Category: Risk

What is the difference between Leverage and Margin?

What is the difference between Leverage and Margin?

In financial terms, leverage is reinvesting debt in an effort to earn greater return than the cost of interest. When a firm uses a considerable proportion of debt to finance its investments, it is...

The Fool and his Money…

The Fool and his Money…

One of my friends writes some interesting stuff that is being written nowadays about investing, is fond of using the word fool. But he doesn’t do it the normal way – the way, say,...

Zero Risk Investing

Zero Risk Investing

In years of answering people’s questions about investing, I’ve come to classify two major sources of problems: One, investing without thinking enough, and two, thinking too much about investments. We all know at least...

When Cash is Pouring into the Market, Stocks Become Over-Priced

When Cash is Pouring into the Market, Stocks Become Over-Priced

Too much money in the Stock Market. When there is too much money in the stock market, it can be a warning sign that things are about to change. New money coming into the...

Overcoming Investment Anxiety and reducing fear…

Overcoming Investment Anxiety and reducing fear…

On Tuesday, February 27 this year, the Dow Jones Industrial Average dropped 416 points—the markets sharpest drop in three years. Two emotions—fear and greed—can lead to bad investment decisions. Investing can be dangerous yet...

The Consumer Perpective while picking stocks…

The Consumer Perpective while picking stocks…

Investing in the stock market sometimes boils down to one essential element, namely good choices. No matter how well we do our research, how often we buy and sell, or how much we pay...

How to Spot Market Trends…

How to Spot Market Trends…

Most, but not all, stocks move with the overall trend of the market. I’m not talking necessarily about one-day bumps, but general upward and downward trends – bull markets and bear markets. For this...

Carefully Planning a Money-Smart Divorce

Carefully Planning a Money-Smart Divorce

When your marriage breaks up, the last thing you feel like doing is crunching numbers. You’re hurt, perhaps angry, and possibly overwhelmed with anxiety, fear and despair. You’re focused on the past and present,...

Why Invest in Blue Chip Stocks?

Why Invest in Blue Chip Stocks?

Investing in conservative blue chip stocks may not have the allure of a hot high-tech investment, but it can be highly rewarding nonetheless, as good quality stocks have outperformed other investment classes over the...

Choosing the best Investments for you…

Choosing the best Investments for you…

Creating an investment plan can be a tricky but rewarding experience. The key to having a solid and fully customized plan is to know what your financial goals are and make sure your plan...