By Martin Lukac
There are numerous factors that affect the price of a stock. It can be hard to actually know exactly what drives the market, but there are factors that can drive a price up or down.
We know the basics. The more demand there is for a stock, the higher the price will be. Lower demand usually equals a lower price for a stock. But what drives the demand?
Let's say that stock LKJ closes on Wednesday afternoon at 26. What will it open at on Thursday morning? There is no real way to predict the future price of a stock. Oh, there are analysts that will try, but there are no guarantees put forth on the predicted price.
What could happen between Wednesday afternoon and Thursday morning? Well, perhaps a major product that the company produces was pulled off the shelves due to labeling problems? Maybe the President of the company was arrested for embezzlement of company funds. Perhaps the company found a cure for the common cold. They could have finalized a deal with a major competitor for a grand merger. You can go on and on about what could happen.
There are so many factors that push a price up or down. But remember, in the end, demand still says what a buyer and seller will accept. This demand is affected by the market, politics and industry news.
Every morning on the stock market is a new day. Consider it a clean slate. Demand can be entirely different than it was yesterday. Stocks that closed really high yesterday could be dropping quickly today. The market goes up and down constantly.
Keep in mind that the price of a share is dependent on what someone is willing to pay for it. A stock might be a great buy for you at $45 per share, but a terrible buy at $68 per share. However, another investor might jump at the price of $68 per share. Who is right about the price of the share? Only time will tell. Many investors once thought Microsoft was overpriced at $10 per share. Time told that they weren't exactly accurate about that.
Successful investors take the time to recognize what the fair price for a particular stock is. They don't jump on cheap stocks just because they are cheap. But they don't rush into overpaying for stocks either. They also keep their investments in check. If the stock is falling along with the sector or overall market, they might sit tight and keep their eye on a good price.
Good investors look at the company and other factors when determining price. As you invest, you will learn the strategies and techniques that will help you establish the fair price for stocks. You learn that you can either find that price or simply move on to another stock that meets your investing goals.
Martin Lukac http://www.MartinLukac.com, represents http://www.RateEmpire.com, an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.
Saturday, December 30, 2006
Friday, December 29, 2006
10 Best Investment Tips for 2007
By Jimmy Wilson
Investments in 2007 will be your opportunity to make significant gains in your financial portfolio. Taking control early in your investment planning will maximize your returns and you'll create groundwork that will allow you to establish investing guidelines for all future investing as well.
Investing is all about placing your best researched intuitions where you feel comfortable about what will take place regardless of the expectations of others or the status of the nation's economy. Money is made daily and if you place your investments wisely, determines if you are in fact, master of your investments.
There are some misconceptions of what type of investments are the best to follow. If you do not have any real insights on the stock market, don't jump in with a large percentage of your investing capital. The keys to success are about learning as much as anything and never replaying a bad strategy.
History, self made history, is or should be your best friend for all your future investments. It's not a perfect world and neither are you, so put aside any thoughts that you can maximize every trade or other investment, make your moves slowly and consistent.
Let's say you are new to investing, you can take advantage of several courses or mini-trade routes, outlined by someone who's found consistent patterns that produce successful trades. Investing can be in a totally unexpected direction, such as applying yourself in online sales from an affiliate program. This is a very popular investment since it takes very little money to get started and you have a ready-made product already established. The commission split to you is very appealing. There are a number of programs that pay as much as 75% to you.
Investment Planning is really as simple as, where you think you can actively participate with your money and or time, that will yield you a positive return on your participation.
________________________________________________________________
1. - Know your talents, what are you good at, then think of ways to make it pay you for your efforts
2. - How much time can you devote to your investment, this is where you don't want to become sidetracked and lose sight of your goals
3. - Invest your time or money where you understand the risks and won't become shocked or surprised if it develops a slump or setback
4. - Choose an investment that you enjoy, this makes investing a pleasure and this will give you drive above all other distractions
5. - Make predictions or goals that can be obtained in the short term, don't set yourself up to finish the year before you've made your shorter range goals. Life is about living, not retiring.
6. - Read about the previous years wins and losses, in the field of your investment plans and see where to make small changes that could correct for the losses and avoid pitfalls that history provides
7. - Consider forming a team of investors, family, friends, or co-workers who are serious about taking control of their financial futures.
8. - Put all your financial plans in writing and keep them at arms reach at all times. It's very wise to make notes as you have certain thoughts from day to day and reflect, then decide if you need to make adjustments. Don't become overwhelmed with the " I should have done . . ." thinking process. This will make you miserable and you can loose focus very easily.
9. - Track your progress and determine if you should increase your investment of money, time, or both in order to see a positive return on your investment. This is not always easy to decide, but you are the controls of your investment, don't let yourself down.
10.- Find a mentor that can advise and encourage you to continue, seldom will you find a success story that didn't have contributors, regardless of their role in the success story. You may be pleasantly surprised how much others can actually affect your investments in a positive manner. ____________________________________________________________________
Investing for 2007 can be your new-found goldmine to becoming self-sufficient financially. Take the time to decide your personal plan of action and follow through with it. There are so many possibilities, it's not a question of if, but rather how you will succeed. For more investment tips:
http://wealthsmith.com/investment-tips-insights-2007.htm
Jim is an online writer and netpreneur that has a knack for current trends and topics that his readers enjoy absorbing for their personal enrichment. Today's topic is investments;
http://wealthsmith.com/investment-tips-insights-2007.htm
Investments in 2007 will be your opportunity to make significant gains in your financial portfolio. Taking control early in your investment planning will maximize your returns and you'll create groundwork that will allow you to establish investing guidelines for all future investing as well.
Investing is all about placing your best researched intuitions where you feel comfortable about what will take place regardless of the expectations of others or the status of the nation's economy. Money is made daily and if you place your investments wisely, determines if you are in fact, master of your investments.
There are some misconceptions of what type of investments are the best to follow. If you do not have any real insights on the stock market, don't jump in with a large percentage of your investing capital. The keys to success are about learning as much as anything and never replaying a bad strategy.
History, self made history, is or should be your best friend for all your future investments. It's not a perfect world and neither are you, so put aside any thoughts that you can maximize every trade or other investment, make your moves slowly and consistent.
Let's say you are new to investing, you can take advantage of several courses or mini-trade routes, outlined by someone who's found consistent patterns that produce successful trades. Investing can be in a totally unexpected direction, such as applying yourself in online sales from an affiliate program. This is a very popular investment since it takes very little money to get started and you have a ready-made product already established. The commission split to you is very appealing. There are a number of programs that pay as much as 75% to you.
Investment Planning is really as simple as, where you think you can actively participate with your money and or time, that will yield you a positive return on your participation.
________________________________________________________________
1. - Know your talents, what are you good at, then think of ways to make it pay you for your efforts
2. - How much time can you devote to your investment, this is where you don't want to become sidetracked and lose sight of your goals
3. - Invest your time or money where you understand the risks and won't become shocked or surprised if it develops a slump or setback
4. - Choose an investment that you enjoy, this makes investing a pleasure and this will give you drive above all other distractions
5. - Make predictions or goals that can be obtained in the short term, don't set yourself up to finish the year before you've made your shorter range goals. Life is about living, not retiring.
6. - Read about the previous years wins and losses, in the field of your investment plans and see where to make small changes that could correct for the losses and avoid pitfalls that history provides
7. - Consider forming a team of investors, family, friends, or co-workers who are serious about taking control of their financial futures.
8. - Put all your financial plans in writing and keep them at arms reach at all times. It's very wise to make notes as you have certain thoughts from day to day and reflect, then decide if you need to make adjustments. Don't become overwhelmed with the " I should have done . . ." thinking process. This will make you miserable and you can loose focus very easily.
9. - Track your progress and determine if you should increase your investment of money, time, or both in order to see a positive return on your investment. This is not always easy to decide, but you are the controls of your investment, don't let yourself down.
10.- Find a mentor that can advise and encourage you to continue, seldom will you find a success story that didn't have contributors, regardless of their role in the success story. You may be pleasantly surprised how much others can actually affect your investments in a positive manner. ____________________________________________________________________
Investing for 2007 can be your new-found goldmine to becoming self-sufficient financially. Take the time to decide your personal plan of action and follow through with it. There are so many possibilities, it's not a question of if, but rather how you will succeed. For more investment tips:
http://wealthsmith.com/investment-tips-insights-2007.htm
Jim is an online writer and netpreneur that has a knack for current trends and topics that his readers enjoy absorbing for their personal enrichment. Today's topic is investments;
http://wealthsmith.com/investment-tips-insights-2007.htm
Monday, December 25, 2006
Developing A Trading Plan - Pt 1 by Jason Brumbalow
BEFORE YOU BEGIN TRADING - "Plan your trade and trade your plan."
Before you even consider trading it is important to take the time to seriously question your intentions in the market. Do you see futures as the means to a quick profit? Are you trading for excitement or a rush? Are you interested in trading because you seek satisfaction on a purely intellectual level? Do you see trading as a hobby or as an additional avenue of investment? Are you looking for a way to fund early retirement or do you see trading as an opportunity to augment your savings? Do you need the profits that trading might bring to cover debts or other financial commitments?
Many traders do not know why they want to be in the market. By taking the time to honestly evaluate your reasons for trading, not only will you learn more about yourself but you'll also be forced to justify your commitment of hard earned capital to the market. Remember if your rationale is floored so too will be your trading. For those contemplating a career in futures trading, the following provides a useful list of issues that should be covered prior to entering the futures market and the pitfalls that all too often cut short the career of an aspiring futures trader.
2. Developing a written trading plan
When someone decides to start a business, the first task usually tackled is drafting a business plan. Most people would see this as mere common sense; however it seems the same logic does not apply to MOST new traders. Rather than planning how and where their capital is to be allocated, many new traders will launch headlong into a trading career with little regard as to their risk and profit objectives. By failing to have a trading plan, a trader will not know what to do when the market goes in their favor or worse still, when it moves against them. Without the structure that a trading plan provides, you will find yourself not only at the mercy of changing market conditions but also of your own conflicting emotions -a sure recipe for disaster.
Many surveys successful and experienced traders use a plan that is consistent with their temperament and the amount of money they have in their accounts. While a plan will not prevent losses, at least it provides you with some guidelines to follow. You can and should make minor adjustments to your initial trading plan throughout the trading period, but do not let the ups and downs of the market affect your overall game plan. Do not abandon your original objective, unless the market conditions that led you to place your trade change. The trading plan therefore imposes the disciplined structure that is essential for long term success.
A written trading plan helps keep you from making poorly conceived, spontaneous, thoughtless, emotional trades. An unwritten plan often gets changed when the trader's mood changes. A written plan keeps you from many trading pitfalls such as greed, fear, boredom, a need to be right, a need to be a victim, and masochism. While a trading plan may contain many elements, at minimum it should at least contain the following characteristics:
1. Select your investment universe (ie. Futures market and the contract/s FX markets and contracts)
2. Appropriate account size (capital you can afford to lose. Allow for diversification). UNIT allocation based on the trading model
3. Define your style of trading (aggressive, medium , conservative)
4. Define your time frame (day / short / medium / long term trader)
5. Have specific 'Rules Of Engagement' (eg. DIV SOS 3)
6. Add risk management parameters stop loss (fixed dollar, trailing, swing)
7. Outline your money management
1. How much to risk - percentage based on capital
2. Percentage of money to risk on each trade
3. Where to place stops
4. When to add to a winning position
5. When to liquidate part / all of a losing position (Stop Placement)
6. When to liquidate part / all of a winning position (Profit Target 1,2,3)
7. Profit objective for trade / week / month / year (including MM)
8. Impact of commissions and fees on trades - individual and overall
-- Slippage -- Continuing Education -- Subscriptions
9. Are you overtrading? (How many SIGNALS did your model generate this week? How many TRADES did you take?)
8. Back test the system as well as forward testing (referred to as paper trading)
9. Performance measurement (risk / reward ratio)
10. This will help you to determine your expectations (REASONABLE)
11. Determine your necessary requirements (resources to get the job done)
12. When should I start trading
13. Is trading for me?
A good trading plan is always complimented by a diary of your trading successes and mistakes. What you learn from your mistakes is more important. You paid for them; you may as well learn something from them, if you don't remember them you are bound to repeat them. It often takes courage and cold hard unemotional judgment to stick with your trading plan.
Continued in Part 2....
Before you even consider trading it is important to take the time to seriously question your intentions in the market. Do you see futures as the means to a quick profit? Are you trading for excitement or a rush? Are you interested in trading because you seek satisfaction on a purely intellectual level? Do you see trading as a hobby or as an additional avenue of investment? Are you looking for a way to fund early retirement or do you see trading as an opportunity to augment your savings? Do you need the profits that trading might bring to cover debts or other financial commitments?
Many traders do not know why they want to be in the market. By taking the time to honestly evaluate your reasons for trading, not only will you learn more about yourself but you'll also be forced to justify your commitment of hard earned capital to the market. Remember if your rationale is floored so too will be your trading. For those contemplating a career in futures trading, the following provides a useful list of issues that should be covered prior to entering the futures market and the pitfalls that all too often cut short the career of an aspiring futures trader.
2. Developing a written trading plan
When someone decides to start a business, the first task usually tackled is drafting a business plan. Most people would see this as mere common sense; however it seems the same logic does not apply to MOST new traders. Rather than planning how and where their capital is to be allocated, many new traders will launch headlong into a trading career with little regard as to their risk and profit objectives. By failing to have a trading plan, a trader will not know what to do when the market goes in their favor or worse still, when it moves against them. Without the structure that a trading plan provides, you will find yourself not only at the mercy of changing market conditions but also of your own conflicting emotions -a sure recipe for disaster.
Many surveys successful and experienced traders use a plan that is consistent with their temperament and the amount of money they have in their accounts. While a plan will not prevent losses, at least it provides you with some guidelines to follow. You can and should make minor adjustments to your initial trading plan throughout the trading period, but do not let the ups and downs of the market affect your overall game plan. Do not abandon your original objective, unless the market conditions that led you to place your trade change. The trading plan therefore imposes the disciplined structure that is essential for long term success.
A written trading plan helps keep you from making poorly conceived, spontaneous, thoughtless, emotional trades. An unwritten plan often gets changed when the trader's mood changes. A written plan keeps you from many trading pitfalls such as greed, fear, boredom, a need to be right, a need to be a victim, and masochism. While a trading plan may contain many elements, at minimum it should at least contain the following characteristics:
1. Select your investment universe (ie. Futures market and the contract/s FX markets and contracts)
2. Appropriate account size (capital you can afford to lose. Allow for diversification). UNIT allocation based on the trading model
3. Define your style of trading (aggressive, medium , conservative)
4. Define your time frame (day / short / medium / long term trader)
5. Have specific 'Rules Of Engagement' (eg. DIV SOS 3)
6. Add risk management parameters stop loss (fixed dollar, trailing, swing)
7. Outline your money management
1. How much to risk - percentage based on capital
2. Percentage of money to risk on each trade
3. Where to place stops
4. When to add to a winning position
5. When to liquidate part / all of a losing position (Stop Placement)
6. When to liquidate part / all of a winning position (Profit Target 1,2,3)
7. Profit objective for trade / week / month / year (including MM)
8. Impact of commissions and fees on trades - individual and overall
-- Slippage -- Continuing Education -- Subscriptions
9. Are you overtrading? (How many SIGNALS did your model generate this week? How many TRADES did you take?)
8. Back test the system as well as forward testing (referred to as paper trading)
9. Performance measurement (risk / reward ratio)
10. This will help you to determine your expectations (REASONABLE)
11. Determine your necessary requirements (resources to get the job done)
12. When should I start trading
13. Is trading for me?
A good trading plan is always complimented by a diary of your trading successes and mistakes. What you learn from your mistakes is more important. You paid for them; you may as well learn something from them, if you don't remember them you are bound to repeat them. It often takes courage and cold hard unemotional judgment to stick with your trading plan.
Continued in Part 2....
Sunday, December 24, 2006
Determining if a Stock is Expensive
By Martin Lukac
When it comes to the price of a stock, the number one question is whether or not it is a good deal. The price/sales ratio is vital in determining if the market has undervalued or overvalued the price of a stock.
You need to know various things about a stock before you invest in it. Does the stock have room to grow? Is it moderately priced when compared to its industry associates? Are there solid growth prospects, not just gut-feelings?
A stock may have these factors, but still be overpriced. That doesn't mean you should completely rule it out. Just keep it in mind for when the price goes down to a more attractive level.
You can use the price/sales ratio of a stock to make an informed investment decision. The price of the stock actually tells you very little. You can't just look at a price and know whether or not it is a good buy. You have to have background on the stocks you are considering. Only then can you accurately compare different stocks for purchase.
This ratio allows you to evenly compare companies. You simply divide the market capitalization, or outstanding shares times the price per share, of the company by its revenue. For example, a company may have 100 million outstanding shares. The price per share is $55, making the market cap $5.5 million. You then divide the $5.5 million by the company's revenue.
When you divide the market cap by the revenue, the ratio that results will help you compare different companies. The lower the ratio number, the better the investment is. However, the ratio is only truly effective when comparing companies in the same industry.
Say you are looking at two tech companies. One has a ratio of 1.8 and the other has a ratio of 3.2. The entire industry group has a ratio of 3.3. Both stocks have a better ratio than the industry average. But the first stock is a better value.
Keep in mind that there are other factors to consider as well. The price/sales ratio and the price/earnings ratios could contradict each other -- this isn't a good sign. You should also be wary of one-time events that affect the company temporarily. Most reports will include the price/sales ratio and the price/earnings ratio for you.
Remember, you have to pick the right companies and then compare their price/sales ratios. This will help you in determining whether or not a stock is a good deal.
When it comes to the price of a stock, the number one question is whether or not it is a good deal. The price/sales ratio is vital in determining if the market has undervalued or overvalued the price of a stock.
You need to know various things about a stock before you invest in it. Does the stock have room to grow? Is it moderately priced when compared to its industry associates? Are there solid growth prospects, not just gut-feelings?
A stock may have these factors, but still be overpriced. That doesn't mean you should completely rule it out. Just keep it in mind for when the price goes down to a more attractive level.
You can use the price/sales ratio of a stock to make an informed investment decision. The price of the stock actually tells you very little. You can't just look at a price and know whether or not it is a good buy. You have to have background on the stocks you are considering. Only then can you accurately compare different stocks for purchase.
This ratio allows you to evenly compare companies. You simply divide the market capitalization, or outstanding shares times the price per share, of the company by its revenue. For example, a company may have 100 million outstanding shares. The price per share is $55, making the market cap $5.5 million. You then divide the $5.5 million by the company's revenue.
When you divide the market cap by the revenue, the ratio that results will help you compare different companies. The lower the ratio number, the better the investment is. However, the ratio is only truly effective when comparing companies in the same industry.
Say you are looking at two tech companies. One has a ratio of 1.8 and the other has a ratio of 3.2. The entire industry group has a ratio of 3.3. Both stocks have a better ratio than the industry average. But the first stock is a better value.
Keep in mind that there are other factors to consider as well. The price/sales ratio and the price/earnings ratios could contradict each other -- this isn't a good sign. You should also be wary of one-time events that affect the company temporarily. Most reports will include the price/sales ratio and the price/earnings ratio for you.
Remember, you have to pick the right companies and then compare their price/sales ratios. This will help you in determining whether or not a stock is a good deal.
Friday, December 22, 2006
Learning to Select Top Stocks
By Martin Lukac
When it comes to choosing companies to invest in, you need to ask a few questions. What you are looking for is the strengths and weaknesses in these companies and a better understanding of the market positioning of the business.
1. Where is the cash flowing from?
The value of any asset is the net present value of its discounted cash flows. Before you can even see the true value of a business, you need to know where the cash is coming from. Don't make assumptions -- such as, from sales -- be more specific.
For example, look at Coca-Cola. You may assume that the sale of soda pop is what pushes the company forward. However, almost all of its revenue is from the sale of beverage concentrates and syrups to bottlers, canners, distributors, fountain wholesalers and retailers. They aren't the ones bottling the product and stocking it on the shelves. They just sell the flavor and the name.
This tells you that the cash flow is dependent upon the relationship between Coca-Cola and its bottlers.
2. How much cash and when?
How much cash is the business generating and when? Once you know where the money is coming from, you must look for the timing of the cash flow. For example, is it generating a steady flow of money over time, or a large lump sum every decade or so?
3. Is it sustainable?
Industry isn't always solid. Changes happen over time. The history of a company doesn't always predict future cash flows. The business landscape can change, affecting the company drastically.
4. How much money does the company need to operate?
Some businesses have higher operational costs than others. Many need more capital to generate one dollar of profit than others do. Companies that make products must purchase property, plants and equipment. This cuts into the profit. Companies that offer ideas, such as advertising firms, often have a much smaller capital expenditure. The less capital a business needs, the better it looks.
5. How's the price?
The price is the one determinant of return for an investor. You may find a stock that looks great at $10, but not at $14. Look at what type of profit is being generated. For example, a company generating $5 in profit per year is a good purchase at $20 per share. The earnings yield on this stock is 25%. But if you buy it at $200 per share, your earnings dip to 2.5%. You might as well invested in a savings account.
There are many factors to consider when choosing a stock. Take the time to research the company and its management thoroughly. You don't want to buy into a volitile situation that is almost ready to collapse. Know what is going on in the company, its industry and the market in general.
Thursday, December 14, 2006
Here are a Few Tips to Help You Trade More Effectively from Your Work Desk
By Larry G Potter
Tip #1 - Do your research at home. Through either your own Internet access, or the daily paper, you can spend the time to follow your favorite stocks. This will give you the freedom to do additional research/analysis (if necessary) and thoroughly look at your picks to ensure that you have made the best decision possible in regards to making the investment. This will not only make you a more informed investor but will allow you to more quickly take advantage of opportunities that may occur during the business day.
Tip #2 - Use e-mail alerts. Most online brokers will offer alerts concerning your chosen stock and the major developments in which it is involved. The benefit of this arrangement is that it quickly sends the information you want straight to you and eliminates the need to snoop the web for that same data. This type of system is best used by those watching a specific stock(s) and who have a very specific time frame for buying and selling an individual investment. However, longer-term investors will also benefit as a dramatic rise and fall with news may help you decide on a new approach for a given stock.
Tip #3 - Be discreet. We recommend that you delete cookies from your terminal (for advanced users only), that you either do not bookmark sites or keep them at a site such as Bungo.com. This will avoid having them book-marked on your work terminal. You may also want to try trading from a wireless device rather than from your terminal. These devices while currently slower than dial-up access can be set up with the same features as your PC. Email alerts and realtime quotes are also available. Purchasing such a device would depend on the volume of your trading and the environment in which you work.
Tip #4 - Enter trade orders the night before. These orders will not be filled until the following morning's open. It is best to place a market order in these circumstances if you want to ensure that your order if filled. Otherwise place a limit order with a specific price and if/when the price of the equity matches your desired price the trade will take place.
Tip #5 - If you are close with somebody that is willing to do your trading for you then giving them directions and access to your accounts would allow you to leave directions with that person without the worry of doing those actions yourself during the day. However, these types of situations should only be done with somebody you trust and when you have very specific requirements (i.e sell if stock ABC rises past $0.70).
Tip #6 - Be prepared. Ensure that all the information you need/want is at hand and easily accessible. A list of the websites you use, a copy of your current portfolio and anything you feel is needed to make a quick, informed decision concerning your investments.
Tip #7 - If you cannot trade during the day, give after hours-trading a try. Firms like Swab and Fidelity will allow you to trade up to 8pm. Day trading at work can be a great way to reap the rewards of investing, so long as you make sure you are both informed and prepared to make decisions during the day.
Tip #1 - Do your research at home. Through either your own Internet access, or the daily paper, you can spend the time to follow your favorite stocks. This will give you the freedom to do additional research/analysis (if necessary) and thoroughly look at your picks to ensure that you have made the best decision possible in regards to making the investment. This will not only make you a more informed investor but will allow you to more quickly take advantage of opportunities that may occur during the business day.
Tip #2 - Use e-mail alerts. Most online brokers will offer alerts concerning your chosen stock and the major developments in which it is involved. The benefit of this arrangement is that it quickly sends the information you want straight to you and eliminates the need to snoop the web for that same data. This type of system is best used by those watching a specific stock(s) and who have a very specific time frame for buying and selling an individual investment. However, longer-term investors will also benefit as a dramatic rise and fall with news may help you decide on a new approach for a given stock.
Tip #3 - Be discreet. We recommend that you delete cookies from your terminal (for advanced users only), that you either do not bookmark sites or keep them at a site such as Bungo.com. This will avoid having them book-marked on your work terminal. You may also want to try trading from a wireless device rather than from your terminal. These devices while currently slower than dial-up access can be set up with the same features as your PC. Email alerts and realtime quotes are also available. Purchasing such a device would depend on the volume of your trading and the environment in which you work.
Tip #4 - Enter trade orders the night before. These orders will not be filled until the following morning's open. It is best to place a market order in these circumstances if you want to ensure that your order if filled. Otherwise place a limit order with a specific price and if/when the price of the equity matches your desired price the trade will take place.
Tip #5 - If you are close with somebody that is willing to do your trading for you then giving them directions and access to your accounts would allow you to leave directions with that person without the worry of doing those actions yourself during the day. However, these types of situations should only be done with somebody you trust and when you have very specific requirements (i.e sell if stock ABC rises past $0.70).
Tip #6 - Be prepared. Ensure that all the information you need/want is at hand and easily accessible. A list of the websites you use, a copy of your current portfolio and anything you feel is needed to make a quick, informed decision concerning your investments.
Tip #7 - If you cannot trade during the day, give after hours-trading a try. Firms like Swab and Fidelity will allow you to trade up to 8pm. Day trading at work can be a great way to reap the rewards of investing, so long as you make sure you are both informed and prepared to make decisions during the day.
Sunday, December 3, 2006
The 5 Worst Stock Investment Strategies
By Joseph Harris
Most investors approach the stock market with the wrong frame of mind. But it's not their fault. They've been conditioned to follow investment strategies that simply lead them in the wrong direction towards financial disaster.
So to prevent YOU from making the same mistakes, I'm going to lay out all the horrible investment strategies for you so that you don't make the same mistakes as everyone else, and start on the correct path to wealth in the market.
You're Not Going to Get Rich Quick
Nearly all beginning investors, along with a great number of "veterans," have the mentality that they're going to strike it rich. Well that's great, that's optimistic, but they expect it to happen right away. This is probably the worst investment strategy you can have…because it isn't an investment strategy!
They're assuming that they can beat the system and crack the code of the stock market that investors have been struggling to find for years! The tortoise is going to runs laps around the hare in this one, guys. What you need to do is develop an investment strategy that can work for you over the long run.
Don't Gamble
The majority of investors don't know when to buy low and sell high. This is one of the basics, but people continue to follow hot "investment strategies" and "trends" to strike it rich. In gambling, it's not about the big take. Good poker players, for example, make the most with their good hands and lose the least with their bad ones. Here's an investment strategy: play big, but play smart.
What's So Great About Your "Insider" Tip?
So many investment strategies are abandoned for the "insider tip" that guarantees millions. But here are some questions to think about…How many people have heard this tip before you? Has the investment strategy been circulating for long? And who did you hear it from? If this insider information was given to you by a friend instead of a listed company director, you're not going to have that great of an edge. If this hot and quick investment strategy has been around for a while…it's not going to be very quick any more and has probably lost its magic.
The Suicidal "Set and Forget" Investment Strategy
Holding onto your stocks for extended periods of time is just going to bring trouble. Stashing stocks away so that they can grow and mature into some rewarding fund later in life is NOT going to bring profit. There are too many things that can go wrong, with the company or the actual market, to create beneficial odds for yourself by using this old investment strategy.
Do You Really Know When to Buy or Sell?
Not knowing what to do, being unsure of yourself, and investing blindly will kick you out of the market before you know what hit you. This is an information age. There are investment strategies, techniques, and dozens of ways to analyze EVERYTHING. Use them. Study up. Don't just sit there with your eyes closed making the best guess you can come up with. Create an investment strategy that works for you. Stay on top of your game and more importantly…your money.
Most investors approach the stock market with the wrong frame of mind. But it's not their fault. They've been conditioned to follow investment strategies that simply lead them in the wrong direction towards financial disaster.
So to prevent YOU from making the same mistakes, I'm going to lay out all the horrible investment strategies for you so that you don't make the same mistakes as everyone else, and start on the correct path to wealth in the market.
You're Not Going to Get Rich Quick
Nearly all beginning investors, along with a great number of "veterans," have the mentality that they're going to strike it rich. Well that's great, that's optimistic, but they expect it to happen right away. This is probably the worst investment strategy you can have…because it isn't an investment strategy!
They're assuming that they can beat the system and crack the code of the stock market that investors have been struggling to find for years! The tortoise is going to runs laps around the hare in this one, guys. What you need to do is develop an investment strategy that can work for you over the long run.
Don't Gamble
The majority of investors don't know when to buy low and sell high. This is one of the basics, but people continue to follow hot "investment strategies" and "trends" to strike it rich. In gambling, it's not about the big take. Good poker players, for example, make the most with their good hands and lose the least with their bad ones. Here's an investment strategy: play big, but play smart.
What's So Great About Your "Insider" Tip?
So many investment strategies are abandoned for the "insider tip" that guarantees millions. But here are some questions to think about…How many people have heard this tip before you? Has the investment strategy been circulating for long? And who did you hear it from? If this insider information was given to you by a friend instead of a listed company director, you're not going to have that great of an edge. If this hot and quick investment strategy has been around for a while…it's not going to be very quick any more and has probably lost its magic.
The Suicidal "Set and Forget" Investment Strategy
Holding onto your stocks for extended periods of time is just going to bring trouble. Stashing stocks away so that they can grow and mature into some rewarding fund later in life is NOT going to bring profit. There are too many things that can go wrong, with the company or the actual market, to create beneficial odds for yourself by using this old investment strategy.
Do You Really Know When to Buy or Sell?
Not knowing what to do, being unsure of yourself, and investing blindly will kick you out of the market before you know what hit you. This is an information age. There are investment strategies, techniques, and dozens of ways to analyze EVERYTHING. Use them. Study up. Don't just sit there with your eyes closed making the best guess you can come up with. Create an investment strategy that works for you. Stay on top of your game and more importantly…your money.
Tuesday, November 28, 2006
Stock Trading Online – A Quick Guide
By James Hunaban
There is no doubt about it, stock trading can be a risky business and one of your first steps must be to get acquainted with the various tools of the trade. Stock trading is one of the most fun things you can do, but does require a lot of skill and discipline to succeed. You must be realistic and understand that becoming successful at stock trading can be a very tricky task, and is not for everyone.
Traditionally, stock trading has been carried out at an exchange, places where buyers and sellers get together and decide on a price. Day market online stock trading is no more risky than any other sort of trading, but even so, extremely large losses or gains can happen in a very short space of time.
Online
The term “online stock trading” describes the easy way to buy and sell stock from the comfort of your computer chair, and is a good starting point for anyone interested in gaining from the big opportunities the stock market can offer.
Online stock trading is quickly becoming a way of life for a lot of people and, eventually may render stock brokers obsolete, with several online companies opening their doors to cater for the rising client demand. These stock market websites usually have a lot of extra services on their websites, and they are able to provide online market traders with stock market insight, and other good info.
So, as more people trade in stocks online and are joining the online trading fraternity than ever before, it must be remembered, that stock trading is still a form of gambling and unfortunately can have the same outcome. With the volatile and fluctuating online stock trading market, investors need to be able to make quick and informed investment decisions. Online stock trading is all about selecting the best stock opportunities and following your buy and sell signals.
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