Use Stock Volume to Your Benefit

So how can you use volume to your advantage?1.  Remind yourself that traders only determine the short term price not the value.2.  Use the volume to help predict the right time to buy more assets or change into a better position.Large volume (relatively speaking) means the price is at a peak or valley.  You are either at the top or the bottom of the chart, you need to determine this.What is Stock Volume?SummaryIn this lesson, we learned the importance of stock volume. Although volume won’t help intelligent investors learn the intrinsic...

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Warren Buffett's Investment Objectives

Goals      Our long-term economic goal is to maximize the average annual rate of gain in intrinsic business value on a per-share basis.  We do not measure the economic significance or performance of Berkshire by its size; we measure by per-share progress.  We are certain that the rate of per-share progress will diminish in the future - a greatly enlarged capital base will see to that. We will be disappointed if our rate does not exceed that of the average large American corporation. 2.     Charlie...

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Uncertainty: Love it or Hate it?

Uncertainty is like a fin you see cutting through the water – many people are uncertain whether the fin sticking out of the water is a great white shark or a dolphin? Uncertainty generates fear, and fear often produces paralysis. This financially unproductive phenomenon has also reared its ugly fin in the investment world, which has led to low-yield apathy, and desensitization to both interest rate and inflation risks. The mass exodus out of stocks into bonds worked well for the very few that timed an early 2008 exit out of equities, but since...

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