Analysis Topic: Investor & Trader Education

The analysis published under this topic are as follows.

Monday, August 21, 2023

How to Really Get RICH - Change the Way You THINK! / InvestorEducation / How to Guides

By: Nadeem_Walayat

This is part 1 of 2 of my exclusive to patrons brain dump guide on How to REALLY Get RICH that I will seek to update and improve upon on an annual basis. The focus of Part 1 will be on changing the way you think because time and time again whenever I talk to ordinary folk it can be like I am conversing with a different species of human, I get asked questions such as Why do I need all that money, why don't I live in a mansion (a 6 bed house is more than adequate), why don't I buy a lambo or other junk, I mean stuff like gold jewelry and fancy watches to me are just junk, instead most folk obsess over junk. Clearly we are not on the same wave length and I can find it mind numbing engaging in such conversations which tends to make me want to avoid such folk in the future.Yes getting rich tends to make one arrogant, it's because people who are not rich try and give someone who is a lot richer than them advice on what they should do with their wealth because that's what they who don't have much would do, either that or they want me to be in the same debt laden sinking ship as them! This is why the rich don't mix with ordinary folk because they don't think the same way, it can be mind numbing to explain that which one takes for granted, so the starting point towards getting rich is to CHANGE THE WAY YOU THINK!

Thursday, June 22, 2023

How to Profit From the Smart Money Footprints / InvestorEducation / Learning to Invest

By: Submissions

By Justin Spittler Imagine you’re sitting at a bar in Manhattan.

As the bartender’s making your drink, you overhear a conversation from the table behind you.

Two well-dressed men are talking. One looks familiar. He’s a hedge fund manager you’ve seen on TV.

You don’t recognize the other guy. But, from the sound of it, they work together.

Monday, June 19, 2023

Why Most investors Underperform the Indices / InvestorEducation / Learning to Invest

By: Nadeem_Walayat

Time and time again I hear this mistake in the comments section, S&P is going down down should I sell x,y,z, stock and buy back later. As I often voice the indices such as the S&P are a red herring, ask anyone heavily invested in the likes of Apple, Nvidia or Microsoft and so on, The S&P is definitely not of much use for timing purposes in terms of accumulating and distributing as we saw this past week opps to distribute in the likes of MGNI and accumulate in the likes of Qualcom. So keep things in perspective, the indices are just that indices, a metric to gauge the direction of travel on an average basis and to perhaps swing trade the index but they are not that useful for buying and selling individual stocks, in fact can prove highly dangerous! For instance if the S&P looks toppy and a stock breaks higher then the investor might sell the strong stock. (META) as the index was heading lower. Similar for when the index is going up and a stock starts falling and the investor buys on perception that the stock is now cheaper (SVB).

Monday, May 15, 2023

Online Trading Bootcamp: Essential Skills for Every Trader / InvestorEducation / Learn to Trade

By: Submissions

Tuesday, April 18, 2023

Financial Advisors Take Heat for Market Losses (Will Anger Intensify?) / InvestorEducation / Learning to Invest

By: EWI

Was 2022 an aberration for the 60/40 allocation?

Many financial advisors steer clients who are willing to take some risk toward a 60% stocks / 40% bonds portfolio.

Alas, investors who followed that strategy in 2022 saw the value of their portfolios decrease substantially.

Thursday, February 23, 2023

What to Do When Making an Initial Investment / InvestorEducation / Learning to Invest

By: Sumeet_Manhas

When you have decided to make an initial investment, there are many steps that you need to take beforehand to ensure that you are able to do this without a hitch. As such, here is what you should do when making a financial investment in 2023.

Sunday, February 19, 2023

HOW to INVEST - THE POWER OF TRIMMING! / InvestorEducation / Learning to Invest

By: Nadeem_Walayat

As a reminder when I see an opportunity to buy target stocks at deep discounts then I don't tend to flinch and buy the panics, the falling knives, even if takes me to well beyond my target exposure as has been the case for many stocks during the bear market of 2022 because of what will likely follow, a rally to TRIM.

The objectives is to bank profits and free up cash for future buys, as my target is to be approx 15% in cash (current 7.2%), as with many things I take trimming for granted and assume everyone does the same to some degree i.e. the more target stocks fall the more I buy with a view to engage in trimming during a subsequently rally. If you don't trim then it is something you need to adopt as part of your investment strategy as over time it does add up! Substantially for two reasons -

Saturday, December 24, 2022

What type of trader or investor are you? / InvestorEducation / Learn to Trade

By: Chris_Vermeulen

Trading and investing are much more complex and challenging than most people think. While countless books have been written about how to trade and invest, most skip over what I consider to be the foundation and most important area – You!

The Brutal Truth

The financial markets are driven by fear and greed. Most individuals find this costly as they get sucked into large news-driven moves in the market that often quickly reverse direction. Or they fall in love with a stock or commodity and decide they can’t sell even when it’s pulling their entire account balance down, causing serious financial harm.

Wednesday, December 21, 2022

CHANGE the Way You Think About Profit and Loss / InvestorEducation / Learning to Invest

By: Nadeem_Walayat

From the comments section many patrons appear eager to trim holdings. However, this is a dangerous game and mindset to have one of selling on a few percent gain on fears that that smaller profit will evaporate into a loss.

Think about it?

If you follow this investing mindset what kind of portfolio will you end up with?

You will have a portfolio where you have sold all of your winners and are only left holding losers!

This is probably down to the way humans are hardwired to avoid pain, i.e. eat the food now rather than it be stolen or lost in the future.

Saturday, December 03, 2022

12 Days of Elliott Wave Market Analysis / InvestorEducation / Elliott Wave Theory

By: EWI

Hi,

We're feeling the holiday spirit!

Our friends at Elliott Wave International have just launched a brand new event for traders & investors. It's called the "12 Days of Elliott." From December 1st through the 12th, you get free access to 12 premium educational resources. You'll get a different one each day.

Sunday, November 06, 2022

How to Trade and Earn on CS:GO / InvestorEducation / Learn to Trade

By: Sumeet_Manhas

Friday, October 21, 2022

How Elliott Waves Work with Individual Stocks / InvestorEducation / Elliott Wave Theory

By: EWI

"The primary value of the Wave Principle is that it provides a context for market analysis"

Elliott waves reflect the repetitive patterns of mass psychology -- so they are ideally suited for analyzing the widely traded main stock indexes.

On the other hand, thinly traded individual stocks may not trace out Elliott wave price patterns nearly as well.

That said, there are many individual stocks which are widely traded -- like most of the big and well-known companies (and others which have captured the interest of investors).

Monday, September 19, 2022

STOCKS BEAR MAKRETS ARE SUPPOSED TO BE PAINFUL! / InvestorEducation / Learning to Invest

By: Nadeem_Walayat

The bottom line is that bear markets are supposed to be PAINFUL! And I can tell many investors feel that PAIN from the comments as they post the latest price of say Intel or AMD or TSMC or any other stock trading lower as if I have a magic button to press to make the stock go higher. So if you are feeling PAIN then go read my earlier recent articles on the psychology of investing in bear markets because bear markets are PAINFUL where the degree of pain experienced depends on what time frame on is focused upon.

Friday, September 16, 2022

Learn Elliott Wave Theory - FREE 1 Hour Course / InvestorEducation / Elliott Wave Theory

By: EWI

Hi,

Our friends at Elliott Wave International are offering a complimentary course on how to 1) spot an Elliott wave pattern on a price chart, and 2) develop a solid trading plan to take advantage of it.

Thursday, September 08, 2022

What Is Options Trading And How To Know If It Is Good For You / InvestorEducation / Options & Warrants

By: Steve_Barker

Options trading is the buying and selling of assets that give the buyer the right to specify both the price and the time of purchase of a particular security. With options trading, you have complete control over your financial market decisions.

After purchasing an option, you are free to sell it at any time or day of your choosing. However, there is no penalty for not selling an option you have purchased. The two main categories of options are call and put options.

Thursday, September 01, 2022

What Don’t They Tell You About Online Trading? / InvestorEducation / Learn to Trade

By: Sumeet_Manhas

Traders come in all shapes and sizes, but we can narrow it down to two types. There are risk takers and those who play it safe. By definition, trading is a risky undertaking. It always has been. Despite our best efforts, it’s impossible to predict the direction and magnitude of price movements at any time. We use a variety of trading tools and resources to gauge the performance of the markets. These include technical and fundamental analysis.

By and large, trading platforms sell the hype with lofty promises of significant returns and comfortable retirements. Regardless, there are no guarantees. Stakeholders in the financial markets – particularly those with something to gain from unsuspecting traders and investors, are single-minded. They want to generate as much profit as possible in double-quick time. Hence the presence of fraudsters, shell companies, and less than honest financial reporting.

Saturday, August 06, 2022

Elliott Waves: Your "Rhyme & Reason" to Mainstream Stock Market Opinions / InvestorEducation / Elliott Wave Theory

By: EWI

R.N. Elliott's stock market observations fell together "into a general set of principles"

It's understandable why investors with little experience consult the market opinions of professionals.

But many of these new investors are left scratching their heads. Two headlines from July 29 indicate why:

• [Fundstrat Managing Partner] says the 2022 bear market is over, stocks could hit new highs before year-end (CNBC)
• Stock market's post-Fed bounce is a 'trap,' says Morgan Stanley's [Chief Investment Officer] (Marketwatch]

Yes, two directly opposing opinions that were published on the same day.

Monday, July 18, 2022

The Psychology of Investing in a Stocks Bear Market / InvestorEducation / Learning to Invest

By: Nadeem_Walayat

Every bull market is followed by a bear market and every bear market is followed by a bull market, where courtesy of the electron and inflation mega-trends the general indices are on an upwards exponential trend trajectory. Thus all bear markets are living on borrowed time and thus ones focus should be on accumulating positions in good stocks i.e. those that actually generate earnings and have good prospects for continuing earnings growth that courtesy of bear market negative sentiment results in prices trading to under value stocks i.e. to under X18 earnings, where everything above X18 is carrying a premium which is why I completely sold out of many stocks last year such as Amazon and Nvidia even though they had yet to peak due to the risks of a valuation reset as I covered in my in-depth analysis of August 2021

Sunday, July 10, 2022

Does Selling Put Options During A Market Downturn Provide A Safety Net? / InvestorEducation / Options & Warrants

By: Chris_Vermeulen

In a significant market downturn, bearish sentiment, if not outright fear, can drive down the share price of good companies rather drastically.  When the market is in a sustained selling mood, there can be a substantial disconnect between the long-term fundamentals and the technical price action we see on the chart. 

The Temptation to Bottom Fish

What can we do when good companies are trading at what appear to be bargain prices?  We could “stick our toe in the water” and buy shares.  But what if we’re wrong about whether a bottom in the share price is in place?  Or what if the stock takes a very long time to build a base and goes nowhere for an extended period?

Tuesday, June 28, 2022

Technical Analysis: Why You Should Expect a Popularity Surge / InvestorEducation / Technical Analysis

By: EWI

Here's when a "rebirth of interest" in cycles and waves occurs

You probably know that the term "technical analysis" refers to analyzing the behavior of financial markets themselves -- such as the stock market -- as opposed to "fundamental" analysis, which is based on news and events outside of financial markets.

Well, in recent years, technical analysis has been out of favor.