Best of the AAII Journal

My favorite articles are listed below. In hand-picking the commentaries for this list, I sought out a mix of articles that covered various aspects of investing strategies and portfolio management.

Beginning Investor

The Many Ways to Place a Buy or Sell Order

- by Jaclyn McClellan

Whether you instruct your broker to go long or short, use a market or limit order, or employ a stop all impacts how your orders are filled.
 

BEHAVIORAL FINANCE

Driving Emotions From Your Investment Process: A 12-Step Program

- by Thomas Howard

These 12 steps, which include forgetting the price paid for an investment, can drive emotions out of your investment decision process.
 

BONDS

Liquidity: The Hidden Risk in the Municipal Market

- by Nicholos Venditti

Relatively low liquidity with infrequent trading activity for many muni bonds places an importance on portfolio structure and credit quality.
 

FINANCIAL PLANNING

Retirement Planning: Focus First on Covering Fixed Expenses

- by Michael Falk

Once all fixed costs have been immunized, withdrawal rates no longer matter as any additional retirement assets can be used for discretionary spending.
 

FINANCIAL STATEMENTS ANALYSIS

Valuing a Company Based on Its Revenues

- by Charles Rotblut, CFA

The price-to-sales ratio is considered to be one of the “cleanest” valuation multiples; it is also more tied to profit margin than you may realize.
 

FIRST CUT

Patrick O’Shaughnessy’s Millennial Investor Strategy

- by Charles Rotblut, CFA

The 25 best-ranking stocks identified by Patrick O’Shaughnessy’s strategy.
 

MUTUAL FUNDS & EXCHANGE-TRADED FUNDS

An Inside Look at Exchange-Traded Funds

- by Rochelle Antoniewicz and Jane Heinrichs

ETFs, like mutual funds, are pooled investments, but two primary features promote trading of an ETF’s price close to its underlying value.
 

PORTFOLIO STRATEGIES

Choosing the Right Portfolio Allocation Approach for You

- by Charles Rotblut, CFA

This overview of six common asset allocation approaches will help you determine which method will work best for your portfolio.
 

STOCK STRATEGIES

Investment Wisdom From Wall Street’s Legends

- by Frederik Vanhaverbeke

Successful investors seek out undervalued stocks, and often ones that have negative sentiment, reflect special situations or are covered by few analysts.
 

TRADING STRATEGIES

“Market Wizards” Advice: Doing the Uncomfortable Thing

- by Jack Schwager

Basing trading decisions on what feels emotionally satisfying often leads to the worst portfolio performance.