Cap Stocks : Big Perks
Investing in small cap stocks can actually have big benefits. In fact, some of the benefits of small cap stock trading cannot be touched by large cap investors.
Under the Radar
One of the biggest advantages of small cap stocks is that they do not garner much attention from analysts or traders, for several reasons. For one, [...]
Flipping the Investing Switch
As Tony Robbins says, you don’t have to know how electricity works. All you need to know is how to flip the switch to get the light to come on.
The same can be said for many of the technical indicators that are available to investors. You hear about oscillators, regression lines and channels, and so [...]






















