Category Archives: Behavioral Finance

3 Trading Strategies to Maximize Profits and Minimize Losses

The perfect investment pays off far more than you expect with no chance of turning negative. If such an opportunity existed, investors would create such a high demand with an equally high multiple, that it would eventually become just another trade. The quest to maximize potential gains, while risking the least amount possible is what drives … Read More

Posted in Behavioral Finance, General Tips, Investment 101 |

Short Selling and Other Bear Market Strategies

If you were to take a step back and look at the stock market over the long term – say 10 years or more – you’ll notice that despite the roller coaster chart, it always trends higher eventually. This important detail is the primary reason many financial advisers recommend holding on for the long term … Read More

Posted in Behavioral Finance, General Tips, Investment 101, Maximizing Profit |

Beginning Investment Strategies To Help Build Your Portfolio

Whether you’re a new investor just dipping your feet into the stock market or an experienced trader, having the right strategy is essential in keeping your profits up and avoiding unnecessary losses. You might think that just setting up a brokerage account and buying a few stocks is all it take to be successful. You … Read More

Posted in Behavioral Finance, General Tips, Investment 101, Investments |

Rates Are Going Up: Here’s How To Play It

It’s been quite a while since investors had to worry about inflation, but since the election of Donald Trump, inflation is back on the radar. Less than a year ago in July, inflation stood at a mild 0.8 percent and the Fed’s yearly rate hike still seemed almost too fast. As of March though, inflation … Read More

Posted in Behavioral Finance, General Tips, Investment 101, Investments |

How Recent Rate Hikes Could Affect Your Investments

The Fed raised the Fed Funds by 25 basis points in March, just three months after a rate hike in December. The last previous raise was in December the year before. And now the markets expect to see at least two more hikes before the end of 2017. Originally, the rate hike discussion kept getting … Read More

Posted in Behavioral Finance, General Tips, Investment 101 |

When to Sell a Stock That You Really Love

Investing online when emotions are high can have devastating consequences. You know the signs are pointing down, yet you can’t find it in yourself to sell your favorite stock. What do you do? The best way to combat emotions while trading is to have a list of rules. Many traders argue that the hardest part about … Read More

Posted in Behavioral Finance, General Tips |

Why Mutual Funds May Not Be Your Best Option

Newly minted investors often turn to mutual funds to meet their financial goals and expectations instead of trading stocks on their own. The idea of taking the fate of your portfolio into your own hands can be intimidating and the availability of investment vehicles that offer diversification and automatic management all-in-one almost makes the decision seem … Read More

Posted in Behavioral Finance, General Tips, Investment 101, Online stock trading |

Commodity Winners Under Trump

It’s no secret that commodities have been an outcast asset class for years now. The three year annualized return on the Dow Jones Commodity Index is -12.14% with investors steering clear of anything related to commodities like steel, aluminum, coal, and especially oil. The strength of the US dollar has acted as a further headwind … Read More

Posted in Behavioral Finance |

What are Options in Stock Trading?

Several nights ago I was grocery shopping. After gathering everything I needed from my list I started approaching the front of the store so I could check out and pay for my groceries. Arriving at the front of the store there were two cashiers and lines available to be checked out from that were seemingly … Read More

Posted in Behavioral Finance, Day trader, Derivatives, Options trading, Tips |