If someone asked you today, “Is the stock market in an uptrend, downtrend or a lateral consolidation”, what would you answer? Knowing the answer to this key question is important for the stock market or even an individual stock. Why? If you buy a stock (go long) in an uptrend you are more likely to make money on it. Read More→
Swing trading focuses on trying to make a profit from stocks that are about to make a short term change of direction. Swing trading is short term but not on the scale of day traders, typically 1 to 5 days. Swing traders focus purely on the technical situation of a stock. They are interested only in the stock chart and the momentum (rate of change in the stock price). Read More→
Value investing is a strategy that entails seeking out companies that have a very low valuation in the stock market, but actually have a lot of intrinsic value. The intrinsic value essentially means the actual worth of the company, its assets, cash, market position, income and good will. It can be difficult to calculate intrinsic value this is what makes value investing a time consuming strategy. Read More→
What is Day Trading
Day traders are a special breed. Specializing in many short duration trades they operate using technical analysis to seek many small wins in the minor fluctuations in stock prices. Technical analysis is the use of charts based on stock price and the volume of shares sold for the day. Read More→
The Liberated Stock Trader Top 20 Stock Market Books of All Time list is now updated for 2014. This are a list of books that you simply must add to your reading collection based on the quality of content, the applicability to your investing success and the depth of insight into the subject matter.
This updated list incorporates an additional three books that have made it into the top 20. Read More→
If you are to pursue a buy and hold strategy as previously mentioned it may be beneficial to ensure that your portfolio is adequately diversified. To diversify you would likely want to use a mixture of the following investment vehicles. Read More→
The oldest strategy known to man, the buy and hold strategy We have already seen that the U.S. markets have made an average return of between 5% and 6.5% per year since inception. So the theory of buy and hold is that is you own a stock long enough eventually you will come out with a profit.
Advantages of the Buy & Hold System
If you select the right stocks this strategy can pay off over time. Read More→
Big News, Yesterday!
In 2011 Standard & Poors the ratings agency cut the long term outlook on the U.S. from stable to negative. What does this mean? It means that S&P are signaling that they believe the U.S. economy is in a sick state and the stability of the situation has gone from stable to shaky. Read More→
Most of the investment banks and brokerage houses employ Stock Market Analysts. Their job is to research the firms in the industry they are allocated to, in an attempt to assess if the companies are worth investing in. You can purchase the “Analyst Reports” from S&P, Moodys, The Street, Credit Suisse or the plethora of other information providers out there. The analysts usually attend the shareholder meetings for the companies they cover and probe the management team for further information. Read More→
The U.S. politicians were finally forced to walk the same path in a hollywood style finale to the government shutdown. And, no sooner is the accord signed the U.S. markets rally to new all time highs. That is particularly impressive since none of the fundamental underlying problems of the U.S. economy have been tackled.
But what are those fundamental problems? One could suggest that the politicians are the single thing standing in the way of America’s recovery. Or is it the structure in which the politicians operate and the power of the conglomerate lobby that funds them. Read More→