Rule #1 Finance Blog

How Are Stock Prices Determined?

How stock prices are determined can be a bit ambiguous to anyone not on the trading floor. As investors, though, it’s important to know why a stock is priced at what it is, and why it changes.  

So, I’m here to clear up the confusion. By the end of this, you will not only know how stock prices are determined but also how to pick stocks to buy and when to do so based on their price.

There’s one key thing I hope you get out of this: The price of a company’s stock does not always equal its value. 

Alright, the class is in session. Let’s begin.

What is a Stock Split?

What is a stock split and what does it mean for you?

Stock splits happen from time to time, so it’s important for us as investors to understand what they mean and how they might impact our investing decisions. 

Consider this a crash course to stock splits. Let’s begin.

How to Create an Investment Plan in 5 Steps

Setting budgets and milestones are great, but these efforts are futile if you don’t create an actual investment plan to help you stay on track. It’s one of the most critical steps to meeting your long-term financial goals.

Warren Buffett once said that “An idiot with a plan can beat a genius without a plan,” and this is especially true in investing.

That’s why today, I want to cover how to create an investment plan in 5 simple steps, so you can kickstart your journey and set yourself up for a financially secure future.

So, let’s get started.

Are Robo-Advisors a Good Idea?

Robo-advisors are one of the hottest topics in the financial advising business right now. 

People are beginning to warm up to the idea of having a computer algorithm manage their money in place of a financial advisor. 

And there are tons of different options out there like Robinhood and Betterment that are becoming increasingly popular – but will these services actually help you make smart investing decisions? 

Let’s break down how robo-advisors work to determine if it’s the best way to manage your financial portfolio.

5 Types of Investing Strategies: How to Pick the Right One for You

If you’re doing it right, investing in the stock market is much more than picking a few companies, buying a few shares, and hoping for the best.

Smart investors are those that are disciplined and have an investing strategy in place to help guide them as they go along with their investment choices.

Today, I am going to go over five of the most common investing strategies and how to pick the right one for you. After this quick read, you’ll be on your way to growing your wealth and achieving financial freedom.

Do Election Years Affect the Stock Market?

One question that always seems to come up in investing circles every four years is the relationship between an election year and the stock market.

Regardless of who is running, election years can have a big impact on the market’s performance – and given that this year’s election is taking place in the midst of a global pandemic, this is all the more true.

Below, we’ll cover everything you need to know about how to invest during election years in order to help you navigate these tricky times.

Should You Re-Evaluate Your Investments?

If you invest the Rule #1 way, you have probably made some pretty incredible investments. While you have done your due diligence to pick wonderful companies that you can hold onto for years, if not decades, you’d be remiss not to re-evaluate your investments from time to time.

My Biggest Stock Market Mistakes (And How to Avoid Them)

Over the years, I have been blessed with an incredible amount of investing success – so much so that I was able to turn my meager income as a river guide into an investing empire. However, even the most successful investors’ journies are still fraught with errors and investing mistakes, and my journey is certainly no exception.

Nevertheless, as painful as these investing mistakes were at the time, I have learned a lot from them and have used them to become a better investor.

Understanding Stock Market Volatility and How to Profit From It

Stock market volatility may sound scary, but it’s actually essential in order for Rule #1 investors to be successful. It’s the reason why there are opportunities to purchase great companies at great prices.

Today, I’ll get into exactly what is market volatility and why you shouldn’t be afraid of it.

How The Stock Market Affects the Economy

The stock market health is a good indicator of how the overall economy is doing, which is why it is often used interchangeably with the economy—but these two are not one and the same. To clear up the confusion, I’ll answer the question: how does the stock market affect the economy?