Mechanical Investing Buying and selling stocks according to a screen based on predetermined criteria, usually with the help of technical indicators such as relative strength or momentum. This method allows traders to enter transactions without emotion and backtest their strategies by using historical data from any time period. For example, one of the most common … [Read more...]
Long Inverse Floating Exempt Receipt – LIFER
A floating rate debt security traded among qualified institutional buyers (QIBs) and originated by German financial firm Deutsche Bank. The receipts pay a yield equal to a fixed base interest rate minus the floating rate of a benchmark (such as LIBOR+). As such, the interest rate paid moves inversely to the direction of the variable rate itself. LIFERs fall under municipal … [Read more...]
SMART INVESTMENT
If you are new to the stock market you must know that today’s hot stock market is both inviting and intimidating to new investors. Here's how to start an investment portfolio of your own. When you purchase stock, the word "stress" takes on a whole new meaning as when you reads the morning paper or listens to the radio and finds that his best stock dropped 20 points a share … [Read more...]
Trader or an Investor ?
It's Important to Know the Difference Are you investing in a stock or a company? That may sound like confusing question, but it is an important distinction and can get you in trouble if you don’t know the answer? First, let’s be clear that either answer is okay. The problem arises when investors confuse one with the other or start out investing in a stock, then change their … [Read more...]
Investing in Real-estate
There are so many areas of real-estate to invest. 1. Note buying 2. Tax sales 3. Rental property Note buying has been around ever since people realized they could create an IOU for property. When you borrow money from the bank to buy a house they make you sign a piece of paper called a promissory note (IOU). This paper says you owe a certain … [Read more...]