EDU Articles

Learn about investing, trading, retirement, banking, personal finance and more.

Ad is loading...
Help CenterFind Your WayBuy/Sell Daily ProductsIntraday ProductsFAQ
Expert's OpinionsWeekly ReportsBest StocksInvestingTradingCryptoArtificial Intelligence
IntroductionMarket AbbreviationsStock Market StatisticsThinking about Your Financial FutureSearch for AdvisorsFinancial CalculatorsFinancial MediaFederal Agencies and Programs
Investment PortfoliosModern Portfolio TheoriesInvestment StrategyPractical Portfolio Management InfoDiversificationRatingsActivities AbroadTrading Markets
Investment Terminology and InstrumentsBasicsInvestment TerminologyTrading 1 on 1BondsMutual FundsExchange Traded Funds (ETF)StocksAnnuities
Technical Analysis and TradingAnalysis BasicsTechnical IndicatorsTrading ModelsPatternsTrading OptionsTrading ForexTrading CommoditiesSpeculative Investments
Cryptocurrencies and BlockchainBlockchainBitcoinEthereumLitecoinRippleTaxes and Regulation
RetirementSocial Security BenefitsLong-Term Care InsuranceGeneral Retirement InfoHealth InsuranceMedicare and MedicaidLife InsuranceWills and Trusts
Retirement Accounts401(k) and 403(b) PlansIndividual Retirement Accounts (IRA)SEP and SIMPLE IRAsKeogh PlansMoney Purchase/Profit Sharing PlansSelf-Employed 401(k)s and 457sPension Plan RulesCash-Balance PlansThrift Savings Plans and 529 Plans and ESA
Personal FinancePersonal BankingPersonal DebtHome RelatedTax FormsSmall BusinessIncomeInvestmentsIRS Rules and PublicationsPersonal LifeMortgage
Corporate BasicsBasicsCorporate StructureCorporate FundamentalsCorporate DebtRisksEconomicsCorporate AccountingDividendsEarnings

What is investing?

The Essence of Investing

Investing is fundamentally about nurturing one's money with the aim of accumulating long-term wealth. At its core, investing is distinct from trading, as it carries a long-term horizon, often spanning years or even decades. Rather than just parking money in a savings account, investing leverages the power of compound interest and growth over time.

Key takeaway: Investing serves as a strategy for wealth accumulation and ensuring financial stability for the future.

The Mechanics of Investing

Investing is more than just hoping for the best and seeing where the market takes you. It's a systematic approach to growing your money. The process typically begins with buying an asset at a certain price, with the aspiration that its value will increase over time. This increase in value, known as appreciation, can be triggered by numerous factors:

  1. Stock Appreciation: When a company launches an innovative product that amplifies its sales, its revenue is likely to surge. This can subsequently enhance the company's stock value in the market.
  2. Bond Appreciation: Let's say a corporate bond you own yields a 5% annual interest. Later, the same company issued new bonds with a 4% interest rate. Your bond suddenly becomes more attractive to investors because it offers a higher yield.
  3. Commodities: A commodity such as gold might appreciate due to macroeconomic factors. For instance, if the U.S. Dollar depreciates, it might drive up the demand and price of gold.
  4. Real Estate: Properties, like homes or condos, can gain in value due to several reasons. It could be renovations, improvements in the neighborhood, or rising demand in the region.

Yet, the investment journey doesn't stop at appreciation. There's an alternate approach called income investing. Here, rather than aiming for capital gains by selling, investors hold onto assets that churn out income over the duration of their holding. A classic example is dividend-paying stocks. Instead of frequent buying and selling, investors retain these stocks and earn from the dividends they distribute.

Key takeaway: Investing isn't just about buying low and selling high. It's also about accumulating assets that offer regular income, creating multiple avenues for financial growth.

Diversifying with Different Investment Types

Investment options are vast, allowing investors to diversify their portfolios. The primary asset classes include:

  1. Stocks: Essentially, when you buy shares of a company, you're acquiring a piece of that company. It allows you to partake in the company's successes (and sometimes, unfortunately, its failures). Additionally, certain stocks distribute dividends, offering an added stream of income.
  2. Bonds: These are debt securities where you essentially lend money to the issuer (like a corporation or government) in return for periodic interest payments plus the return of the bond's face value when it matures.
  3. Commodities: Tangible goods like gold, oil, and grains. Their prices can be influenced by global economic and political factors.
  4. Real Estate: Investing in physical properties, be it residential, commercial, or land.

Beyond these, there are investment funds like mutual funds and ETFs. These funds amalgamate different combinations of the primary assets. Investing in these means you're spreading your money across a multitude of individual assets, thus diversifying your investment.

Key takeaway:
Diversification is paramount in investing. By spreading investments across various assets, investors can aim for growth while potentially reducing the impact of poor-performing investments on their overall portfolio.

Investing is a dynamic and multifaceted journey. It offers opportunities for wealth creation through appreciation and steady income. By understanding the mechanics and diversifying effectively, one can navigate the investment landscape with confidence and foresight.
 

Tickeron's Offerings

The fundamental premise of technical analysis lies in identifying recurring price patterns and trends, which can then be used to forecast the course of upcoming market trends. Our journey commenced with the development of AI-based Engines, such as the Pattern Search EngineReal-Time Patterns, and the Trend Prediction Engine, which empower us to conduct a comprehensive analysis of market trends. We have delved into nearly all established methodologies, including price patterns, trend indicators, oscillators, and many more, by leveraging neural networks and deep historical backtests. As a consequence, we've been able to accumulate a suite of trading algorithms that collaboratively allow our AI Robots to effectively pinpoint pivotal moments of shifts in market trends.

Ad is loading...