For Warren Buffett to invest in a company, he must fully understand the nuts and bolts of a company. It must be simple for him to understand. In fact, one of his greatest metrics for identifying gems is his rule of identifying a company’s “economic moat.” “A truly great business must have an enduring “moat” … Continue reading Investor Education: What is Economic Moat?
While an income statement discusses operating performance, the asset and liability numbers on a balance sheet give us a better look at financial wellbeing. Using this, we can measure growth, operating efficiency, profitability and valuation metrics. It’s simply a statement of current financial position that sums up a company’s assets, liabilities and shareholder equity, and … Continue reading Investor Education: What is a Balance Sheet?
Small-cap stocks have been increasingly popular thanks to the potential for higher returns. But it doesn’t come without risk. What Are Small-cap Stocks? Market cap refers to the total value of all a company’s shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares. For … Continue reading Why Investors Should Trade Small-Cap Stocks
All of a sudden, your favorite small cap stock is falling out of the sky. What do you do? Do you sell? Do you hold? Or, do you freeze, becoming nothing more than a nervous, emotional trader that sells because everybody else is? Unfortunately, most of us freeze, too scared to think straight. We get … Continue reading Protect Your Capital with a Trailing Stop Loss
No one has ever been a big fan of Tax Day. It’s one of life’s certainties next to death. And while many of us may choose death over taxes in some years, there’s no way around it. Unless, of course, you enjoy dealing with such friendly IRS people. No. 1 – Have a competent accountant … Continue reading Five Key Tax Tips for 2019
It’s not about having the perfect strategy. It’s about the rule you abide by with each trade. One of the biggest issues facing all walks of traders is a severe lack of discipline and structure in stock buying habits. Many fail to use stop losses, or even protect gains with a simple trailing stop loss strategy. Others … Continue reading Small Cap Trading: The Exact Moment to Sell Every Time
When it comes to technical analysis, it’s all about confirmation of support and resistance. If we fail to identify either, we take on far too much risk. We may buy – or even sell at the wrong time. And as many of us know, it can be costly – and frustrating. So, the more you … Continue reading What Fibonacci Retracement Levels Say About the Russell 2000
Support and resistance are two of the most powerful technical indicators on the market. Without watching either, you may just buy or sell at the wrong time. Support, for example, represents the moment when buying begins to overwhelm selling and prices begin to bounce back. Resistance happens when selling begins to overwhelm buying and prices begin … Continue reading Small Cap Trading: Two of the Most Powerful Technical Indicators
If you pull a rubber band too far, what happens? It snaps back, right? The same thing happens with stocks when they become too overbought or oversold. And if we can position ourselves for the exact moment the “snap back” happens, we make money. And it’s actually quite easy to spot with three key technical … Continue reading Russell 2000: How to Spot a Pivot up to 80% of the Time
The idea that drawing lines on a chart can make you money has been a matter of contention for years. But the fact remains that technical analysis works… and works well. And the key to its effectiveness lies entirely in its popularity among large audiences, and its gauge of overall momentum, fear and greed. Let me … Continue reading Technical Analysis 101: The Importance of Support and Resistance