Part 12 of 12 part Short Story on Short Selling series. Shorting stocks is hard. Discusses the psychology, the hard, demanding, taxing play and the three best short characteristics. Last of the White Top Investor twelve part series on selling short. Knowing of this one especially challenging aspect of the stock market helps new and experienced investors reach a better level of understanding markets. Although shorting stocks is hard, and not for beginners, for their benefit and to best understand the market, they must be aware of it.
Tag Archives | Resource Stocks
Part 5 of 12 part Short Story on Short Selling series. Short sellers need judgement, vision and timing to be effective and profit. As well, short sellers must have a keen market awareness and a broad vision.
Part 4 of 4: White Top View, Market Direction series. Yesterday we began our discussion of five key stock market direction pointers. Today we conclude that discussion. Digging deeper into economic data can refine the results but there is little practical reason to do so. The basic approach works well. Trending up produces a rising stock market; tending down produces a falling stock market. When the trend is up, confidently take stock positions. Go long by buying shares. Purchase stocks that benefit most from economic growth. If the trend is down, get out of the market by selling stock positions and going to cash. Alternately in a down market, sell short to profit from falling stock prices.
Small investor advantages Warren Buffett knows. Warren Buffett tells us that small investors have a growth advantage over huge investment accounts. This post discusses how that can be. When you or Warren Buffett are considering an investment opportunity, the opportunity must have the potential to make a difference to your portfolio. The advantages include, 1. Returns make a big difference, 2. Oh yes! Size matters! 3. Faster growth numbers, 4. Liquidity advantage, 5. Playing the pecking order, 6.New listings and startups. 1st of 2 parts.
Benjamin Graham and a market myth: voting emotions or weighing facts plus discussion of the myth that small investor behavior causes market panics. Stock market volatility can startle investors and cause fear. However the ‘Small investor behavior causes market panics’, is self-righteous, self-serving nonsense promoted by some stock market professionals. When you know and understand the stock market, you can confidently watch markets without worry.
Headline news warnings and stock market risks explained as possible market overreactions. Reactive trading and emotions can drive market action. At such times, turmoil, not smart investing decisions, drive markets. To avoid being spooked, and trading with your emotions, inform yourself, do your homework and take the long view.
Warren Buffett explains the investment value of gold. Warren Buffett explains his view of gold in a 2011 letter to shareholders. He makes the point that buying productive assets is an essential for investing success. Gold produces nothing. Good investments grow; they produce. We need to plant good investment seeds in our portfolio. Those are our well researched positions. Then we carefully attend to our portfolio to see it grow.
Canadian Investment Market Base opens the door to making money. Canada developed because of natural resources that remain the base of the Canadian economy. A sophisticated urban, manufacturing and technology culture has developed in Canada all built on a base of resource exploration, development and production.
The Other Venture Exchange Alberta Investors could support or speculate on Canadian Shield plays from Toronto or in new west coast ventures from Vancouver. However a Calgarian wanting funding…
Investment opportunity grows with the Venture Exchange merger. Investors moved beyond Toronto and the Canadian Shield to exploit new resource opportunities. Investors financed numerous Canadian Shield ventures in Toronto. However, to finance Canadian resource ventures beyond that opportunity new exchanges developed.