System day trading entails using a program to predict where the market will go before it happens using mathematical algorithms so that you can trade accordingly and without a great deal of risk. These programs have been gaining in popularity as the technology continues to improve with each year and because these programs enables more [...]
Exchange Traded Funds are designed to hold assets such as stocks or bonds, and generally trade at the net asset value of their underlying assets. Like index tracking pooled funds, Exchange Traded Funds are designed to track a chosen market index. However, ETFs tend to have a lower expense ratio than index funds. The easiest [...]
Reader Joe had an interesting comment in response to Saturday’s post “ Beating the S&P 500 Index with an S&P 500 Mutual Fund .” Here’s what he had to say: There is a flaw in your hedge - all Ultra-Long and Inverse funds have a “daily rebalancing” problem that causes them to all trend down over long periods. For example, if you bought SPY in early November and sold it yesterday, you broke even.
A few days ago, Mish at Global Economics wrote a nice piece called “ Long Term Buy and Hold Is Still Bad Advice .” I want to hone in on a few paragraphs outlining well known pitfalls when investing that are very important; however, most investors are either not aware of them or don’t pay attention: Why Is Bad Advice So Common?
Why doesn’t everyone buy common stocks? That’s a good question. Let try to find some satisfactory answers