The big market swings in the U.S stock indexes recently are similar to a roll-a-coaster ride. Climbs a little, drops a little, then a huge climb followed by a sudden elevator drop. You get the gist. This is called Market Volatility.
All the 3 indexes have seen a fair share of the gain only to give it away very rapidly and then regain some back. This rapid market swings sometimes shakes investors off causing them to take steps they otherwise would not have taken. For example, some might sell existing stock holdings thinking the market is going to go down more. Some might buy new stock to add to their portfolio or buy more of existing stocks they own to dollar cost average the price.
Why is this happening?
I’ve owned Yandex (YNDX) in my personal and IRA portfolio for quite some time. Due the current situation in Russia the stock has taken a beating but overall the company fundamentals and business model remains strong. After all they are “google” of Russia.
Simple Investing Summary: Nasdaq has caught up with indexes in terms of making new highs. Technology and Healthcare sectors are propelling Nasdaq higher.
The other day Nasdaq closed above 5000. This is big psychological number and has a lot to say about the current stock market and the underlying economic fundamentals. It was 15 years ago on March 10, 2000 when Nasdaq reached an all-time high of 5048. Does this level conjure memory of the tech bubble from that era? There were technology businesses sprouting all around the silicon valley by the dozen every day and going IPO at the fastest pace. Young entrepreneurs shot up to the millionaires status overnight and just as fast lost everything like a roll coaster ride. It wasn’t at Six Flags or any Disney park – it was the dot-com bubble. Continue reading
Simple Investing Summary: Reconnecting with friends might help rejuvenate your life. Have a little fun and enjoy!
A friend from my college days was in town over the weekend to attend some business meetings. I did my masters in computer science with this guy so we’ve spent a lot of time together during our college days several years ago. Over the number of years, we lost touch but we knew that we could always get back in touch through other common friends if we wanted. Time just went by so quickly and we took it for granted. Hindsight is always 20-20. Lesson learned – reconnect with friends, especially the once you were close to once upon a time.
Well, it was just phenomenally great meeting him after all these years. He looked the same and I learned I hadn’t changed either. It’s just that we both had celebrated 12 more birthdays in the years gone by. Two other friends also joined for dinner and drinks that evening. Continue reading
Simple Investing Summary: your goals set you apart from the crowd. Goal setting could be difficult at first but once you start down that path you won’t stop. Trust me!
“an idea is just a DREAM until you write it down…THEN it’s a goal”.
I had an idea of simplifying investing. I started this blog to channel my thoughts and ideas into written word to solidify my goals. If you benefit from this, even better. I’m looking forward to hearing what your goals are and what you are doing to accomplish them. Best wishes in your quest for prosperity. You will be successful, putting pen-to-paper and writing it gets you started.
Your Dream + Action Steps + Target Dates = GOAL
Action plan for setting and achieving your goals: Continue reading
Simple Investing Summary: learning through paper money is important but don’t always expect the same results in funded account with real money.
Investing in the market with paper money a.k.a simulated accounts, the performance is phenomenally different than with real money. Real money meaning money with which you can buy things, pay rent, travel, and more.
I’m a fan and proponent of getting a new investor/trader started with a simulated account first for a few months. This allows them the opportunity the learn about the markets, trading system to place orders, reactions to company announcements and news, etc. Continue reading
Simple Investing Summary: select a name very carefully. It can potentially help propel and shine more light on a new beginning.
What’s in the name? It’s very simple – a lot.
Name of business should say everything about it. There has to be some reason why a business was named the way it is. If someone is unable to tell a convincing story behind the name, I would be hesitant doing any business there.
For an online blog like this the name is even more important. People remember names and associate business, place, things, person, etc. with a name that is easy to remember and catchy. Continue reading
Simple Investing Summary: volume provides an additional dimension in selecting investing opportunities. Price and volume should always be considered simultaneously when making investment/trading decisions.
Volume is that total number of shares, contracts (Futures), etc. that is traded (bought or sold) in the market. There are four price levels for analysis on the chart: open, high, low and close. Volume provides an additional perspective for the analysis. Combine these five values over time different frames (5 minute, 15, minutes, Hourly, etc, Daily, Weekly, etc) and one get a somewhat full picture of what is happening with the stock or whatever you are trading. Continue reading
The beginning is hard sometimes, but it’s required to move forward. Without starting an endeavor or anything for that matter, how can anyone accomplish anything? With this post, I claim my “beginning” of a new journey to build a meaningful platform to share and learn.
I’ve started several projects with varied level of complexity and challenges and have seen about 30% of them through completion. There were beginnings and ends for these projects. Remaining 70% of the projects/ideas were left incomplete because I failed in a few of them or there wasn’t enough benefit in pursuing them. Continue reading