Archive for the ‘Active Trading’ Category
Share Quotes News: Stocks trade flat after mixed economic reports
Tim Paradis and Ieva M. Augstums, AP Business Writers, On
Friday March 12, 2010, 10:35 am
NEW YORK (AP) — Stocks traded in a tight range Friday after mixed reports on retail sales and business inventories gave investors little new insight into the economy.
Stocks had been higher at the start of trading Friday after a surprising increase in February retail sales. But investors were displeased with the Commerce Department’s report that inventories were unchanged, since economists had forecast an increase. Economists are hoping that businesses will restock store shelves on a sustained basis and give the economy a lift.
The Commerce Department said retail sales rose 0.3 percent last month. Analysts had expected sales to drop.
In midmorning trading, the Dow Jones industrial average rose 3.33, or less than 0.1 percent, to 10,615.17. The broader Standard & Poor’s 500 index fell 2.56, or 0.2 percent, to 1,147.68, and the Nasdaq composite index fell 8.75, or 0.4 percent, to 2,359.71.
Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was unchanged at 3.73 percent.
Crude oil rose 1 cent to $82.12 per barrel on the New York Mercantile Exchange.
With Less Trading Big Profit
While many people still prefer the “fire and forget” nature of investing in mutual funds, more and more people are rediscovering the excitement and benefits of trading individual stocks. No doubt, this has been aided by the growth of online trading, cheap commissions and a realization that many high-paid advisors and Wall Street research departments consistently fail to outperform low-cost mutual fund strategies.
But with investors’ new found status as managers of their own portfolios comes a dangerous temptation – overtrading. In fact, overtrading can represent a far greater risk to a portfolio than mediocre stock selection or a bad market. Time and time again, undisciplined and hyperactive investors run their portfolios into the ground by increasing their costs, decreasing their tax benefits, and missing the natural action of the stock markets. Getting a grip on how often they pull the trigger is crucial in keeping their portfolio moving in the positive direction. (Learn more inMeasure Your Portfolio’s Performance.)
How Heavy Trading Cuts Profits
