Over the last fifteen years, the use of exchange-traded funds has rapidly grown in popularity. Now there is a vast selection of ETFs available to choose from. Traders and investors can find an ETF related to just about any sector or industry. This has caused many millennials and veteran investors alike to dump stocks and …
Investing
Why Market Cap Is More Important Than Stock Price
Investors usually struggle to grasp the complicated dynamics that determine the value of stocks. It’s common for new traders to buy stocks based on share price without considering market capitalization. The stock price is the most quoted number shown in financial news and brokers. But the dollar price of a stock doesn’t mean much unless …
How to Start Trading Stocks
Has the stock market piqued your interest, and now you want to start trading stocks? Maybe your friends have shown off some of their profits, and you want in? Whatever the reason, you will find trading to be an exhilarating and fun way to make some extra income. If you’re looking to successfully trade full-time, …
Robinhood vs Webull vs M1 Finance
It’s a great time to be a trader and investor. Fintech just keeps getting better, and now it’s never been easier to trade and invest in stocks. There are tons of different trading platforms available to choose from nowadays. Robinhood, Webull, and M1 Finance are some of the most popular newcomers. They’ve disrupted the brokerage world …
What Is the Importance of the P/E Ratio?
The P/E ratio, also known as the price to earnings ratio, is the method of valuing a company by dividing its share price by its earnings per share. It’s a standard way to determine if the market is overvaluing or undervaluing a company. You won’t need to calculate the price to earnings ratio yourself manually. …
Control Your Emotions While Trading
Prevent yourself from making costly mistakes by staying in control of your emotions while trading. “The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading.” Victor Sperandeo A proper psychological mindset is arguably one of the most important skills a trader can develop. …
Understanding the Book Value of an Asset
Book value, also known as “Shareholders Equity” is the difference between the company’s total assets minus all of its liabilities. Another term is intrinsic value. If a company were to sell every asset they have and pay off all their debts, the amount left over is the book value. The “Explain Like I’m Five” version …