Everyone knows who Warren Buffett is, even those who do not invest a dime in the stock market. However, not too many people outside of the investment and business world know the name Ray Dalio. But they should, he is a hedge fund manager that manages over $100 billion in assets and is one of the most successful investors of all time. His personal net worth is (at the time of this writing) over $13 billion. That makes him richer than a lot of other more “popular” billionaires, including Elon Musk, Mark Cuban, and Eric Schmidt (of Google fame). So when he gives advice, people listen. He wrote a paper called Principles that summarizes how he makes his investment decisions. Below are five of those non-technical principles taken from his paper:
Many have tried day trading, and an overwhelming majority have failed. However, for every 99 that fails miserably at day trading, there is always that one success story. So what do these successful day traders have that the overwhelming majority of day traders don’t? It’s not access to capital. Rather, it is a set of character traits that allows them to stand tall against the volatile and stressful world of day trading. I have talked to many day traders and have done quite a bit of research on them—and I have managed to come up with six character traits that all day traders have in common. If you are interested in reading what makes a successful day trader, read below.
With pension plans a thing of a past and Social Security benefits uncertain, your 401k plan is by far the most important vehicle to a safe retirement. So in order to secure a good retirement, how much should you have in your 401k by 30? We will answer this use four different scenarios. In all the scenarios, we assume that the starting salary is $45,000 and it rises at 3% per year—because $45,000 is the average for a college graduate and a 3% rise per annum is the average throughout the many industries.
Many people think that investing in stocks is a surefire way to get rich and hit the jackpot. The reality couldn’t be further from the truth. See, the truth is that to get average returns that beat inflation, all you need to do is put it in an index fund. Index funds will match the market returns of whichever market the index fund follows, be it the S&P 500, the Dow Jones, or the Nasdaq. The market, on average, has been known to return an average of 10% per year.
Economic indicators are useful in telling us whether the economy is doing well or not. They indicate whether an economy is heading in or out of a recession, or if the economy is experiencing a boom. There are a lot of economic indicators and sometimes they may contradict one another. Thus, it is important to look at the overall economic environment using multiple indicators to get a clearer picture of how the economy is doing. The following is a list of 27 economic indicators you can use to make investment/business decisions.
Every investment/asset will have inherent risk that comes with it; no risk no reward. The amount of risk will vary with each asset. But no matter what kind of asset it is, there is always a chance of an asset bubble. An asset bubble is the result of human emotion in play in the markets. Investors get overzelous on an asset and become delusional in thinking that the sky is the limit, which creates sky high prices. But eventually, the bubble bursts.
The most recent bubble burst is the real estate bubble. We saw it burst in 2007/2008 and it has only begun to recover. A lot of people lost a lot of money when that bubble bursted. However, a few savvy investors saw the asset bubble coming and hedged against it. So if you want to protect your wealth or even make money when asset bubbles burst, learn to recognize the patterns in an asset bubble. In each asset bubble, there are four distinct phases, which are: Stealth, Awareness, Mania, and Blowoff.
Although gold is no longer a standard form of currency in the vast majority of countries, it is still of extreme macroeconomic importance. The price of gold is tied to many currencies and currency pairs. Here is what happens to the major currencies when gold prices drop:
So I’ve been on a bit of a bitcoin buying spree as of late. Because the investment (or currency) is still new, there is a lot of confusion about what it is, how to buy it, and how to trade it. So in this post, I will attempt to dymysfify the process of buying your first bitcoin and trading other types of cryptocurrencies (digital currencies, such as bitcoin, litecoin, dogecoin, worldcoin). Keep in mind, this tutorial is a tutorial of what I had to do in order to start trading bitcoins and other cryptocurrencies. But before thinking about buying and selling any other type of currencies, you need to get ahold of bitcoints first.
You often hear news about Warren Buffett and stock analyses based on a fundamentalist’s perspective. But what really is it? How do stock market advisers determine which stocks to buy and sell? Whether you are preparing yourself to be an investor, a stock analyst, or someone who merely wants to understand how fundamental analysis works, this article provides you with the basic information that you need to know.
Buying and selling stocks should not be done without a thorough analysis. One very important school of thought that guides stock traders is technical analysis. Technical analysis is a method that relies heavily on a person’s ability to understand trends and patterns. This article will help you learn on how to use this method when trading stocks.