Trading lesson – Sep-20-2019

The bond market (also debt market or credit market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market. This is usually in the form of bonds, but it may include notes, bills, and so on. Its primary goal is to provide long-term funding for public and private expenditures.

Investment companies allow individual investors the ability to participate in the bond markets through bond funds, closed-end funds, and unit investment trusts. Exchange-traded funds are another alternative to trading or investing directly in a bond issue. These securities allow individual investors the ability to overcome large initial and incremental trading sizes.

There are several bond ETF shares available for active investors and traders. There are long ETFs, short ETFs and also leveraged ETF shares tracking fixed income products. All these shares offer good opportunities to participate in the fixed income market.

Read the bond ETF list with short fixed income ETFs.

Trading lesson – Sep-13-2019

Stock screeners are important tools for a technical trader. The best market screeners are based on simple rules formulated on technical analysis. You can use also parameters of fundamental analysis for parameters of your market screeners.

Fundamentally based best stock screeners are used mostly for longer-term investments. The profit, the growth, and the undervaluation are the most important values as they are based on a logic that each of these values could confirm the future rise of the share price for any company.

Probably the most popular idea of how to check company profits is the price-earnings ratio. The price-earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company’s stock price to the company’s earnings per share. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued. The best stock screeners include such a value as well.

Check out my tip for fundamentally based best stock screeners.

Trading lesson – Sep-06-2019

ETFs generally provide easy diversification, low expense ratios, and tax efficiency of index funds, while still maintaining all the features of ordinary stock, such as limit orders, short selling, and options. Because ETFs can be economically acquired, held, and disposed of, some investors invest in ETF shares as a long-term investment for asset allocation purposes, while other investors trade ETF shares frequently to hedge risk over short periods or implement market timing investment strategies.

Active investors often look for best ETFs that could be used in some dividend based or high-yield based stock investment strategy. Stock dividends are those paid out in the form of additional stock shares of the issuing corporation, or another corporation. A high dividend yield indicates the undervaluation of the stock because the stock’s dividend is high relative to the stock price, particularly sought after by income and value investors. High-yield stocks tend to outperform low yield and no yield stocks during bear markets because many investors consider dividend-paying stocks to be less risky. Several stock indexes are based on high-yield stocks, such as Dow Jones U.S. Select Dividend Index and FTSE High Dividend Yield Index.

The ability to find the best stocks to invest in or the best ETFs that could provide good dividend income will play an important role in any strategy for stock investing. Find out the best ETFs for dividend and high yield.