The $89.7 billion man has argued against borrowing money to invest.
Unfortunately, many investors have been doing it anyway.
Greed, he says, is the primary driver of margin debt.
Then again, we all know margin-trading carries a good amount of risk.Read More
In late 2015, Ferrari (RACE) raced onto the market floor at a high of $60 a share.
However, as we explained prior to its IPO, it was a terrible buy, overvalued at the time with a $12 billion IPO. Initial requests for shares had exceeded supply by 10 times, as we noted.
Investors were still excited. Anticipation was high.Read More
One of the worst things that traders still do to this day is ignore stocks at 52-week lows, even when it comes to the biggest stocks in the world.
But to be honest with you – that’s exactly when you want to buy. When everyone else is selling and becoming fearful of big named stocks, buy.
The question then becomes – how can we tell where the bottom is?
We simply abide by what herd mentality and momentum is telling us, which we can decipher using several technical indicators and fundamental analysis.Read More
We were long overdue.
After a 10,735-point run higher on the Dow Jones Industrials in just over a year, the index plunged more than 1,500 points in two days in early February 2018.
It also wiped out $1 trillion of value with it.Read More
When it comes to technical analysis, one of the necessities for success is the moving average. In fact, for years, I’ve personally relied on two of them – the 50-day and even the 200-day moving averages.
Each is powerful because they give us a view of a stock’s trend, as well as a look at where we may find support and resistance along the way. For example, if I find a stock that historically bounces every time it hits its 50-day moving average, I’m likely to buy on a test of that moving average.
That’s because, as they say, the trend is your friend.Read More
Traders are often told to buy excessive fear or greed.
Unfortunately, many of those traders aren’t aware of when to pull the trigger, or realize when fear or greed have gotten way out of control. Then, when they finally do decide to make the trade, the stock has already begun to pivot.
And more often than not, they miss the profit opportunity.
While none of us have a crystal ball, or hold the Holy Grail to trading secrets, you can give yourself an edge by simply paying attention to what herd mentality is telling you.Read More