October was a fairly busy month. I published a new class to Marwood Research and made three more stock investments for our long term portfolio. As I mentioned in a previous post, this portfolio is part of a project called Zero To One Million where I am attempting to get to $1 million in equity […]
investing
The Truth About Zero Commissions
Popular brokerages like TD Ameritrade and Schwab have cut their trading commissions to zero and more brokers are following suit. A reader asked about the impact of zero commissions on trading so I thought I would share my thoughts below. Mixed Feelings My first impressions of this news are mixed. It’s great to have zero […]
Do Most Stocks Fail To Beat Treasury Yields?
There’s a study that has been doing the rounds for some time called “Do Global Stocks Outperform Treasury Bills?” In the study, the authors come to the conclusion that most stocks fail to beat the return on cash (1-month Treasury bills). In fact, across a sample of 62,000 global stocks between 1990-2018, 56% of US […]
Only Optimists Make Money In Stocks
I came across the following quote on Twitter: Unless you’re a perennial short seller, pessimism about the future is of no help. Only optimists make money in the markets. D Mutukrishnan Mutukrishnan has a great way of words and I think this quote is very true. If you’re too pessimistic about the market you’re going […]
What Is The Long Term Performance Of Microcap Stocks?
Microcap stocks are great for day traders and swing traders because of their volatility. But I wanted to know how well they perform on longer timeframes. In this article we analyse a decade of performance data to see what you can expect from investing in microcap stocks. Data Preparation To do this analysis we will […]
These 3 Charts Pose Difficult Questions For Index Investors
As the long term charts on this page show, stock markets can go for lengthy periods with poor returns. Investors should utilise a diversified approach and remember to reinvest dividends.
New Figures Show 76% Of Traders Lose – How Not To Be One Of Them
You’re probably aware of how difficult financial trading can be and how much luck plays a role in results. Latest figures from Finance Magnates show that in the year up to August 2017, 76% of CFD traders lost money. As shown by the graphic below, some brokers were better than others: But it gets worse. […]
How To Invest In The Strongest Stocks Every Month
If you want to retire wealthy but you don’t have a lot of money there is a simple strategy you can use called Dollar Cost Averaging. The idea is to save some of your income and put it into the stock market at regular intervals (usually monthly). Dollar cost averaging typically involves regular investing in […]
Dollar Cost Averaging – How To Double Your Money Every 10 Years
The idea behind dollar cost averaging is simple. Every month invest a set amount of money into the stock market. When the market is high, you’ll be able to afford fewer shares and when it’s low you’ll be able to buy more shares at a lower price. Over time, the stock market moves up, your […]
Should You Buy The Dip When Volatility Picks Up? (Answer – Not Necessarily)
This week we have seen a mini crash in the stock market indexes and an implosion of several short volatility ETNs. Mood in the stock market has quickly turned from exuberance to fear while some investors are ready to ‘buy the dip’. Conventional wisdom suggests that the best time to buy stocks is when there is […]
