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Tag Archives: stock market

3 Stock Market Investing Tips for Beginners

3 Tips for Beginner Investors

If you’re an individual investor in the stock market, the first thing you should know is that the deck is stacked against you. Your investment in a company’s shares will not move the price, so the only way you “win” is by being lucky enough to buy before institutional investors or hedge funds pour hundreds of millions, if not billions, of dollars into the shares you already own. As they say, “a rising tide lifts all boats.” In many ways, if you keep this basic premise in mind, you will understand the following fundamentals of becoming a successful investor. Here are three stock market investing tips for beginners! 1. Understand the Basics Investing in the stock market doesn’t need to be complicated. While some investors devise complex algorithms, formulas, and screeners to compare return on equity (ROE), earnings per share (EPS), compound annual growth rates (CAGR) and P/E ratios, individual investors likely don’t have the same resources. But by sticking to fundamental investment principles, you can still earn a market average or higher return in your investment accounts. What kind of investor are you? If you are young, maybe you can afford the volatility of risky investments because you won’t ...

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You Don’t Need to Predict The Future

This is a guest post from Troy at The Financial Economist. If you’d like to guest post, please contact me.  Yes, you did read the title correctly. In order to make profitable investments, you do not need to predict the future. I understand that at this point, what I’m saying doesn’t make much sense. Let me elaborate. Most investors are accustomed to predicting the future of the stock market – where will it be in the next 3 months, 6 months, 1 year, etc. They do “research” online, and come up with all these predictions backed up with fancy data. However, I prefer to invest differently. I’m not a very smart guy – I literally spent a year preparing for my SAT’s, just to get a meager 1490 (considering the effort v. reward ratio, my score was disappointing). Hence, my brainpower (or lack of) doesn’t let me predict the future like all those Harvard MBA analysts on Wall Street can. My investment style is simple and straightforward: instead of predicting what the economy will be like in the next 3 months or 6 months, I just recognize the fundamentals when they appear. Now you’re probably asking “How does simply recognizing ...

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