TheAuthorsDesk.

The most basic aspect of trading is learning to differentiate between what is FACTUAL and what is OPINION. If you stayinterested in the financial markets long enough you will discover that there are a lot of sharks out there who havebecome expert at making that task very difficult.

(more…)

If you know next to nothing, how do you go about the business of investing? The first thing you need toknow about investing is, how much do you really know? If its’ not much, then you will need to read extensivelyto educate yourself.

(more…)

By definition, value investing is the process of selecting stocks that trade for less than their intrinsic value. A value investortypically selects stocks with lower than average price-to-book or price-to-earning ratios. Of course, it is not nearly this simple. Value investingis the corner stone of long-term growth. Those who practice it survive the ups and downs of the market and aremore likely to emerge wealthy than those who ride the market, in principle, due to the higher quality of the companiesfalling under the prerequisites of the value investor. Value investing is essentially concerned with getting the most profit at the lowestcost. The basis of value is profit. Value investing is an investment style which favors good stocks at great prices overgreat stocks at good prices. Value investor extraordinaire Warren Buffett has used this style to become a billionaire.

(more…)

There is a tremendous amount of software, complicated high priced newsletters, radio and TV stock pickers and Internet web sites thatwill help you find a stock that is going to make you rich.

(more…)

Let’s see, he had some oats, fresh alfalfa and his vitamins. I know from the mixture that is great food andhe will win the seventh race this afternoon. He can’t lose because of his diet and a great jockey will beriding him.

(more…)

As a trader, one of the key things that I try to consciously do is to cultivate my instincts by talkingwith other traders and investors as often as possible. It still amazes me how large the divergence of opinion thatexists regarding what people believe will unfold as we enter the new millennium. Many very respected names are literally predictingan economic earthquake that will measure a 10 on the Richter scale while others having looked at the exact same researchclaim that the consequences will be very mild. As a trader I have to evaluate the data and develop astrategy that I feel not only gives me an edge but allows for a great deal of error while still beinglow risk!

(more…)

The straddle strategy is an option strategy that’s based on buying both a call and put of a stock. Note thatthere are various forms of straddles, but we will only be covering the basic straddle strategy. To initiate a Straddle, wewould buy a Call and Put of a stock with the same expiration date and strike price. For example, we wouldinitiate a Straddle for company ABC by buying a June $20 Call as well as a June $20 Put.

(more…)