The following excerpt on trading psychology is from Mastering The Currency Market, written by Jay Norris, Al Gaskill and Teresa Bell, and published by McGraw-Hill. There are many misconceptions about the type of people successful traders are. For example, are they creative mavericks with aggressive personalities? This is not altogether untrue but is the opposite…
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Last week we answered the question, what is a stock? This week, lets look at one of the biggest benefits of owning stocks; getting paid a dividend. So what are dividends? Dividends are a portion of a company’s earnings that are distributed to shareholders. Dividends are paid as a dollar amount per share, so if…
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Many Canadians are investing in stocks through mutual funds, possibly chosen by their advisor. Even if you don’t invest directly in stocks, it’s still important to know what a stock really is. Stocks represent individual shares in a company. When you buy a stock, you now own a fraction of that business. When the business…
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I’ve mentioned Questrade in other posts as my choice for an online discount brokerage. With a promo code for $50 in free trades (CanadianFinance) and trades only costing $4.95-9.95, it’s a great choice for those who want to keep their fees low, but especially for those who do not meet the minimum dollar balance or…
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The following excerpt about the 1929 stock market crash is from Understanding Wall Street, written by Jeffrey B. Little and Lucien Rhodes and published by McGraw-Hill. The “Roaring Twenties” came to a quiet halt on September 3, 1929. The steadily rising stock market, with its well-publicized gains, especially late in the decade, seemed to confirm…
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When the economic crisis first slammed the United States, many related it to a country specific problem. However, the crisis quickly spread around the world, finally hitting Canada in 2009. In fact, January and February of 2009 were terrible months for Canadians as more than 240,000 workers found themselves unemployed and Canadian households reported an…
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The following excerpt is from The Bond Book, written by Annette Thau and published by McGraw-Hill. The terms “real” rate and “nominal” rate are sometimes used to refer to rates of return on bonds. These terms represent a method of adjusting bond yields for the rate of inflation. The nominal rate measures the actual dollars…
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