Covered calls add some risk to your portfolio but can be a good way to supplement income. Let’s dig in to understand a bit about options, describe a covered call strategy in detail and identify the risks for an individual investor. Options There are 2 main types of options contracts, but for this post, we’ll […]
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It is bad. Bad for every investor. It’s really bad. Let’s look at what insider trading is and why it hurts other market participants (hey, that’s us!) Insider Trading Insider trading is when a company “insider” places trades based on Material Non-Public Information (MNPI). Real Example What got me started on this was reading this
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You’ve decided to invest in companies and you’re buying stocks. Congratulations. How do you measure stock performance? This is a really tough question. Deciding to make the leap from mutual funds and ETFs to directly investing in companies is a big decision. It’s a decision to rely on your abilities over an index or fund
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In an earlier post on Stocks, I talked about trading v. investing. To me, investing is researching different businesses and choosing to invest in those that I think will pay off in the long-run. I see trading as an activity in which one tries to move quickly in and out of different securities, trying to
Trading is Hard – Today’s Example Read More »
Today was a rough day in the market. They are more common than you might think. I typically dislike the constant coverage of what the market is doing, and investing experts who are happy to tell you why the market tanked today. Where were they this morning? I’ve never seen a pre-market headline that told
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Time is the secret weapon in building wealth. For those who only read the 1st paragraph of an article, I wanted to get this out there first. So there you have it. Let’s talk about why. Sylvia In preparing for a personal finance class I was teaching a few years back, I came across an
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If you read only 1 article on this site, please choose this one. Compounding is the magic that will enable you to grow your wealth over time. Understanding how compounding works will help you to envision how your wealth can grow over time. Knowing this will help you stick with a regular saving and investing
Asset Allocation: Equity, Fixed Income & Cash – What are they and what role do each of them play in your portfolio. Read on to find out. Let’s start by introducing a new term: Asset Class. In order to understand and manage your investment portfolio, it helps to break our investments down into categories. Asset
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Mutual Funds and their cousins, the Exchange Traded Fund (ETF) are very common, but also commonly misunderstood. Let’s take a closer look. We’ll start with mutual funds. Most of what we talk about here applies to ETFs as well. We’ll talk about the differences later in the post. Think of a mutual fund as a
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