By Micheal James
There are several factors that are responsible for making profits in stock trading. While some of them are outside your control, there are many that you can control yourself. The truth is that if all the factors were within the control of the trader, then nobody would incur losses. But this is against the very nature of any business including stock trading. A successful stock trader is one who manipulates even the adverse outside factors to his advantage.
We all know that stock market keeps rising and falling and even the best stock market experts and pundits quite often fail to anticipate its trends despite life long experience and expertise behind them. There is also no denying the fact that there are hundreds and thousands of stock traders who have made millions and continue to do so. At the same time there are more losers and quitters than the winners in the very same market and trading conditions.
There are several factors that determine your success or failure in stock trading.
The first and the most important requirement for making sure profits in stock trading is to understand your own mental capabilities, your personal strengths and weakness, your beliefs, propensities and outlook. It is creating a personal data of your own mental assets and liabilities. This will allow you to develop a special mindset that is peculiar to winning in stock trading.
Some people enter stock trading because a friend's friend is making thousands upon thousands of dollars every month. Or a stock market guru had predicted about hot stock for a particular week. It obviously means that you have taken to stock trading without thoroughly understanding your own nature or studying the stock market itself. You are working on the minds of others, seeing the things with others' eyes.
Let us assume for a moment that the prediction made by the guru came true and you made a quick buck. You again followed his advice about the next hot stock, but this time you suffered loss. You are depressed and want to quit stock trading. This kind of attitude points to the fact that you have not thoroughly examined your own personal mental make up with regard to stock trading.
What is the ideal solution?
First, as an intelligent stock trader, you should learn to study the stock market yourself and take independent decisions irrespective of the advice offered by the so-called gurus and experts. You should develop your own personal intelligence assets based upon your own knowledge, expertise and experience. For this you must learn to understand the stock market trends, make fundamental and technical analysis and do every thing else to build your own reliable data of knowledge about stock trading.
Secondly, you must realize that even your best judgment and intuition can go wrong and you should be prepared to suffer losses. You should be willing to take them in your stride as a part of the game. Above all you should not quit stock trading because you have suffered losses in a particular phase. You should learn to look at your profits and losses in right perspective.
Do not work with revenge mentality. Quite often you buy a stock and suffer loss in it after a few days. You naturally feel frustrated and make up your mind to recover your loss from this very stock even though it is fundamentally a poor performing stock. Involving your ego or sense of false pride in such situations can prove self-defeating in the long run.
You must understand that stock market is like a stream whose currents keep changing. You should be always on the look out to make the best of those currents. You have to either fight them or ride them.
There are stock traders who can make money even when most of the traders suffer losses and quit trading. For example, intelligent traders buy the stocks of good companies when their prices are down as in the present stock market situation of slump and recession. It requires a great courage and imagination to buy stocks during apparently bleak and hopeless phases.
With this kind of mental make up you can make profits on consistent basis. This can be achieved only when you develop a kind of self-awareness about mental and intellectual assets. You develop the right market perspectives and plan accordingly. This generates the confidence of a winner.
Pricing and Features for Sogotrade Investment Packages: online investmentSogotrade Interest Rates and Fees: trading stock options
Article Source: http://EzineArticles.com/?expert=Micheal_James
Thursday, July 31, 2008
Wednesday, July 30, 2008
How to Buy Good Value Stocks?
By Micheal James
There is a common perception among the stock investors that their profits depend upon the number of shares they own irrespective of their value. A common investor, therefore, usually prefers to buy 1000 shares of $1 each to 50 shares of a stock at $20 each. This perception, according to experts, is wholly misconceived.
All other factors remaining the same, you return on your investment of $1,000 in this case will be the same irrespective of the number of shares you own.
You should always go for the stock of an established company with a consistent track record of good performance. This advice stands good especially for those investors who do not have any experience or understanding of the stock market or who do not have any idea of fundamental or technical analysis and so on. This is a kind of rule of thumb for investing.
Most popular companies have some thing about them, some indefinable qualities that marks them out from their competitors. This "something" factor' is unique to each company and it is indelibly etched in the mind of the public at large. This unique trait cannot be copied by their rivals. For example, look at Coca Cola, Wal-Mart, McDonald or Apple. The logo of Apple, for example, evokes a strange confidence that no other company in the same industry can. Such companies stand alone and no amount of competition can beat them. Quite possibly companies, like Coca Cola, have their own trade secrets which render them invincible.
These companies often stand by their investors and do not let them down even when the values of their stocks fall. Such companies even try to buy their own stock in order to maintain its value. There are other companies which pay good dividends to their investors regularly, the market value of their stock notwithstanding. It must be interesting to note that some investors even sell their good value stocks and invest in these companies solely on the ground that they pay good dividends that substantially make up for the lower market value of their stocks. These companies have a loyal following of investors who are immune to the temptations of their competitors.
Learn about the management of the company you want to invest in Companies flourish because of the honest policies of their managements. Great managements have honesty as their best policy. But how can an ordinary investor know that a company's management is honest? The best way is to study the history of the company since its inception. If the management has ever made some mistake in conducting the affairs of the company some time, it would not hesitate in offering explanation, admitting it publicly and apologizing for it too. Good and honest managements not only apologize for their lapses, they also reasonably compensate their investors who suffer for those mistakes.
Buying good value stocks at cheaper rates
Sometimes companies with truly good track record face emergent financial situations and they are compelled to sell out their stocks at much reduced rates than their actual value. The market may be facing bear hug. Such situations, even though transient, may bring down the prices of their stocks. If you are lucky, you may even get such a high value stock even at 50% discount. A market savvy and vigilant investor can always lap up such opportunities.
Look for institutional investors
Institutional investors have their expert financial analysts. They keep a watch over the stock market in all its respects. Their level of specialized knowledge is not available even with the most experienced and well-informed individual investors. If you do not know any thing about investing in stock markets, the best course is to keep a watch over the institutional investors. Always buy the stocks of the companies that have institutional sponsorship.
General awareness
Internet is a great source of information but there are hundreds of websites giving confusing and contradictory information about stock investing Devote sometime on two or three websites that provide reliable information. The next step is to try to find out the most lucrative financial or industrial sectors and the best managed companies in those sectors. Keep a track of their performance. Study their financial reports, their P/E ratios and do all kind of analysis on their performance. This way you can land on good stocks. Do not invest in just one stock. Diversify your portfolio.
Sogotrade Interest Rates and Fees: trading stock options
Article Source: http://EzineArticles.com/?expert=Micheal_James
There is a common perception among the stock investors that their profits depend upon the number of shares they own irrespective of their value. A common investor, therefore, usually prefers to buy 1000 shares of $1 each to 50 shares of a stock at $20 each. This perception, according to experts, is wholly misconceived.
All other factors remaining the same, you return on your investment of $1,000 in this case will be the same irrespective of the number of shares you own.
You should always go for the stock of an established company with a consistent track record of good performance. This advice stands good especially for those investors who do not have any experience or understanding of the stock market or who do not have any idea of fundamental or technical analysis and so on. This is a kind of rule of thumb for investing.
Most popular companies have some thing about them, some indefinable qualities that marks them out from their competitors. This "something" factor' is unique to each company and it is indelibly etched in the mind of the public at large. This unique trait cannot be copied by their rivals. For example, look at Coca Cola, Wal-Mart, McDonald or Apple. The logo of Apple, for example, evokes a strange confidence that no other company in the same industry can. Such companies stand alone and no amount of competition can beat them. Quite possibly companies, like Coca Cola, have their own trade secrets which render them invincible.
These companies often stand by their investors and do not let them down even when the values of their stocks fall. Such companies even try to buy their own stock in order to maintain its value. There are other companies which pay good dividends to their investors regularly, the market value of their stock notwithstanding. It must be interesting to note that some investors even sell their good value stocks and invest in these companies solely on the ground that they pay good dividends that substantially make up for the lower market value of their stocks. These companies have a loyal following of investors who are immune to the temptations of their competitors.
Learn about the management of the company you want to invest in Companies flourish because of the honest policies of their managements. Great managements have honesty as their best policy. But how can an ordinary investor know that a company's management is honest? The best way is to study the history of the company since its inception. If the management has ever made some mistake in conducting the affairs of the company some time, it would not hesitate in offering explanation, admitting it publicly and apologizing for it too. Good and honest managements not only apologize for their lapses, they also reasonably compensate their investors who suffer for those mistakes.
Buying good value stocks at cheaper rates
Sometimes companies with truly good track record face emergent financial situations and they are compelled to sell out their stocks at much reduced rates than their actual value. The market may be facing bear hug. Such situations, even though transient, may bring down the prices of their stocks. If you are lucky, you may even get such a high value stock even at 50% discount. A market savvy and vigilant investor can always lap up such opportunities.
Look for institutional investors
Institutional investors have their expert financial analysts. They keep a watch over the stock market in all its respects. Their level of specialized knowledge is not available even with the most experienced and well-informed individual investors. If you do not know any thing about investing in stock markets, the best course is to keep a watch over the institutional investors. Always buy the stocks of the companies that have institutional sponsorship.
General awareness
Internet is a great source of information but there are hundreds of websites giving confusing and contradictory information about stock investing Devote sometime on two or three websites that provide reliable information. The next step is to try to find out the most lucrative financial or industrial sectors and the best managed companies in those sectors. Keep a track of their performance. Study their financial reports, their P/E ratios and do all kind of analysis on their performance. This way you can land on good stocks. Do not invest in just one stock. Diversify your portfolio.
Sogotrade Interest Rates and Fees: trading stock options
Article Source: http://EzineArticles.com/?expert=Micheal_James
Tuesday, July 29, 2008
How to Be a Winner in Stock Trading?
By Micheal James
There are several factors that are responsible for making profits in stock trading. While some of them are outside your control, there are many that you can control yourself. The truth is that if all the factors were within the control of the trader, then nobody would incur losses. But this is against the very nature of any business including stock trading. A successful stock trader is one who manipulates even the adverse outside factors to his advantage.
We all know that stock market keeps rising and falling and even the best stock market experts and pundits quite often fail to anticipate its trends despite life long experience and expertise behind them. There is also no denying the fact that there are hundreds and thousands of stock traders who have made millions and continue to do so. At the same time there are more losers and quitters than the winners in the very same market and trading conditions.
There are several factors that determine your success or failure in stock trading.
The first and the most important requirement for making sure profits in stock trading is to understand your own mental capabilities, your personal strengths and weakness, your beliefs, propensities and outlook. It is creating a personal data of your own mental assets and liabilities. This will allow you to develop a special mindset that is peculiar to winning in stock trading.
Some people enter stock trading because a friend's friend is making thousands upon thousands of dollars every month. Or a stock market guru had predicted about hot stock for a particular week. It obviously means that you have taken to stock trading without thoroughly understanding your own nature or studying the stock market itself. You are working on the minds of others, seeing the things with others' eyes.
Let us assume for a moment that the prediction made by the guru came true and you made a quick buck. You again followed his advice about the next hot stock, but this time you suffered loss. You are depressed and want to quit stock trading. This kind of attitude points to the fact that you have not thoroughly examined your own personal mental make up with regard to stock trading.
What is the ideal solution?
First, as an intelligent stock trader, you should learn to study the stock market yourself and take independent decisions irrespective of the advice offered by the so-called gurus and experts. You should develop your own personal intelligence assets based upon your own knowledge, expertise and experience. For this you must learn to understand the stock market trends, make fundamental and technical analysis and do every thing else to build your own reliable data of knowledge about stock trading.
Secondly, you must realize that even your best judgment and intuition can go wrong and you should be prepared to suffer losses. You should be willing to take them in your stride as a part of the game. Above all you should not quit stock trading because you have suffered losses in a particular phase. You should learn to look at your profits and losses in right perspective.
Do not work with revenge mentality. Quite often you buy a stock and suffer loss in it after a few days. You naturally feel frustrated and make up your mind to recover your loss from this very stock even though it is fundamentally a poor performing stock. Involving your ego or sense of false pride in such situations can prove self-defeating in the long run.
You must understand that stock market is like a stream whose currents keep changing. You should be always on the look out to make the best of those currents. You have to either fight them or ride them.
There are stock traders who can make money even when most of the traders suffer losses and quit trading. For example, intelligent traders buy the stocks of good companies when their prices are down as in the present stock market situation of slump and recession. It requires a great courage and imagination to buy stocks during apparently bleak and hopeless phases.
With this kind of mental make up you can make profits on consistent basis. This can be achieved only when you develop a kind of self-awareness about mental and intellectual assets. You develop the right market perspectives and plan accordingly. This generates the confidence of a winner.
Pricing and Features for Sogotrade Investment Packages: online investmentSogotrade Interest Rates and Fees: trading stock options
Article Source: http://EzineArticles.com/?expert=Micheal_James
There are several factors that are responsible for making profits in stock trading. While some of them are outside your control, there are many that you can control yourself. The truth is that if all the factors were within the control of the trader, then nobody would incur losses. But this is against the very nature of any business including stock trading. A successful stock trader is one who manipulates even the adverse outside factors to his advantage.
We all know that stock market keeps rising and falling and even the best stock market experts and pundits quite often fail to anticipate its trends despite life long experience and expertise behind them. There is also no denying the fact that there are hundreds and thousands of stock traders who have made millions and continue to do so. At the same time there are more losers and quitters than the winners in the very same market and trading conditions.
There are several factors that determine your success or failure in stock trading.
The first and the most important requirement for making sure profits in stock trading is to understand your own mental capabilities, your personal strengths and weakness, your beliefs, propensities and outlook. It is creating a personal data of your own mental assets and liabilities. This will allow you to develop a special mindset that is peculiar to winning in stock trading.
Some people enter stock trading because a friend's friend is making thousands upon thousands of dollars every month. Or a stock market guru had predicted about hot stock for a particular week. It obviously means that you have taken to stock trading without thoroughly understanding your own nature or studying the stock market itself. You are working on the minds of others, seeing the things with others' eyes.
Let us assume for a moment that the prediction made by the guru came true and you made a quick buck. You again followed his advice about the next hot stock, but this time you suffered loss. You are depressed and want to quit stock trading. This kind of attitude points to the fact that you have not thoroughly examined your own personal mental make up with regard to stock trading.
What is the ideal solution?
First, as an intelligent stock trader, you should learn to study the stock market yourself and take independent decisions irrespective of the advice offered by the so-called gurus and experts. You should develop your own personal intelligence assets based upon your own knowledge, expertise and experience. For this you must learn to understand the stock market trends, make fundamental and technical analysis and do every thing else to build your own reliable data of knowledge about stock trading.
Secondly, you must realize that even your best judgment and intuition can go wrong and you should be prepared to suffer losses. You should be willing to take them in your stride as a part of the game. Above all you should not quit stock trading because you have suffered losses in a particular phase. You should learn to look at your profits and losses in right perspective.
Do not work with revenge mentality. Quite often you buy a stock and suffer loss in it after a few days. You naturally feel frustrated and make up your mind to recover your loss from this very stock even though it is fundamentally a poor performing stock. Involving your ego or sense of false pride in such situations can prove self-defeating in the long run.
You must understand that stock market is like a stream whose currents keep changing. You should be always on the look out to make the best of those currents. You have to either fight them or ride them.
There are stock traders who can make money even when most of the traders suffer losses and quit trading. For example, intelligent traders buy the stocks of good companies when their prices are down as in the present stock market situation of slump and recession. It requires a great courage and imagination to buy stocks during apparently bleak and hopeless phases.
With this kind of mental make up you can make profits on consistent basis. This can be achieved only when you develop a kind of self-awareness about mental and intellectual assets. You develop the right market perspectives and plan accordingly. This generates the confidence of a winner.
Pricing and Features for Sogotrade Investment Packages: online investmentSogotrade Interest Rates and Fees: trading stock options
Article Source: http://EzineArticles.com/?expert=Micheal_James
5 Undeniable Tips to Successful Stock Trading
By Phummie Helen
1. Knowledge is Power in this market
Knowing something is generally better than nothing, but it is crucial in the stock market that individual investors have a clear understanding of what they are doing with their money. It's those investors who really do their homework that succeed.
Don't fret, if you don't have the time to fully understand what to do with your money, then having an advisor is not a bad thing. The cost of investing in something that you do not fully understand far outweighs the cost of using an investment advisor.Never give in to the temptation of forgoing research and depend on heresy, coffee machine chat.. Always look for companies that pay dividends. Time and again research has proved that dividend paying companies weather the business cycle storms more effectively. Always research before you put in your hard-earned money in an investment. There are several resources that offer knowledge that can help you get the skill set to become a successful investor. Look for companies that are significant in its industry and that has demonstrated year over year growth in sales and profit.
2. Be Objective And Detached
Winning traders are objective and detached from the ongoing market action. They don't stare at their screens and allow their emotions to move up and down with how well their trades are doing. But novice traders often have difficulty remaining objective and unemotional. There's a very human tendency to avoid risk and loss.
In everyday life, our emotions protect us. When we anticipate harm, we become fearful. Fear is a powerful emotion. When we are afraid, we react quickly and instinctively. And when we act out of fear, it usually leads to impulsive decisions and trading errors. The more you can stay objective and detached, the easier it will be for you to control your emotions.
If humans didn't react to market events with strong emotions, there would be no volatility to take advantage of. Fear and greed are powerful emotions that sway the masses to buy and sell at the wrong time. The only difference between you and the masses, however, is that, as a successful short-term trader, you must control your emotions and not be influenced by fear and greed.
Master traders know how to control their emotions. They remain detached and objective. When the stock falls to the protective stop, the position is closed immediately. There is no sense of guilt, worry, or uneasiness. Small, controlled losses are expected, and there is no reason to be overly concerned about it. Similarly, when the stock price moves up to the profit target, the seasoned trader assesses the price movement and either closes all or part of the position, or even adds to it while raising the stop-loss. Either way, the seasoned trader has planned the trade and is trading the plan with controlled emotions and a calm, detached confidence that generally produces consistency and success.
It may be hard to stay unemotional and detached. The more experience you gain as a trader, however, the easier it will be. People are most afraid when they encounter novel and unforeseen situations, and when newbie traders first start out trading, their initial experiences are new and unpredictable. Under these conditions, it makes sense to put things in your favor.
3. Protect Your Capital
New traders want to know how much they can make. If they have X dollars in their account, how much stock can they buy and how soon can they get rich?
Veteran traders know better. They became veterans by surviving. They endured the occasional painful losses, yes, but even more so, they were able to withstand the times when trading just has very little to offer. Veterans are willing to wait out the slow trading times without putting it all on the line to make a quick buck or add some excitement. A veteran trader will tell you that goal number 1 in trading isn't about how much you can make. Goal number 1 is all about protecting your capital and staying in the game.
4. Don't put all eggs in a basket
Diversify your trading capital into different sectors of the economy in order to build a strong portfolio.
5. Never Buy a stock because the price is rising, in the same vein, Never Sell a stock because the price is falling.
Always seek to know the reason for price behavioural pattern, either through personal research or consult a stock analyst.
Finally, success in the stock market takes some hard-work and effort. Take Money/Risk management into consideration and you will never have to sell your shirt.
To your Trading Success, Phummie Helen
Phummie Helen is an Internet Entrepreneur and a stock investor who derives pleasure in revealing various ways people can be successful in the stock market and also enjoy the beauty of internet businesses.
She is currently running a blog on Stocks Business Revelations. Check out her blog on http://www.coolstockbiz.blogspot.com
Article Source: http://EzineArticles.com/?expert=Phummie_Helen
1. Knowledge is Power in this market
Knowing something is generally better than nothing, but it is crucial in the stock market that individual investors have a clear understanding of what they are doing with their money. It's those investors who really do their homework that succeed.
Don't fret, if you don't have the time to fully understand what to do with your money, then having an advisor is not a bad thing. The cost of investing in something that you do not fully understand far outweighs the cost of using an investment advisor.Never give in to the temptation of forgoing research and depend on heresy, coffee machine chat.. Always look for companies that pay dividends. Time and again research has proved that dividend paying companies weather the business cycle storms more effectively. Always research before you put in your hard-earned money in an investment. There are several resources that offer knowledge that can help you get the skill set to become a successful investor. Look for companies that are significant in its industry and that has demonstrated year over year growth in sales and profit.
2. Be Objective And Detached
Winning traders are objective and detached from the ongoing market action. They don't stare at their screens and allow their emotions to move up and down with how well their trades are doing. But novice traders often have difficulty remaining objective and unemotional. There's a very human tendency to avoid risk and loss.
In everyday life, our emotions protect us. When we anticipate harm, we become fearful. Fear is a powerful emotion. When we are afraid, we react quickly and instinctively. And when we act out of fear, it usually leads to impulsive decisions and trading errors. The more you can stay objective and detached, the easier it will be for you to control your emotions.
If humans didn't react to market events with strong emotions, there would be no volatility to take advantage of. Fear and greed are powerful emotions that sway the masses to buy and sell at the wrong time. The only difference between you and the masses, however, is that, as a successful short-term trader, you must control your emotions and not be influenced by fear and greed.
Master traders know how to control their emotions. They remain detached and objective. When the stock falls to the protective stop, the position is closed immediately. There is no sense of guilt, worry, or uneasiness. Small, controlled losses are expected, and there is no reason to be overly concerned about it. Similarly, when the stock price moves up to the profit target, the seasoned trader assesses the price movement and either closes all or part of the position, or even adds to it while raising the stop-loss. Either way, the seasoned trader has planned the trade and is trading the plan with controlled emotions and a calm, detached confidence that generally produces consistency and success.
It may be hard to stay unemotional and detached. The more experience you gain as a trader, however, the easier it will be. People are most afraid when they encounter novel and unforeseen situations, and when newbie traders first start out trading, their initial experiences are new and unpredictable. Under these conditions, it makes sense to put things in your favor.
3. Protect Your Capital
New traders want to know how much they can make. If they have X dollars in their account, how much stock can they buy and how soon can they get rich?
Veteran traders know better. They became veterans by surviving. They endured the occasional painful losses, yes, but even more so, they were able to withstand the times when trading just has very little to offer. Veterans are willing to wait out the slow trading times without putting it all on the line to make a quick buck or add some excitement. A veteran trader will tell you that goal number 1 in trading isn't about how much you can make. Goal number 1 is all about protecting your capital and staying in the game.
4. Don't put all eggs in a basket
Diversify your trading capital into different sectors of the economy in order to build a strong portfolio.
5. Never Buy a stock because the price is rising, in the same vein, Never Sell a stock because the price is falling.
Always seek to know the reason for price behavioural pattern, either through personal research or consult a stock analyst.
Finally, success in the stock market takes some hard-work and effort. Take Money/Risk management into consideration and you will never have to sell your shirt.
To your Trading Success, Phummie Helen
Phummie Helen is an Internet Entrepreneur and a stock investor who derives pleasure in revealing various ways people can be successful in the stock market and also enjoy the beauty of internet businesses.
She is currently running a blog on Stocks Business Revelations. Check out her blog on http://www.coolstockbiz.blogspot.com
Article Source: http://EzineArticles.com/?expert=Phummie_Helen
Monday, July 28, 2008
Understanding How Trading Works
By Martin Lukac
What does it mean to trade stocks? You hear the phrase all the time. Are you trading one stock for another?
Actually, to trade stock means that you are buying or selling stock. When you hear that one billion shares were traded in a single day, it means that one billion shares were bought and sold. It is important for investors to understand the basics of how the market works in order to trade successfully.
There are two basic ways exchanges execute trades, either on the exchange floor or electronically.
More trading is moving towards the networks and off of the floors, but there is resistance to this trend. Many markets, including NASDAQ, trade stock electronically. However, the futures' market is trading in person on the floor of several exchanges.
When you see an image of the stock market on television, you are often looking at trading on the floor of the New York Stock Exchange. This is where you see hundreds of people rushing around and shouting, watching monitors and entering data. It looks extremely out of control.
However, it is a very organized dance. Here is how a very simple trade works on the floor. You tell your broker to buy 100 shares of XYZ at market. The broker's order department sends the order to the floor clerk on the exchange. The floor clerk alerts on of the floor traders who finds another floor trader who wants to sell 100 shares of XYZ. This sounds like a hard task, but the floor trader knows exactly who to talk to. The two traders will agree on a price and complete the deal. Your broker will call you back with the final price. The entire trade can take a few minutes to a few hours.
There has been a large push to move trading to an electronic system. The electronic market uses large computer networks to match buyers and sellers. There are not human traders involved. This method is fast and efficient. Many large institutions actually prefer this method of trading.
Individual investors find that electronic trades give them almost instant confirmations on trades. You still need a broker to handle trades because individuals are not allowed access to the electronic markets. Your broker will access the exchange network and use the system to find a buyer or seller for your stock needs.
Understanding the market takes you one step closer to understanding investing. Beginning investors should take the time to research every aspect of the market. If something was to go wrong, it is important to know what goes on behind the scenes.
Along with understanding how trading works, the investor should understand how the market works. There are many factors that affect the stock market and the wise investor understands these factors and is prepared for them. Remember, investing isn't a promise of returns. But if you invest wisely and diversify your portfolio, you have a great chance of meeting your investment goals.
Martin Lukac represents RateTake.com Mortgage mortgage marketplace. RateTake matches consumers with multiple lenders offering low mortgage rates from our network of accredited lenders.
Article Source: http://EzineArticles.com/?expert=Martin_Lukac
What does it mean to trade stocks? You hear the phrase all the time. Are you trading one stock for another?
Actually, to trade stock means that you are buying or selling stock. When you hear that one billion shares were traded in a single day, it means that one billion shares were bought and sold. It is important for investors to understand the basics of how the market works in order to trade successfully.
There are two basic ways exchanges execute trades, either on the exchange floor or electronically.
More trading is moving towards the networks and off of the floors, but there is resistance to this trend. Many markets, including NASDAQ, trade stock electronically. However, the futures' market is trading in person on the floor of several exchanges.
When you see an image of the stock market on television, you are often looking at trading on the floor of the New York Stock Exchange. This is where you see hundreds of people rushing around and shouting, watching monitors and entering data. It looks extremely out of control.
However, it is a very organized dance. Here is how a very simple trade works on the floor. You tell your broker to buy 100 shares of XYZ at market. The broker's order department sends the order to the floor clerk on the exchange. The floor clerk alerts on of the floor traders who finds another floor trader who wants to sell 100 shares of XYZ. This sounds like a hard task, but the floor trader knows exactly who to talk to. The two traders will agree on a price and complete the deal. Your broker will call you back with the final price. The entire trade can take a few minutes to a few hours.
There has been a large push to move trading to an electronic system. The electronic market uses large computer networks to match buyers and sellers. There are not human traders involved. This method is fast and efficient. Many large institutions actually prefer this method of trading.
Individual investors find that electronic trades give them almost instant confirmations on trades. You still need a broker to handle trades because individuals are not allowed access to the electronic markets. Your broker will access the exchange network and use the system to find a buyer or seller for your stock needs.
Understanding the market takes you one step closer to understanding investing. Beginning investors should take the time to research every aspect of the market. If something was to go wrong, it is important to know what goes on behind the scenes.
Along with understanding how trading works, the investor should understand how the market works. There are many factors that affect the stock market and the wise investor understands these factors and is prepared for them. Remember, investing isn't a promise of returns. But if you invest wisely and diversify your portfolio, you have a great chance of meeting your investment goals.
Martin Lukac represents RateTake.com Mortgage mortgage marketplace. RateTake matches consumers with multiple lenders offering low mortgage rates from our network of accredited lenders.
Article Source: http://EzineArticles.com/?expert=Martin_Lukac
Sunday, July 27, 2008
Best Stocks to Invest In
By Vijay Kumar Sharma
Finding the best stocks to invest is not easy but it is not impossible either. With a little patience and right technique anyone can make out which stock will give him good return in the future. For that you need to adopt a few techniques that we will discuss in this article.
Information is the key in stock market trading and thanks to the Internet, finding information is not so hard now. There are hundreds of websites that offer detailed stock market news, tips and industry info. But following all these websites is not only impossible but also confusing as you will find that most of these websites contradict themselves. So it is better to select a few websites and follow them closely and keep track which one gives the authentic information. Once you have found out one or two such sources for reliable information bank on them for determining your stock market strategies.
Have a plan for stock trade and do not jump over everything that comes on your way. Focus on a specific area or industry and keep your investments concentrated in that particular area. In that way you will be able to keep comprehensive information on the stocks and that particular area of the market. It will be easier for you to closely monitor the individual stocks and the companies that will definitely help you to make wise investments. Remember if you invest in what you know thoroughly then it will most likely give you good return.
While trading stocks always distribute your investment wise. Instead of investing in one particular stock select a few good stocks to invest. It is always better to put your money in different stocks as stock market is extremely volatile and even the biggest blue chip companies have down falls at the stock market. So, by investing in number of selected stocks at a point of time you will significantly lower the risk.
There are so many experts these days offering tips that will make you rich with just one or two investments. Surely, it can happen to someone, but there is no surefire technique to predict which stock will give you multiple returns. So it is always better to do your own research for selecting the stocks to invest. There are so many things that you need to consider before investing in a particular stock. Study the current price of the stock and compare it with the P/E ratio and that will give you a fair idea if the stock is over priced or not. Take a look at the sales margin and volume of the stock to see the future of the company and how the market is reacting for the stock. Taking all these factors into consideration make your investment strategy and always have a plan for investing instead of going by the buzz in the market.
Why Choose Sogotrade: cheap trading stock optionsContact sogotrade:
Contact Online stock trading company
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
Finding the best stocks to invest is not easy but it is not impossible either. With a little patience and right technique anyone can make out which stock will give him good return in the future. For that you need to adopt a few techniques that we will discuss in this article.
Information is the key in stock market trading and thanks to the Internet, finding information is not so hard now. There are hundreds of websites that offer detailed stock market news, tips and industry info. But following all these websites is not only impossible but also confusing as you will find that most of these websites contradict themselves. So it is better to select a few websites and follow them closely and keep track which one gives the authentic information. Once you have found out one or two such sources for reliable information bank on them for determining your stock market strategies.
Have a plan for stock trade and do not jump over everything that comes on your way. Focus on a specific area or industry and keep your investments concentrated in that particular area. In that way you will be able to keep comprehensive information on the stocks and that particular area of the market. It will be easier for you to closely monitor the individual stocks and the companies that will definitely help you to make wise investments. Remember if you invest in what you know thoroughly then it will most likely give you good return.
While trading stocks always distribute your investment wise. Instead of investing in one particular stock select a few good stocks to invest. It is always better to put your money in different stocks as stock market is extremely volatile and even the biggest blue chip companies have down falls at the stock market. So, by investing in number of selected stocks at a point of time you will significantly lower the risk.
There are so many experts these days offering tips that will make you rich with just one or two investments. Surely, it can happen to someone, but there is no surefire technique to predict which stock will give you multiple returns. So it is always better to do your own research for selecting the stocks to invest. There are so many things that you need to consider before investing in a particular stock. Study the current price of the stock and compare it with the P/E ratio and that will give you a fair idea if the stock is over priced or not. Take a look at the sales margin and volume of the stock to see the future of the company and how the market is reacting for the stock. Taking all these factors into consideration make your investment strategy and always have a plan for investing instead of going by the buzz in the market.
Why Choose Sogotrade: cheap trading stock optionsContact sogotrade:
Contact Online stock trading company
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
Saturday, July 26, 2008
Stock Market Basics - Part 1
By Dwight Declet
What are the basics of how the stock market works?
The basic principles are not as complicated as they seem. Say you want to start a company that makes, let's say, uniforms for restaurant workers. You have enough savings to buy a small building and some equipment. You manage to get a contract to supply a small local chain and you go to the bank for a loan to start the business. You hire employees and things are going okay. A year later the business has done so well that you paid off the loan and made a small profit.
Now the local chain of restaurants has begun to expand and they need more uniforms. You now have a choice: you can borrow more money to pay for the expansion you must do or you can incorporate. If you choose to raise money through incorporating, you go through several legal steps that change the basic legal structure of the business and it becomes a "C" corp. Now you can sell stock shares of your company as a means to raise money. This would be your "Initial Public Offering" or IPO.
These are only an overview of the basics. IPO shares are sold at a set price and are generally bought by institutional investors to sell to the general public. Once they go on the open market, they do not provide any further benefit to your company. However, your company has a legal and moral obligation to operate as profitably and responsibly as possible. As the founder, you would typically keep ownership of the majority of the shares. If the business continues to grow and prosper, at some point, you might choose to sell out your ownership in the business and retire. At that point, the new owners and management would assume the responsibility of maintaining the value of the company.
As the company grows and prospers, the value of the stock should grow as well. Initially as the company grows, the basic principle is that the majority of the profits are reinvested into improving the company's assets. This means a bigger facility, upgraded equipment and more employees. As a company matures, it does not need to reinvest as much into growth. This would typically mean they would begin to declare dividends. A dividend is a cash payment to every stockholder. A stock that declares a regular dividend generally indicates fairly low volatility in the price.
While this article gives you a look at some of the basics in how the stock market works, it is by no means conclusive.
Dwight Declet has been a licensed stockbroker since 1985. He works we people planning for retirement and those already retired. Through his experience in the stock market he has helped over 700 clients successfully "grow money." You may visit his site and seek his advice at: http://prp401k.com
Article Source: http://EzineArticles.com/?expert=Dwight_Declet
What are the basics of how the stock market works?
The basic principles are not as complicated as they seem. Say you want to start a company that makes, let's say, uniforms for restaurant workers. You have enough savings to buy a small building and some equipment. You manage to get a contract to supply a small local chain and you go to the bank for a loan to start the business. You hire employees and things are going okay. A year later the business has done so well that you paid off the loan and made a small profit.
Now the local chain of restaurants has begun to expand and they need more uniforms. You now have a choice: you can borrow more money to pay for the expansion you must do or you can incorporate. If you choose to raise money through incorporating, you go through several legal steps that change the basic legal structure of the business and it becomes a "C" corp. Now you can sell stock shares of your company as a means to raise money. This would be your "Initial Public Offering" or IPO.
These are only an overview of the basics. IPO shares are sold at a set price and are generally bought by institutional investors to sell to the general public. Once they go on the open market, they do not provide any further benefit to your company. However, your company has a legal and moral obligation to operate as profitably and responsibly as possible. As the founder, you would typically keep ownership of the majority of the shares. If the business continues to grow and prosper, at some point, you might choose to sell out your ownership in the business and retire. At that point, the new owners and management would assume the responsibility of maintaining the value of the company.
As the company grows and prospers, the value of the stock should grow as well. Initially as the company grows, the basic principle is that the majority of the profits are reinvested into improving the company's assets. This means a bigger facility, upgraded equipment and more employees. As a company matures, it does not need to reinvest as much into growth. This would typically mean they would begin to declare dividends. A dividend is a cash payment to every stockholder. A stock that declares a regular dividend generally indicates fairly low volatility in the price.
While this article gives you a look at some of the basics in how the stock market works, it is by no means conclusive.
Dwight Declet has been a licensed stockbroker since 1985. He works we people planning for retirement and those already retired. Through his experience in the stock market he has helped over 700 clients successfully "grow money." You may visit his site and seek his advice at: http://prp401k.com
Article Source: http://EzineArticles.com/?expert=Dwight_Declet
Friday, July 25, 2008
Why Economic Indicators Are Important When Buying Stock
By Tim Huang
Why economic indicators are important when buying stock?
What is economic indicator? An Economic indicator is a statistic report about the economic condition. It allows traders to analyze past and current economic performance as well as predicting future market trends. Why is it important? No matter what stock you buy, it's price will be affected by the general market trends. Do you ever experience that a company reported good news constantly but it's stock price keep going down? One of the reasons is that it might have been affected by the general weak market conditions. For example, if you are holding a restaurant stock and the current market is weak with oil price keep going up and job market down. As oil price going up, people will drive less and therefore less people will go to restaurants. As job market going down, people will worry about job cuts and tend to save more money and therefore go to the restaurants less often than they used to. Some people might simply sell stocks to pay their mortgages because of layoffs. As more people selling than buying the stock, the stock price goes down. These reasons have nothing to do with the restaurant stock that you are holding, yet your stock price is dragged down because of these causes. Therefore, it is important to know the general market trends when picking stocks.
Which economic indicators should you watch out for?
There are dozens of indicators out there, and I will list the most important ones. These indicators will help you predict the market trends in the near future and help you make trading decisions weather you are a long term or short term investor.
1. Employment Situation - This is the most important indicator. It is published the first Friday (8:30am EST) of each month covering the previous month.
2. Unemployment Insurance Weekly Claims - It is published every Thursday (8:30 AM EST) covering the previous week.
3. Consumer Price Index (CPI) - It is published 2 weeks of every month (8:30am EST) covering the previous month.
4. Producer Price Index (PPI) - It is published 2 or 3 weeks of every month (8:30am EST) covering the previous month.
5. Retail Sales - It is published two weeks of every month (8:30am EST) covering the previous month.
6. Institute for Supply Management (ISM) - It is published the first business of the month (10am EST) covering the previous month.
7. Durable Good Orders - It is published 3 or 4 weeks of every month (8:30am EST) covering the previous month.
8. Gross Domestic Product (GDP) - It is published on the final week of Jan, April, Jul and Oct (8:30am EST) covering the previous quarter.
MORE FREE INFORMATION
You can visit our website http://www.dojispace.com for more information and try our free stock scanning tool using technical indicators. Our tool will save you time and increase your trading profit.
Article Source: http://EzineArticles.com/?expert=Tim_Huang
Why economic indicators are important when buying stock?
What is economic indicator? An Economic indicator is a statistic report about the economic condition. It allows traders to analyze past and current economic performance as well as predicting future market trends. Why is it important? No matter what stock you buy, it's price will be affected by the general market trends. Do you ever experience that a company reported good news constantly but it's stock price keep going down? One of the reasons is that it might have been affected by the general weak market conditions. For example, if you are holding a restaurant stock and the current market is weak with oil price keep going up and job market down. As oil price going up, people will drive less and therefore less people will go to restaurants. As job market going down, people will worry about job cuts and tend to save more money and therefore go to the restaurants less often than they used to. Some people might simply sell stocks to pay their mortgages because of layoffs. As more people selling than buying the stock, the stock price goes down. These reasons have nothing to do with the restaurant stock that you are holding, yet your stock price is dragged down because of these causes. Therefore, it is important to know the general market trends when picking stocks.
Which economic indicators should you watch out for?
There are dozens of indicators out there, and I will list the most important ones. These indicators will help you predict the market trends in the near future and help you make trading decisions weather you are a long term or short term investor.
1. Employment Situation - This is the most important indicator. It is published the first Friday (8:30am EST) of each month covering the previous month.
2. Unemployment Insurance Weekly Claims - It is published every Thursday (8:30 AM EST) covering the previous week.
3. Consumer Price Index (CPI) - It is published 2 weeks of every month (8:30am EST) covering the previous month.
4. Producer Price Index (PPI) - It is published 2 or 3 weeks of every month (8:30am EST) covering the previous month.
5. Retail Sales - It is published two weeks of every month (8:30am EST) covering the previous month.
6. Institute for Supply Management (ISM) - It is published the first business of the month (10am EST) covering the previous month.
7. Durable Good Orders - It is published 3 or 4 weeks of every month (8:30am EST) covering the previous month.
8. Gross Domestic Product (GDP) - It is published on the final week of Jan, April, Jul and Oct (8:30am EST) covering the previous quarter.
MORE FREE INFORMATION
You can visit our website http://www.dojispace.com for more information and try our free stock scanning tool using technical indicators. Our tool will save you time and increase your trading profit.
Article Source: http://EzineArticles.com/?expert=Tim_Huang
Thursday, July 24, 2008
Choose Your Stocks Wisely For Stock Market Trading
By John Border
When you enter the stock market for making money then the fundamental difference between you making money or losing money lies in the kind of stock pick you make for trading.
There are several theories about how you pick stocks for trading. All the theories boil down to one thing which is risk vs. reward. That in turn effects what kind of stocks you pick.
If you are willing to take more risk then you will pick stocks that my be more cyclical in nature and are not part of the defensive industries like consumer durables. The defensive stocks generally do not provide huge amounts of upswing in the market but they are relatively stable and safe as far as your money is concerned.
The other kind of traders who are willing to take more risk are people who use day trading as a trading strategy. For day traders the money is made in a single day but then there can be losses in a single day. The day traders generally do not worry about the kind of stock of it is. They are looking at it for a very short term and the next day they will move onto the next stock. The day traders generally tend to buy stocks that are in the news because of various reasons and are in the upswing mode. By the end of the day they would made their money and will sell off the stock.
The stock picking really becomes a science when it comes to long term traders who believe in buy and hold strategy. This kind of strategy needs you to be adept at stock picking. Traders who use this strategy do proper research before making a plunge for that stock, thereafter they hold onto the stock for a longer period f time. The aim for buying these kinds of stocks is that once bought this stock will provide enormous amount of appreciation over a significantly longer period of time. This time period can be more than two or three years. One of the famous investor who has used this strategy is Warren Buffet who has built his riches using this strategy.
Long term investors definitely need to have patience but if they pick their stock right then they never will never face the risk of losing their money in the stock market. So if you are an investor looking to invest in stock market then make sure that you research properly before you make a decision buy a particular stock.
The author recommends stock market for beginners as a long term investment vehicle. He also has a website about various stock market for beginners tips
Article Source: http://EzineArticles.com/?expert=John_Border
When you enter the stock market for making money then the fundamental difference between you making money or losing money lies in the kind of stock pick you make for trading.
There are several theories about how you pick stocks for trading. All the theories boil down to one thing which is risk vs. reward. That in turn effects what kind of stocks you pick.
If you are willing to take more risk then you will pick stocks that my be more cyclical in nature and are not part of the defensive industries like consumer durables. The defensive stocks generally do not provide huge amounts of upswing in the market but they are relatively stable and safe as far as your money is concerned.
The other kind of traders who are willing to take more risk are people who use day trading as a trading strategy. For day traders the money is made in a single day but then there can be losses in a single day. The day traders generally do not worry about the kind of stock of it is. They are looking at it for a very short term and the next day they will move onto the next stock. The day traders generally tend to buy stocks that are in the news because of various reasons and are in the upswing mode. By the end of the day they would made their money and will sell off the stock.
The stock picking really becomes a science when it comes to long term traders who believe in buy and hold strategy. This kind of strategy needs you to be adept at stock picking. Traders who use this strategy do proper research before making a plunge for that stock, thereafter they hold onto the stock for a longer period f time. The aim for buying these kinds of stocks is that once bought this stock will provide enormous amount of appreciation over a significantly longer period of time. This time period can be more than two or three years. One of the famous investor who has used this strategy is Warren Buffet who has built his riches using this strategy.
Long term investors definitely need to have patience but if they pick their stock right then they never will never face the risk of losing their money in the stock market. So if you are an investor looking to invest in stock market then make sure that you research properly before you make a decision buy a particular stock.
The author recommends stock market for beginners as a long term investment vehicle. He also has a website about various stock market for beginners tips
Article Source: http://EzineArticles.com/?expert=John_Border
Wednesday, July 23, 2008
The Art of Stock Screening
By Jake Strong
Stock screening is one of the methods many stock investors and traders use to find ideal stocks. However, it's also something that's a bit misunderstood. Many seem to think stock screening is a science, but it's an art form. There's no exact formula that's a winner every time.
The purpose of screen stocks is to find stocks that match your required attributes for investment or trading,
Depending on your screen parameters, it's possible to come up with 1,000 stocks or none at all. Ideally, you want your stock screen to reveal 15-20 stocks for you to look at. That's just my own number. Some stock traders and investors want lists of 30-50.
If you're new to stock screening, you can find screening software (or Web site) that offers pre-made screens. These are okay for learning, but you'll want to learn the ropes and come up with your own criteria. We all value things differently.
While I'm sure you'll develop your own screening criteria, here are a few general attributes that I like my stocks to have:
1. The company must have a positive operating cash flow.
2. The company must have at least $X million in sales-I raise this up when I'm looking for larger companies.
3. Total debt/equity ratio under X.
The debt/equity ratio depends on the industry. It could be under .5 or under 2. For instance, if I were looking at the auto industry, the acceptable ratio would be higher than if I were looking for computer companies.
If you want to know more about stock screening, there's plenty of information out there-including a link below. There's no right or wrong criteria mix for stock screening. It's an art form and you should come up with your own mix.
Looking for stock tips, stock news and stock advice? Check out FinancialRebel.com. There's plenty of financial information there--from stock trading to personal finance.
In FinancialRebel.com's training section, there's a great article you might enjoy: "How to Buy Stocks Online." It's worth checking out if you want to learn how to buy stocks online.
Article Source: http://EzineArticles.com/?expert=Jake_Strong
Stock screening is one of the methods many stock investors and traders use to find ideal stocks. However, it's also something that's a bit misunderstood. Many seem to think stock screening is a science, but it's an art form. There's no exact formula that's a winner every time.
The purpose of screen stocks is to find stocks that match your required attributes for investment or trading,
Depending on your screen parameters, it's possible to come up with 1,000 stocks or none at all. Ideally, you want your stock screen to reveal 15-20 stocks for you to look at. That's just my own number. Some stock traders and investors want lists of 30-50.
If you're new to stock screening, you can find screening software (or Web site) that offers pre-made screens. These are okay for learning, but you'll want to learn the ropes and come up with your own criteria. We all value things differently.
While I'm sure you'll develop your own screening criteria, here are a few general attributes that I like my stocks to have:
1. The company must have a positive operating cash flow.
2. The company must have at least $X million in sales-I raise this up when I'm looking for larger companies.
3. Total debt/equity ratio under X.
The debt/equity ratio depends on the industry. It could be under .5 or under 2. For instance, if I were looking at the auto industry, the acceptable ratio would be higher than if I were looking for computer companies.
If you want to know more about stock screening, there's plenty of information out there-including a link below. There's no right or wrong criteria mix for stock screening. It's an art form and you should come up with your own mix.
Looking for stock tips, stock news and stock advice? Check out FinancialRebel.com. There's plenty of financial information there--from stock trading to personal finance.
In FinancialRebel.com's training section, there's a great article you might enjoy: "How to Buy Stocks Online." It's worth checking out if you want to learn how to buy stocks online.
Article Source: http://EzineArticles.com/?expert=Jake_Strong
Tuesday, July 22, 2008
Important Stock Market Tips
By Micheal James
Sometimes when the stock market reaches all time high, some investors are so buoyed up that they think the prices would continue to rise and never come down. This is a fallacious view, which is held mostly by the inexperienced stock investors. They, therefore, tend to buy the stocks even though the prices are rising. As is the nature of the volatile stock market, the prices of the stocks fall and the credulous buyers suffer losses.
So what is the tip for stock market investors in such circumstances?
The best course is to buy stocks when the prices are low and wait patiently for them to rise. Fix up a moderate and practical income target. For example, you may fix a target to make 10% profits on your investment.
Do not succumb to your greed thinking that the prices will continue to rise further and you will be able to make 50% or more on your investment. Always keep in mind the volatile nature of the stock.
A golden tip
A golden tip for stock market investors is to buy when every one else is selling and sell your stock when everybody is buying. Do not succumb to peer pressure. Do not run after the majority. Think out of the box. Do not consider yourself a fool for not joining the party that every body appears to be enjoying at the stock market.
Never invest in unknown penny stocks
Even if you cannot resist the temptation of buying when every body else too is buying, do not invest in unknown penny stocks. Do not try to follow the secret, insider's hot tips that your friend's knowledgeable friend may try to whisper in your ears.
Quite possibly the price of the penny stock might have tripled during the last fortnight but that was before your friend's friend started to buy the stock. Chances are that the promoters of the company had started a buying spree for the said stock and spread rumors about the likelihood of the company being acquired by some foreign investor.
Future growth vs past performance
When you try to analyze the value of a stock before buying it, you must consider its chances of its future growth rather than relying on its past performance.
Past performance of any stock, even its promoters warn the investors in their ads, is no guarantee for its future performance. You may argue yourself into buying a stock because it has doubled in the past one year. Instead of gloating over its double growth, you should try to analyze the reasons for that 'spectacular' performance.
Could it have been the lack of serious competition? Could it have been the supply of raw materials at reduced costs just because the raw material suppliers had recently entered the market and wanted to popularize their product?
If you are satisfied with the reasons, go ahead and buy the stock of that company.
Allow time for your stock to grow
Allow some time for your stock to grow in terms of its market value. Do not buy a stock and expect its price to start rising from the next day. If you join a good company as an employee, do you expect your salary to be increased in one or two months? Moreover, the value of good stocks grows slowly yet surely. There generally are no spectacular quantum jumps. If there are any, they may have been manipulated and as an intelligent investor, you may be wary of buying such stocks.
Remember, if money could multiply in matter of days, everybody would invest in stock market and leave every other business. Growth of any asset takes its own time and the investor should cultivate the culture of patience. Ideally a minimum horizon of one year should be a good time.
Diversify your portfolio
'Don't put all your eggs in one basket' is an age-old business advice and it stands good for all times. Even the best of companies may face hard times due to reasons beyond their control.
It is therefore recommended that you should diversify your investment portfolio among a number of good stocks. Diversification, however, does not mean that you should scatter you investment in scores of stocks. This may endanger your focus, as you may not be able to keep a track of the performance of each stock. They may add to your confusion.
Diversification does not only means dispersing your investment in various stocks; it also includes different investment plans such as IRAs, Education accounts, DRIPs, ETFs and so on.
Pricing and Features for Sogotrade Investment Packages: online investmentSogotrade Interest Rates and Fees: trading stock options
Article Source: http://EzineArticles.com/?expert=Micheal_James
Sometimes when the stock market reaches all time high, some investors are so buoyed up that they think the prices would continue to rise and never come down. This is a fallacious view, which is held mostly by the inexperienced stock investors. They, therefore, tend to buy the stocks even though the prices are rising. As is the nature of the volatile stock market, the prices of the stocks fall and the credulous buyers suffer losses.
So what is the tip for stock market investors in such circumstances?
The best course is to buy stocks when the prices are low and wait patiently for them to rise. Fix up a moderate and practical income target. For example, you may fix a target to make 10% profits on your investment.
Do not succumb to your greed thinking that the prices will continue to rise further and you will be able to make 50% or more on your investment. Always keep in mind the volatile nature of the stock.
A golden tip
A golden tip for stock market investors is to buy when every one else is selling and sell your stock when everybody is buying. Do not succumb to peer pressure. Do not run after the majority. Think out of the box. Do not consider yourself a fool for not joining the party that every body appears to be enjoying at the stock market.
Never invest in unknown penny stocks
Even if you cannot resist the temptation of buying when every body else too is buying, do not invest in unknown penny stocks. Do not try to follow the secret, insider's hot tips that your friend's knowledgeable friend may try to whisper in your ears.
Quite possibly the price of the penny stock might have tripled during the last fortnight but that was before your friend's friend started to buy the stock. Chances are that the promoters of the company had started a buying spree for the said stock and spread rumors about the likelihood of the company being acquired by some foreign investor.
Future growth vs past performance
When you try to analyze the value of a stock before buying it, you must consider its chances of its future growth rather than relying on its past performance.
Past performance of any stock, even its promoters warn the investors in their ads, is no guarantee for its future performance. You may argue yourself into buying a stock because it has doubled in the past one year. Instead of gloating over its double growth, you should try to analyze the reasons for that 'spectacular' performance.
Could it have been the lack of serious competition? Could it have been the supply of raw materials at reduced costs just because the raw material suppliers had recently entered the market and wanted to popularize their product?
If you are satisfied with the reasons, go ahead and buy the stock of that company.
Allow time for your stock to grow
Allow some time for your stock to grow in terms of its market value. Do not buy a stock and expect its price to start rising from the next day. If you join a good company as an employee, do you expect your salary to be increased in one or two months? Moreover, the value of good stocks grows slowly yet surely. There generally are no spectacular quantum jumps. If there are any, they may have been manipulated and as an intelligent investor, you may be wary of buying such stocks.
Remember, if money could multiply in matter of days, everybody would invest in stock market and leave every other business. Growth of any asset takes its own time and the investor should cultivate the culture of patience. Ideally a minimum horizon of one year should be a good time.
Diversify your portfolio
'Don't put all your eggs in one basket' is an age-old business advice and it stands good for all times. Even the best of companies may face hard times due to reasons beyond their control.
It is therefore recommended that you should diversify your investment portfolio among a number of good stocks. Diversification, however, does not mean that you should scatter you investment in scores of stocks. This may endanger your focus, as you may not be able to keep a track of the performance of each stock. They may add to your confusion.
Diversification does not only means dispersing your investment in various stocks; it also includes different investment plans such as IRAs, Education accounts, DRIPs, ETFs and so on.
Pricing and Features for Sogotrade Investment Packages: online investmentSogotrade Interest Rates and Fees: trading stock options
Article Source: http://EzineArticles.com/?expert=Micheal_James
Monday, July 21, 2008
The Art of Making Money in Stock Market
By Vijay Kumar Sharma
Most people know that the stock market is unpredictable. Losses in stock market investment are an inevitable part of the trading process. Therefore every stock market trader, howsoever shrewd and experienced he may be, is bound to incur a loss at one time or another.
So before you start trading in the stock market, you must be prepared to suffer losses like every other trader. This, however, does not mean that making money in stock market is more a matter of luck or chance.
This only means that you should make a thorough search, both fundamental and analytical, about the profitability of the stock before investing in it. Having done that you must be prepared to suffer loss since, as already said, the stock market always remains unpredictable.
You have to develop a mind set which should be prepared to take losses in your stride.
What is the use of developing this kind of mind set?
If you understand that losses are part of the stock trading, you will look at your losses with detachment and equanimity like a good sportsman. You will not be shocked and perturbed. You will not lose your perspective and you will be able to prepare yourself for the next game, next trade with a cool mind.
A disturbed mind cannot react properly. It is likely to misinterpret the graphs and charts of the market trends and draw wrong conclusions.
A constantly nagging fear of suffering another loss in the next trade may prevent a trader from investing which would mean that the loss incurred in the previous trade would not be recouped.
If you have a positive mind set and understand that you have to make money in an inherently mercurial market, you try to be realistic instead of perfectionist in stock trading.
A good trading day for a realistic and positive trader will not be one when he makes money. It would be the one when he has made both an extensive and intensive research in the stock he wants to trade in. He has made a thorough planning with discipline and focus and follows each step as per his planned strategy. Making money in stock market for such investors will become easy.
Experts in trading psychology believe that it is important to concentrate upon things which you can easily control. You should not try to lose your focus on attending things which you cannot control.
For example, while you cannot control the price trend, you can control your losses by using the stop loss tool effectively. You can understand the concept of support and resistance levels and use them successfully in your trading.
According to Tim Renolds, you should develop three basic strategies to stop your losses. These are price based, time based and indicator based strategies.
In order to use the price based stop loss strategy, you will have "to make a hypothesis about the trade and identify a low point in that particular stock market." Having done that, you should "set your trade entries near your points, thus making sure that losses will not be overly excessive if the hypothesis fails."
The time based stops involves making optimum use of your time. You should fix up a certain holding period to achieve your target in trading a particular stock. If you cannot achieve your target within that time frame, you should not keep that stock and sell it off.
The indicator based strategy involves understanding market indicators. As an intelligent trader you should become aware of the market indicators and utilize your experience to analyze them to your benefit. The market indicators include volume, advances, declines, new highs and lows and so on.
Experts in stock trading psychology recommend that you should set stops and "rehearse them mentally". It will help to ensure that you follow these strategies thoroughly and benefit from them.
Another important point is that you should immune yourself from the influence of mass psychology. It means that you should resist the temptation to do what the majority of stock traders are doing. You must make up your own mind whether or not you have to buy or sell a stock. You can make up your own mind only when you have done your own independent research and do not listen to the secrets and tips offered by your friends and stock market experts.
Why Choose Sogotrade: cheap trading stock optionsContact sogotrade:
Contact Online stock trading company
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
Most people know that the stock market is unpredictable. Losses in stock market investment are an inevitable part of the trading process. Therefore every stock market trader, howsoever shrewd and experienced he may be, is bound to incur a loss at one time or another.
So before you start trading in the stock market, you must be prepared to suffer losses like every other trader. This, however, does not mean that making money in stock market is more a matter of luck or chance.
This only means that you should make a thorough search, both fundamental and analytical, about the profitability of the stock before investing in it. Having done that you must be prepared to suffer loss since, as already said, the stock market always remains unpredictable.
You have to develop a mind set which should be prepared to take losses in your stride.
What is the use of developing this kind of mind set?
If you understand that losses are part of the stock trading, you will look at your losses with detachment and equanimity like a good sportsman. You will not be shocked and perturbed. You will not lose your perspective and you will be able to prepare yourself for the next game, next trade with a cool mind.
A disturbed mind cannot react properly. It is likely to misinterpret the graphs and charts of the market trends and draw wrong conclusions.
A constantly nagging fear of suffering another loss in the next trade may prevent a trader from investing which would mean that the loss incurred in the previous trade would not be recouped.
If you have a positive mind set and understand that you have to make money in an inherently mercurial market, you try to be realistic instead of perfectionist in stock trading.
A good trading day for a realistic and positive trader will not be one when he makes money. It would be the one when he has made both an extensive and intensive research in the stock he wants to trade in. He has made a thorough planning with discipline and focus and follows each step as per his planned strategy. Making money in stock market for such investors will become easy.
Experts in trading psychology believe that it is important to concentrate upon things which you can easily control. You should not try to lose your focus on attending things which you cannot control.
For example, while you cannot control the price trend, you can control your losses by using the stop loss tool effectively. You can understand the concept of support and resistance levels and use them successfully in your trading.
According to Tim Renolds, you should develop three basic strategies to stop your losses. These are price based, time based and indicator based strategies.
In order to use the price based stop loss strategy, you will have "to make a hypothesis about the trade and identify a low point in that particular stock market." Having done that, you should "set your trade entries near your points, thus making sure that losses will not be overly excessive if the hypothesis fails."
The time based stops involves making optimum use of your time. You should fix up a certain holding period to achieve your target in trading a particular stock. If you cannot achieve your target within that time frame, you should not keep that stock and sell it off.
The indicator based strategy involves understanding market indicators. As an intelligent trader you should become aware of the market indicators and utilize your experience to analyze them to your benefit. The market indicators include volume, advances, declines, new highs and lows and so on.
Experts in stock trading psychology recommend that you should set stops and "rehearse them mentally". It will help to ensure that you follow these strategies thoroughly and benefit from them.
Another important point is that you should immune yourself from the influence of mass psychology. It means that you should resist the temptation to do what the majority of stock traders are doing. You must make up your own mind whether or not you have to buy or sell a stock. You can make up your own mind only when you have done your own independent research and do not listen to the secrets and tips offered by your friends and stock market experts.
Why Choose Sogotrade: cheap trading stock optionsContact sogotrade:
Contact Online stock trading company
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
Sunday, July 20, 2008
Best Energy Stocks - Oil & Gas Calls For 2008
By Jim R Regan
The investing environment for oil & gas producers remains bullish in 2008, as record oil prices headline the news almost daily... and analysts see a lot more coming. Since Goldman Sachs predicted a two-year move to $200 in the commodity, people have had renewed confidence in buying up companies that deal with oil, and its cleaner alternative, natural gas.
There have been many doubters out there that you need to be made aware of. With the most recent dramatic upward spiking in commodities, many investors claim that prices are artificially inflated. While this may hold true, it does not mean they won't continue to inflate artificially... making you money along the way. Despite the fact that all of these companies look expensive as heck, I think that the trend up will continue... and it's always better to get in on the action than be sitting on the sideline, sucking your thumb. ;)
The Net Fool's Stock Performance
Back in January, I advised buying four energy superstars, all of which would have made you double-digit profits by now. Transocean (NYSE: RIG) is up 15.20% since my call back at $140.10, and I am still bullish on their solid oil drilling capabilities after their fantastic first quarter results on May 07, I'm maintaining a "buy" on the stock. If you bought into Schlumberger (NYSE: SLB), you'd be sitting on a nice 10.42% profit from my original pitch at $96.57. Schlumberger is the largest oil-services company in the world, so if you like the security of a large company... you'll love SLB, who still has a lot of upside. My best recommendation in the sector was with Halliburton (NYSE: HAL) which would have given you a 31.70% return since my buy at $37.26. I think it might be time to take profits off the table on Halliburton, moving into another energy stock. The upside is still there, but I think your money would be better off elsewhere. Finally, XTO Energy (NYSE: XTO) has absolutely torn it up since my pitch at $53.88, rising for a 25.95% profit. XTO is an oil & gas exploration company that I maintain a "buy" rating on, still very bullish with plenty of room to move.
Where To Go Now
The energy sector as a whole has been rising off the charts over the past few months. But I don't want you in the companies that are the staple crop of energy, your Exxon Mobiles and your Chevrons... go to source! I'm talking about the guys that are drilling the oil and natural gas directly, spinning them off for profits. Now you've heard from the drillers... I want you in those hybrid oil/gas companies like XTO Energy to capitalize on both markets and diversify risk. Personally, I'm much more bullish on natural gas than oil. I feel that the gas is much more valuable as an energy source but has been largely undiscovered compared to oil by the media, and hasn't seen the same value appreciation that it deserves. So here are some cream of the crop hybrids with a favorable slant toward natural gas!
Chesapeake Energy Corp. (NYSE: CHK):
Chesapeake is the number one independent producer of natural gas, but still has a lot of hedged risk to thwart the volatility factor. It's the number one driller with 254 rigs and has beaten the market over and over again with its superior hedging strategies. You can bank on the fact that they grew production by a bigger percentage than any other large-cap competitor. Lot's of worry over the share price is cast toward Chesapeake, but they have performed past expectations time and time again, so you can sleep soundly with the fact that they have issued stronger guidance than any competitor in my opinion. There are some huge reserves that CHK has actively pursued, and I think the best is yet to come.
Anadarko Petroleum Corp. (NYSE: APC):
Well, they crushed earnings consensus of $1.22/share with $1.55/share... can't say you couldn't expect such stellar news from a great company that has been growing faster than the industry for a while now. This trade isn't done yet, and after an upgrade by Lehman Brothers on May 16th, it's clear that investors still see the upside. Following earnings, it feels like sunny skies all year long for Anadarko... a company trading at just 15.5 times earnings compared to an industry ratio of 23. APC has proven to investors that it can be the best in a high-growth industry... and I'm still buying.
Helix Energy Solutions Group (NYSE: HLX):
Helix does a lot of oil & gas production in the Gulf of Mexico, and I believe they fly largely under the radar in the energy sector because of their low market cap. Their new Danny-Noonan fields should really benefit earnings for 2009, and could even be a catalyst in 2008. But more importantly than new exploration activity, Helix has taken a hit that I feel is undeserved, essentially because of how their petroleum services unit is tied to their exploration unit. Because of this, Helix has one of the more attractive valuations in the sector. While they may not have the profit margins to beat out competition, HLX is a silent assasin with a low P/E of 11 and a chip on their shoulder.
Apache Corp. (NYSE: APA):
High operating costs and expenses were largely offset by earnings from high oil and gas prices as well as increased volume production over the first quarter. Apache has one of the best managed companies in the business, and I see them outperforming the industry in the long run... despite the fact that there are bordering target prices. Apache has benefited as well as anyone else from five major discoveries, and I feel that APA can fully explot their North American reserves to profit in a beaten-down market in 2008.
Average growth rates for natural gas drillers is 15%, so it's really quite hard to find a loser in this environment. I see the following companies outperforming the industry in 2008: Chesapeake (CHK), XTO Energy (XTO), Anadarko (APC), Helix (HLX), Transocean (RIG), Schlumberger (SLB). I am rating these energy stocks as market-perform based on valuation: Apache (APA), Halliburton (HAL), Noble (NE), Devon Energy (DVN), Southwestern Energy (SWN).
One thing is for sure, the oil and gas explorers are outperforming nearly every corner of the market. These stocks are poised to outperform in 2008. My investment strategy would be to wait for a $5-$10 pullback in the price of oil before pulling the trigger on one of these companies, primarily because I do feel that the run-up was a bit too quick.
The author of this article is Jim "The Net Fool".
He is owner of theNetFool.com If you'd like to learn more about the stock market, you can visit http://www.thenetfool.com You'll find all the information you need!
Article Source: http://EzineArticles.com/?expert=Jim_R_Regan
The investing environment for oil & gas producers remains bullish in 2008, as record oil prices headline the news almost daily... and analysts see a lot more coming. Since Goldman Sachs predicted a two-year move to $200 in the commodity, people have had renewed confidence in buying up companies that deal with oil, and its cleaner alternative, natural gas.
There have been many doubters out there that you need to be made aware of. With the most recent dramatic upward spiking in commodities, many investors claim that prices are artificially inflated. While this may hold true, it does not mean they won't continue to inflate artificially... making you money along the way. Despite the fact that all of these companies look expensive as heck, I think that the trend up will continue... and it's always better to get in on the action than be sitting on the sideline, sucking your thumb. ;)
The Net Fool's Stock Performance
Back in January, I advised buying four energy superstars, all of which would have made you double-digit profits by now. Transocean (NYSE: RIG) is up 15.20% since my call back at $140.10, and I am still bullish on their solid oil drilling capabilities after their fantastic first quarter results on May 07, I'm maintaining a "buy" on the stock. If you bought into Schlumberger (NYSE: SLB), you'd be sitting on a nice 10.42% profit from my original pitch at $96.57. Schlumberger is the largest oil-services company in the world, so if you like the security of a large company... you'll love SLB, who still has a lot of upside. My best recommendation in the sector was with Halliburton (NYSE: HAL) which would have given you a 31.70% return since my buy at $37.26. I think it might be time to take profits off the table on Halliburton, moving into another energy stock. The upside is still there, but I think your money would be better off elsewhere. Finally, XTO Energy (NYSE: XTO) has absolutely torn it up since my pitch at $53.88, rising for a 25.95% profit. XTO is an oil & gas exploration company that I maintain a "buy" rating on, still very bullish with plenty of room to move.
Where To Go Now
The energy sector as a whole has been rising off the charts over the past few months. But I don't want you in the companies that are the staple crop of energy, your Exxon Mobiles and your Chevrons... go to source! I'm talking about the guys that are drilling the oil and natural gas directly, spinning them off for profits. Now you've heard from the drillers... I want you in those hybrid oil/gas companies like XTO Energy to capitalize on both markets and diversify risk. Personally, I'm much more bullish on natural gas than oil. I feel that the gas is much more valuable as an energy source but has been largely undiscovered compared to oil by the media, and hasn't seen the same value appreciation that it deserves. So here are some cream of the crop hybrids with a favorable slant toward natural gas!
Chesapeake Energy Corp. (NYSE: CHK):
Chesapeake is the number one independent producer of natural gas, but still has a lot of hedged risk to thwart the volatility factor. It's the number one driller with 254 rigs and has beaten the market over and over again with its superior hedging strategies. You can bank on the fact that they grew production by a bigger percentage than any other large-cap competitor. Lot's of worry over the share price is cast toward Chesapeake, but they have performed past expectations time and time again, so you can sleep soundly with the fact that they have issued stronger guidance than any competitor in my opinion. There are some huge reserves that CHK has actively pursued, and I think the best is yet to come.
Anadarko Petroleum Corp. (NYSE: APC):
Well, they crushed earnings consensus of $1.22/share with $1.55/share... can't say you couldn't expect such stellar news from a great company that has been growing faster than the industry for a while now. This trade isn't done yet, and after an upgrade by Lehman Brothers on May 16th, it's clear that investors still see the upside. Following earnings, it feels like sunny skies all year long for Anadarko... a company trading at just 15.5 times earnings compared to an industry ratio of 23. APC has proven to investors that it can be the best in a high-growth industry... and I'm still buying.
Helix Energy Solutions Group (NYSE: HLX):
Helix does a lot of oil & gas production in the Gulf of Mexico, and I believe they fly largely under the radar in the energy sector because of their low market cap. Their new Danny-Noonan fields should really benefit earnings for 2009, and could even be a catalyst in 2008. But more importantly than new exploration activity, Helix has taken a hit that I feel is undeserved, essentially because of how their petroleum services unit is tied to their exploration unit. Because of this, Helix has one of the more attractive valuations in the sector. While they may not have the profit margins to beat out competition, HLX is a silent assasin with a low P/E of 11 and a chip on their shoulder.
Apache Corp. (NYSE: APA):
High operating costs and expenses were largely offset by earnings from high oil and gas prices as well as increased volume production over the first quarter. Apache has one of the best managed companies in the business, and I see them outperforming the industry in the long run... despite the fact that there are bordering target prices. Apache has benefited as well as anyone else from five major discoveries, and I feel that APA can fully explot their North American reserves to profit in a beaten-down market in 2008.
Average growth rates for natural gas drillers is 15%, so it's really quite hard to find a loser in this environment. I see the following companies outperforming the industry in 2008: Chesapeake (CHK), XTO Energy (XTO), Anadarko (APC), Helix (HLX), Transocean (RIG), Schlumberger (SLB). I am rating these energy stocks as market-perform based on valuation: Apache (APA), Halliburton (HAL), Noble (NE), Devon Energy (DVN), Southwestern Energy (SWN).
One thing is for sure, the oil and gas explorers are outperforming nearly every corner of the market. These stocks are poised to outperform in 2008. My investment strategy would be to wait for a $5-$10 pullback in the price of oil before pulling the trigger on one of these companies, primarily because I do feel that the run-up was a bit too quick.
The author of this article is Jim "The Net Fool".
He is owner of theNetFool.com If you'd like to learn more about the stock market, you can visit http://www.thenetfool.com You'll find all the information you need!
Article Source: http://EzineArticles.com/?expert=Jim_R_Regan
Saturday, July 19, 2008
Why Should You Do Stock Trading In Old Age?
By Micheal James
Depreciation of purchasing power of money
There are two historical economic truths that have worked inexorably since they came into existence. They are like the two sides of the same coin wherein, while one side is bound to the win, the other is bound to lose.
The concept of money was introduced as a tool to purchase commodities, services or products. The truth about money is that its purchasing power has depreciated since its golden times. It is quite apparent from the fact that while money originally was used in form of gold coins, it gradually fell to silver and then to copper and now it is paper.
The second truth, or the other side of the coin, is represented by commodities, products or services. Their value has been increasing since they came into being.
Those who fail to understand these two simple facts come to grief.
There are two way to meet the increasing costs. Either, you pay from your existing reserve of money and deplete it completely in course of time, or, you earn more money to make up the short fall due to extra payments.
Yet another reason to make money is that the interest rates on fixed securities too have been falling. The once coveted and dependable source of passive income has dried up. Instead of paying you interests on your money, some banks charge you for keeping it safe for you.
Apart from the depreciation of money, there are several other reasons why you still need to make money even in your old age.
You cannot easily change your spending habits formed over the decades of your active life. It pleases us to feel we have the power to spend. You become accustomed to a certain standard and style of living that you must maintain so that you do not feel helpless and deprived. It is, therefore, bound to hurt us in our old age if we cannot earn and spend as well.
During the Old ages people tended to feel more insecure about the sudden diseases and similar other emergencies. Old age is when time hangs heavily upon your head and refuses to move. No other form of entertainment can capture and retain your attention. But the lure of money never ceases to cast its spell even on the aging minds. You will never feel bored and sick of life if you keep earning money. And if you can make money when you are old, it boosts your sagging morale and vitality. It brings in a new zeal, a thrill and a kick in the life. It makes you live longer, stronger and happier.
Why should invest in stock market?
It is, therefore, always advisable to plan for old age when you are young. And even if you ignore it in your early age, it is never too late to mend.
One reason why you should invest in stocks and not in other financial schemes like fixed deposits and mutual funds is that investment in stocks keeps you busy. You never feel idle even for a moment all through the day. You rise from your bed with expectations. You keep your mind creatively busy devising strategies and plans as nowhere else.
How do you counteract the argument that stock trading may incur huge losses, take away all your hard earned money earned over your life time and render you penniless?
The answer to this is that you should invest small and carefully. Invest an amount you can afford to lose. It must be noted that you do not lose all your investment in stock trading. You only lose a small percentage of it.
Thousands of old men and women spending time gambling in casinos all over the United States just to kill their boredom. Even they know too well that they visit casinos only to kill their time even if it means losing money.
Gambling is a blind game. You just throw the dice without thinking. In fact there is nothing to think about. You feel monetarily, mentally and physically drained at the end of the day.
Investing in stock trading provides your mind a healthy, productive exercise. You have the whole world of time to learn the tricks and other knick knacks of the trade now that you are retired.
Online stock trading can be carried out from the comfort of your home. You do not need any office, infrastructure, employees and can start trading within five minutes of opening the account and with as little as the cost of a cup of coffee.
Pricing and Features for Sogotrade Investment Packages: online investment
Sogotrade Interest Rates and Fees:
trading stock options
Article Source: http://EzineArticles.com/?expert=Micheal_James
Depreciation of purchasing power of money
There are two historical economic truths that have worked inexorably since they came into existence. They are like the two sides of the same coin wherein, while one side is bound to the win, the other is bound to lose.
The concept of money was introduced as a tool to purchase commodities, services or products. The truth about money is that its purchasing power has depreciated since its golden times. It is quite apparent from the fact that while money originally was used in form of gold coins, it gradually fell to silver and then to copper and now it is paper.
The second truth, or the other side of the coin, is represented by commodities, products or services. Their value has been increasing since they came into being.
Those who fail to understand these two simple facts come to grief.
There are two way to meet the increasing costs. Either, you pay from your existing reserve of money and deplete it completely in course of time, or, you earn more money to make up the short fall due to extra payments.
Yet another reason to make money is that the interest rates on fixed securities too have been falling. The once coveted and dependable source of passive income has dried up. Instead of paying you interests on your money, some banks charge you for keeping it safe for you.
Apart from the depreciation of money, there are several other reasons why you still need to make money even in your old age.
You cannot easily change your spending habits formed over the decades of your active life. It pleases us to feel we have the power to spend. You become accustomed to a certain standard and style of living that you must maintain so that you do not feel helpless and deprived. It is, therefore, bound to hurt us in our old age if we cannot earn and spend as well.
During the Old ages people tended to feel more insecure about the sudden diseases and similar other emergencies. Old age is when time hangs heavily upon your head and refuses to move. No other form of entertainment can capture and retain your attention. But the lure of money never ceases to cast its spell even on the aging minds. You will never feel bored and sick of life if you keep earning money. And if you can make money when you are old, it boosts your sagging morale and vitality. It brings in a new zeal, a thrill and a kick in the life. It makes you live longer, stronger and happier.
Why should invest in stock market?
It is, therefore, always advisable to plan for old age when you are young. And even if you ignore it in your early age, it is never too late to mend.
One reason why you should invest in stocks and not in other financial schemes like fixed deposits and mutual funds is that investment in stocks keeps you busy. You never feel idle even for a moment all through the day. You rise from your bed with expectations. You keep your mind creatively busy devising strategies and plans as nowhere else.
How do you counteract the argument that stock trading may incur huge losses, take away all your hard earned money earned over your life time and render you penniless?
The answer to this is that you should invest small and carefully. Invest an amount you can afford to lose. It must be noted that you do not lose all your investment in stock trading. You only lose a small percentage of it.
Thousands of old men and women spending time gambling in casinos all over the United States just to kill their boredom. Even they know too well that they visit casinos only to kill their time even if it means losing money.
Gambling is a blind game. You just throw the dice without thinking. In fact there is nothing to think about. You feel monetarily, mentally and physically drained at the end of the day.
Investing in stock trading provides your mind a healthy, productive exercise. You have the whole world of time to learn the tricks and other knick knacks of the trade now that you are retired.
Online stock trading can be carried out from the comfort of your home. You do not need any office, infrastructure, employees and can start trading within five minutes of opening the account and with as little as the cost of a cup of coffee.
Pricing and Features for Sogotrade Investment Packages: online investment
Sogotrade Interest Rates and Fees:
trading stock options
Article Source: http://EzineArticles.com/?expert=Micheal_James
Friday, July 18, 2008
Stock Market Trend Analysis
By Micheal James
Stock market goes through different phases at different points of time. At time the market is bullish, at time it bearish, the market has a correction phase and volatile phase as well. For investing in stock market, and to get profit from your investment, it is important that you identify these phases, predict the coming phase, and plan your investment decisions accordingly. There are different methods that are used by the experts to predict the stock market trend.
Technical analysis - There are so many methods for technical analysis that are used by the experts to predict trend of the market, particular sector and in some cases particular stocks as well. The technical analysis is done on the basis of the data collected from the market. There are some set patterns in technical analysis that are formed from the past histories in the market. Experts try and figure out a pattern out of the information that they get from the market and post these data to make a graphical representation of the stock price. Then they compare the graph pattern to the previous patterns to find out if there is a common pattern and then predict the future behavior of the market from these graphs.
Apart from the technical analysis, there are some other actors as well that also help to predict the stock market trend such as the direction of the market. If the overall market is going up, i.e. the market is in bullish trend, and then the stock prices are all set to grow. On the other hand if the market is bearish in nature then the general trend of stock prices is to reduce. Now these are all passing phases and the market goes through correction phase in between the bullish trend and bearish trend when the market gets stable.
To determine if the market is going through a bullish trend or bearish trend, you need to figure out if the market is having more buyers or more sellers. If the market is having more people investing in stocks than number of sellers, then the market is having a bullish trend. If there is more seller than buyer, then of course the market is going through a bearish trend. To determine what exactly is the prevailing stock market trend. You need to keep a close watch on the price of the stock and volume of the stock. If the price at the market is up and the volume of trading is high then you can predict that the market is bullish in nature. On the other hand, if the prices are reducing and the volume of trading is low as well then the trend of the market is bearish. Stock brokers also closely monitor the Dow Jones Index, the S & P 500 and the NASDAQ to determine the trend of the market.
Pricing and Features for Sogotrade Investment Packages: online investmentSogotrade Interest Rates and Fees: trading stock options
Article Source: http://EzineArticles.com/?expert=Micheal_James
Stock market goes through different phases at different points of time. At time the market is bullish, at time it bearish, the market has a correction phase and volatile phase as well. For investing in stock market, and to get profit from your investment, it is important that you identify these phases, predict the coming phase, and plan your investment decisions accordingly. There are different methods that are used by the experts to predict the stock market trend.
Technical analysis - There are so many methods for technical analysis that are used by the experts to predict trend of the market, particular sector and in some cases particular stocks as well. The technical analysis is done on the basis of the data collected from the market. There are some set patterns in technical analysis that are formed from the past histories in the market. Experts try and figure out a pattern out of the information that they get from the market and post these data to make a graphical representation of the stock price. Then they compare the graph pattern to the previous patterns to find out if there is a common pattern and then predict the future behavior of the market from these graphs.
Apart from the technical analysis, there are some other actors as well that also help to predict the stock market trend such as the direction of the market. If the overall market is going up, i.e. the market is in bullish trend, and then the stock prices are all set to grow. On the other hand if the market is bearish in nature then the general trend of stock prices is to reduce. Now these are all passing phases and the market goes through correction phase in between the bullish trend and bearish trend when the market gets stable.
To determine if the market is going through a bullish trend or bearish trend, you need to figure out if the market is having more buyers or more sellers. If the market is having more people investing in stocks than number of sellers, then the market is having a bullish trend. If there is more seller than buyer, then of course the market is going through a bearish trend. To determine what exactly is the prevailing stock market trend. You need to keep a close watch on the price of the stock and volume of the stock. If the price at the market is up and the volume of trading is high then you can predict that the market is bullish in nature. On the other hand, if the prices are reducing and the volume of trading is low as well then the trend of the market is bearish. Stock brokers also closely monitor the Dow Jones Index, the S & P 500 and the NASDAQ to determine the trend of the market.
Pricing and Features for Sogotrade Investment Packages: online investmentSogotrade Interest Rates and Fees: trading stock options
Article Source: http://EzineArticles.com/?expert=Micheal_James
Are You an Investor Or Trader?
By KP Yang
Have you ever asked yourself if you are an investor or a trader?
Both investor and trader have a common objective. That is to make money out from stock market.
Then, what is the difference between them?
Investors view stocks as an asset and partial ownership of a company. They are market participants who is looking for capital depreciation and dividend pay out as the company grows. Usually, they do nothing after owning the stock and hope that that stock price will grow as anticipated or to give them a hefty dividend.
Investor tends to do more analysis on the fundamental of the company, they look for the financial performance in details. They can dig into the ROE, PE ratio, debt exposure, cash flow and even the management. They are usually prepared to hold the stock for a longer term.
Investors usually are not worried so much by the day to day market volatility. Instead, they are more interested in the quarterly, half-yearly or annual report to know how the company progresses.
Let's take a look at the trader.
Traders view stocks as an inventory and they run it like a business. They are market participants who is looking to profit from the price difference in market volatility. They will start buying the stock as inventory holding during an up trending market and start unloading their stock as the price moves higher. Similarly, they can start selling the stock first and then replenish the stock inventory at a later date when the market is bearish.
A trader cares more about the market sentiment more than the company. Trader tends to do more analysis on the stock price pattern, the trend, the market sentiment or market psychology. They look at the market as a business place to fulfill both the demand and supply and eventually profit from it. Trader usually tends to hold the stock for a shorter period, which can vary between hours to days to months. Usually trader are not prepared to hold stock for years.
Trader likes to have market volatility because that creates price difference for them to profit. Usually, they follow more on the majro economic or business news and like to analyse chart.
Having know the difference between investor and trader, which one would you like to be?
KP Yang is a private trader are passionate about invest and make money in the stock market. He also enjoy using technical analysis to study the market trend and formulate trading strategies based on TA. He shares his view on the market on his blog at: http://www.investmoneylab.com - "There is NO Secret Ingredients. That's just YOU" - Kungfu Panda. He believe practice makes perfect, everyone can be successful in the stock market by constantly learning, practicing and taking action.
Article Source: http://EzineArticles.com/?expert=KP_Yang
Have you ever asked yourself if you are an investor or a trader?
Both investor and trader have a common objective. That is to make money out from stock market.
Then, what is the difference between them?
Investors view stocks as an asset and partial ownership of a company. They are market participants who is looking for capital depreciation and dividend pay out as the company grows. Usually, they do nothing after owning the stock and hope that that stock price will grow as anticipated or to give them a hefty dividend.
Investor tends to do more analysis on the fundamental of the company, they look for the financial performance in details. They can dig into the ROE, PE ratio, debt exposure, cash flow and even the management. They are usually prepared to hold the stock for a longer term.
Investors usually are not worried so much by the day to day market volatility. Instead, they are more interested in the quarterly, half-yearly or annual report to know how the company progresses.
Let's take a look at the trader.
Traders view stocks as an inventory and they run it like a business. They are market participants who is looking to profit from the price difference in market volatility. They will start buying the stock as inventory holding during an up trending market and start unloading their stock as the price moves higher. Similarly, they can start selling the stock first and then replenish the stock inventory at a later date when the market is bearish.
A trader cares more about the market sentiment more than the company. Trader tends to do more analysis on the stock price pattern, the trend, the market sentiment or market psychology. They look at the market as a business place to fulfill both the demand and supply and eventually profit from it. Trader usually tends to hold the stock for a shorter period, which can vary between hours to days to months. Usually trader are not prepared to hold stock for years.
Trader likes to have market volatility because that creates price difference for them to profit. Usually, they follow more on the majro economic or business news and like to analyse chart.
Having know the difference between investor and trader, which one would you like to be?
KP Yang is a private trader are passionate about invest and make money in the stock market. He also enjoy using technical analysis to study the market trend and formulate trading strategies based on TA. He shares his view on the market on his blog at: http://www.investmoneylab.com - "There is NO Secret Ingredients. That's just YOU" - Kungfu Panda. He believe practice makes perfect, everyone can be successful in the stock market by constantly learning, practicing and taking action.
Article Source: http://EzineArticles.com/?expert=KP_Yang
Thursday, July 17, 2008
How to Do Stock Market Research?
By Amit Malhotra
As you enter the world of stock trading, you gradually realize that you cannot survive, much less succeed, here unless you do a serious stock market research.
Stock market research is a highly intricate process and requires lots of time, expertise and experience. You have to learn to do fundamental and analytical research in order to study price movement of various stocks. While fundamental research involves studying the financial documents of the company whose stock you are interested in, the technical research involves analyzing the charts and graphs that try to predict the stock movement within a specific time frame.
All this work requires lots of time, attention and perseverance, which is not every one's cup of tea. Most stock traders do a part of the research themselves and also receive expert's guidance from their stock broker as well.
It must be clearly understood that the job of your broker is not limited to just executing your orders instantly. He also provides you the appropriate and efficient research facilities and tools through research section of his website that enable you to take important trading decisions fast and efficiently.
Some of these facilities include latest stock market price quotes and charts, news headline, symbol finder, stock screener, market scanner and so on.
When you think of trading a particular stock, first of all you need to find its trading symbol. This symbol identifies the stock. You enter the symbol on the relevant page of the website and get its price latest to the second. You can find whether the price of the stock is going up or down and also by what percentage it is doing so. The interface provides the opening price of the stock on that day, the high and the low levels the price reached, its bid price and ask price, the 52-week highest and the lowest price, the average trade volume and so on. You may also see a graph showing the price movement of the stock in course of the trading day. All this information is of crucial importance for an investor and even slightly wrong information can play havoc with trading prospects.
News headlines are another cardinal feature of the fundamental stock market research. The latest news flashes point to the overall market scenario of the trade and industry at local, regional, national and international levels. The news flashes provide every piece of information that may be necessary in formulating your trading decisions. The newsflashes contain information about the important companies whose stocks may appear interesting to the investors. You get to know the opinions of important government functionaries about the trade and economy of the country. For example, your anxiety about the effects of inflation on the country economy may be reduced by the news flashed on 3rd June, 2008 at 8.49 a.m that said: Fed Talk: Bernanke Sees Inflation Moderating Next Year.
The newsflashes too are updated by seconds.
Yet another important tool which may be called by any name, say stock screener, provides information about hot stocks in various industrial sectors. You can get the required information in three simple steps in a matter of seconds. You need to choose the name of the industry from the pull down list, then choose the sector and click on the View Results button to see the position of the stocks under the chosen sector. You also find the names of the most active stocks on a particular day.
If you are interested in investing in ETFs, you can look for ETF Center on the relevant page of the Website. You can get a snapshot of the overall ETF investment scenario. Here too you can get the latest price of a particular ETF, the percentage change in price whether it is going up or down along with the total trade volume at a particular time on any working day. The page also contains the open price, last price, day change, day high and low, 52-week high and low price position, average daily volume, shares outstanding, premium/ discount amount, premium/discount percentage and so on. This information is followed by the daily performance chart of the fund. The page also provides the dividend payment details. The portfolio data contains information about the average P/E, average P/B, average market cap, average turn over and so on.
The latest to the second information can be provided only if the website of the broker is backed by the latest state-of-the-art technology.
Open an account with Sogotrade
If you are new to Sogotrade: Online stock trading investment
Article Source: http://EzineArticles.com/?expert=Amit_Malhotra
As you enter the world of stock trading, you gradually realize that you cannot survive, much less succeed, here unless you do a serious stock market research.
Stock market research is a highly intricate process and requires lots of time, expertise and experience. You have to learn to do fundamental and analytical research in order to study price movement of various stocks. While fundamental research involves studying the financial documents of the company whose stock you are interested in, the technical research involves analyzing the charts and graphs that try to predict the stock movement within a specific time frame.
All this work requires lots of time, attention and perseverance, which is not every one's cup of tea. Most stock traders do a part of the research themselves and also receive expert's guidance from their stock broker as well.
It must be clearly understood that the job of your broker is not limited to just executing your orders instantly. He also provides you the appropriate and efficient research facilities and tools through research section of his website that enable you to take important trading decisions fast and efficiently.
Some of these facilities include latest stock market price quotes and charts, news headline, symbol finder, stock screener, market scanner and so on.
When you think of trading a particular stock, first of all you need to find its trading symbol. This symbol identifies the stock. You enter the symbol on the relevant page of the website and get its price latest to the second. You can find whether the price of the stock is going up or down and also by what percentage it is doing so. The interface provides the opening price of the stock on that day, the high and the low levels the price reached, its bid price and ask price, the 52-week highest and the lowest price, the average trade volume and so on. You may also see a graph showing the price movement of the stock in course of the trading day. All this information is of crucial importance for an investor and even slightly wrong information can play havoc with trading prospects.
News headlines are another cardinal feature of the fundamental stock market research. The latest news flashes point to the overall market scenario of the trade and industry at local, regional, national and international levels. The news flashes provide every piece of information that may be necessary in formulating your trading decisions. The newsflashes contain information about the important companies whose stocks may appear interesting to the investors. You get to know the opinions of important government functionaries about the trade and economy of the country. For example, your anxiety about the effects of inflation on the country economy may be reduced by the news flashed on 3rd June, 2008 at 8.49 a.m that said: Fed Talk: Bernanke Sees Inflation Moderating Next Year.
The newsflashes too are updated by seconds.
Yet another important tool which may be called by any name, say stock screener, provides information about hot stocks in various industrial sectors. You can get the required information in three simple steps in a matter of seconds. You need to choose the name of the industry from the pull down list, then choose the sector and click on the View Results button to see the position of the stocks under the chosen sector. You also find the names of the most active stocks on a particular day.
If you are interested in investing in ETFs, you can look for ETF Center on the relevant page of the Website. You can get a snapshot of the overall ETF investment scenario. Here too you can get the latest price of a particular ETF, the percentage change in price whether it is going up or down along with the total trade volume at a particular time on any working day. The page also contains the open price, last price, day change, day high and low, 52-week high and low price position, average daily volume, shares outstanding, premium/ discount amount, premium/discount percentage and so on. This information is followed by the daily performance chart of the fund. The page also provides the dividend payment details. The portfolio data contains information about the average P/E, average P/B, average market cap, average turn over and so on.
The latest to the second information can be provided only if the website of the broker is backed by the latest state-of-the-art technology.
Open an account with Sogotrade
If you are new to Sogotrade: Online stock trading investment
Article Source: http://EzineArticles.com/?expert=Amit_Malhotra
Wednesday, July 16, 2008
Stocks - A Good Investment? - Great Investment!
By Daniel Molano
Stock markets all over the world have been a mess lately, the price of the oil barrel rising everyday and reaching a new historical price peak is one of the main reasons, and the economical crisis in the United States is another. This means that the stock market is crazy, moving up and down. So, are stocks a good investment? Now more than ever! You just need to know how to play the game. A market this volatile is perfect for making huge amounts of money, but also perfect for getting bankrupt. Keep reading to learn how to choose the right stocks and make thousands of dollars quick and easy.
The most popular type of stocks to make large sums of money are penny stocks. Penny stocks are basically stocks valued in pennies, which means that a small change in them can either make you tons of cash or lose a lot of money. In short, are stocks a good investment? Definitely!
Allow me to elaborate: To make it simple, a stock is valued at $1.00, you invest $10,000 dollars in it, if it shifts to $2.00 in a month (which is very likely to happen with these stocks) and you sell for that price (which means you sold it for $20,000) it would result in $10,000 dollars worth of profit. The reverse is also valid, if you purchase for 2.00 and it changes to 1.00, you just lost $10,000 dollars.
However, pay close attention to what I will say. You must know how to choose the right stock or you will end up loosing all your hard earned money. How to choose the right stock? Well there are various factors, you must analyze the trends and patterns, assess the risk with financial ratios like "beta" and know when to buy or sell!
So, are stocks a good investment? Yes! But it's very complicated, especially for someone without experience. So I will make it easy for you. The first commercially available, 100% legal, stock trading robot was recently released by the creator of the Global Alpha computer stock trading model, which generated over $4,000,000,000.00 dollars for Goldman Sachs. This is a home made robot which will pick the most profitable stocks for you! And also tell you when to buy or sell, based on advanced financial algorithms. If you want to learn all about it and make thousands of dollars from it, go here now: Free Stock Pick Software
Daniel Molano is an expert writer in a variety of topics. He writes high quality reviews for high demand products. If you need a product review or want a product reviewed go immediately to his blog here: Product Reviews
Article Source: http://EzineArticles.com/?expert=Daniel_Molano
Stock markets all over the world have been a mess lately, the price of the oil barrel rising everyday and reaching a new historical price peak is one of the main reasons, and the economical crisis in the United States is another. This means that the stock market is crazy, moving up and down. So, are stocks a good investment? Now more than ever! You just need to know how to play the game. A market this volatile is perfect for making huge amounts of money, but also perfect for getting bankrupt. Keep reading to learn how to choose the right stocks and make thousands of dollars quick and easy.
The most popular type of stocks to make large sums of money are penny stocks. Penny stocks are basically stocks valued in pennies, which means that a small change in them can either make you tons of cash or lose a lot of money. In short, are stocks a good investment? Definitely!
Allow me to elaborate: To make it simple, a stock is valued at $1.00, you invest $10,000 dollars in it, if it shifts to $2.00 in a month (which is very likely to happen with these stocks) and you sell for that price (which means you sold it for $20,000) it would result in $10,000 dollars worth of profit. The reverse is also valid, if you purchase for 2.00 and it changes to 1.00, you just lost $10,000 dollars.
However, pay close attention to what I will say. You must know how to choose the right stock or you will end up loosing all your hard earned money. How to choose the right stock? Well there are various factors, you must analyze the trends and patterns, assess the risk with financial ratios like "beta" and know when to buy or sell!
So, are stocks a good investment? Yes! But it's very complicated, especially for someone without experience. So I will make it easy for you. The first commercially available, 100% legal, stock trading robot was recently released by the creator of the Global Alpha computer stock trading model, which generated over $4,000,000,000.00 dollars for Goldman Sachs. This is a home made robot which will pick the most profitable stocks for you! And also tell you when to buy or sell, based on advanced financial algorithms. If you want to learn all about it and make thousands of dollars from it, go here now: Free Stock Pick Software
Daniel Molano is an expert writer in a variety of topics. He writes high quality reviews for high demand products. If you need a product review or want a product reviewed go immediately to his blog here: Product Reviews
Article Source: http://EzineArticles.com/?expert=Daniel_Molano
Secret Of Success In Stock Trading
By Vijay Kumar Sharma
Know your temperament
You may be a long term stock trader, a position trader or a day trader. You cannot succeed in any trade style unless you are well informed. And even if you are well informed, you cannot take right and successful decisions in stock trading unless you work in a relaxed and tension free state of mind.
A tensed and worried mind, even if well informed, is prone to make mistakes and suffer losses. You tend to hit the wrong buttons on your computer or fill in wrong inputs. So the first important factor in stock trading is to remain relaxed.
Know your temperament, your financial position and financial goals before you decide what trade style is suitable for you. Do you understand the jargon associated with stock trading and research? Do you enjoy doing research, both fundamental and technical? Do you enjoy sitting glued to the computer all day long or you hate the addictive monster? Do you believe in patience and perseverance or you want quick results? If you work under compulsion, you are more likely to lose than win in stock trading.
You can make profits in stock trading in any investment style provided that suits your temperament. Some people hate to exit the market too soon while others take pleasure in hasty retreats.
It is quite well known that you can make and lose money fast in day trading. Even if you ignore this aspect and are confident that you can earn more than you lose in day trading, there are certain other aspects, which can be ignored only at your peril.
Each investment style has its own unique advantages and pitfalls.
Day trading can be expensive
Day trading involves placing your trading orders and expecting executions more frequently. You require day trading specific analysis tools. You have to sign up for expensive real-time upgrade services. You may require costly analysis software and advisory reports. It must be understood that analysis techniques and expenses associated with them differ based on trade duration.
All these services come with charges, which significantly add to your costs in day trading which in turn may eat into your net earnings. The so-called- all-in-one trade firms that offer multiple trade services do not provide free services. On the contrary, the day traders are the mainstay of their substantial income, which they receive in form of commissions, monthly fees and software upgrade fees.
Position traders or long term traders do not have to pay such hefty fees to their brokers.
It is generally believed that the day traders do not require tools for fundamental analysis, as tools are considered more useful for position traders or long-term investors. Day traders usually rely more on very short-term technical signals that keep changing time and again during the course of the day. This view appears to be a bit flawed.
Combining technical analysis with fundamental analysis
Most successful day traders and market analysts will testify that market fundamentals play an important role in determining what basically a good and paying stock is. Since day traders are quickies and rely more on tick-by-tick systems, they probably do not have time and patience for fundamental research. This approach, however, limits the scope for their analysis.
It must be understood that whether you are a day trader or a position trader, you must utilize all the available tools such as technical indicators, pure fundamental analysis and of course their hunches or intuition born out of experience to secure the best results.
Do your homework
You must do your homework before entering into any type of trade. This should involve using fundamental analysis to determine the expected directional trend of the trading market. Fundamental analysis is useful both for long term and short-term positions. Once you know the fundamentals, you can improve your performance by using the technical analysis.
According to stock market experts" by knowing the fundamental elements affecting your market, you can be prepared to confidently enter short-term trades that are technically indicated and supported by the fundamentals... The fundamentals act as a compass pointing the general direction your market will go. Your short-term technical signals can then guide you through the labyrinth of fluctuations along the way."
You must, therefore, study the database of daily prices, volume and other related information. It is always advisable to combine a purely technical perspective with fundamentals to anticipate the price trends. Knowledge of fundamentals can help improve the chances of making profits in any trade duration.
Why Choose Sogotrade: cheap trading stock optionsContact sogotrade: Contact Online stock trading company
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
Know your temperament
You may be a long term stock trader, a position trader or a day trader. You cannot succeed in any trade style unless you are well informed. And even if you are well informed, you cannot take right and successful decisions in stock trading unless you work in a relaxed and tension free state of mind.
A tensed and worried mind, even if well informed, is prone to make mistakes and suffer losses. You tend to hit the wrong buttons on your computer or fill in wrong inputs. So the first important factor in stock trading is to remain relaxed.
Know your temperament, your financial position and financial goals before you decide what trade style is suitable for you. Do you understand the jargon associated with stock trading and research? Do you enjoy doing research, both fundamental and technical? Do you enjoy sitting glued to the computer all day long or you hate the addictive monster? Do you believe in patience and perseverance or you want quick results? If you work under compulsion, you are more likely to lose than win in stock trading.
You can make profits in stock trading in any investment style provided that suits your temperament. Some people hate to exit the market too soon while others take pleasure in hasty retreats.
It is quite well known that you can make and lose money fast in day trading. Even if you ignore this aspect and are confident that you can earn more than you lose in day trading, there are certain other aspects, which can be ignored only at your peril.
Each investment style has its own unique advantages and pitfalls.
Day trading can be expensive
Day trading involves placing your trading orders and expecting executions more frequently. You require day trading specific analysis tools. You have to sign up for expensive real-time upgrade services. You may require costly analysis software and advisory reports. It must be understood that analysis techniques and expenses associated with them differ based on trade duration.
All these services come with charges, which significantly add to your costs in day trading which in turn may eat into your net earnings. The so-called- all-in-one trade firms that offer multiple trade services do not provide free services. On the contrary, the day traders are the mainstay of their substantial income, which they receive in form of commissions, monthly fees and software upgrade fees.
Position traders or long term traders do not have to pay such hefty fees to their brokers.
It is generally believed that the day traders do not require tools for fundamental analysis, as tools are considered more useful for position traders or long-term investors. Day traders usually rely more on very short-term technical signals that keep changing time and again during the course of the day. This view appears to be a bit flawed.
Combining technical analysis with fundamental analysis
Most successful day traders and market analysts will testify that market fundamentals play an important role in determining what basically a good and paying stock is. Since day traders are quickies and rely more on tick-by-tick systems, they probably do not have time and patience for fundamental research. This approach, however, limits the scope for their analysis.
It must be understood that whether you are a day trader or a position trader, you must utilize all the available tools such as technical indicators, pure fundamental analysis and of course their hunches or intuition born out of experience to secure the best results.
Do your homework
You must do your homework before entering into any type of trade. This should involve using fundamental analysis to determine the expected directional trend of the trading market. Fundamental analysis is useful both for long term and short-term positions. Once you know the fundamentals, you can improve your performance by using the technical analysis.
According to stock market experts" by knowing the fundamental elements affecting your market, you can be prepared to confidently enter short-term trades that are technically indicated and supported by the fundamentals... The fundamentals act as a compass pointing the general direction your market will go. Your short-term technical signals can then guide you through the labyrinth of fluctuations along the way."
You must, therefore, study the database of daily prices, volume and other related information. It is always advisable to combine a purely technical perspective with fundamentals to anticipate the price trends. Knowledge of fundamentals can help improve the chances of making profits in any trade duration.
Why Choose Sogotrade: cheap trading stock optionsContact sogotrade: Contact Online stock trading company
Article Source: http://EzineArticles.com/?expert=Vijay_Kumar_Sharma
Tuesday, July 15, 2008
Here Is A List Of What Jim Cramer Of CNBC's Mad Money Calls The 5 Worst Investment Mistakes
By Dan Cunningham
Many investors just jump right in and then they make mistake after mistake costing them a ton of money. If you know what these mistakes are and you avoid them you will be way ahead of the game. This is why I decided to post Jim Cramer's list of the 5 worst investment mistakes.
1. Buy and Hold isn't a Strategy
The single worst and widespread mistake out there is Buy and Hold. Buy and hold is a thing of the past. Buy and hold isn't a strategy, it gives you a false sense of security. When you buy and hold you think "my work here is done", it's an excuse to be lazy. It needs to be "Buy and Homework". Listen in on conference calls. Check for Management confidence. You should be spending at least an hour a week studying, per stock.
2. Shoulda, Woulda, Coulda
If only I bought this or that. Don't dwell on missed opportunities or bad mistakes. When you can't get over your mistakes it becomes counter productive. Being an Investor is emotionally brutal. You have to be tough minded. Focus your time on making good decisions in the present. Learn from your past then move on. It is our nature to regret mistakes, but overdoing it won't get you anywhere. Don't let it throw you off your game. This is what really separates the good investors from the bad
3. Tips are for waiters. Not for Traders
You can get great stock tips. These are the ones from insiders who actually know company's future moves. These types of tips are illegal. The other types of tips are usually from someone who has an agenda. If someone wants to give you a stock tip it should send up a red flag. That being said there is a difference between a "stock tip" and a company that does the homework for you and gives you recommendations.
4. Lack of Diversification
Diversify. Diversify. Diversify. Don't keep your entire portfolio in one sector. You should not have more than 20%, even in a very hot sector. Remember the tech bubble. Enough said.
5. Buying your whole position at once
Sometimes you are your own worst enemy. In these times you need rules to suppress your instincts. Arrogance is a sin that will cost you a lot of money. Buying your whole position in a stock at one time is the most arrogant thing one can do. When you buy your whole position at once you are saying "this stock is not going any lower from this point on." That is arrogance. Build a position over time, not all at once. Patiently wait for good entry points. It's hard to time stock perfectly...Yet another reason to buy slowly.
Good Luck and Good Investing!
I'm Dan Cunningham. I am an investor and entrepreneur. Feel free to contact me with any questions or leave a comment.
dan@rabbitsreport.com
http://www.rabbitsreport.com/
Article Source: http://EzineArticles.com/?expert=Dan_Cunningham
Many investors just jump right in and then they make mistake after mistake costing them a ton of money. If you know what these mistakes are and you avoid them you will be way ahead of the game. This is why I decided to post Jim Cramer's list of the 5 worst investment mistakes.
1. Buy and Hold isn't a Strategy
The single worst and widespread mistake out there is Buy and Hold. Buy and hold is a thing of the past. Buy and hold isn't a strategy, it gives you a false sense of security. When you buy and hold you think "my work here is done", it's an excuse to be lazy. It needs to be "Buy and Homework". Listen in on conference calls. Check for Management confidence. You should be spending at least an hour a week studying, per stock.
2. Shoulda, Woulda, Coulda
If only I bought this or that. Don't dwell on missed opportunities or bad mistakes. When you can't get over your mistakes it becomes counter productive. Being an Investor is emotionally brutal. You have to be tough minded. Focus your time on making good decisions in the present. Learn from your past then move on. It is our nature to regret mistakes, but overdoing it won't get you anywhere. Don't let it throw you off your game. This is what really separates the good investors from the bad
3. Tips are for waiters. Not for Traders
You can get great stock tips. These are the ones from insiders who actually know company's future moves. These types of tips are illegal. The other types of tips are usually from someone who has an agenda. If someone wants to give you a stock tip it should send up a red flag. That being said there is a difference between a "stock tip" and a company that does the homework for you and gives you recommendations.
4. Lack of Diversification
Diversify. Diversify. Diversify. Don't keep your entire portfolio in one sector. You should not have more than 20%, even in a very hot sector. Remember the tech bubble. Enough said.
5. Buying your whole position at once
Sometimes you are your own worst enemy. In these times you need rules to suppress your instincts. Arrogance is a sin that will cost you a lot of money. Buying your whole position in a stock at one time is the most arrogant thing one can do. When you buy your whole position at once you are saying "this stock is not going any lower from this point on." That is arrogance. Build a position over time, not all at once. Patiently wait for good entry points. It's hard to time stock perfectly...Yet another reason to buy slowly.
Good Luck and Good Investing!
I'm Dan Cunningham. I am an investor and entrepreneur. Feel free to contact me with any questions or leave a comment.
dan@rabbitsreport.com
http://www.rabbitsreport.com/
Article Source: http://EzineArticles.com/?expert=Dan_Cunningham
Monday, July 14, 2008
Stock Trading - What to Do If You Are Stuck With a Loss
By Slav Fedorov
In a word - SELL.
Chances are, in this market you are sitting on some steep and sudden losses. You don't understand what happened: good fundamentals, excellent story, great ratings... You feel you've done your homework and the market just disagrees with you. So you find yourself going back to the Yahoo message board for some cheerleading messages. You hope the market will recognize its mistake and turn your losses into gains. Well, it won't.
Hope is a poor investment guide. The only reason you buy a stock is to make money. If instead you are losing it, something obviously went wrong. It could be the general market, the particular industry group, or it can be company specific. It does not matter. Sometimes you never find out.
So why are others bullish? Who knows!
Yahoo posters may have bought years earlier and find it hard to let go of the years of enthusiasm. After all, the stock has been good to them. Has been. Or they hope to push the stock up by encouraging others to buy. Or at least not to sell. Analysts may have top ratings to keep the stock from sliding further so that their best clients can sell. To you.
The problem with holding a losing stock (well, in addition to LOSING money) is that it clouds your judgment. You may not be looking at other opportunities because you are determined to make this one right before doing anything else. In the meantime fresh zoomers are passing you buy.
You may be tempted to average down to lower your cost as you are watching in disbelief as the stock gets cheaper and cheaper. The problem with this approach is that the market can stay irrational much longer than you can stay solvent. You may run out of cash long before the stock bottoms out. The longer you wait, the more determined you become to sell to break even. If/when the stock does get back to where you can recover your cost, you jump out. The upward momentum may carry the stock much higher, but you are so disgusted with it that you are happy to get your money back as soon as you can so you can start looking for another "money making" opportunity. And that creates another problem: by not breaking out of this mode, you reinforce the losing strategy by repeating the same mistake over and over again, hoping that next time it will be different.
We all want Peter Lynch's tenbaggers. We all have seen 10-year charts rising steadily from the lower left hand to the upper right hand corner and said: if only I had bought here and just held...
Well, remember that Peter Lynch did not just buy and hold - he checked and re-checked the story and fundamentals. Plus, he dealt with OPM (other people's money). You are putting your hard earned cash on the line. Being deeper and deeper in the red every minute of the day clouds your judgment. Many sell when the pain becomes unbearable.
If you sell and take a loss, the pain will recede by the next day, when your broker's software gain/loss window resets to zero. It gives you a fresh start and the ability to look at things objectively. Is this still the best stock to buy? Would you buy it now? (And, in fact, if you do, the roundtrip may only cost $20.00 but give you a tax loss for the year.) What else is out there? Is this the right time to be in the market? And most importantly, if you have been through the cycle I just described, perhaps the best thing would be to analyze your past trading experience and see if it's time to learn new tricks?
Slav Fedorov is a full time stock trader and founder and managing member of TradingZoom, LLC - a provider of proprietary trading data that swing traders can put to work right away.
http://www.tradingzoom.com/
Article Source: http://EzineArticles.com/?expert=Slav_Fedorov
In a word - SELL.
Chances are, in this market you are sitting on some steep and sudden losses. You don't understand what happened: good fundamentals, excellent story, great ratings... You feel you've done your homework and the market just disagrees with you. So you find yourself going back to the Yahoo message board for some cheerleading messages. You hope the market will recognize its mistake and turn your losses into gains. Well, it won't.
Hope is a poor investment guide. The only reason you buy a stock is to make money. If instead you are losing it, something obviously went wrong. It could be the general market, the particular industry group, or it can be company specific. It does not matter. Sometimes you never find out.
So why are others bullish? Who knows!
Yahoo posters may have bought years earlier and find it hard to let go of the years of enthusiasm. After all, the stock has been good to them. Has been. Or they hope to push the stock up by encouraging others to buy. Or at least not to sell. Analysts may have top ratings to keep the stock from sliding further so that their best clients can sell. To you.
The problem with holding a losing stock (well, in addition to LOSING money) is that it clouds your judgment. You may not be looking at other opportunities because you are determined to make this one right before doing anything else. In the meantime fresh zoomers are passing you buy.
You may be tempted to average down to lower your cost as you are watching in disbelief as the stock gets cheaper and cheaper. The problem with this approach is that the market can stay irrational much longer than you can stay solvent. You may run out of cash long before the stock bottoms out. The longer you wait, the more determined you become to sell to break even. If/when the stock does get back to where you can recover your cost, you jump out. The upward momentum may carry the stock much higher, but you are so disgusted with it that you are happy to get your money back as soon as you can so you can start looking for another "money making" opportunity. And that creates another problem: by not breaking out of this mode, you reinforce the losing strategy by repeating the same mistake over and over again, hoping that next time it will be different.
We all want Peter Lynch's tenbaggers. We all have seen 10-year charts rising steadily from the lower left hand to the upper right hand corner and said: if only I had bought here and just held...
Well, remember that Peter Lynch did not just buy and hold - he checked and re-checked the story and fundamentals. Plus, he dealt with OPM (other people's money). You are putting your hard earned cash on the line. Being deeper and deeper in the red every minute of the day clouds your judgment. Many sell when the pain becomes unbearable.
If you sell and take a loss, the pain will recede by the next day, when your broker's software gain/loss window resets to zero. It gives you a fresh start and the ability to look at things objectively. Is this still the best stock to buy? Would you buy it now? (And, in fact, if you do, the roundtrip may only cost $20.00 but give you a tax loss for the year.) What else is out there? Is this the right time to be in the market? And most importantly, if you have been through the cycle I just described, perhaps the best thing would be to analyze your past trading experience and see if it's time to learn new tricks?
Slav Fedorov is a full time stock trader and founder and managing member of TradingZoom, LLC - a provider of proprietary trading data that swing traders can put to work right away.
http://www.tradingzoom.com/
Article Source: http://EzineArticles.com/?expert=Slav_Fedorov
Sunday, July 13, 2008
How to Buy Stock in Oil? Here Are 5 Quick Tips to Help You
By Neil Jones
Are you looking towards buying stock in oil? With the booming oil stocks most investors are trying to book profit with these stocks. And this condition will remain alike until oil demand and production are in balance. This article will provide you with some quick tips about how to buy stock in oil.
According to the experts the global oil production was at its peak in last three years even though supply was less. But, there is no fall in demand. These oil stocks are good for long-term investment. But, the question is how to buy stocks in oil?
Here are 5 tips to help with buying stock in oil.
Tip #1: Look for performance of the companies in oil industry before you select a particular oil stock. Online journals will help to get more information about different oil and gas industries. The integrated oil and gas industries are the main participants of the oil stocks.Most large industries will pay large dividends. Smaller companies involved in production and exploration plays the major role in these oil and gas industries.
Tip #2: Sreening of the oil and gas industries will help while selecting specific oil stock. There are three categories in this industry. They are oil and gas production, oil well services and equipment and integrated oil and gas.
Tip #3: Look for financial status of the company. Crude prices show much flexibility. It affects the oil stock. To reduce risk, take expert recommendations while buying any stock in oil.
Tip #4: Experts categorize these oil stocks into integrated oil companies, independent companies, Refiners, natural gas and Oil services. Most of the experts suggests to buy big company stocks in the integrated category. Natural gas sector is also showing steady growth in last few years. Hike in crude price made oil service companies more significant. Few companies are involved in production and exploration.
Tip #5: Exchange Trade Funds are the best option to invest in oil stock. In last few years, oil services ETFs given 724% returns to their investors. The great advantage while investing in ETFs is that you are not required to think of an individual company. Just pick one of the best Exchange trade funds (ETFs) and invest into it. You will get more returns in this. Many investors experience trouble when they buy ETFs when their price is sky-scraping and sell at a failure.
If you are thinking about how to buy stock in oil, keep high risks at bay. Every investment brings its own risk factors into the picture. And there is no 100 % risk free investment.
For more detail information on how to buy stock visit the website http://www.howtobuystock.org/
Article Source: http://EzineArticles.com/?expert=Neil_Jones
Are you looking towards buying stock in oil? With the booming oil stocks most investors are trying to book profit with these stocks. And this condition will remain alike until oil demand and production are in balance. This article will provide you with some quick tips about how to buy stock in oil.
According to the experts the global oil production was at its peak in last three years even though supply was less. But, there is no fall in demand. These oil stocks are good for long-term investment. But, the question is how to buy stocks in oil?
Here are 5 tips to help with buying stock in oil.
Tip #1: Look for performance of the companies in oil industry before you select a particular oil stock. Online journals will help to get more information about different oil and gas industries. The integrated oil and gas industries are the main participants of the oil stocks.Most large industries will pay large dividends. Smaller companies involved in production and exploration plays the major role in these oil and gas industries.
Tip #2: Sreening of the oil and gas industries will help while selecting specific oil stock. There are three categories in this industry. They are oil and gas production, oil well services and equipment and integrated oil and gas.
Tip #3: Look for financial status of the company. Crude prices show much flexibility. It affects the oil stock. To reduce risk, take expert recommendations while buying any stock in oil.
Tip #4: Experts categorize these oil stocks into integrated oil companies, independent companies, Refiners, natural gas and Oil services. Most of the experts suggests to buy big company stocks in the integrated category. Natural gas sector is also showing steady growth in last few years. Hike in crude price made oil service companies more significant. Few companies are involved in production and exploration.
Tip #5: Exchange Trade Funds are the best option to invest in oil stock. In last few years, oil services ETFs given 724% returns to their investors. The great advantage while investing in ETFs is that you are not required to think of an individual company. Just pick one of the best Exchange trade funds (ETFs) and invest into it. You will get more returns in this. Many investors experience trouble when they buy ETFs when their price is sky-scraping and sell at a failure.
If you are thinking about how to buy stock in oil, keep high risks at bay. Every investment brings its own risk factors into the picture. And there is no 100 % risk free investment.
For more detail information on how to buy stock visit the website http://www.howtobuystock.org/
Article Source: http://EzineArticles.com/?expert=Neil_Jones
Saturday, July 12, 2008
How to Create Your Own Successful Stock Portfolio
By S Mcleod
Is your mutual fund not providing the type of performance you are looking for? You are not alone. According to statics over a 10 year period from April 30th, 1995 to April 30th, 2005 78.6% of active mutual fund managers failed to beat the S&P 500? That means that if you invested in mutual funds during this time period your fund had only a 20% chance of outperforming the S&P 500. These managers are supposed to be the so called experts in the stock market, yet they can't even beat the performance of an index that measures general marketing conditions?
There is an age old saying, if you want something done right do it yourself and this saying certainly applies to the stock market. With just a little research in your spare time, you can create your own portfolio that can trounce the pathetic performance of these mutual funds and grow your money at a rate you would be proud of.
As of May 30th, 2007, the S&P 500 over a 5 year period is up over 42%. That is an average growth rate of 8.4% a year. If you can create a portfolio that can exceed 8.4% a year yourself, you will not only be outperforming the S&P 500, but you will also be outperforming most of the mutual fund managers. So how do you build your own portfolio so you can fire your mutual fund? Here are some tips:
Tip #1 - Don't fight the indexes. The three general indexes that measure market performance are the Dow Jones Industrial average, the Standard & Poor 500 Index and the NASDAQ composite index. Take a look at a one year chart for these indexes. What direction is the chart moving? If the indexes are downward, monitor your current positions carefully, sell and take profits when appropriate and don't buy into any new positions until the general market is headed back up. Three out of every four stocks follow the general market trend. Trying to find winners in a downward market is like trying to swim upstream. It can be done, but the odds are against you.
Tip #2 - Change is essential. The best performing stocks perform well because there is a change that takes place that causes the increase in price. For instance, Apple's stock is up over 50% from one year ago. What change took place almost a year ago that is driving such a large increase in stock value? Look for a change in products, a change in financial performance, a change in management or a change in the industry.
Tip #3 - Show me the money. How the company is performing financially is one of the key fundamentals to driving stock price. If the company is consistently growing sales revenues, net profits and corporate earnings at a high rate quarterly and annually, that is a clear sign that you may have a winner on your hands.
So make sure you consider these three tips if you want to build a portfolio that will make your mutual fund manager jealous. Doing so will allow you to be able to fire your mutual fund!
If you would like to get more information about investing in stocks or trying to see which stocks to buy or sell on a daily basis. Visit my site http://www.dailymadmoney.com
Article Source: http://EzineArticles.com/?expert=S_Mcleod
Is your mutual fund not providing the type of performance you are looking for? You are not alone. According to statics over a 10 year period from April 30th, 1995 to April 30th, 2005 78.6% of active mutual fund managers failed to beat the S&P 500? That means that if you invested in mutual funds during this time period your fund had only a 20% chance of outperforming the S&P 500. These managers are supposed to be the so called experts in the stock market, yet they can't even beat the performance of an index that measures general marketing conditions?
There is an age old saying, if you want something done right do it yourself and this saying certainly applies to the stock market. With just a little research in your spare time, you can create your own portfolio that can trounce the pathetic performance of these mutual funds and grow your money at a rate you would be proud of.
As of May 30th, 2007, the S&P 500 over a 5 year period is up over 42%. That is an average growth rate of 8.4% a year. If you can create a portfolio that can exceed 8.4% a year yourself, you will not only be outperforming the S&P 500, but you will also be outperforming most of the mutual fund managers. So how do you build your own portfolio so you can fire your mutual fund? Here are some tips:
Tip #1 - Don't fight the indexes. The three general indexes that measure market performance are the Dow Jones Industrial average, the Standard & Poor 500 Index and the NASDAQ composite index. Take a look at a one year chart for these indexes. What direction is the chart moving? If the indexes are downward, monitor your current positions carefully, sell and take profits when appropriate and don't buy into any new positions until the general market is headed back up. Three out of every four stocks follow the general market trend. Trying to find winners in a downward market is like trying to swim upstream. It can be done, but the odds are against you.
Tip #2 - Change is essential. The best performing stocks perform well because there is a change that takes place that causes the increase in price. For instance, Apple's stock is up over 50% from one year ago. What change took place almost a year ago that is driving such a large increase in stock value? Look for a change in products, a change in financial performance, a change in management or a change in the industry.
Tip #3 - Show me the money. How the company is performing financially is one of the key fundamentals to driving stock price. If the company is consistently growing sales revenues, net profits and corporate earnings at a high rate quarterly and annually, that is a clear sign that you may have a winner on your hands.
So make sure you consider these three tips if you want to build a portfolio that will make your mutual fund manager jealous. Doing so will allow you to be able to fire your mutual fund!
If you would like to get more information about investing in stocks or trying to see which stocks to buy or sell on a daily basis. Visit my site http://www.dailymadmoney.com
Article Source: http://EzineArticles.com/?expert=S_Mcleod
5 Steps to Trading Success Using Technical Analysis
By Tim Chen
This article is for both novice and experienced traders.
1. Simple is better - Use a handful of technical indicators There are dozens of technical indicators out there. It is a mistake to apply all of them at the same time as many indicators give contradictory signals and you will never find a stock that meets the requirements of all indicators. Instead, you should focus on four to five indicators to make a trading decision. Some of the popular ones include Moving average (MA), Exponential moving average (EMA), MACD, Stochastic and so on.
2. Back test your indicators with historical data Use the technical indicators you learn and test them with historical data. The more tests you do, the better. Develop a trading system that works for you based on your testing results. Try to break your system with more stocks and historical price.
3. Paper trade using your trading system You should spend at least one month testing your system with end of date market data. Select a few stocks that meet the requirements of your technical indicators and see how they are doing each day.
4. Set a proper stop loss No matter what stock you choose, you should always set a stop loss point. Do not hold a losing trade too long hoping it will rise again. Remember, 90% of your profit will be made on 25% of your trades. You should hold winning trades longer instead of the losing ones. What percentage is a proper stop loss point? That depends on your own trading style. If you are an aggressive trader picking volatile stocks, then you should use 8%-10%. If you are less aggressive, then you should consider 2%-5%. One thing to keep in mind, if your stop loss point is 5%, you should not pick a stock that lost more than 5% on a single day in the past 30 days to avoid being kick out.
5. When to sell and take profit Remember, you will never sell at the exact top because no one knows the market for certain. You should keep your winning trades longer. However, if your technical indicators go against you, and the patterns start to fail, that's when you should sell your stock and take profit.
MORE FREE INFORMATION
You can visit our website http://www.dojispace.com for free stock scanning tool using technical indicators. It saves you time and allows you to search for the patterns you define.
Article Source: http://EzineArticles.com/?expert=Tim_Chen
This article is for both novice and experienced traders.
1. Simple is better - Use a handful of technical indicators There are dozens of technical indicators out there. It is a mistake to apply all of them at the same time as many indicators give contradictory signals and you will never find a stock that meets the requirements of all indicators. Instead, you should focus on four to five indicators to make a trading decision. Some of the popular ones include Moving average (MA), Exponential moving average (EMA), MACD, Stochastic and so on.
2. Back test your indicators with historical data Use the technical indicators you learn and test them with historical data. The more tests you do, the better. Develop a trading system that works for you based on your testing results. Try to break your system with more stocks and historical price.
3. Paper trade using your trading system You should spend at least one month testing your system with end of date market data. Select a few stocks that meet the requirements of your technical indicators and see how they are doing each day.
4. Set a proper stop loss No matter what stock you choose, you should always set a stop loss point. Do not hold a losing trade too long hoping it will rise again. Remember, 90% of your profit will be made on 25% of your trades. You should hold winning trades longer instead of the losing ones. What percentage is a proper stop loss point? That depends on your own trading style. If you are an aggressive trader picking volatile stocks, then you should use 8%-10%. If you are less aggressive, then you should consider 2%-5%. One thing to keep in mind, if your stop loss point is 5%, you should not pick a stock that lost more than 5% on a single day in the past 30 days to avoid being kick out.
5. When to sell and take profit Remember, you will never sell at the exact top because no one knows the market for certain. You should keep your winning trades longer. However, if your technical indicators go against you, and the patterns start to fail, that's when you should sell your stock and take profit.
MORE FREE INFORMATION
You can visit our website http://www.dojispace.com for free stock scanning tool using technical indicators. It saves you time and allows you to search for the patterns you define.
Article Source: http://EzineArticles.com/?expert=Tim_Chen
Wednesday, July 9, 2008
Stock Trade Analysis
By Gilbert Stockton
One of the first things that anyone who does any serious investing does is look into stock trade analysis. For those that are just getting into stocks a stock trade analysis is the use of data from a number of sources that are used to create a graphic representation of the market. This can be done on both a small and large scale. For example, a large scale stock trade analysis may look at the trades done by a brokerage. A smaller scale analysis will be one done on the more personal level.
These can also be done on a particular stock or particular security and it is this type of analysis that is of the biggest interest to investors. The reason for this is that this type of analysis can tell an investor the price patterns and the trends that are attached to a particular stock. This is done through mathematical formulations and can so leading or lagging indicators.
Leading indicators are going to be the Williams%R, the stochastic, the RSI, and momentum. Lagging indicators are going to Moving average convergence/Divergence, the Chaiken Oscillator, the simple and exponential moving averages. There are also a number of theories that are used in analysis that provide a way to trace prices and patterns as well as trends that can help an investor determine if a security or stock is something to consider seriously for purchase or something to avoid. It may even let an investor know to hold off on purchase for a short period of time before purchasing.
Most of these stock trade analysis reports are going to focus on technical aspects and as a result look more to price movement and volume. It does not bring into account anything that might affect the market. The stock market is made up of numbers and no matter what affects the market externally it will be reflected in the numbers that are created from an analysis of the market. By focusing on the numbers that are created from the patterns and trends of the market it allows for a clear view of the market.
The same patterns and trends tend to repeat themselves over and over again within the market so by pulling out these patterns and trends an investor can use it to determine when the best time to purchase and sell would be based on the technical aspects of the trends. It is not however the only thing that should be looked at and should not be taken to be the end all of stock trade analysis. While the numbers can produce the patterns and show the trends it does not show the various aspects that affect that particular stock.
There are many ways to use the previous market data in order to predict the various trends and patterns that move the particular stock or market you are looking at. While this does not look at the actual data, which affects the market it, does show the numbers. From the data collected, it is possible to trace back to historical events and find out which types of events have the greatest impact on a particular stock or market and use that information in order to make wise investment choices.
"Two Geeks From Miami Swear Under Oath Their Stock Trading Robot is Not Illegal!"
... Read About How You Could Use This Robot to Earn Thousands of Dollars: http://www.StockPicksGuide.com
Article Source: http://EzineArticles.com/?expert=Gilbert_Stockton
One of the first things that anyone who does any serious investing does is look into stock trade analysis. For those that are just getting into stocks a stock trade analysis is the use of data from a number of sources that are used to create a graphic representation of the market. This can be done on both a small and large scale. For example, a large scale stock trade analysis may look at the trades done by a brokerage. A smaller scale analysis will be one done on the more personal level.
These can also be done on a particular stock or particular security and it is this type of analysis that is of the biggest interest to investors. The reason for this is that this type of analysis can tell an investor the price patterns and the trends that are attached to a particular stock. This is done through mathematical formulations and can so leading or lagging indicators.
Leading indicators are going to be the Williams%R, the stochastic, the RSI, and momentum. Lagging indicators are going to Moving average convergence/Divergence, the Chaiken Oscillator, the simple and exponential moving averages. There are also a number of theories that are used in analysis that provide a way to trace prices and patterns as well as trends that can help an investor determine if a security or stock is something to consider seriously for purchase or something to avoid. It may even let an investor know to hold off on purchase for a short period of time before purchasing.
Most of these stock trade analysis reports are going to focus on technical aspects and as a result look more to price movement and volume. It does not bring into account anything that might affect the market. The stock market is made up of numbers and no matter what affects the market externally it will be reflected in the numbers that are created from an analysis of the market. By focusing on the numbers that are created from the patterns and trends of the market it allows for a clear view of the market.
The same patterns and trends tend to repeat themselves over and over again within the market so by pulling out these patterns and trends an investor can use it to determine when the best time to purchase and sell would be based on the technical aspects of the trends. It is not however the only thing that should be looked at and should not be taken to be the end all of stock trade analysis. While the numbers can produce the patterns and show the trends it does not show the various aspects that affect that particular stock.
There are many ways to use the previous market data in order to predict the various trends and patterns that move the particular stock or market you are looking at. While this does not look at the actual data, which affects the market it, does show the numbers. From the data collected, it is possible to trace back to historical events and find out which types of events have the greatest impact on a particular stock or market and use that information in order to make wise investment choices.
"Two Geeks From Miami Swear Under Oath Their Stock Trading Robot is Not Illegal!"
... Read About How You Could Use This Robot to Earn Thousands of Dollars: http://www.StockPicksGuide.com
Article Source: http://EzineArticles.com/?expert=Gilbert_Stockton
How to Invest in Stocks Wisely
By Gilbert Stockton
Investing is stocks are one of the largest ways that people look to make residual income when it comes to investments. In fact, many people use stocks as a way to build on their retirement funds and trusts. It is important to know how to invest in stocks even if you are using an investing company or a brokerage to handle your trades.
Knowing how to invest in stocks can keep you informed and help you to make wise investment choices. When looking into how to invest in stocks the first thing to do is look into the various things that are going to affect the market. There are some things that will affect the market on a wide spread basis and there are some that are going to affect only a particular portion of the market. Knowing this information is going to assist you in determining where to invest and how to invest your money on stocks of interest.
Once you have some of the stocks that you are interested in it may be a good idea to get the trends and patterns that are formed by the movement of that particular stock. This will tell you when to purchase the stock, when to sell the stock and how to predict when certain stocks may become more viable investment options.
These patterns and trends require some mathematical computation. As a result these are best done by entering data into an application designed specifically for marketing analysis. These applications are readily available and many stock investment software applications provide reporting functions that can help with these stock analysis.
Knowing how to invest in stocks is the best way to protect yourself as well as your investment. In order to minimize the financial risk at the same time you increase your potential gain it is best to be an active participate in your portfolio. Know what the market is that you are investing in, which stocks and what types of factors have a direct effect on that particular market as well as the market in general this will help to reduce the risk of losing your investment.
You do not need to be an expert in stock investing in order to be actively involved but you will probably need to invest some time in researching terms, trends, and how to spot things that will potentially bring about a greater return for you and your investment.
Whether you are investing as a way to earn extra money, as a job, or to save for retirement being able to actively participate or trade on your own is something to consider seriously. This helps minimize the risk whether you are investing on your own or you are investing through a brokerage firm. Stocks especially cheaper stocks can contain a greater amount of risk due to fluctuations that larger more stable companies. While this does present a less stable trading environment you can see a greater amount of potential and using a reporting of the patterns and trends of the stocks are part of knowing how to invest wisely on the market.
"Two Geeks From Miami Swear Under Oath Their Stock Trading Robot is Not Illegal!"
... Read About How You Could Use This Robot to Earn Thousands of Dollars: http://www.StockPicksGuide.com
Article Source: http://EzineArticles.com/?expert=Gilbert_Stockton
Investing is stocks are one of the largest ways that people look to make residual income when it comes to investments. In fact, many people use stocks as a way to build on their retirement funds and trusts. It is important to know how to invest in stocks even if you are using an investing company or a brokerage to handle your trades.
Knowing how to invest in stocks can keep you informed and help you to make wise investment choices. When looking into how to invest in stocks the first thing to do is look into the various things that are going to affect the market. There are some things that will affect the market on a wide spread basis and there are some that are going to affect only a particular portion of the market. Knowing this information is going to assist you in determining where to invest and how to invest your money on stocks of interest.
Once you have some of the stocks that you are interested in it may be a good idea to get the trends and patterns that are formed by the movement of that particular stock. This will tell you when to purchase the stock, when to sell the stock and how to predict when certain stocks may become more viable investment options.
These patterns and trends require some mathematical computation. As a result these are best done by entering data into an application designed specifically for marketing analysis. These applications are readily available and many stock investment software applications provide reporting functions that can help with these stock analysis.
Knowing how to invest in stocks is the best way to protect yourself as well as your investment. In order to minimize the financial risk at the same time you increase your potential gain it is best to be an active participate in your portfolio. Know what the market is that you are investing in, which stocks and what types of factors have a direct effect on that particular market as well as the market in general this will help to reduce the risk of losing your investment.
You do not need to be an expert in stock investing in order to be actively involved but you will probably need to invest some time in researching terms, trends, and how to spot things that will potentially bring about a greater return for you and your investment.
Whether you are investing as a way to earn extra money, as a job, or to save for retirement being able to actively participate or trade on your own is something to consider seriously. This helps minimize the risk whether you are investing on your own or you are investing through a brokerage firm. Stocks especially cheaper stocks can contain a greater amount of risk due to fluctuations that larger more stable companies. While this does present a less stable trading environment you can see a greater amount of potential and using a reporting of the patterns and trends of the stocks are part of knowing how to invest wisely on the market.
"Two Geeks From Miami Swear Under Oath Their Stock Trading Robot is Not Illegal!"
... Read About How You Could Use This Robot to Earn Thousands of Dollars: http://www.StockPicksGuide.com
Article Source: http://EzineArticles.com/?expert=Gilbert_Stockton
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