Investing savvy to invest savvily

Positive investing results can be achieved in many different ways, but having a solid understanding of an opportunity and all of the various factors that influence it will improve results, even if, such as in the case of technical investing, the strategy does not involve consideration of fundamentals (understanding that an issuer faces imminent bankruptcy, for example).

Doubling the value of your investments every six years

Investment performance is closely linked to time of holding, with truly astronomical gains being possible over time given excellent and consistent returns. Thus, an 18-year old investor committing only $1,000 to a one-time investment that consistently doubles every three years will have $65,536,000 by age 66.

Investor enthusiasm about corporate announcements

Many investors, and particularly those who favour micro caps, are unduly emotional about the investing process, and often fail to apply an appropriate level of analysis to the situation.

Understanding the investing industry #6 (the bid and ask)

We communicated earlier today with a relatively inexperienced investor, who had questions about market activity.  Since our responses may be of interest to others, we reproduce them here for themoneynarrative readers:

Understanding the investing industry #5 (market data feed)

Many self-directed investors are confused (frustrated, angry …) from time to time when they place an order based upon the price and quantity data on their screen, only to see a result that doesn’t match their expectations.

Trading on news

Rare earth plays like Avalon Advanced Materials (AVL.TO) have been a nice double in two trading sessions on news from China that their dominance in this critical sector may be brought to bear in the ongoing trade dispute with the United States.