Investing Education

Investing in Microeconomics or in Macroeconomics?

Most economists, believe different methods are needed for studying individual markets versus the whole economy.

Even though most economists agree on the basics of microeconomic analysis, the field of macroeconomics grew out of dissatisfaction with perceived limitations in the predicted outcomes from microeconomics.

Investing in Microeconomics

There is no widespread agreement on the conclusions drawn from macroeconomic studies.

Therefore, it is not shorthand for microeconomic truths.

It is not clear if investors need macroeconomics to make good decisions.

An economy is an extremely complex and dynamic system therefore, it is very difficult to identify real signals in macroeconomics because the “data is noisy”.

Macroeconomists frequently disagree about how to measure effectiveness or how to make predictions and makes it easy for investors to draw incorrect conclusions or even adopt contradictory indicators.

Investors should study basic economics, though the limitations of the field present ample opportunities to be led astray.

Economists often present information in a definitive manner to sound authoritative or scientific, but most economists make poor predictions.

Investing in Macroeconomics

However, this does not prevent them from making more bold proclamations, each about topics with a lot of uncertainty.

Investors should demonstrate more humility, and this is where microeconomics can really help.

It is not useful to try to predict where the indexes will be in 12 months or what the inflation rate will be at that time.

But investors can try to find companies with products that demonstrate a low price elasticity of demand, or identify which industries are most reliant on i.e low oil prices or require high capital expenditures to survive.

Microeconomics can help identify, which companies are most likely to use their resources efficiently and generate higher returns, and the tools of analysis are easy to understand.

Macroeconomics may be more ambitious, but so far it has a much worse track record.


Utility is a term introduced by Daniel Bernoulli (Swiss mathematician and physicist, 1700 - 1782) referring to the total satisfaction received from consuming a good or service.

Economists operate under the assumption

The economic utility of a good or service is important to understand because it will directly influence the demand, and therefore price, of that good or service.

A consumer's utility is hard to measure, however, but it can be determined indirectly with consumer behavior theories, which assume that consumers will strive to maximize their utility.

Economists operate under the assumption that all utilities can be measured as a hard number.

To help with this quantitative measurement of satisfaction, the designation of a util was created to represent the amount of psychological satisfaction a specific good or service generates, for a subset of people in various situations.

If, for example, an individual judges that a piece of ham will yield 20 utils and that a piece of cheese will yield 25 utils, that individual will know that consuming the cheese will be more satisfying.

Utility is a term

For the producers of ham and cheese, knowing that the average piece of cheese will yield 5 additional utils will help them price cheese slightly higher than ham.

Additionally, utils can decrease as the number of products or services as consumption increases.

The first piece of ham may yield 20 utils, but as more ham is consumed, the utils may decrease as people become full.

Therefore, consumers can understand how to maximize their utility by allocating their money between multiple types of goods and services as well as help companies understand how to structure their pricing. 

Investing and Investment Education and Tutorial

The Stock Market Guide
to Profitable Investments

With a staggering number of stocks posting tremendous gains and or losses in the past forty years, it was extremely easy to be able to make or lose a fortune with your investments.

Of course, throw in many deep dives here and certain really "short haircuts" there, and the next thing you immediately discover is that...

Your convictions are severely shaken and... Stirred!

Learn how to Build Your Wealth

If you were wondering if the party was over and you missed it, think again. Its time for a serious, profitable perspective that only comes from knowledge and our investing education tutorial is here to help you get your chance at wealth building.

"Any man is liable to err,
only a fool persists in error!"
Marcus Tullius Cicero (106 - 43 BC)

Think this over: Pockets change... Suckers change... Stocks change...

But stock markets never change. Never change, because human nature and basic economic principles...

Never... Never... Never change!

* * * CONTENTS * * *

The contents of our investing education tutorial are constantly updated and new topics are always added. Keep on visiting! 

investor education 1111 1. Preface

  1. Money
  2. Acknowledgments
  3. Introduction
  4. Preface
  5. The Decision Is Yours!
  6. Your Constant Companion

investing tutorial 1357 2. Prologue

  1. The 10 + 4 ... Golden Commandments!
  2. Improve Your Finances
  3. Develop Your Own Investment Plan
  4. The Ways to Make Money
  5. Investing? Think Carefully!
  6. Buy Low and Sell High
  7. Deadly Financial Mistakes
  8. Money Mistakes
  9. Know Yourself
  10. Financial Freedom
  11. Investing Human Nature and 2000 Years
  12. Stock Market Ups and Downs
  13. Investing Myths

investing stock market education 3. Preliminary

  1. Understanding and Controlling Your Finances
  2. Evaluate Your Financial Situation
  3. Your personal Financial Statements
  4. Steps to Financial Freedom
  5. Economics
  6. Economic Indicators
  7. Fundamentals of Economics
  8. Financial Economics
  9. Capitalism
  10. Celebrate Capitalism
  11. Capitalism, Life and Death
  12. Macroeconomics
  13. Microeconomics
  14. Socialism
  15. Communism
  16. Communism vs Socialism
  17. Scarcity
  18. Understand Your Assets
  19. Capital Gains
  20. Budgeting
  21. Saving Versus Investing
  22. Investment Philosophy
  23. Interest Rates
  24. Interest Rates and the Stock Market 
  25. Buy Now ... Pay Later?
  26. The Best Investment!
  27. Pay Your Debts
  28. Manage Your Debts
  29. Cash or Credit?
  30. Taxes, Real Estate and Loans
  31. Banks
  32. Bank Checks
  33. The Stock Market
  34. The Index
  35. Yield
  36. The Age Percentage Formula
  37. Understand what You Buy
  38. My Millionaire!
  39. Money and Ethics
  40. The Richest Man in Babylon
  41. Analysis and Recommendations
  42. Stock Market Investments
  43. Bitcoin
  44. 10 Easy Steps to Save Money
  45. Strategies for Investing in Real Estate

investing stock market education 4. Elementary

  1. Who Can You Trust?
  2. Do's and Dont's for Protecting the Investor
  3. Paying for Advice?
  4. Investing Advice and Riding the Tide
  5. Advice on Taking Advice
  6. Selecting Your Advisor
  7. Why Use a Financial Advisor?
  8. Selecting an Online Broker
  9. Robo-Advisor 
  10. Reports, Analysis and Objectivity
  11. The Investor's Bill of Rights
  12. Your Investing and Savings Tools
  13. The Odds Are in Your Favor
  14. Casino Chips?
  15. The Internet as an Investment Tool
  16. Know Your History
  17. Realistic Expectations
  18. Investigate before You Invest
  19. Online Trading
  20. Securities Fraud
  21. Internet Fraud
  22. e-Mail Fraud
  23. Pyramids
  24. Affinity Investment Fraud
  25. Nine Ways to Avoid Fraud
  26. Retirement Fraud
  27. Microcap Stocks
  28. Economic Pornography
  29. Investing
  30. Growth, Yield and Income
  31. Investing Is a Business
  32. What Should Young People Invest in?
  33. Advice for New Investors
  34. Teaching Children about Money
  35. Women and Investing
  36. Afraid to Start Investing?
  37. Starting Early
  38. Low Capital to Start with?
  39. Seniors and Investments
  40. Taxes and Investments
  41. What Is Stock?
  42. Preferred Stock
  43. The Stock Market - How it Works
  44. Buying Stocks
  45. How to Buy Stocks
  46. Tracking Stocks
  47. Blue Chips
  48. Bulls and Bears
  49. The 8th Wonder
  50. The Power of Compounding
  51. Psychology of Investing
  52. Well Managed Risks!
  53. The Most Difficult Decision!
  54. The Investor Pact!
  55. How to Find a Stockbroker
  56. Stock Brokers Commissions
  57. When a Broker Calls You
  58. Brokers, Dealers, Traders...
  59. Types of Stock Brokerage Firms
  60. Bonds
  61. Government Bonds
  62. U.S. Treasury Securities
  63. Mutual Funds
  64. Benefits of Mutual Funds
  65. Closed-End Funds
  66. Types of Mutual Funds
  67. Index Mutual Funds
  68. Selecting Mutual Funds
  69. Pooled Investment Vehicle
  70. Annuities
  71. Socially Responsible Investing
  72. Aesop's Fables
  73. Are You a Lemming?
  74. Fundamentals of Economics 
  75. The Greater Fool Theory!
  76. Real Estate Investments
  77. Things to Consider Before Your Retirement
  78. Retirement Portfolio
  79. Retirement Investing
  80. Investing and Saving for Retirement
  81. Rolling Your 401k
  82. 401k Debit Cards
  83. The Five Investing Essential Truths
  84. Stock Market Ups and Downs
  85. Money Management
  86. When Not to Invest
  87. Overpriced Stocks

investing education 12345 5. Intermediary

  1. Investment Properties
  2. Investing and Savings Tools
  3. Pessimistic Vs Optimistic Attitudes
  4. Bearish Feelings
  5. What Motivates Investors
  6. Investing Emotions
  7. Can You Afford to Lose?
  8. When not to Invest
  9. Mistakes to Avoid
  10. Supply and Demand
  11. Stocks - Supply and Demand
  12. Economic Indicators
  13. Economic Terms
  14. Inflation
  15. Deflation
  16. Stagflation
  17. The Central Bank
  18. Central Banks and Monetary Policy
  19. The U.S. Federal Reserve
  20. Money Markets
  21. Money Market Funds
  22. Reactions to Economic News
  23. Defining Risk
  24. Types of Risk
  25. Managing Risks
  26. Risks Investing in Bonds
  27. Risks Versus Rewards
  28. The Right to Vote
  29. The Basics of Accounting
  30. The History of Accounting
  31. Cash Flow Statement
  32. Book Value
  33. Financial Statements
  34. Amortization
  35. Price/Earnings Ratio
  36. Price/Earnings to Growth Ratio
  37. The EBITDA Indicator
  38. Stock Ownership by Management
  39. The History of the S&P 500
  40. Diversification
  41. Splits
  42. Dividends
  43. Dividends and Earnings per Share
  44. Volume
  45. Oversimplification and the Mutual Funds
  46. Individual Stocks or Mutual Funds?
  47. Growth vs Dividend Mutual Funds
  48. Exchange Traded Funds
  49. Penny Stocks
  50. How to Invest in Bonds
  51. Bonds: Fundamental Investment Strategies
  52. Bonds and Gains
  53. Convertible Bonds
  54. Municipal Bonds
  55. Initial Public Offering - IPO
  56. The Worrisome Aspects of Investing
  57. Characteristics of Successful Investors
  58. Stock Markets and Turbulent Times
  59. The Frustrated Speculators
  60. Secular Stock Markets
  61. Investment Decisions
  62. Liquidity, Buyers and Sellers
  63. Your Stock Market Limits
  64. Buy and Sell Stocks... at Exactly the Wrong Time!
  65. Realistic Investing Expectations
  66. Investments and the Magic Number Seven
  67. Risk and Probability
  68. Safety and Income
  69. Stocks for Young Investors

investing stock market education 6. Advanced

  1. Panic
  2. Tips
  3. The Tulip Mania Bubble
  4. The Mississippi Bubble
  5. The South Sea Bubble
  6. The Florida Real Estate Bubble
  7. The European Sovereign Debt Crisis
  8. Ponzi Schemes
  9. The "New Era" of 1920 - 1929
  10. The Japanese Zaitech Bubble
  11. The Sub-Prime Loans
  12. Penny Stocks to Avoid
  13. Black Monday
  14. Stop Loss Orders
  15. Speculation
  16. Hedging
  17. Crash!
  18. The Fear of Regret and Greed
  19. Active Versus Passive Trading
  20. The Best Stock Pick
  21. Invest or Pay off Debts?
  22. Approaches to Investing
  23. The Warren Buffett Method of 12
  24. What's Your Style?
  25. Liquidity
  26. Keynesian Economics
  27. Supply-side Economics
  28. Utility
  29. Fundamental Analysis
  30. Stock Charting
  31. Candlestick Charts
  32. The Doji Pattern
  33. Technical Analysis Indicators
  34. Assumptions of Technical Analysis
  35. Moving Average
  36. Single Moving Average
  37. Bollinger Bands
  38. Portfolio Management
  39. Using a Stock Market and Portfolio Strategy
  40. Correlation
  41. The Optimal Portfolio
  42. Five Stock Trading Principles
  43. Investing and Anchoring
  44. Investment Portfolio Mistakes
  45. Dogs of the Dow
  46. Cost Averaging
  47. Asset Allocation
  48. The Difference between Capitals Gains and Investment Income
  49. Hold May not Be the Best Strategy
  50. Hold for the Long Term
  51. Take Part of Your Profits
  52. Lose More than 8% on any Stock?
  53. Learn to Lose!
  54. Losers and Trading
  55. Cut Your Losses Early
  56. True Top or True Bottom?
  57. Momentum Investing
  58. Scalp Trading
  59. Swing Trading
  60. Market Gap
  61. Buy the Dips!
  62. Indexation
  63. Three Stock Trader Types
  64. Value Investing
  65. Stock Buybacks
  66. Contrarian Investments
  67. George Soros' Principles
  68. Efficient Market Hypothesis
  69. The Dow Theory
  70. Borrowing Money to Buy Shares
  71. Margin Call
  72. Investments and Leverage
  73. The Short Sale of Stocks
  74. Investing Analysis Forms
  75. Learning from Your Mistakes
  76. Creative Accounting
  77. Automated Trading System
  78. Venture Capital
  79. Stock Fraud
  80. Your Investment Profile
  81. The Earnings Season
  82. Hard Times for Analysts
  83. The Changing World of Insurance
  84. Behavioral Finance
  85. Measuring Gross Domestic Product (GDP)
  86. Measuring Unemployment
  87. Measuring Inflation

investing stock market education 7. Post Graduate

  1. Investing in Microeconomics or in Macroeconomics?
  2. Hedge Funds
  3. Hedge Vs Mutual Funds
  4. Fund of Funds
  5. Life Style Funds
  6. Mutual Fund Scandals
  7. Index Funds versus Multi-Manager Funds
  8. Hedge Lending
  9. Alternatives to Share Trading
  10. Commodity Trading
  11. Structured Bonds
  12. CFDs - Contracts for Difference
  13. The Art of War
  14. Insider Trading
  15. The Chinese Wall
  16. Bad News and Falling Prices
  17. Accepting Your Losses
  18. The Mark-to-Market Accounting Rule
  19. Day Trading
  20. Levels of Stock Market Traders
  21. Day Trading Strategies
  22. 19 Trading Points
  23. Discipline and Trading
  24. Secrets of Trading
  25. The Day Trader's Aptitude Test!
  26. Trading Slang and Expressions
  27. Market Manipulation
  28. Market Analysis and Objectivity
  29. The Random Walk Theory
  30. The Beta Coefficient
  31. Pivot Points
  32. Trailing Stops
  33. The Breadth of Market Indicators
  34. Does Market Timing Work?
  35. It's Time, Not Timing
  36. My Predictions!
  37. The Size Effect
  38. The Circle of Competence
  39. The Estimates of the Future
  40. Bubbles!
  41. The Elliott Wave Principle
  42. Futures and Options
  43. Why You must Use Options?
  44. The Basics of Futures Trading
  45. Benefits of Trading Options
  46. Calls and Puts
  47. The Black-Scholes Option Pricing Formula
  48. Structured Products
  49. Bulls and Butterflies
  50. LEAPS
  51. CFDs - Contracts for Difference
  52. Pairs Trading
  53. The Minsky Moment
  54. Accounting Practices and Derivatives
  55. Credit Default Swaps (CDS)
  56. After-Hours Trading
  57. Viatical Settlements
  58. Real Estate Investment Trusts (REITs)
  59. American Depositary Receipts (ADR's)
  60. International Investments
  61. Monopolies, Oligopolies and Perfect Competition
  62. Investing in Art
  63. How to Invest in Gold
  64. The Different Ways You Can Invest into Gold
  65. Art as an Asset Class
  66. Forex
  67. How to Choose a Forex Broker
  68. Forex Fundamental Analysis
  69. Understanding Forex Quotes
  70. Forex Trading on Margin
  71. Trading Forex
  72. Trading Forex vs Equities
  73. Trading Forex vs Futures
  74. Carry Trade
  75. The Euro
  76. Money Laundering
  77. Irrational Exuberance
  78. Gambler's Fallacy in Investing

investing tutorial 1357 8. Epilogue

  1. One Piece of Final Advice
  2. The Stock Market Is Up or Down?
  3. Elections and the Stock Market
  4. Investing Chaos
  5. Investing Humility
  6. Propaganda
  7. Investing?
  8. Your New Year Checklist
  9. Weak or Stong Positions?
  10. Are Institutions Important?
  11. The More they Change ...
  12. The Old and the New Rules of Financial Security
  13. Persist!
  14. Predictions
  15. Beware of Predictions
  16. If ... The Wonders of Investing
  17. Predictions - Heads or Tails?
  18. Evaluating the Performance of Your Investments
  19. Can the Morons Ever Be Right?
  20. Freedom!

investing education 1011 9. Investment Terms

  1. A to C
  2. D to H
  3. I to O
  4. P to R
  5. S to Y
  6. Economic Terms
  7. Trading Slang
  8. Financial Acronyms

investing tutorial 1357 10. Forex Terms

  1. A to M
  2. N to W

investor education 1111 11. Bibliography

  1. Books
  2. WWW Sites

investor education 2222 12. Investing and Financial Humor

  1. Jokes and Humor
  2. Supply Demand and Prayer
  3. The Day Trader's Aptitude Test
  4. Murphy's Laws
  5. Investment Banker Turned Panhandler

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