Blue Chip
What is a Blue Chip? A blue chip is a stock of a well-established corporation with a reputation for reliability, quality, and financial stability. Blue chip stocks are usually the market leaders in their sectors and have a market capitalization running into billions of dollars. They are the most popular stocks to buy, due to...
Underweight Recommendation
What is an Underweight Recommendation? When a market analyst designates a stock or security as an underweight recommendation, he or she is stating their belief that the stock will likely underperform compared to some benchmark stock, security, or index. Therefore, investors should devote a smaller percentage of their investment portfolio to holdings in that stock....
Money Market
What is the Money Market? The money market is an organized exchange market where participants can lend and borrow short-term, high-quality debt securities with average maturities of one year or less. It enables governments, banks, and other large institutions to sell short-term securities to fund their short-term cash flow needs. Money markets also allow individual...
The Winning Mindset of a Trader
What is the Mindset of a Trader? Being a trader is not just about formulating better strategies and performing more extensive analysis, but is also about developing a winning mindset. According to many studies of traders, what separates a winning trader from a losing one: It’s NOT that winning traders formulate better trading strategies It’s...
Efficient Markets Hypothesis
What is the Efficient Markets Hypothesis? The Efficient Markets Hypothesis (EMH) is an investment theory primarily derived from concepts attributed to Eugene Fama’s research as detailed in his 1970 book, “Efficient Capital Markets: A Review of Theory and Empirical Work.” Fama put forth the basic idea that it is virtually impossible to consistently “beat the...
