Stock Market Books

You finally have money to call your own. Now that you have your own money, you naturally want to see it grow. Maybe saving money in a bank simply doesn’t entice you because there is so little growth potential. You want something with more risk so you have the potential to realize a far greater financial return. You decide to turn to the stock market.

Wait a minute! Are the risks involved in investing in today’s volatile stock market worth your hard-earned cash? Investing can be an effective tool to grow your money, but you must have an open mind and know exactly what to look for.

As everyone knows, investing in the stock market is a risky endeavor. There are certain risks you simply cannot control.

One example is to exercise caution when investing in “hot” stocks. Of course there are some people that get wealthy investing in “hot” stocks, such as the “dot com” bubble that happened in the 1990s. However, when the initial buzz about these “hot” stocks starts to slide, so does your investment in them.

Once these stocks fall, they tend to fall really hard in a short period of time. Your money and the money of others like you falls along with the stocks. If you really feel the need to invest in “hot” stocks, you must keep a constant eye on them and sell them right away as they start to level off or drop.

To avoid risks such as these, diversify your investment portfolio. Buy a little bit of a lot of different types of stocks and bonds. By doing this, if one stock goes down another is likely to go up so you can attempt to recover some of your losses. It is always a wise idea to have a few stocks in the technology sector, biomedical, consumer corporations and telecommunications.

Over time, add to your portfolio with diamond and precious metal indexes and some general investment funds. A diverse portfolio increases your chances of profiting from the stock market.

There are companies that exist offering “safety stocks” to investors. It is a solid decision to have several shares of these type of “safe” companies in your investment portfolio. These types of stocks rarely fluctuate and usually offer steady, slow growth so you have some level of assurance in your investments.

Never rely on tip that says a stock is “going to be really big” or other related hype. These tips are usually unfounded and the stocks are often almost worthless. When you invest in these stocks you may get a higher return at first but in the long run, these stocks will be your greatest concern.

Take time to carefully read the Wall Street Journal or read the latest stock report on the news networks to find out more about your investments. Check relevant websites to verify how your stocks have been performing in the past few weeks. Lastly, keep up to date with the current stock market to make sure your investments are still smart.

Product Description
A timely approach to downside risk and its role in stock market investments When dealing with the topic of risk analysis, most books on investments treat downside and upside risk equally. Preparing for the Worst takes an entirely novel approach by focusing on downside risk and explaining how to incorporate it into investment decisions. Highlighting this asymmetry of the stock market, the authors describe how existing theories miss the downside and follow with expl… More >>

Preparing for the Worst: Incorporating Downside Risk in Stock Market Investments

Product Description
The Equity Risk Premium—the difference between the rate of return on common stock and the return on government securities—has been widely recognized as the key to forecasting future returns on the stock market. Though relatively simple in theory, understanding and making practical use of the equity risk premium concept has been dauntingly complex—until now. In The Equity Risk Premium, financial advisor, author, and scholar Bradford Cornell makes accessibl… More >>

The Equity Risk Premium: The Long-Run Future of the Stock Market

Investing in energy ventures has traditionally been associated as having greater potential returns, with corresponding risks, than any other type of investment. The high-risk/high-potential of certain categories of these ventures (commonly referred to as “wildcats”) drove investment for many years. There are many such opportunities available today. However, the Fund’s oil and gas investment strategy is to focus on projects where risk dollars are substantially moderated and returns of 20% to 40% are the expected norm.

Risk and at-risk dollars are moderated by investing in projects fitting three categories. In order of decreasing risk, these are:

1. Possible Reserves: Known, productive zones within a field where additional reserves may be separated from proved reserves by faulting. These types of projects are of significant interest among independent energy companies and investors because geological data from existing wells is available to aid in developing the geological hypothesis. Both risk and at-risk dollars are moderated because the existing geological evidence dramatically increases the probability of success.

2. Probable Reserves: These type of projects involve re-entering abandoned oil and natural gas wells to test potentially productive natural gas zones bypassed when natural gas prices were under $0.75 per thousand cubic feet (MCF). Natural gas is now over $5.00 per MCF and is expected to increase in value as the push for cleaner burning, non-imported fuels grows stronger. Risk is moderated because geological data from the original well is available to develop the geological hypothesis, thus increasing the likelihood for a successful new well.

3. Proven Reserves: The most actively pursued subcategory today. After a discovery well locates hydrocarbons in commercial quantities, a multi-well drilling program to exploit newly discovered reserves commences. The exciting part of these projects is that in many cases, the major oil companies have already discovered the field, yet it fails to meet their minimum size criteria (For example: Large oil companies usually will not even consider developing a field unless it is at least a 50 to 500 well project. A 3 to 4 well project is not worth their time. Yet, to a smaller independent and their private individual investors, a 3 to 4 well project can be quite lucrative. Smaller independents, if they have the capital, can pick up the “nuggets” that the major oil companies leave behind.

In order of decreasing risk, both risk and at-risk dollars are moderated by investing in:

1. A known productive zone in a field where reserves may be separated from proved reserves via faulting.

2. Re-entering abandoned oil & gas wells to test for productive natural gas zones.

3. A multi-well drilling program to exploit proven reserves.

Article was written by Mouser57 Online Stock Trading

Proactive Risk Taking and a Value Investing Strategy,Part 1

Product Description
John is a teacher at the Bluestock Grammar School who yearns to escape from his humdrum world into the dynamic and bedazzling arena of international finance. We follow John as he starts at share dealing firm New Market Securities and witness his rise from naïve training floor junior to steely, worldly-wise dealer fighting to survive on the cut-throat main dealing floor. His story is an object lesson in the perils, illusions, dreams and nightmares of both clients an… More >>

Stock Market Rollercoaster: A story of risk, greed and temptation

• Why high reward does not have to mean high risk
• Learn why investors must apply risk management concepts
• Match financial risk with chart-based risk
• Use risk/reward ratios to select better trades
• Improve trading performance with money management

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Synopsis:
Trading is about the management of risk. But the failure rate among traders and investors suggests that many do not fully understand the concept of risk. This presentation by Daryl Guppy tackles risk head-on by showing traders and investors how to identify the risk component in each trade. Guppy walks you through the financial calculations and then shows you how to match these calculations with chart-based analysis. This is the key to trading high reward o… More >>

Risk, Stop Loss and Position Size