Business articles
Showing page 23 of 90 - There are 2700 Business articles
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- 2007-11-13 22:16:19 - Dont fight the fed
- One of the great truisms of Wall Street is "Don't fight the Fed". For the long term investors this has resulted in greater profits. When the Federal Reserve Board hikes interest rates look out and when the do it 3 times in a row it is called "3 jumps and a stumble". We have just gone through the stumble and it has been costly.When you go back in history you will find that the stock market h...
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- 2007-11-13 22:16:19 - Dont ask your broker
- Unfortunately, most of you who are reading my column are suffering some substantial losses in the stock market. Whether it is mutual funds or individual stocks everything with mighty few exceptions is going down. Maybe you are just giving back some nice profits, but maybe it is beginning to bite into your original principal.You are wondering what should I do? I know, I'll call my broker. He...
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- 2007-11-13 22:16:19 - Dollar cost averaging
- Dollar cost averaging is one of the most popular ideas in the investment community. Everyone seems to like it and it has become a watchword among stock and mutual fund brokers. If it is properly done you will make money, if not you will lose money or at best stay even. Let's examine the basic premise behind this method of investing.You decide to buy shares in Mouse Trap, Ltd.(symbol CHZ), a...
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- 2007-11-13 22:16:19 - Does japan matter?
- For the last 12 years we have seen the Japanese stock market slowly sinking from a high of 38,000 to about 8,000, more than a 75% loss and very close to the price of the Dow Jones Industrial Average. Why should we care about their stock market?Please understand that the stock market price is a reflection of the overall economy of a country. Every major country has a stock market index relat...
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- 2007-11-13 22:16:19 - Dividends
- When is a dividend not a dividend?The latest thing "conservative" brokers are preaching these days is to buy stocks that pay dividends. Everyone likes dividends. I know I do, but when Wall Street tells me something I am automatically suspicious because they lie to me every day. Is this a new scam? Let's take a look.When you buy a bond or a CD at the bank it pays interest and is a rea...
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- 2007-11-13 22:16:19 - Diversification
- Wall Street's watchword has always been diversification, but what does it mean and why do they say it?The standard Wall Street definition is flexible because each broker or financial planner will vary the portfolio based on your age and income. They say that the younger you are the more risk you should take and the older you are the less risk. They design a group of individual stocks, mutua...
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- 2007-11-13 22:16:19 - Dispelling illusions of the stock market
- How can you dispel an illusion unless you look directly at it? The magician distracts the eye with one hand while he does his manipulation with the other. You are looking in the wrong place and not seeing what is actually happening.Wall Street has mastered this move even beyond the wildest dreams of Houdini. Investors have become so mesmerized by the smoke and mirrors that they believe the ...
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- 2007-11-13 22:16:19 - Investment discipline
- One of the great "secrets" of successful people is discipline and it doesn't make any difference whether it is manufacturing, processing, servicing or investing in the stock market.Before you can have that discipline you must have a successful plan and stick with it. If the method you use does not work or results in smaller profits it should be abandoned and a better one found. For the aver...
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- 2007-11-13 22:16:19 - Direction
- It is difficult to make money in a bull market, but what do you do when you are in a bear market? In what direction should you go not only to make money but to protect what you have from loss?Almost immediately investors think what should I buy that will help me reach my financial goals? This answer may not be the one you will like. It is really not important what you buy as long as you kno...
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- 2007-11-13 22:16:19 - Investment research - the dalbar study
- Very few people, even professionals, have heard of the Dalbar Study that originated in 1995. Its purpose is to determine the profitability of trading for the small investor of mutual funds. Their results are even worse than I thought.The BuyNHolders will love the results as it "proves" that buying and holding is better than trying to switch to so-called "hot" funds. My readers know I think ...
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- 2007-11-13 22:16:19 - Traders, defend against the dreaded death spiral.
- It has often been said that there is only two ways to get hurt really bad on a stock trade, getting caught in a "death spiral" by not using DTM: Decisive Trade Management in the way of stop loses and having a stock halted on you. Halts you have zero control over. Death spirals are of your own making if you do not practice the use of stop loses.Very simply stated Decisive Trade Management is...
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- 2007-11-13 22:16:19 - Investing in dividend paying stocks
- I was recently interviewed for a press release through a financial question and answer format. One of the questions asked of me in the interview was:Where do you think the stock market is headed over the next five years?My Answer!Charles M. O'Melia: No one knows! There is an old Chinese proverb that goes something like this: "He, who could foresee events 3 days in advance...
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- 2007-11-13 22:16:19 - Mousetrap
- The spring-loaded rat catcher is the ultimate low-tech device invented more than 100 years ago and remains the best demouser in the world. It is so simple anyone can master it and best of all you can keep on using it year in and year out. It always works.Now I want to show you a killer method for earning 30% to 50% annually on your investments that is just as easy as the good old mousetrap....
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- 2007-11-13 22:16:19 - Mindset
- In 1960 an engineer working for a watch company in Switzerland discovered that a small crystal would vibrate at a constant rate. He found this was so accurate that it could be used to calibrate time so he took it to company management and said it would make an entirely new kind of watch that had no springs and no gears. They could not imagine who would want such a thing. Swiss watches dominated wo...
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- 2007-11-13 22:16:19 - Market success
- Who are the successful investors?There are those who follow the advice of their brokers and financial planners or those who choose to use their own good judgment? If you care to compare the results of the past 4 years from 2000 to now I believe you will see who as done the best job.In the old days at the Chicago stock yards they used to have an old sheep who led the lambs to the slau...
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- 2007-11-13 22:16:19 - More window dressing
- Two weeks ago I wrote about what the Securities and Exchange Commission was doing to regulate the mutual fund industry to help the small investor, the "poor folks". It really added up to zero.Now the SEC is going to make new regulations for hedge funds to protect the rich folks. And it is more window dressing. In fact, it looks downright stupid. When I say rich folks it is because...
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- 2007-11-13 22:16:19 - Market timing?
- The recent criminal fiasco in the mutual fund industry is being used by Wall Street to persuade investors that market timing is a bad thing. The late trading by Janus, Bank America and several other well known mutual funds is falsely being called market timing.Wall Street, better known as Maul Street to most investors, does not want to you to find out about market timing. The reason is very...
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- 2007-11-13 22:16:19 - Market psychology
- Today we are inundated with tons of information about the economy, stocks, government agencies and foreign governments. They show us charts and graphs of the increase/decrease in oil production over the last 5 years, the amount of maple syrup produced in Vermont for the past century, the time it takes to bounce a signal off the moon and all kinds of other nonsense that we can live without. The tal...
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- 2007-11-13 22:16:19 - Moving averages
- Every day on CNBC-TV they show a 200-day moving average line superimposed on the stock price history. It seems they give great credence to this manufactured line as it represents 10 months of price action. What is it? Does it really mean anything?The line represents the addition of the closing prices of that particular stock, mutual fund or index for the past 200 trading sessions that have ...
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- 2007-11-13 22:16:19 - Momentum
- One of the basic laws of physics states that a body in motion will continue in motion in the direction it is going until interrupted by another force.That basic physics law also applies to stocks and mutual funds. To see this trend it will be very apparent in a weekly or monthly chart rather than a daily chart. The daily chart shows too much noise (random movement).In the Friday edit...
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- 2007-11-13 22:16:19 - How much money can i make with trading? what account size do i need to start?
- What account size do I need?How much money can I make with trading?First of all, let's clarify a common misunderstanding: You never risk your full account size. You always have a "catastrophic stop", and it is important to define the "ruin" before you start trading. Let's say you start with a $10,000 account, and you decide to stop trading if you lost $2,000. In t...
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- 2007-11-13 22:16:19 - Choosing an investment stock broker
- If you want one.And I don't recommend any broker with whom to trade who will be giving you advice on what to buy and sell. When a broker speaks it is a eulogy for your money. My definition of a broker is one who makes you broker.The reason I say this is that when I owned my brokerage company I hired and supervised over 300 brokers. The actual number of good traders I could count on o...
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- 2007-11-13 22:16:19 - China syndrome
- There has been great condemnation recently because China has been selling its goods on the world market at prices below what other countries, especially the U.S., can produce. It has been called exporting deflation.The major reason for these extremely low prices has been their labor costs which I am told are about $100 per month for ordinary factory workers. Even factories in Mexico are bei...
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- 2007-11-13 22:16:19 - Chart reading
- As an investor you will want to check out any equity before you buy it. Many investors go to Morningstar that is one of the largest providers of mutual fund information in the world. It is assumed that their information is correct. After all that is what you are paying for.Recently the SEC (Securities and Exchange Commission) called them on the carpet for not correcting an error within a re...
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- 2007-11-13 22:16:19 - Catnip of the stock market
- I have watched my cat play with a bag of catnip. At first he is having fun and slowly he becomes drunk with pleasure and then finally he becomes so tipsy he falls over to sleep it off. The pleasure part is great, but I am not sure if he awakes without a hangover.Rocket (that's his name) reminds me of a one of those people who buy a stock and hold it. At first while it is going up there is g...
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- 2007-11-13 22:16:19 - Cash
- How many people went to a cash position this week? There is no question that this market has scared the bajebers out of many investors, me included. Fortunately, I started going to cash some time ago, but I did give back a substantial amount of my profit.Your broker never wants you to be in cash. You might take it out or invest it in something else. "Don't worry, the market always comes bac...
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- 2007-11-13 22:16:19 - Investment capital gains
- Have you bought any mutual funds this year or late last year while the market was doing its skyrocket thing? Last year it was hard to lose money. This year it has been easy.You should be calling your mutual fund (they all have 800 numbers) to find out if and when they plan to pay their capital gains and dividends. You might say to yourself, they won't be paying anything this year because th...
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- 2007-11-13 22:16:19 - Buying new issues
- Has your broker been calling you recently with the "great opportunity" to get in on a new Initial Public Offering? With friends like that you don't need any enemies.I don't care how good this new stock offering sounds. The chances it will stay even or go up are about 1 in 3 and I don't want to play those odds with my money.Most of the new IPOs these days are from the technology secto...
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- 2007-11-13 22:16:19 - Buying mutual funds
- It looks like the market is ready to start up again so it is time to buy mutual funds, but you only want to invest your money in funds that go up. First, you don't want to start with a loss so be sure to purchase no-load mutual funds. There is no need to ever pay commissions as there are several thousand funds that have no commission whatsoever for either buying or selling.If you talk with ...
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- 2007-11-13 22:16:19 - Buy low - sell high
- Now where have I heard that before? I know. It was my broker.So I took his advice and bought some of the stocks he recommended. I am still waiting for the 'sell high' part of the equation. Everything he touted went up for a while and now it is lower than when I bought it. It is so low I can't bring myself to sell it. My capital has shrunk about 60% from where I started. That's a lot of mone...