Strategies

What evidence is there that the typical investor would be better suited sticking to a defined investment plan as opposed to employing a performance chasing type strategy?

Fibonacci retracements are technical indicators that can help predict when, and to what extent, both pullbacks and rallies could occur.

Let’s look at how to screen for stocks that could form your base list of stocks to review in detail. Here is the process I use to find winning stocks.

One grossly over-looked factor in investing is Return on Invested Capital, or ROIC for short...Many stock traders have no idea what it is. It is doubtful your (or your parent's) money manager knows what it is or uses it. It's time to change that. In this article, we will dive more into return on invested capital, examine what it is, how you calculate it, and why it is so important.

In this post, we’re going to focus on the technical indicators that are most commonly used for trend following.

Buying and selling based on a moving average of monthly closes can be an effective strategy for managing the risk of severe loss from major bear markets. In essence, •when the monthly close of the index is above the moving average value, you hold the index, •when the index closes below, you move to cash. A chart of the S&P 500 monthly closes since 1995 shows that a 10- or 12-month simple moving average (SMA) strategy would have ensured participation in most of the upside price movement while dramatically reducing losses.

What makes 2018 remarkably different from the recent past is rising stock market volatility. Since the start of the year, the CBOE Volatility Index (^VIX) has shot higher by around 100%. By comparison, the VIX was -42.5% for the three-year period from January 2015 to December 2017. While rising volatility might put certain people on edge, but it’s not necessarily bad. Here are 3 strategies for managing market volatility.

For the majority of Americans, investing has never worked as promised. The problem is that most individuals cannot manage their own money because of ‘short-termism.’ Despite their inherent belief that they are long-term investors, they are consistently swept up in the short-term movements of the market. Fear is a stronger emotion than greed. People sell out, usually at the very bottom, and almost always at a loss. Let’s look at some of the more common trading mistakes to which people are prone.

Life is like going the wrong way on a moving escalator. Walk and you stay put. Stand still and you go backwards. To get ahead, you have to hustle or, at least, your money has to hustle. You have to make your money make you money and dollar cost averaging as an investment strategy is like steroids for your money. The difference between doing it and not doing it is millions of dollars.

Whenever some financial “pundit” says that the best way to get into a stock is by averaging down, we sometimes cringe. Why? Because, at best, you’ll be getting into a stock at a lower average price...but more importantly, you can be getting into a stock that’s poised to sink much, much lower and that’s a risk no one wants to take.