Protect your portfolio from market wobbles
Trading derivatives can conjure up images of overnight wealth or wealth destruction. A reason is leverage, where speculating on an asset class can quickly magnify profits and losses for a small up-front outlay. Contracts for difference, a popular financial instrument among speculators, are also an effective weapon in preserving wealth when acting as a hedge….
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…
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…
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,…
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,…
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…
What is the difference between American and European style warrants?
When we talk about the “style” of a warrant we are referring to when the warrant can be exercised. Equity Warrants are very similar to equity options. Much like equity options, warrants can be either call warrants or put warrants. A call warrant gives the holder the right to buy the underlying security at some…
Important facts to get right when choosing a stock
A little logic goes a long way in successful stock picking. It’s easy to get caught up in indicators and share prices and to overlook the most important facts to get right when buying any company. Purchasing a share involves taking part-ownership in a business. Think of it like buying a stake in the local…
Strategies that can turn sharemarket losses into gains
Strategy, firm decision-making and flexibility can help investors reverse unrealised losses in their share portfolios, according to finance experts that TheBull spoke to. The first step is to examine your share portfolio and separate the gains from the losses. So if you are currently nursing losses on a stock that you believe has strong fundamentals…
Overseas shares not so taxing
It’s all very well to talk about buying overseas shares, but what about the tax issues? As one of our readers pointed out, two issues that may impact negatively on Australians investing in foreign shares are our dividend imputation system, and the foreign with-holding taxes on dividends and capital gains. Let’s deal with the second…
