Rant About ItRant About ItThe purpose of this blog is to educate every reader including me about trading in stocks by understanding the fundamentals and techicals behind it Articles
Weekly Economic Calendar
2008-04-07 02:07:00 Monday: Consumer Credit (3 p.m.)The dollar value of consumer installment credit outstanding. Changes in consumer credit indicate the state of consumer finances and portend future spending patterns.Tuesday: Chain Store Sales (7:45 a.m.), Retail Sales (8:55 a.m.), Pending Home Sales (10 a.m.), FOMC Minutes (2 p.m.), Consumer Confidence (5 p.m.)This weekly measure of comparable store sales at major retail chains, published by the International Council of Shopping Centers, is related to the general merchandise portion of retail sales. It accounts for roughly 10 percent of total retail sales.The National Association of Realtors developed the pending home sales index as a leading indicator of housing activity. As such, it is a leading indicator of existing home sales, not new home sales. A pending sale is one in which a contract was signed, but not yet closed. It usually takes four to six weeks to close a contracted sale.On December 14, 2004, the Federal Open Market Committee announced th... More About: Weekly , Economic , Calendar
Employment Situation: Why Do Investors Care
2008-04-06 05:03:00 The employment situation is a set of labor market indicators. The unemployment rate measures the number of unemployed as a percentage of the labor force. Nonfarm payroll employment counts the number of paid employees working part-time or full-time in the nation's business and government establishments. The average workweek reflects the number of hours worked in the nonfarm sector. Average hourly earnings reveal the basic hourly rate for major industries as indicated in nonfarm payrolls. (Bureau of Labor Statistics, U.S. Department of Labor) Why Do Investors Care ?If ever there was an economic report that can move the markets, this is it! The anticipation on Wall Street each month is palpable, the reactions are dramatic, and the information for investors is invaluable. By digging just a little deeper than the headline unemployment rate, investors can take more strategic control of their portfolio and even take advantage of unique investment opportunities that often arise in th... More About: Employment , Situation
Buzz Around This Week...
2008-04-05 03:24:00 Employers in U.S. Cut 80,000 Jobs, More Than Estimated; Jobless Rate 5.1% (Bloomberg)Lenders Swamped By Foreclosures Let Homeowners Stay (Bloomberg)If Recession Is Finally Here, Just How Bad Will It Be? (CNBC)Cramer Makes Sense For A Change (CNBC)Lehman sees banks, others writing down $400 billion (CNBC)How to Predict How Far Home Prices Will Fall (CNBC) Local office vacancy rate skyrockets (The San Diego Union Tribune) Microsoft Gives Yahoo Deadline, Signals Lower Bid (Bloomberg)Bankruptcies Jump 30% in March, Led by Housing-Bust States (Bloomberg)Strip-Mall Vacancy Rate Is Lowest in 12 Years (CNBC)The day $2 billion walked out the door (Fortune)The Mortgage Bust Goes Global (NYTimes)Wall Street undergoes big mood change (BusinessWeek ) More About: Industry News , Buzz
AU Optronics Corp. - An Attractive Trade
2008-03-27 08:44:00 AU Optronics Corp. (AUO) designs, develops, manufactures, assembles and markets flat panel displays. The Company's principal products are thin-film transistor liquid crystal display (TFT-LCD) panels. Its panels are used in computer products, such as notebook computers and desktop monitors; consumer electronics products, such as digital cameras, digital camcorder, car television, car navigation systems and portable digital versatile disc (DVD) players, and liquid crystal display (LCD) televisions. It offers small to medium-size panels, as well as large-size panels. AU Optronics Corp. sells its panels primarily to original equipment manufacturing service providers.Recent NewsShare price of AUO were higher March 20 after Jefferies & Co.?s Brian White launched coverage of the company with a Buy rating and $25 price target. White says the LCD panel market will be ?tight? this year, following ?capacity underinvestment in recent years.? He says recent visits with Taiwanese LCD panel m... More About: Stock Picks , Trade , Technical Analysis , Attractive
New Home Sales: Why Do Investors Care
2008-03-27 06:38:00 New home sales measure the number of newly constructed homes with a committed sale during the month. The level of new home sales indicates housing market trends and, in turn, economic momentum and consumer purchases of furniture and appliances. Why Do Investors Care?This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as new home sales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio. Each time the construction of a new home begins, it translates to more construction jobs, and income which will be pumped back into the economy. Once the home is sold, it generates revenues for the home builder and the realtor. It bring... More About: Economy , Real Estate , Sales , Home , Mortgage
Durable Good Orders: Why Do Investors Care
2008-03-27 06:07:00 Durable goods orders reflect the new orders placed with domestic manufacturers for immediate and future delivery of factory hard goods.Why Do Investors Care ?Investors want to keep their finger on the pulse of the economy because it usually dictates how various types of investments will perform. Rising equity prices thrive on growing corporate profits - which in turn stem from healthy economic growth. Healthy economic growth is not necessarily a negative for the bond market, but bond investors are highly sensitive to inflationary pressures. When the economy is growing too quickly and can't meet demand, it can pave the road for inflation. By tracking economic data such durable goods orders, investors will know what the economic backdrop is for these markets and their portfolios.Orders for durable goods show how busy factories will be in the months to come, as manufacturers work to fill those orders. The data not only provide insight to demand for items such as refrigerators and cars,... More About: Economy , Good , Manufacturing
Interesting Stories Of The Day
2008-03-26 06:45:00 Taxpayers May Be Liable for Billions From Bear, Mortgage Rescue Even as the Bush administration insists it won't risk public funds in a bailout, American taxpayers may already be liable for billions of dollars stemming from Federal Reserve and Treasury efforts to quell a financial crisis. History suggests the Fed may not recover some of the almost $30 billion investment in illiquid mortgage securities it received from Bear Stearns Cos.....Read OnPaulson Says New Financial Rules NeededIf big Wall Street investment houses are allowed to run to the Federal Reserve for emergency lending, they must face stepped-up regulation, Treasury Secretary Henry Paulson declared Wednesday.....Read OnDemand for durable goods falls 1.7% in FebThe unexpected decline in orders for big-ticket items marked the second straight monthly drop, an indication that domestic demand is weakening faster than exports can grow. "This is another report that has a strong recessionary feel about it," wrote ... More About: Interesting , Stories , Real Estate
Why Its Time To Be A Bear
2007-12-19 07:39:00 Financials SlideGoldman Sachs Group (GS). on Tuesday gave a cautious outlook for Wall Street in 2008 because of the ongoing credit crisis, even as the world's largest investment bank chalked up another record-breaking year. During Q4, Goldman's $3.17 billion profit was fueled by higher investment banking fees, one-time asset sales, and surprisingly strong debt trading results. Though quarterly results easily surpassed Wall Street's projections, for some analysts they lacked the kind of power and finesse investors have come to expect. Goldman said it faced one of the worst Novembers on record, which has only somewhat loosened this month. Goldman's troubles were taken as something of an ominous sign for other investment banks yet to report results, particularly Morgan Stanley, which reports Wednesday, and Bear Stearns, which reports Thursday.Lehman Brothers says its Q4 profit fell for the third straight quarter, slipping 11% from a year ago on net write-downs of $830 million on fi... More About: Real Estate , Time , Retail , Mortgage , Recession
We're Heading Toward Financial Chaos
2007-12-12 01:36:00 We are only at the beginning of the financial world coming to its senses after the bursting of the biggest credit bubble the world has seen. Everyone seems to acknowledge now that there will be lots of mortgage foreclosures and that house prices will fall nationally for the first time since the Great Depression. Some lenders and hedge funds have failed, and some banks have taken painful write-offs and fired executives. There's even a growing recognition that a recession is over the horizon. But let me assure you, you ain't seen nothin' yet.Rest of the article is....hereAnother interesting article is... here More About: Real Estate , Financial , Mortgage , Chaos , Heading
The Power of Rate-Cut
2007-12-11 02:03:00 Swiss banking giant UBS warned today that it will write down the value of its subprime mortgage holdings by a further $10 billion, leading to a loss in the fourth quarter and potentially wiping out all its profits for the year.Bank of America Corp. said today that it's shutting a $12 billion a money-market fund of sorts and halting cash withdrawals after losses from complex investments tied to the mortgage crisis.Washington Mutual Inc., the nation's largest savings and loan, said today problems in the mortgage and credit markets are forcing it to close offices, lay off more than 3,000 workers and set aside up to $1.6 billion for loan losses in its fourth quarter. Additionally, WaMu slashed its quarterly dividend 73 percent and said it plans a $2.5 billion offering of convertible preferred stock.However with the rate-cut due tomorrow, this kind of bad news had no effect on the market...infact the exact opposite thing happened. The market added 100+ points..This is what i call power... More About: Power , Federal Reserve , Rate
Professor Roubini's Crystal Ball
2007-11-27 08:38:00 Nouriel Roubini is a Professor at the Stern School of Business at New York University. His analysis appears regularly on his blogsite, Global EconoMonitor.Last week's prediction was particularly dire and is worth reprinting here: "It is increasingly clear by now that a severe U.S. recession is inevitable in next few months...I now see the risk of a severe and worsening liquidity and credit crunch leading to a generalized meltdown of the financial system of a severity and magnitude like we have never observed before. In this extreme scenario whose likelihood is increasing we could see a generalized run on some banks; and runs on a couple of weaker (non-bank) broker dealers that may go bankrupt with severe and systemic ripple effects on a mass of highly leveraged derivative instruments that will lead to a seizure of the derivatives markets... massive losses on money market funds with a run on both those sponsored by banks and those not sponsored by banks; ..ever growing defaults and ... More About: Crystal , Ball , Fess
Falling USD to Boost US Stock Markets and Consumer Spending
2007-11-27 08:14:00 Imagine that you have $2.8 trillion sitting around. And for kicks, let's assume that most of that money, about two-thirds, is invested in U.S. dollars and other dollar-denominated assets like U.S. Treasury bonds. And let's assume that your currency was linked to the U.S. dollar, too. In other words, you often buy dollars to maintain a stable value relative to the buck. Read the rest here....Falling USD to Boost US Stock Markets and Consumer Spending
Why COF Makes A Nice Short Sale
2007-11-27 06:05:00 Capital One Financial Corp (COF) is a diversified financial services company, which markets a variety of financial products and services through its banking and non-banking subsidiaries. It has four segments: U.S. Card, Auto Finance, Global Financial Services and Banking. The U.S. Card segment comprises domestic consumer credit card activities. The Auto Finance segment comprises automobile and other motor vehicle financing activities. The Global Financial Services segment comprises international lending activities, small business lending, installment loans, home loans, healthcare financing and other activities. The Banking segment comprises local banking operations, which includes consumer, small business and commercial deposits and lending conducted within the Company’s branch network.Capital One said its net charge-off rate rose to 3.28 percent in October from the third quarter's 2.86 percent. The charge-off rate in U.S. cards rose to 5.11 percent from 4.13 percent in the same ... More About: Sale , Nice , Short
Random Stock Market News
2007-11-27 02:28:00 The Consumer Crunch The long-awaited, long-feared consumer crunch may finally be here. That might not mean an economywide recession, but the pain for American households will be deep.In recent years the U.S. mostly has seen narrowly focused downturns, where a few sectors are hit hard while the rest of the economy and financial markets remain relatively unscathed. In the dot-com bust of 2001, for example, tech companies and stocks took it on the chin, while consumer spending and borrowing sailed through without a pause. This time the positions will be reversed, as consumers tank while much of the corporate sector stays on track.Builders Downgrade Citigroup analyst Stephen Kim said that it's been difficult to time the bottom because the housing cycle's downturn has not coincided with the economic cycle, and because the pullback in the resale market is lagging far behind the market for new homes.He suggested that the good news would come in the form of a turnaround in ... More About: News , Stock Market , Market , Random , Stock
Sector Overlook: Food Retail Sub-Industry
2007-07-01 04:26:00 Analysts and experts believe that food retailers have developed strategies focusing on differentiating themselves from competitors through diverse products and services rather than low prices. The low prices is going to hurt the industry and make it unsustainable for most. By providing niche products and services food retailers have avoided a price war. As a result of these strategies, analysts believe traditional grocery chains will be gain sizable market share, with average comparable store sales growth of 5-6% in the fiscal year 2007.Remodeling Existing StoresImproving sales trends will continue to reflect food retailers' progress in differentiating store offerings from those of low-price competitors. Most food retailers will focus on remodeling their existing stores, rather than opening new ones. This will help ease the air of competition, and enable the industry stay focused.Labor Union ContractsWith newly renegotiated labor union contracts and improved sales growth will help ... More About: Food , Industry , Retail , Look , Tail
How Does Companies Get Listed-Delisted
2007-06-27 05:55:00 During the bull market, everyone is happy. More and more companies get listed and start raking in the money. However when the bull market stalls, some companies crash to rock bottom and could be pushed towards getting delisted. Investing in companies that are delisted can be extremely risky. Lets find out how and why delisting occurs and what does that mean for both the company being delisted as well as the investors that hold the company stock.Getting Listed On An ExchangeMost tech companies try to get listed on the Nasdaq . To get listed on Nasdaq, a company must meet the minimum standards required. For example, the company must pay a $5,000 application fee before its stock can even be considered for listing, and it can expect to pay at least $100,000 in listing fees if successful. The company must have at least 1.1 million public shares outstanding worth a total of at least $8 million and a share price of at least $5 per share. There are numerous other rules that apply, but until ... More About: Companies , Investor , Compa
More On Housing Sector
2007-06-25 06:43:00 Overvalue-Undervalue Valuation54 metro areas were judged to be overvalued during Q1 2007, representing a decline from 62 metro areas during the Q3 2006. More important were declines in the share of all housing units, and real estate assets, judged to be overvalued. In terms of housing units, the percent deemed to be overvalued declined from 17% to 14%. In terms of single-family asset value, the percent deemed to be overvalued declined from 33% to 25%.California, Arizona, Florida, parts of Oregon, Washington and New York were judged to be overvalued. Parts of mid-west states were judged to be undervalued.House Price AppreciationHouse prices have been resilient in the interior West, though we see overvaluation there increasing, making those gains precarious. Bend, Oregon and Prescott, Arizona are now the nation?s most overvalued markets. Alternatively, price gains in Texas seem more firmly based, as valuations there are attractive by historical standards.157 of 317 metro areas s... More About: Real Estate , Foreclosure , Housing
Which Penny Stocks To Avoid
2007-06-19 12:04:00 Penny stock is a stock that trades at a relatively low price and market cap, usually outside of the major market exchanges. These types of stocks are generally considered to be highly speculative and high risk because of their lack of liquidity, large bid-ask spreads, small capitalization and limited following and disclosure. They will often trade over the counter through the OTCBB and pink sheets.There are many good penny stock investments available, which could turn a small amount of capital into a small fortune very quickly. However, to discover these you need to know what to look for and what to avoid. When searching for that one big payoff, steer clear of the following examples.The Phone SalesmanAnyone who is attempting to sell you investments over the phone should be considered an enemy. They have high-pressure sales tactics, and effective, believable arguments. However, they are not doing you any favors, no matter how good they make an investment sound. They are operating in ... More About: Stocks , Penny Stocks , Penny stock , Penn , Avoid
How Can Resistance & Support Help Traders ?
2007-06-07 05:39:00 People who look at technical analysis to trade stocks, should always know the concepts of resistance and support levels. They are undoubtedly two of the most highly discussed attributes of technical analysis. They seem complex to begin with, but they actually are not. Lets look at these levels in depth to get a better understanding of them. Traders use resistance and support levels to refer to price levels on charts that tend to act as barriers from preventing the price of the stock from getting pushed in a certain direction.Basics of Resistance & Support LevelMost experienced traders who closely follow the price pattern of the stocks know how at a certain price level, the price of the stock doesnt move upward or downward much furthur. Let us look at an example to understand this pattern. Say in March 2006, a company Steady Inc. was priced at $37/stock. For the next several months Steady Inc's stock price fails to get above $39/stock. Even though it has gotten very close to moving... More About: Educational , Technical Analysis
Private Equity Investing: Whose Next
2007-06-05 19:13:00 Last month China agreed to buy a stake in Blackstone Group, one of the leading private equity firms in the United States. The question now is which governments will be the next to partner up with a major private equity firm?Oil producing nations are believed to be the most likely candidates. The rise in the oil prices has lead to huge trade surpluses and lots of cash for Middle East and Central Asian countries. The cumulative surplus in trade and investments for oil-producing countries grew to 20% of GDP last year, up from 5.4% in 2002. Oil states don't publicize much about their investments so tracking where their funds is difficult. So far the oil nations have invested most of their oil riches into low-risk assets like U.S. Treasury bonds. But some governments have been putting money into more aggressive, return-oriented investment funds. Not only government, but retail investors around the world are investing in the world of private equity.UAE has formed private equity firms whi... More About: Private Equity , Investing
How To Determine Management Effectiveness
2007-05-30 00:43:00 Investors and traders both use alot of ratios to deduce whether to buy/sell/short a security. With so many ratios to consider, it can get confusing, especially when 2 ratios almost look alike.Consider return on equity (ROE) and return on assets (ROA). At first glance they do look similar. Both measure some kind of return and is some way are related to the company's earnings from their investments. Obviously both ratios represent different things. A closer look at these two ratios reveals some key differences. Let us find out more.Return on equity (ROE)Of all the fundamental ratios that investors look at, one of the most important is return on equity. ROE is nothing but a measure of how much profit a company generates with the money shareholders have invested. In other words how effectively the company uses the money invested by investors. This tells you alot about how good the management of the company is.Return on Equity = (Annual Net Income/Average Shareholders' Equity)The net i... More About: Management , Educational , Balance Sheet , Ness , Mana
China Goes Parabolic
2007-05-22 21:30:00 During cyclical recoveries such as the one now underway in the global equity markets copper is the commodity to watch. In fact, there has never been a cyclical recovery in which copper was left behind, which makes its current behavior so troubling - it just does not support the global rally that began in 2003 with emerging markets.As usual, U.S. equity markets languished even as the rest of the world exploded, owing to the fact that our primary export is not goods or services, but debt. But I digress. Back to the price of copper and the global rally now underway and in full swing across (most of) the globe. To get a full perspective we have to go back to the beginning in January 2003 when the biggest % movers among the relevant indicators broke down as follows: Copper up 280%China (Shanghai) up 272%Dow up 54%S&P 500 up 57%NASDAQ up 59%Gasoline (NY harbor) up 92% Over that period of time the USD has declined 30% (trade weighted basis). Since the only measure that means anything i... More About: Recovery , Global , Arab , Goes
Stock Review: Gmarket GMKT
2007-05-22 05:16:00 Gmarket Inc. GMKT is a retail e-commerce marketplace in Korea . They offer the buyers a wide range of products to choose among. The potential buyers can also get hold of products in small or large quantities, thus providing the desired flexibility. Sellers are provided with flexible sales solutions. Sellers can utilize Gmarket's trading platform, training and customer support system and delivery services. Popular products listed for sale includes apparel, beauty products, computers, electronics, furniture and jewelry. These products are coupled with product information, including pictures, product descriptions and customer reviews and commentary. (Source: Google Finance)Business SummaryGmarket has revolutionized the collectibles market by bringing together buyers and sellers internationally in a huge, never-ending yard sale and auction. Large international companies, sell their newest products and offer services using competitive auctions and fixed-priced storefronts. Regional searc... More About: Ecommerce , Review , Retail , Stock
Is The Bull Market Over For Precious Metals ?
2007-05-18 07:13:00 In general analyst believe precious metal investments currently represent great value in comparison to other investment opportunities. It is important to look at investing from as broad an overview as possible. Looking at a few months of a stock chart is like reading only a few sentences in an entire book. You only get part of the story. It is much easier to make a profit investing in a very slow moving, long term monthly chart, than a short term intra day chart. When an investor backs up and reads the full story, the picture and strategy to make money becomes clearer. It is believed that commodities in general and precious metals specifically are currently available at a sale price.So what does the story of investing look like today? We know that as individuals people can be very unique. However, group behavior is much more predictable. On average, a large group of people will react in a similar fashion under certain circumstances. Knowing this fact can help us understand investing... More About: Market , Investment , Gold , Silver , Bull
5 Reasons Why Investors Lose Money
2007-05-15 08:08:00 Investors have a number of weaknesses which often result in investment failure. Identifying these weaknesses is the first step to reducing them. The following are 5 key reasons why investors lose money.Emotions Money is important to our survival, social status and way of life and therefore dealing with finances is an emotional subject. As a result emotions tend to have exceptionally negative consequences on our investment decision making. When our investments are doing well, we tend to add to our positions or hold on to our investments too long. Alternatively, when our investments are doing poorly we tend to sell our positions in fear of losing money. This type of reaction is not healthy for making successful investments. Emotional investment decisions tend to cause the investor to buy high and sell low. Obviously this is not the best strategy.Solution: Learn to control your emotions.TrendIn the bull market everyone gets along and agree on the current hot market. However, few investo... More About: Educational , Investor , Stor
Weak Housing Market Affects Stock Market
2007-05-12 05:12:00 The National Association of Realtors (NAR) expected the home prices to finish down for the year, which would be the first drop since 1968. Single-family homes are expected to decline by 1%,to $219,800. The number of home sales is also expected to dip from 6.48 million in 2006 to 6.29 million in 2007, a drop of 2.7%. Experts believe speculative investing in real estate is not going to work any more and buyer should be in for long-term. In 2008, NAR is forecasting price gains of 1.4 % for existing homes and 2.2 % for new homes. NAR also expects interest rates, currently at about 6.16 % for a 30-year fixed-rate loan, to rise gradually to about 6.5 % by the Q4.Subprime Lending IndustrySubprime lending industry has added to the declining home prices. High foreclosures and forced sales all add up to the already increasing inventory, expectedly hurting the real estate industry. Loan originators are tightening up lending standards this year in response to increasing defaults among subprime ... More About: Real Estate , Stock Market , Market , Dollar , Foreclosure
Why The Dow Kept Going Up ?
2007-05-11 10:58:00 Dow Jones finally fell nearly 150 points. The reason for the fall was blamed at higher oil prices, weak economic indicators and lackluster retail sales. A variety of gold, silver, steel and oil stocks slumped. Home builders, health care and a variety of tech stocks sank too.However before this fall, stocks have gained over the last 5 weeks with Dow reaching an all-time high, the S&P 500 within reach of an all-time high and the Nasdaq at a six-year high. Many investors were confused as to why the market reached such levels, even though the dollar is weak, the oil prices are rising and the housing market is bust.Take a look at this video to understand why the stock market is strong.Market SnapshotMarch trade gap widened more than expected and that April import prices rose more than expected, both because of higher oil and gas prices.Retailers said April sales were hurt by the impact from higher oil and gas prices and the fallout in the housing market.Concerns about Iran, will hurt the... More About: Video , Economy , Gold , Oil , The D
How Company Buyback Makes A Difference
2007-05-08 09:49:00 Ask most investors about how buying a stock can help them build wealth, and the answer you will get is by two ways, stock price appreciation and dividends. However many overlook the third way, stock buyback. Let us find out more about this third way.The Meaning of Buyback sA stock buyback is nothing but a company buying back its shares from the marketplace. Buyback can be thought as a company investing in itself. With the extra cash in hand, the company can use it to buy its own shares. These shares are absorbed by the company leading to reduced number of outstanding shares in the market. When this happens, the ownership of each investor increases because there are fewer shares in all. Company buybacks are usually perceived by the market as a positive thing which often causes the share price to shoot up.Typically, buybacks are carried out in one of two ways:Tender Offer: Shareholders may be presented with a tender offer by the company to tender a portion or all of their shares within... More About: Traders , Investor , Make
Have You Considered Inflation ?
2007-05-06 07:59:00 Knowing how to work with the numbers in a company's financial statements is an essential skill for stock investors. Sound knowledge of company's balance sheet, income statement and cash flow statement helps make a smart investment choice. That said, have you considered inflation while researching a company's financial statements ? Most probably not. Infact inflation can fool even the most sophisticated investors. Let us find out why inflation should be accounted for, when analyzing financial statements.What Is Inflation ?Inflation is the rate at which the general level of prices for goods and services is rising and causing a fall in purchasing power. As inflation rises, every dollar you own pays for a smaller amount of a good or service. If, for example, the inflation rate is 2% annually, a $1 pack of gum would theoretically cost $1.02 in a year. Your one dollar would no longer pay for the whole pack of gum. (Source: Investopedia)ExampleLet us take an example of a company called F... More About: Earnings , Have , Side , Cons
Investor v/s Trader: What Is The Difference ?
More articles from this author:2007-04-26 11:43:00 The words investors and traders are commonly used in the world of stock market. Many people actually use them interchangeably as if they mean the same. Infact it is not true. Both words have different meaning. Even though investors and traders buy/sell stocks, they perform two very different tasks using very different strategies. Nonetheless, both of them are needed for the market to function smoothly.So are you an investor or a trader ? Confused ? Let us find out the difference between an investor and a trader and then judge for yourself, which one you fit into.Who Is an Invest or ?An investor is someone who buys stocks of a company based on fundamental analysis. They hold the stock for long term with the belief that the company will have a strong growth in the future. They derive this based on two basic things. Value: Investors consider whether a company's shares represent a good value. This can be determined by looking at the price to earnings ratio and comparing it with similar c... More About: Investment , Vest , Stor 1, 2, 3, 4, 5, 6, 7 |
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