Do 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 […]
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Analysts 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 […]
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In 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 […]
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You 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 […]
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The 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 […]
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Can 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). […]
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People 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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You’ll find plenty of information about the dynamics of options and how to use them to make money in the options market. Almost no one discusses how to trade them, however. While it isn’t difficult to trade options, there are some nuances that you should take into to consideration. Options trade much like stocks do. You […]
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If someone came to your door and told you a local business is for sale, would you buy it without hesitation? Probably not. You would first check out the business. Even if you have been a customer of the business, you would want to know more about the operation, how profitable it is, and a […]
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