My Dividend Investing
I recall filling those questionaires provided by financial advisors, asking whether I like more income investing or more growth investing. Initially, I didn’t really understand the question. I told the financial advisor, “you know, I just want to have good return. I don’t really care whether it’s from income investing or from growth investing.” She […]
Continue readingMaster Limited Partnership: A Great Dividend Saver
Master Limited Partnership or MLP is one of my favorite investments to replace bonds. Obviously, nothing is “safer” than bonds, but the deceiving safety is really a wealth erosion in disguise (through inflation). So what is MLP? MLPs are limited partnerships, but trades like all other stocks. Due to its partnership structure, an MLP usually […]
Continue readingOnline Brokerage Comparison
Before I tell you about my terrible experience with Scottrade, let me first compare several online brokerage firms in terms of commission costs: Ameritrade Izone: Best for active traders. $5 per trade, very cheap rate for option contract at $5 + $0.75 per contract. Scottrade: Best for casual traders and/or investors. $7 per trade. $0 […]
Continue readingHindenberg Omen
Hindenberg Omen is one of the rarest technical signals that can be generated from the stock market. This technical signal is specifically targeting to detect a substantial market correction or a market crash. Here is the definition of Hindenberg omen directly from wikipedia.org The traditional definition of a Hindenburg Omen has three criteria: That the […]
Continue readingKelly Criterion For Stock Trading Size
I’m sure some people know about Efficient Frontier, but I’m guessing that there are less investors that know about Kelly Criterion. So what is Kelly Criterion and who is Kelly? Kelly worked at AT&T, and published the original paper back in 1956. Its math is quite involved with communication and information theory, mostly dealing with […]
Continue readingLeverage: The Secret of Making Big Money
Have you wondered how some people get so incredibly rich? There is a saying: “you need money to make more money.” If you hear that from a poor person, it may sound a little sour-graped. But underlying it, there is probably some grain of salt, not well-understood by the person who says it, but a […]
Continue readingMy Hunting Trip For A Money Manager
A couple of years ago, with my idle cash piling up, and my time dwindling down for a newborn in my family, I decided that I wanted to give up the control of some of my money to someone else, and see how well it would turn out. Since I did and still do most […]
Continue readingInvest To Hedge For Inflation
According to the Efficient Market Hypothesis, the stocks are always fairly priced. Whatever information and news will be reflected by the stock price almost immediately. The current market capitalization of a given stock to the entire market is the best allocation percentage using all available news and information. This is the philosophy of the passive […]
Continue readingThe Silver ETF Is Here!
Finally SLV, the first silver ETF is here on April 28, 2006. No more needs of paying premium over CEF which at one point was trading more than 10% premium over its underlying asset. Despite its convenience and attractiveness as an easy way in investing in silver, it is after all a paper asset. Not […]
Continue readingHow I Earn Extra Return Without Risking My 401K Account
The annual 401k contribution limit is $15K in 2006 now. Every year I always contribute to the max allowed by the law. My company allows the worker to contribute up to 60% of the salary. 60% of my salary at about $100K is $60K, far exceeding over the $15K annual limit. At the first thought, […]
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