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Investing Basics

Investing is making your money work for you without taking any more risks than necessary for your comfort. Learn how it differs from saving and how you can decide if it's right for you.

What is Investing?
What is investing and how does it differ from saving? Investing is the proactive use of your money to make more money.

How to Buy Individual Stocks: Very Carefully
Buying individual stocks is a complicate matter because of the many factors that can drive prices.

Five Reasons to Invest in Stocks
The stock market can seem chaotic at times, but it is still the best avenue to asset building most individual investors have.

Thinking About Trading Stocks on Volatility? Think Again
Trading on stock price changes in a volatile market is a dangerous strategy and usually a losing one.

Part One: The Stock Market Doesn't Care About You
Despite the worst economic crisis since the Great Depression, there are at least five good reasons to invest in stocks.

Stocks Poised for Growth - Part Two of Series
Stocks have historically rebounded following a bear market. The question is when.

New Regulations Will Level Playing Field for Stock Investors
Thanks to the financial meltdown of 2007-09, increased regulation of the financial services industry will benefit investors.

Stocks Offer Current Income and Long-Term Growth
Many stocks offer investors the opportunity to earn current income and profit from long-term growth.

You Can Trade or Buy and Hold Stocks - Part Five
Stocks allow your to pursue a short or long-term strategy or combine both to fit you needs.

How to Calculate Risk Premium
Risk premium is what a stock should return over a "risk-free" investment. It is your reward for taking a risk with your money.

Recent Events Can Influence Bad Stock Decisions
Recent events often seem more important than past ones, however stock investors should avoid this trap.

Stockholders Get Hosed in Corporate Bankruptcies
Corporate bankruptcies are devastating to stockholders and bondholders may not do much better.

Why Interest Rates Are Important to the Stock Market
Interest rates determine the speed of growth. Low interest rates mean money is inexpensive for investment or expansion. High interest rates cool growth by making money more expensive.

Keep a Tight Watch on Fees
Paying fees, in whatever form, make it difficult to find a profitable strategy. Question the fees you pay and determine if you are getting your money's worth.

Picking Stocks is like Buying a Car
Picking stocks for investment is a process that involves eliminates those that don't match your criteria. When it comes to deciding what to pay, there are several methods to determine the correct price. Intrinsic value is one of the most popular methods.

Stuck in Bad Investment Thanks to Stock Broker
When a stock broker puts you in a risky product against your wishes, you have recourse.

Finding Winning Stocks in Down Market
Even in the worst markets, you can find some winners - you just have to work a little harder to find them.

Weak Demand Important Factor in Stock Pricing
Despite high crude oil prices, it's weak demand for gasoline that holds back oil stock prices. Supply and demand is an important factor in determining price of stocks.

Corrections are Natural Part of Stock Market
Corrections are a natural part of the stock market cycle - don't fight them.

Use all Four Asset Classes to Build your Portfolio
There are four classes of assets you can use to build your portfolio - use them all for a sound foundation.

Investing Goals - Setting Investing Goals is Important
It is important to set investing goals, especially if you have more than one major goal.

FAQ on Stocks and Investing

Beware the Stock Market’s Dead Cat Bounce
Investors should use caution when investing on weak signals.

Stock Investors Plan With Their Heads, But Buy With Their Hearts
If you stick with your investing plan, you have a better chance of reaching your goals.

When to Ignore Helpful Stock Tips: Almost Always
Friends and associates may mean well, but most of the time their stock tips are bad news.

Sluggish Economy Challenges Stock Investors
A sluggish economy places an extra burden on stock investors: do you invest for continued growth?

What to Look for in Stocks that Will Prosper
No one knows what will happen in the future, but companies with solid fundamentals have the best chance to prosper.

Watch Stock Indexes, But Not too Closely
Long-term investors in the stock market can become hung up on daily changes in the major stock indexes and miss the more important trends.

Too Much Risk Leads to Poor Stock Investing Decisions
Avoid letting fear distort your decisions by staying within your risk tolerance.

Unpredictable Stock Market Makes Planning Tough
The stock market remains a good place for long-term investors, but over the short term, watch out.

Investors in Stock Market Find Opportunities in Problems
Fewer workers retiring on time put pressure on job market and young people

Investors in Stock Market Need Objectives
Major financial objectives give investors in the stock market something to aim for, however if you visualize those goals it will be easier to sacrifice to achieve them.

Stock Market Record - Who Cares?
The daily changes in stock prices have little meaning for the long-term investor.

Investing in Gold the Smart Way
Investing in gold can be done in a number of different ways, however only one of them makes true financial sense.

Successful Stock Market Investing is Common Sense

Tuning Out Financial Television

Should You Care Why The Stock Market Moves?
If you spend more time think about what the stock market did instead of why it did it, you will become a better investor.

Losing Is Your Key to Making Money in Stocks
The key to being successful in the stock market is not about how many trades you make money on, but how much you make and how little you lose.

The Apple Stock Split is just Smoke and Mirrors
To avoid turning into your grandparents' tired old stock, Apple needs more innovative products, not financial shenanigans.

Investing Vs. Trading: What's the Difference?
Investors and traders may both operate in the same stock market, but they have widely different views on the best way to make money from it.

What Happens After You Submit Your Stock Order
The behind the scenes process of a stock trade would probably surprise even the most tech savvy stock market investor.

The 5 Best Online Brokers of 2014
Millions of marketing dollars are thrown towards winning your investing business, but here at the top 5 online brokers of 2014.

Gambling and the Stock Market
Those who compare the stock market to gambling probably have no idea what it takes to make money in either endeavor.

Ode to the Stock Certificate
Thought physical stock certificates are long gone, there is an interesting history behind them and a still active market among hobbyists.

Is Summer The Season For Stocks?
Exploring the famous Wall Street saying, "sell in May and go away," and decoding the reason that this might actually be good investment advice.

Fundamental Analysis: Understanding Earnings Per Share
Earnings Per Share or EPS is one of the foundations of fundamental analysis and understanding how it is calculated is crucial for stock investors.

Fundamental Analysis: Understanding Price to Earnings Ratio
The most popular metric in fundamental analysis is the price to earning ratio, but it can be trickier to understand than you might think.

Fundamental Analysis: Understanding the PEG Ratio
Though not as popular as EPS or P/E the Price/Earnings to Growth or PEG ration can give you a fuller view of a stock's earnings trend going forward.

Fundamental Analysis: Understanding Price to Sales
The Price to Sales, or P/S ratio is a lesser know fundamental metric that is best used to analyze specific types of companies.

Fundamental Analysis: Understanding Price to Book Ratio
Warren Buffett or Benjamin Graham would be right at home with the Price to Book Ratio which is a staple of old school stock market investing.

Fundamental Analysis: Understanding Dividend Yields and Payout Ratio
A well rounded fundamental analysis approach should include such esoteric metrics as the dividend yield and the dividend payout ratio.

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