Transaction Cost Meltdown

Imagine that you've just hit pay day and your budget looks great. You've got some funds left over for the month that you can use to invest with. In no time at all, you've uploaded those funds into your investing account and you're already scouring the market for a good deal. The problem however is that even though you may have a large amount of money to invest in stocks, you question whether or not you should buy some of stock A and some of stock B or if you should invest it all into stock A. We've then reached a turning point that will decide what kind of investor we will be. 

Mind Over Mr. Market

Mr. Market, the alter ego of the stock market that decides that some days he wants to move in a thoughtful and meaningful way and on other days crash, burn, and send hell raging through your portfolio. Regardless of what Mr. Market decides to do, it appears to control a certain part of many people's psyche in the wrong direction when he decides to go on his rampage. Due to this control, we need to learn to master our own minds so that we end up running the show rather than him controlling the scene.

What really drives our brains when Mr. Market shows up? There are a multitude of factors. The most important is that we're trained from a very young age that if something works, do more of it to make sure it still feels good. If on the other hand, you place your hand on a hot stove and it hurts, you immediately remember not to put your hand on the hot stove. It only takes once to remember to not place your hand on a

Aim for a Catalyst Stock

I believe that one of the most important things to do when looking for stock to invest in is to specifically try to eye the market for a catalyst stock. By this I mean to say that I watch and listen to the news and whenever I hear or read that a company that was once known and loved has suddenly come under fire for some reason or another, that's enough reason to start looking into the company as a potential investment. The human brain wants to lead you to believe otherwise and the media just eats it up. After all, at the core of everyone is a little beast that loves to start or watch drama unfold.

EPS - Earnings Per Share

Yes, EPS means Earnings Per Share but what does it really mean? EPS is the portion of the profit of a company that is assigned to the share of the company that you are looking into. Basically, it's another good indicator of whether or not the company you're interested in is profitable.

Price to Earnings Ratio - P/E

In my last article, I reviewed the method I use to pick stocks for the Cookie Jar portfolio. One of these items was using the P/E ratio as a factor to determine whether a stock is worthy. Today I want to dive in deeper into P/E ratios: what they are, how to use them, and all in all breaking them down.

My Method of Evaluation

I think the question that I get most from readers is what method of evaluation I use to choose the select stocks that I feel really fit the mold for the Cookie Jar portfolio. After all, it should be the most important question for any dividend growth investor. What really matters to me? What do I hate most and try to avoid?