Author Archive
Smart Investing with Dollar Cost Averaging
Dollar Cost Averaging, or DCA, is a technique where you purchase a fixed dollar amount of your favorite investment at regular intervals, such as once per month.
When prices are down, you will receive more shares. When prices are higher, you will receive fewer shares. The idea is that you will be able […]
Who Sets a Stock’s Price?
There are many, many factors that affect the price of a share but basically it is determined by how much somebody is willing to pay for it.
Perceived Value
Just like any other auction, the price is determined by the perceived value of the item being traded. It cannot be calculated or determined by a formula. […]
Is Insider Trading Illegal?
There are some common misconceptions about what insider trading really means, so this article will attempt to clear the air a little bit.
What insider trading is
First of all, it is important to note that there are two different meanings for insider trading. The first one is illegal and it refers to anyone who makes […]
How-to: Taxes for your Stock Trades
There are a few things you should be aware of when it comes to taxes for your investments. Note that many of these tips are specific to 2007 tax returns in the United States.
Taxed on Sells, Not Buys
The first thing to realize is that you are charged tax on the profits of your trades, […]
How to Make Money in a Down Market
There are actually a few ways to make money in a bear market but the main one we will discuss here is called Short Selling.
Short selling is a technique that many stock brokerages allow. It allows you to Sell High then Buy Low, which is the opposite order of the traditional Buy Low, Sell […]
The Dangers of Penny Stocks
There are several reasons why it is dangerous to trade penny stocks. These stocks can seem very attractive to beginners so please read the warnings below.
Definition:
Penny stocks are defined as stocks with a price per share of less than five dollars (or one dollar in some cases). Many of them trade on […]
Your Stock Trading Rules
One of the hardest things about stock trading is self-discipline. You have a set of rules you use for trading, whether you realize it or not. The hard part is sticking to those rules. For example, you may tell yourself that you will never buy a penny stock. Then one day […]
Stocks Are Like Baseball Cards
Who sets the price of stocks and baseball cards? You do! Actually, it is a complex combination of countless factors, but basically the prices are set as high as someone is willing to pay. The cards that are worth the most are from the best and most popular players. Likewise, the […]
