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6 Characteristics Successful Day Traders Have in Common

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.

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List of Economic Indicators to Guide Your Investment Decisions

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.  

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Jesse Livermore’s 21 Rules of Trading

Jesse Lauriston Livermore, the famed stock market trader, also known as the “Great Bear of Wall Street” made his fortune by shorting stocks during bear markets, primarily during the 1907 and 1929 bear markets.  In 1940, he wrote down 21 rules that he lived by during his stock trading career.  The rules are as follows:

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Why You Should Start Investing as Soon as You Get a Job

If you are at the prime of your career, you probably do not worry about the future that lies ahead of you. You have this “devil may care” attitude towards handling your finances, not caring about setting anything aside for the rainy days. Such is where the landscape should change. Now is actually the best time for you to prepare for your retirement and what might come in the years ahead. Think that you are too young to think about retiring and saving for the future? Here are several convincing reasons why you should start investing as the soonest possible time.

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Can You Make Money in the Stock Market?

Can you make money in the stock market? Or is it all just one big gambling scheme? The short and unequivocal answer is: yes can make money in the stock market. Otherwise, happenings at the New York Stock Exchange won’t make any difference on day-to-day economic events. You may have already learned from history that stock investment has been the more productive way to park your money compared to, for instance, bond investment. Even with a very volatile stock market or amidst a period of recession, the market continues to lure investors.

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The Timeline of the Bitcoin Craze

Like any form of money or asset, the bitcoin has its own share of booms and busts. This article walks you through into the timeline of the most prominent and popular virtual currency ever made – the bitcoin.

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The Inverse Relationship between Bond Prices and Bond Interest Rates

Bonds are considered less risky forms of investments than stocks, as the former does not have the same volatility as the latter has. It represents a promise to pay when the indebted entity, the bond issuer, borrows money from a buyer of the bond, the bondholder. Bonds are used by the government and private companies to finance desired projects. The interest rate of a bond is fixed when it is first issued. The payment comprises of two parts – the fixed bond interest rate or coupon and the final amount to be paid upon maturity. The fixed coupon rate may be annually or every 6 months depending on the type of bond. Bonds can be adversely affected by prevailing economic conditions such as rising interest rates.

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Protect Your 401k From Catastrophe With These Simple Tips

The last several years have done a number to many people’s nestegg.  Many people who relied on their 401k for their approaching retirement were no longer able to retire because their 401k lost so much value in the market due to the credit crisis.  If you want to protect your 401k from massive losses, follow these three tips.  These tips are designed to protect your assets moreso than growing it.  Therefore these tips are meant for those who are going to retire soon(ish).  But if you follow these tips, you should also see some good growth in your 401k.

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What is a Bond and How do Bonds Work?

A bond refers to a debt security that pledges to make regular payments for a specified period of time. If you are wondering what a security is, it is a claim or entitlement on the issuer’s future assets or income. If you buy a bond, you are simply lending money in return for interest payments which the borrower or bond issuer makes periodically during the loan term. At the time of loan maturity, the bond issuer pays the principal or original amount of the debt to the lender or bond holder. When to pay the periodic payments of the interest and the date of maturity are based on the terms of the bonds agreed upon by both holder and issuer. Bonds are commonly issued by governments and corporations. They do so to raise capital so they can finance their projects or business expansions.  The major bond classifications include the US Treasuries, corporate bonds, municipal bonds, and agency bonds. US Treasuries are those issued by the US Department of Treasury while corporate bonds are offered by corporations that have investment grade ratings. Local governments like states and cities can also issue municipal bonds. Government-sponsored enterprises like Freddie Mac and Fannie Mae can also offer agency bonds. Aside from these, there are also high-yield bonds, asset-backed securities, mortgage-backed securities, and collateralized debt obligations (CDO).

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What is the Risk-Free Rate and How Can It Be Used to Guide Your Investment Decisions

In investment, there is this term called risk-free rate of return.  In a relatively stable economic environment, the risk-free rate offers the minimum return that one can yield without taking on any risk (ie, a risk-free investment).  But what is it really and how can it be used by a stock investor to make investment decisions?  Let’s find out.

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