INVESTING BLOG

Understanding how to manage money will make a big difference for your financial stability. “ Money is a very powerful thing, which you hardly notice when it goes right, but which can create havoc when it goes wrong.” – Milton Friedman  A major study conducted by the Financial Industry Regulatory Authority demonstrated that people with higher levels of financial literacy are more likely to find financial security or stability.  Financial literacy means the scaled ability to competently understand what money is, how to raise money, and the various ways of effectively managing money. Financial literacy does not guarantee financial security, although financial literacy and security are strongly correlated. People who understand finances have a higher chance of becoming financially secure and wealthy. People who do not understand finances are much less likely to establish financial security or acquire personal wealth.  Just as there is a scale to reading literacy and compre...

Trump’s policies may well enrich many firms, but they will impoverish the average American. The headlines tell us that the Dow Jones is up around 1,000 points since Donald Trump won the election on November 8th. The conventional wisdom is that this shows how much confidence people have in Trump’s ability to generate a healthy American economy. The argument is that if people are willing to buy stock in American firms, this indicates their belief that those firms will see improving profits over the next few years. They then draw the conclusion that more profitable firms indicate a healthier American economy. Although this argument is correct about stock prices reflecting an increasing belief in the profitability of US firms, it makes a major error in assuming that profitable firms necessarily mean a better economy. The Economy Isn’t A Thing First, it’s important to understand that phrases like “a healthier economy” are themselves problematic. The “economy” is not the thing we should be c...

What is the real market value of cryptocurrencies like Bitcoin? What is the real market value of cryptocurrencies like Bitcoin? The numbers used to explain the performance of Bitcoin and other cryptocurrencies are less meaningful than most assume. Cryptocurrencies are not exactly like stocks, and cryptocurrency exchanges do not work like traditional securities markets. As a result, many cryptoasset investment strategies based on conventional definitions of market share, capitalization, volatility, and trading volume are deeply flawed. Misleading numbers mean that cryptocurrency valuation and adoption are poorly understood, which creates a false perception by the media and investors about cryptocurrencies such as Bitcoin. One implication of this analysis is that Bitcoin has captured the vast majority of the long-term upside in the cryptocurrency market despite having about half the nominal market share. Most cryptocurrencies and crypto exchanges manipulate numbers in ways that publicly ...

Over the last decade the Nasdaq composite index analysis has become equal to the NYSE index analysis in importance of analysis of the health of the United States economy and defining a sentiment on the US stock market.  Nasdaq Composite index comprises stocks (public companies) that are traded on the Nasdaq exchange. Nasdaq exchange is the biggest over-the-counter stock market exchange in the world. More than three thousands stocks are traded on this electronic stock exchange. At the end of the twentieth century majority of the professional stock market analysts and big institutional investors were mainly focused on the analysis of the New York Stock Exchange (NYSE). At that time NYSE analysis was the main tool that allowed getting clear picture about stock market sentiment and the health of the United States economy. Now, the US stock market is split mainly between two biggest exchanges: NYSE exchange and Nasdaq Exchange. As a consequence, more and more professional stock mar...

Forex signals started as a natural evolution of financial markets. They solve the most monotonous actions any trader is likely to perform. As expected, they help identify great trading opportunities while predicting the best entries. By definition, a Forex signal is a recommendation on a specified financial pair to be executed at an upcoming price and time. Whether you're a beginner or expert, Forex signals can help you enhance your trading activities. Also, seasoned traders can expand their profitability and ROI using great Forex signals. For new traders, forex signals are a must, as traders can earn while they learn about the markets and eventually become successful Forex traders. The signals also help shorten the learning curve. As new traders attempt to understand the logic behind the signals, they can get a complete insight into which trading options the signal is based on. An important fact in Forex is that a trading signal is only practical as it is timely. The signal can be...