Stock Investing Advice

The Stock Investing Advice section of this website is comprised of links to a collection of pages related to, not surprisingly, investing in the stock market.

This is not a beginner's guide to investing or a tutorial on the nuts and bolts of investing in the stock market. While there may be some HOW to invest elements, much of what you'll find here is focused on the WHY of investing.

And the WHAT.

In fact, I believe that the concept of true investing is so misunderstood and so under appreciated, that much of what these pages (and much of the website, for that matter) is about is rescuing real investing from a chaotic, trading-centric world.

Although trading and investing are frequently used as synonyms, understand this: they are in no way interchangeable.

Am I really advocating investing over trading? I admit that this probably sounds a little strange coming from a website about option trading strategies. But I use options as a strategice investment, as a way to become a better investor, not a better trader.

In one way or another, most of the pages linked below here will address the following questions:

  • What is true investing?
  • Why is investing superior to trading?
  • What are the best ways to enhance investing?

Now onto the Stock Investing Advice - click on any of the links below to jump to the full page.

What Is Investing?

So what is investing? If you really want to understand the difference between what I consider true investing and what the mutual fund industry and mass media labels investing, you must recognize the crucial difference between investing for profit and investing for gain.


The Importance of Long Term Investing

One of the first pages I wrote when I first began this website back in May 2008 was this one about long term investing.

I think it's safe to say that most people have a short term mentality. But if you can escape the crowd and develop a long term perspective along with some self-directed investing skills, I'm convinced you'll be much more successful in the stock market than the vast majority of "participants" (can't exactly call them "investors" can we?).

Here's a profound insight - the longer your time horizon, the easier it is to make a lot of money investing.


Quality Investing

If I could only give one piece of stock investing advice, it would be this: obsessively focus on investing in only the highest quality companies you can identify.

If you do that, your only further concern is to make sure you don't overpay on your investments. You want to know how to succeed in the stock market? In a nutshell, that's it.


Value Investing and Options

There's no single or simple definition of value investing, but this page provides a good overview of value investing along with several examples of its different practitioners.

It also makes the case for promoting the use of option trading as a synthetic form of value investing.


Investing vs Trading

More stock investing advice: this piece goes into detail about "Why Successful Investing is Easier Than Trading."

Both traders and investors attempt to predict the future of something. Find out the differences and why investors have the much easier task.


What Constitutes Safe Investing?

All investing is safe investing. At least that's the intention at the outset. After all, no one invests in order to lose money.

But the question arises: Can you be both a risk-averse investor AND a successful investor?

In the end, it all depends on your definition of "safe."



High Return Investments (50% Annual Returns?)

Is it possible to generate 50% returns each year? What strategies could produce such returns? And do you even need 50% annual returns in the first place?



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