If you're the type of investor who is into long-term investing and prefer a diverse portfolio, a mutual fund is a type of investment to look into.

A mutual fund is a company that gathers funds from many investors and invests the money in the stock market, bonds, money-market instruments, and other securities or assets. All of these holdings that the mutual fund owns is known as its portfolio. Each share represents an investor's proportionate ownership of the fund's holdings and the income those holdings generate.

Advantages and Disadvantages of Mutual Funds

MoneyInstructor.com does a pretty good job of listing the advantages and disadvantages of investing in mutual funds...Financial expert Rick Goldfeller also offers advice on investing in mutual funds...

I like the idea that when you invest in a mutual fund, you're not putting all of your money in one nest egg. Money gets spread out to various investment vehicles, thus minimizing the risk.

Investor Beware

Keep in mind that when you do invest in a mutual fund, you are giving your money to a money manager. As I've said time and time again, make sure to do your homework. Make that company earn your trust!

In the video below, the question is answered: Are mutual funds risky?

If you've ever wondered about all the intricacies and nuances of the stock market - in other words, the "chaos" of the stock market - you're not alone. There are so many angles and perspectives offered by financial analysts. When exactly is the right time buy a certain stock?

If you're like me and are more fascinated with how the stock market works versus making money, (Ok, I'm interested in making some money!) you may want to check out this blog, Carving the Chaotic Cow.

If you're wondering where the title of the blog came from, the author explains in the first post:

"...Looking at the market like a cow we'd like to convert to steak, but because of the chaotic aspects that shroud a lot of its behavior in impenetrable mystery, there are only certain cuts of its meat that can be reliably carved. Conventional wisdom says that the easiest profit opportunities are the least rewarding. Take it with a grain of salt for now, but I aim to explain in due course that the most profitable and reliable trades are in fact the easiest to identify and capitalize on..."

It's rare to come across a finance or investing-related blog that seeks to truly analyze why things happen the way they do in the stock market. In a blog world full of noise, Carving the Chaotic Cow is a refreshing read.

Earlier this week Time published an interview with Mary Ann Bartels, stock market technical analyst at Bank of America/Merrill Lynch regarding the current state of the stock market and gets her opinion on whether or not the stock market will go back down.

I've always thought of the stock market as unpredictable. What analysts say is pure speculation.

Mike over at The Oblivious Investor tells us why the stock market is unpredictable:

Of course, stock prices do change over time. In fact, they’re constantly changing. Why? Because people’s expectations for the underlying companies are in a permanent state of fluctuation. New information comes to light on a daily basis that either improves or worsens the outlook for the companies in which we’re investing.

What are your thoughts?

As I continue research on day trading, I'm learning that there are many different ways to do it. OEXOptions.com is a resource that I've been spending some time on...educating myself about the OEX, stock options, and the various options trading strategies..

For those of you who don't know, the OEX is the Standard & Poor's 100 - a stock index on the Chicago Board Options Exchange.

Options are contracts giving the purchaser the right to buy or sell a security, such as stocks, at a fixed price within a specific period of time. Stock options are traded on a number of exchanges, including:

* American Stock Exchange
* Boston Stock Exchange
* Chicago Board Options Exchange
* International Securities Exchange
* Pacific Exchange
* Philadelphia Stock Exchange

A major difference between trading stocks versus trading options is that stocks give you a small piece of ownership in the company, while options are just contracts that give you the right to buy or sell the stock at a specific price by a specific date.

Floyd, one of the lead traders at OEX Options, explains why index options are like fruit...

You can learn more about how to trade options by visiting the OEX Options website at: www.oexoptions.com.