Assess Your Risk Tolerance
In the long run stocks outperform bonds and cash. So why not put your entire portfolio into equities? For one, who wants to put all their money into something that can and did drop more than 30% in the course of a…
Author: ArtErnst
Define Your Financial Goals
The rest of this section deals with handling your money well. This one chapter addresses your goals; putting them in quantifiable terms and calculating how much you need to save to achieve them. If your needs and wants are already well taken…
A Brief Guide to A Proper Investment Regimen
You don’t need to know a lot to invest well. As long as you minimize expenses, properly allocate assets and avoid scams and imprudent practices you can grow your wealth better than most professional money managers. Step 1: Define your goals At…
Timing Markets
What is market timing? Market timing is the attempt to be fully invested when the market rises and not exposed when it falls. A more subdued strategy would avoid the all-or-nothing approach and revolve around a central asset allocation percentage; stocks would…
Socially Responsible Investing
What is socially responsible investing? Socially responsible investing is the attempt to limit portfolio holdings to firms whose operations are consistent with your sense of social propriety. You may want to deny money to the tobacco industry, utilities with nuclear power plants,…
Selling Short
What is selling short Selling short means selling something you do not yet own. If you have a margin account at a brokerage, you have this capability. For instance, if you felt the stock of company X was likely to drop, and…
Reading Charts
What is chart reading? Chart reading is a form of analysis seeking patterns in security price movements. The relevant charts display price levels over time. Sometimes these charts will include moving averages. For example, today’s 50-day moving average for stock X would…
Timing Markets
What is market timing? Market timing is the attempt to be fully invested when the market rises and not exposed when it falls. A more subdued strategy would avoid the all-or-nothing approach and revolve around a central asset allocation percentage; stocks would…
Socially Responsible Investing
What is socially responsible investing? Socially responsible investing is the attempt to limit portfolio holdings to firms whose operations are consistent with your sense of social propriety. You may want to deny money to the tobacco industry, utilities with nuclear power plants,…
Selling Short
What is selling short Selling short means selling something you do not yet own. If you have a margin account at a brokerage, you have this capability. For instance, if you felt the stock of company X was likely to drop, and…