How Long Does It Take to Develop an Investing Style? Someone who reads my articles asked me this question: Hey Geoff, How long did it take you to develop your own style? Tom I’m an odd case. I got started investing when I was 14. I first learned about value investing when my dad brought home an article about Ben Graham. There is a reason why I talk about things like comfort with a stock and Warren Buffett’s 20 punches. It’s not that I abstractly believe that investing like you get to make only 20 investment decisions for the rest of your life will work well. I was born in 1985. So, it’s not like I learned about stocks first and businesses second. When I was growing up, my mom was basically the second officer at a family-controlled company. I never thought about buying a stock purely because of its P/E ratio or tangible book value or PEG ratio or earnings growth or whatever because I hadn’t read any investing books and I hadn’t heard the only person I knew in business – my mom – ever use words like that. What did I know? · Activision (ATVI) · Like
Afraid to Trade.com Blog - Overcoming Stock Market Fears » Classic Gap Fade Tactic Works Again Just after noon Eastern, the major US indexes complete the 1, 2, 3, Gap Fade tactic, which has been working extremely well over the last few months. As a refresher, any time a gap occurs on (especially) the Dow Jones (or DIA) that is less than 100 points, the strategy that I find that works best is the following: Enter short (if it is – as in this case – an upwards gap) and play for the target of yesterday’s close (with a stop about 30 to 45 points above your entry)If the gap does fill (price returns to yesterday’s close) then flip your position and play for a retest of the gap opening price with a stop about 25 to 35 points below entry.Exit at the retest only of today’s gap open price Caveat, if your stop is hit on the initial gap-fade trade (or if price consolidates for over an hour or more) then flip your position and put on a larger position and play for a larger win (the underlying imbalance was so strong and is now expected to continue)
How to Know a Stock Is Cheap Enough to Buy Someone who reads my articles asked me this question : {*style:<i> <b>Micropac ( MPAD ) </b> sells at 83% of NCAV, has similar (slightly better) z- and f-scores, a FCF margin of 6%, but has ROA of 28%. </i>*} <b>ADDvantage ( AEY ) </b> sells at 95% of NCAV, has similar (in the ballpark) scores and FCF and ROA of 23%. There’s a great post over at Oddball Stocks called: “ A Stock is a Business ”. Here’s what Richard said in a post called “ Giving Up on Mastery of the Universe ”: So, if someone says simply, “At less than its book value, I’m comfortable buying DreamWorks. If you believe most decent businesses are worth at least 12 times earnings, you don’t have to drive yourself crazy trying to figure out whether Company A which is superior to Company B is a better buy at 11 times earnings than Company B is at 7 times earnings. Now, let’s look at net-nets. Yes. That leaves us with a pretty simple arbitrary rule. So… Yes. I’m not saying this because the cheapest net-nets are the worst. Good.
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Learn to Trade Forex (Currencies), Stocks, & CFDs | InformedTrades Optionetics - Your Investment Education and Options Trading Resource Value: The Third Factor Of Investing A stock's valuation is the final factor of the Fama-French three-factor model of investment returns. A stock's valuation is measured on a continuum from "value" to "growth." In broad strokes, value stocks are cheap and growth stocks are expensive. Consider a local utility company whose stock is selling for $10 a share. This company has a price per earnings (P/E) ratio of 10. In contrast, consider a technology startup company that has shown meteoric growth in the past three years. Investors might rightly decide that the growing technology company is worth more than the static regional utility. The P/E ratio is one common measurement used to place stocks on the value to growth continuum. Some measurements use the past four quarters of earnings, which is often called the trailing P/E ratio. Is this author on the ball? Follow and be the first to know when they publish. Follow Marotta on Money (111 followers) Investment advisor, portfolio strategy, long-term horizon
15 Stocks Ben Graham Would Like Benjamin Graham is widely regarded to be the founder of modern value investing. His greatest student, Warren Buffett, attributes much of his success to Graham’s teachings. Though Graham believed that much research is necessary and that no stock screening methodology is perfect, he did give us some guidelines on how to perform initial screening techniques to limit the number of investments that should be researched further. The following is a list of the attributes he suggests investors look for first. The italics represent our changes to his methodology based on the current market: 1. Intangible assets such as intellectual property, brand name recognition, and customer base, are not reflected in the price-to-book ratio, so we suggest a P/B of less than 1.5, rather than 1.2 that Graham discusses. Earnings thus should have grown around 3% per year. The current ratio represents the current assets divided the current liabilities. Everest Re Grp Lt. Nationwide Fin Sv (NYSE: NFS) Ashland Inc.
Latent Dirichlet allocation In natural language processing, latent Dirichlet allocation (LDA) is a generative model that allows sets of observations to be explained by unobserved groups that explain why some parts of the data are similar. For example, if observations are words collected into documents, it posits that each document is a mixture of a small number of topics and that each word's creation is attributable to one of the document's topics. LDA is an example of a topic model and was first presented as a graphical model for topic discovery by David Blei, Andrew Ng, and Michael Jordan in 2003.[1] Topics in LDA[edit] In LDA, each document may be viewed as a mixture of various topics. For example, an LDA model might have topics that can be classified as CAT_related and DOG_related. Each document is assumed to be characterized by a particular set of topics. Model[edit] With plate notation, the dependencies among the many variables can be captured concisely. is the topic distribution for document i, The 1. , where .
Virtual stock market | stock exchange game | investing simulation Information theory Overview[edit] The main concepts of information theory can be grasped by considering the most widespread means of human communication: language. Two important aspects of a concise language are as follows: First, the most common words (e.g., "a", "the", "I") should be shorter than less common words (e.g., "roundabout", "generation", "mediocre"), so that sentences will not be too long. Such a tradeoff in word length is analogous to data compression and is the essential aspect of source coding. Second, if part of a sentence is unheard or misheard due to noise — e.g., a passing car — the listener should still be able to glean the meaning of the underlying message. Such robustness is as essential for an electronic communication system as it is for a language; properly building such robustness into communications is done by channel coding. Note that these concerns have nothing to do with the importance of messages. Historical background[edit] With it came the ideas of This is justified because