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Speculation can be fun. But investing is not supposed to be fun. Wise investors saw it for what it is: a temporary price adjustment based on nonfundamental factors. Some people like to keep a small portion of their money in cash for exactly this kind of speculative event. Speculation is fun. It's why a lot of people love investing, and if you speculate with only money you can afford to lose, events like these can be exciting and sometimes profitable. If you are new to investing and don't understand the difference between fundamental value and market price, this is not for you. If you are considering putting money on the line that you need for your present or future security: stop, breathe, and walk away. Just like you wouldn't take your rent money to Las Vegas, don't put your life savings on the line trying to guess what the herd will do next. If you can't afford to be wrong, don't make the bet. And certainly not with money you cannot afford to lose. *Bore...

*What Are Alpha And Beta In Investing?* As their names would imply, alpha and beta are fundamental terms in the investing world. In its most popular understanding, alpha represents the excess return on a particular investment—a stock, mutual fund or exchange-traded fund—over a relevant index. In other words, if an investor has managed to outperform a certain index, such as the S&P 500, it is said he or she has achieved "alpha." Beta, by contrast, measures an asset's historic volatility relative to a market benchmark, such as the S&P 500, which has an alpha and a beta of 1.0 because it is considered to be a proxy for the overall stock market. If a stock or fund's beta is 2, for example, that means that it has historically been twice as volatile as the benchmark index, while a beta below 1.0 would indicate that is less volatile than the market. The simplest way to differentiate between alpha and beta is to remember that alpha measures relative ...

Many traders investing in the futures market end up losing money on the futures market and options market. The most common error they make is that they’re not evaluating the open interest. Open Value is one of the key criteria in futures market trading. If we begin to evaluate open interest in volume and price, the traders will have a high likelihood of success in their trades and will also improve their profitability in the futures and options market. Understanding Open Interest with respect to Volume Open Interest is a particular statistical feature when trading in the market of futures and options. Open Value is the total number of contracts currently in existence and is not offset by transactions being terminated. Open Value varies from volume. Volume is the number of contracts which are traded daily. When you buy a future / option then you open a position and the person who sold you open a position, too. The volume increases by one, and open interest will rise by one as w...

Investors have many tools they can use to make stock market profits. One popular strategy is to purchase growth stock shares which are companies expected to grow their profits (or revenues) at a faster than average pace. Companies that can do so for an extended period of time appear to be rewarded with a higher share price, allowing their investors to gain substantial returns by appreciating the capital. Keep in mind: potential high-growth companies come with both reward and risk, so it’s important to know the fundamentals of what growth investment entails, its costs, and how to mitigate them before a growth investment strategy begins. But when you’re ready, in what way will investors consider growth stocks to invest? Here are a few tools I use to classify companies about to take off. What is a growth stock? A growth stock is a corporation whose profits (or revenues) are expected to increase at a much faster rate than the average business in its sector or the market in gene...