3) Margin Trading: The Dreaded Margin Call
The focus of this section of the tutorial is the maintenance margin and the dreaded margin call. A maintenance margin is the minimum balance you must maintain in your account. A margin call is...
2) Margin Trading: What Is Buying On Margin?
Margin Trading is investing in stocks but this time it involves borrowing money from a broker to have more buying power. It allows you to buy more stock than what your own investment capital...
6) Risk and Diversification: Conclusion
Attaining the right mix between risk and return will be a big help to move you one step closer to your financial goals. Tolerance to risk is not static. It varies from one individual...
5) Risk and Diversification: Diversifying your Portfolio
With the stock market being so unpredictable, individual investors need a safety net. To address this need, diversification comes into the picture to help prevent the entire portfolio from losing value. While diversification does...
4) Risk and Diversification: The Risk-Reward Tradeoff
The iron stomach test is synonymous to the risk-return tradeoff. An important investment decision that must be made is on deciding the amount of risk you can take on. The ratio is the balance...
3) Risk and Diversification: Different Types of Risk
There are two basic risk types: Systematic risk Unsystematic risk Risk that could affect a broad spectrum of assets is called systematic risk. For example, a political event has the potential to impact many...
2) Risk and Diversification: What is Risk?
Risk is everywhere, whether doing something as mundane as drinking, walking, or whether investing. Your comfort with risk is generally correlated to your personality and lifestyle. If you have chosen to invest in stocks...
9) Stocks Basics: Conclusion
You can make a lot of money investing in stocks or trading in the stock market, but it is not something for the new investors. Care must be taken when it comes to stock...
8) Stocks Basics: The Bulls, The Bears And The Farm
If you’ve overheard grown men in suits having drinks in a bar and talking about bulls and bears, chances are they’re not talking about the an energy drink or zoo animals. They must be...
7) Stocks Basics: How to Read A Stock Quote
Don’t be intimidated upon seeing a stock table like the one below. When you’re done reading this section, you’ll be able to understand the table with relative ease. Column 1: 52W high – The...
6) Stocks Basics: Buying Stocks
By now you already have knowledge of what a stock is and the principles behind the stock market. The next step in this tutorial is to introduce you on how to buy stocks. If...
5) Stock Basics: What Causes Stock Prices To Change?
Stock prices are driven by the law of supply and demand. If the demand is high, i.e., lots of people want to buy stock than sell (supply), then prices go up. If more people...
4) Stock Basics: How Stocks Trade
Stock exchanges are places where buyers and sellers meet and decide on price. This could be either physical or virtual. Physical locations involves a trading floor where one sees traders throwing their arms up,...
3) Stocks Basics: Different Types Of Stocks
The two main types of stocks are common stock and preferred stock. Common Stock This is the most common type of stock available to the public, hence the term “common stock.” A majority of...
2) Stocks Basics: What Are Stocks?
Stock is a share in the ownership of a company. It is a claim of the company’s assets and liabilities. The more stocks you have, the higher your ownership stake in the company. Stock,...