Liquidity is a crucial concept in the world of investing, significantly affecting your ability to buy and sell stocks. It refers to how easily an asset can be converted into cash without impacting its price. High liquidity means a stock can be bought or sold quickly at a stable price,…
Author: Chris Carreck
What Are Penny Stocks? Understanding the Risks and Realities
Penny stocks often capture the imagination of new and seasoned investors alike, promising high returns with minimal investment. However, these high-risk investments come with significant pitfalls. Understanding what penny stocks are, their inherent risks, and the realities of investing in them can help you make informed decisions and avoid substantial…
Navigating FOMO: Understanding the Fear of Missing Out in Investing
Fear of Missing Out, or FOMO, is a common emotional response among investors that can lead to impulsive and often regrettable investment decisions. It’s a powerful force that can cause even the most rational investors to second-guess their strategies. In this article, we’ll explore the concept of FOMO in investing,…
Understanding P/E Ratios: The Importance and Limitations for Investors
Understanding P/E Ratios: Importance, Limitations & How to Use Them. The price-to-earnings (P/E) ratio is one of the most widely used metrics in stock valuation. Investors often rely on it to determine whether a stock is overvalued, undervalued, or fairly priced relative to its earnings. However, while the P/E ratio is…
Do Not Overreact to Stock News: A Guide for Long-Term Investors
Do Not Overreact to Stock News – A Guide for Long-Term Investors: Investing in the stock market can be an emotional roller coaster, especially when sensational news headlines and leading analysts predict doom and gloom. As a buy and hold investor, it is crucial to remain calm and not overreact…
Investing in Companies with a Competitive Advantage: Understanding the Wide Moat Strategy
Investing in the stock market can be a daunting task, especially for new investors. However, one effective strategy is to focus on companies with a clear competitive advantage, often referred to as having a “wide moat.” Companies with a wide moat tend to have high margins that increase over time…
Understanding Stock Dilution: What It Is and Why It Matters
When investing in stocks, understanding various financial concepts is crucial for making informed decisions. One such concept that can significantly impact your investment is stock dilution. For new investors, stock dilution might seem like a complex term, but it is essential to grasp its implications to protect and grow your…
How to Get Started Investing in the Stock Market: A Beginner’s Guide
Investing in the stock market can seem intimidating, especially for beginners. However, with a structured approach and a commitment to learning, anyone can start investing and build wealth over time. This guide will walk you through the essential steps to get started with a buy-and-hold strategy, a popular and effective…
Understanding the Importance of Free Cash Flow in Stock Investing
When it comes to stock investing, understanding financial metrics is crucial for making informed decisions. One such metric that often gets overlooked by novice investors is Free Cash Flow (FCF). Free Cash Flow is a key indicator of a company’s financial health and its ability to generate cash after accounting…
Portfolio Update May 2024
A lot has happened since I last posted. It has been much longer than I anticipated. My life became busy: I was promoted at my job, my employer went out of business, I had to start over with a new company, a global illness came and went, and I went…