Why is return on equity such an important measure for a company?
Why is return on equity such an important measure for a company? How does a good ROE help prove that the company is performing well? Response: One of the most important profitability metrics is Return on Equity, or ROE for short. ROE reveals how much profit a company earned in comparison to the total amount…
3 Steps To A Profitable ETF Portfolio
Perhaps no vehicle is helping to change the investment landscape more than the exchange-traded fund (ETF). ETFs are baskets of individual securities much like mutual funds with two key differences. First, they can be freely traded like stocks, while mutual fund transactions don’t occur until the market closes. Secondly, expense ratios tend to be lower…
How to break bad trading habits
All traders should have a good trading plan. One of the worst bad habits a trader can have is trading impulsively and without any guidelines. Traders who take the time to make a trading plan are much more likely to succeed, but even with a plan in place we can stgelop bad habits. A trader…
CFD strategies in all markets with examples
Increasingly unsatisfied with long exposure through the stock market, more investors are using a diversified mix of CFD’s to add leverage and flexibility to their investment portfolio. But regardless of which CFD trading strategies are used, and which instruments are traded, the overarching goal is to make money, despite what markets are doing. Irrespective of…
Buy low, sell high – but what is low?
The ultimate key to success in all trading, both long-term investment and short-term speculation, is simple. Buy low, sell high. Excel in this, and trading the financial markets will eventually make you wealthy. But implementing this well-known proverb into your own trading certainly isn’t easy. As always, the stgil is in the details. To paraphrase…
The secrets to trading forex
Acclaimed US forex trader Kathy Lien, author of “Day Trading & Swing Trading the Currency Market,” is currently in Australia. When starting out trading forex – or even shares for that matter – it’s handy to have some exact rules to follow. A set of rules is precisely what we need to lift our confidence,…
Pairs trading the No.1 strategy for CFD traders
Most stock market investors buy shares, and want the market to rise. A smaller group take short positions, and want the market to fall. Pairs traders don’t mind what the market does, as long as they choose the stronger of a pair of related securities. Pairs trading seeks to profit from relative performance. The trader…
How to choose investment software
Using a software package to select, track, and manage your investments can be a great help to most investors but with so many software packages available and all sorts of confusing claims from producers, choosing the right investment software can be an extremely difficult decision. Below we outline what investment software can do for you,…
Why volume is an important clue for traders – part 2
You can read part 1 of “Why volumer is an important clue for traders” by clicking here. By Will Kraa Volume of shares traded tends to vary in a fairly random fashion without too much significance most of the time but there are occasions when volume can be a great help in finding very good…
How negative gearing works
By Jimmy B Prince, author of Tax for Australians for Dummies There are two ways to build wealth and more particularly a share portfolio. You can either wait until you’re saved a sufficient amount or you can borrow. If you decide to adopt the save and wait option, there’s a risk you could miss the…
