Tips For Successful Long Term Investing
A Guide for Long-Term Investing Some newcomers to share market investing begin with one thought in mind – find a stock that will return a profit. With a deeper understanding of how markets work, these newcomers realize they need to have a framework for how much profit they are willing to accept and how long…
Deciphering Earnings Reports
What to Look for in Company Earnings Reports The “Do Your Due Diligence” mantra luring Aussie investors to spend time digging into the earnings reports ASX listed companies are required to report for the Full Year and the Half Year. US investors are faced with the task of deciphering US listed stocks financial reports released…
Due Diligence for Australian Shares
Due Diligence for Retail Investors With global stock markets in turmoil the recent influx of new, primarily young people looking to the markets as a place to get solid returns on their investment dollars may be ebbing. The challenge facing these investors is now more challenging – how do you pick a stock in which…
Understanding The Cash Conversion Cycle
The Cash Conversion Cycle – a Superior Liquidity Measure When it comes to picking a stock for investment investors typically have two strategies for evaluating worthy targets – fundamental analysis and technical analysis, with fundamental analysis being the most common. Technical analysis relies on historical stock price movement while fundamental analysis examines a company’s overall…
How Short Sellers Profit From Price Plunges
Making a Profit on Falling Stock Prices To some people unfamiliar with how stock markets operated, investing in stocks is nothing more than gambling. In a sense, that view has some truth in it but in reality for the vast majority of investors, the “bets” placed on individual stocks are educated bets. Picking stocks is…
Developing a Trend-Following System
Benefiting from Trading in Trending Markets One of the most famous quotes about stock market investing reportedly came from legendary investor Jesse Livermore – famous as a pioneer of day trading — who said, “the trend is your friend!” Years later what may be a matter of urban legend has it that Martin Zweig –…
Equal Weight Investing Strategies
Using Equal Weight Investing Strategies For investors looking for long term growth in their investments portfolio, diversification is universally lauded as one of the most fundamental approaches to achieving that goal. The idea is to build of portfolio of assets that adhere to the old adage – ‘Don’t put all your eggs in one basket.”…
Upcoming ASX IPOs – Floats to Watch Out For
Newcomers to share market investing during their search for “rules of the road” come across conflicting advice regarding the risk/benefit ratio of investing in companies looking to offer shares to the public. This article will try to illuminate the mystery behind the contradictory views, offering some guidelines for investing in IPOs. What is an IPO?…
What Are Safe Haven Investments?
Social and psychological explanations for investing behavior have seeped into the world of share market investing through the advent of the academic field of Behavioral Finance. Loss aversion is one of the most significant contributions behavioral finance has introduced into stock market investing. Simply put, loss aversion states investors feel more pain from a loss…
Return on Equity (ROE) – Is It the ‘Magic Number’ of Share Picking Tools?
For most share market investors around the world, fundamental analysis is the essential strategy for identifying worthy investment targets. In the long distant past, the process began with investors combing through a company’s financial statements reported to the investing public – the Balance Sheet, the Income Statement, and the Statement of Cash Flows – to…
