Author Archives: admin
Author Archives: admin
With the exception of a mortgage, you should get out of debt before investing. Loans types other than mortgages detract from your investing returns.Within this article, I will refer to debt as credit card debt, car loans, and personal loans. Because mortgage rates are low enough, it’s possible to carry a mortgage while investing, and […]
Continue readingHave you ever heard of the Plunge Protection Team? It was created as part of an executive order passed by President Ronald Reagan in March 1988. The official name of this executive order is the President’s Working Group on Financial Markets. Many believe its purpose is more insidious than the official intention of the group […]
Continue readingWhen you play sports, it’s likely that you will receive instructions from a coach. The subject of accounting is so complex, that it is probably wise to learn via a coach. Therefore, if you are asking do you need an accounting coach, the answer is yes, you do. Website: AccountingCoach.comOwner: Harold Averkamp CPA, MBACost: Three […]
Continue readingDo you know what opportunity cost means? How about the impact of opportunity cost? Is this something you should concern yourself with? The truth is if you don’t consider this concept, it could cost you significant amounts of missed opportunities.People avoid the concept of opportunity cost because it’s abstract. It’s not something that is published […]
Continue readingAnalysts love the Return on Equity (ROE) ratio and with good reason. A high ROE usually signifies a great company. Therefore, you may be tempted to use a stock screener and plug in a high number for the ROE and use the results as your list of companies to invest in.The problem is the ROE […]
Continue readingIn a previous article, I wrote about how the Quick Ratio works and how it can be used by investors. It has its uses, but it isn’t always effective in determining companies that are in trouble financially (which is one of its purposes). However, there is a subtle benefit of the Quick Ratio: it may […]
Continue readingYou and your spouse celebrate the fact that you’ll no longer have to shell out bucks every month for your mortgage payment. You’ve managed to pay it off early and good for you! That’s a big chunk of your expenses each and every month that you no longer have to pay. Suppose you learn that your […]
Continue readingThe quick ratio allows you to gauge whether a company can pay its bills in the short-term. In other words, if the company were up against the wall and had to pay their bills, can they do it immediately or would they have to rely on the liquidating longer-term assets?There are two ways to calculate […]
Continue readingCan You Do Without Using Greeks in Options?If you are new to the options trading world, you may not have heard about the Greeks. No, it’s not an invading army that is coming to steal your trading account. The Greeks are a series of indicators that help options traders assess their positions (or possible positions). […]
Continue readingPeople can make money by the boatload with options trading, and they do. Once you learn how to make money using options, you often don’t go back to trading the underlying outright. Why would you? The gains you make are well above the gains for stocks, all equal. It’s important to realize that many people lose […]
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