Investing Basics

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

Buying individual stocks is a complicate matter because of the many factors that can drive prices.

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

Trading on stock price changes in a volatile market is a dangerous strategy and usually a losing one.

Despite the worst economic crisis since the Great Depression, there are at least five good reasons to invest in stocks.

Stocks have historically rebounded following a bear market. The question is when.

Thanks to the financial meltdown of 2007-09, increased regulation of the financial services industry will benefit investors.

Many stocks offer investors the opportunity to earn current income and profit from long-term growth.

Stocks allow your to pursue a short or long-term strategy or combine both to fit you needs.

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 often seem more important than past ones, however stock investors should avoid this trap.

Corporate bankruptcies are devastating to stockholders and bondholders may not do much better.

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.

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 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.

When a stock broker puts you in a risky product against your wishes, you have recourse.

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

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 a natural part of the stock market cycle - don't fight them.

There are four classes of assets you can use to build your portfolio - use them all for a sound foundation.

It is important to set investing goals, especially if you have more than one major goal.

Investors should use caution when investing on weak signals.

If you stick with your investing plan, you have a better chance of reaching your goals.

Friends and associates may mean well, but most of the time their stock tips are bad news.

A sluggish economy places an extra burden on stock investors: do you invest for continued growth?

No one knows what will happen in the future, but companies with solid fundamentals have the best chance to prosper.