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How To Make Online Stock Trading Worth Your While

2011-11-01T09:15:00.000-07:00

To many, the internet is a godsend, and in some respects, it has made making money a lot more easier and this is down to the fact that many commodity markets and trade zones have plugged into the digital information highway. With this, more casual and part time investors were born, it basically carved out a market due to its ease of access and has increased the viability of many commodities that seemed to be only the arena of the experienced investor.

Online stock trading is a great way to start your portfolio and make some modest sums for a start, with financial independence in the long run of course. But you need to understand certain principles and aspects of the market before you decide to actually dive in and invest.

Stock trading online is a tricky business and it requires your utmost attention when you are buying and selling. This article will discuss some of the things you need to know to make your day at the market all the more fruitful.

One thing you must understand is that you need to have an intimate knowledge of the market and of course, the commodity that you are planning to invest in. Many investors make the same mistake of not getting to know what they are putting their money in. Find out exactly what you are getting yourself into, and with an adequate knowledge on the commodity and all its foibles, you will be able to draw up a strategy based on inside information and industry analysis.

Another thing you must have close to you is aspects of technical and fundamental analysis; important information that you need to have when you are thinking about investing. Using the tools of the market and external factors that may have a part in influencing the price of your commodity, the direction that I might be going to and how the market might evolve in the future.

The last thing that you must have is crucial money management, which is the downfall of many an investor. Knowing how much of a margin you can risk, having risk capital and assessing all expenditures during the course of your investments is very important. It will help you to plot out your investment journey, how much you are spending and how much you should be getting back.

It will also give you the power to micro manage your entire strategy, to assess it and even revamp it if the returns are not satisfactory. With these things in mind, you will be able to make online stock trading a much more viable enterprise that you can depend on fort either a primary or secondary income stream.

Risk is always a factor and the name of the game is to lessen the margin of risk by as much as possible and ensure your strategy is air tight. Of course there are many more things to learn and to understand before you can fully take on the stock market trading onlinet.

About The Author
John H. Anderson is a specialist in Forex Trading with more than a decade of experience. He owns Trade-currency.org where he provides his Forex Trading Review
http://www.trade-currency.org !

Online Stock Trading - Who Else Wants to Finally Get Profits

2011-10-20T06:32:00.000-07:00

Online stock trading, Blue-Chip style.

Investing in conservative blue chip stocks may not have the allure of a hot high-tech investment, but it can be highly rewarding nonetheless, as good quality stocks have outperformed other investment classes over the long term.

Historically, investing in stocks has generated a return, over time, of between 11 and 15 percent annually depending how aggressive you are. Stocks outperform other investments since they incur more risk. Stock investors are at the bottom of the corporate "food chain." First, companies have to pay their employees and suppliers.

Then they pay their bondholders. After this come the preferred shareholders. Companies have an obligation to pay all these stakeholders first, and if there is money leftover it is paid to the stockholders through dividends or retained earnings. Sometimes there is a lot of money left over for stockholders, and in other cases there isn't. Thus, investing in stocks is risky because investors never know exactly what they are going to receive for their investment.

What are the attractions of blue chip stocks?
1. Great long-term rates of return.

2. Unlike mutual funds, another relatively safe, long term investment category, there are no ongoing fees.

3. You become a owner of a company.

So much for the benefits - what about the risks? 1. Some investors can't tolerate both the risk associated with investing in the stock market and the risk associated with investing in one company. Not all blue chips are created equal.

2. If you don't have the time and skill to identify a good quality company at a fair price don't invest directly. Rather, you should consider a good mutual fund.

Selecting a blue chip company is only part of the battle - determining the appropriate price is the other. Theoretically, the value of a stock is the present value of all future cash flows discounted at the appropriate discount rate. However, like most theoretical answers, this doesn't fully explain reality.

In reality supply and demand for a stock sets the stock's daily price, and demand for a stock will increase or decrease depending of the outlook for a company. Thus, stock prices are driven by investor expectations for a company, the more favorable the expectations the better the stock price.

In short, the stock market is a voting machine and much of the time it is voting based on investors' fear or greed, not on their rational assessments of value. Stock prices can swing widely in the short-term but they eventually converge to their intrinsic value over the long-term.

Investors should look at good companies with great expectations that are not yet embedded in the price of a stock.

About The Author
http://www.OnlineTradingCoach.com Free Master Trader Presentations show you how to turn $10,000 into $100,000 through honest and simple trading methods you can use beginning today.

Could Online Stock Trading Be Your Answer to Earn Quick Income?

2011-04-01T10:02:00.000-07:00

What is online stock trading? This requires you to sign up with a reputed company dealing in buying and selling of stocks online. Once you create an account with them, a login id and password will be provided to you whereby you can actively participate in day to day stock market trade just by sitting within the confines of your own home.

Your earnings from the trade will be credited to the bank account you've specified, of course minus commission to the trading company. Your initial investment is very little.

Before you start off, you can enroll for a trading course which can also be done online. Some sites even give you the opportunity to indulge in mock trades to test your knowledge. Expert traders on the other hand find it convenient to deal in futures and options, forex from all over the world etc at just the click of a finger.

What are some of the important points to be kept in mind while taking up online stock trading as a full time occupation?

* Tread carefully while you trade because there could be a lot of money involved and a rash step could land you in a lot of hot water!

* As beginners, it is always better to deal in known stock options rather than take risks with attractive unknown companies.

* Keep long term earnings in view and learn to take failures in stride. Your game plan should include recovery efforts from pitfalls.

* Research a lot on various types of stocks and gather up to date information on the factors influencing the nature of the stock market like economic, financial and political conditions prevailing in your country.

* As a final word, never stake your entire lifetime's earnings on this line.

Stick to a preconceived plan or strategy and never look upon online stock trading as a medium of gambling.

By: Casey Trillbar
Are you ready to start making some money? Learn how to make money online through affiliate marketing, online surveys, blogging and more. Visit http://www.101waystomakemoney.com

A Guide For Selection of Online Stock Trading Brokers

2011-03-14T14:31:00.000-07:00

Stock markets all over the world are booming once again and it is but natural that you must have started receiving tons of marketing calls, emails and SMSes from different stock trading companies and online stock brokers.

With thousands of online stock trading offers, picking the right broker is often a daunting task especially if you are just beginning to trade in the stock markets. Here is a guide that will help you in focusing exactly what you should look out before you take the decision to open stock trading account in India.

1. Account opening charges and documentation

Find out what are the one-time charges for opening a trading account and a DEMAT account. Make sure that you can fulfill the documentation part, that is, you have the PAN card and address proof. Besides, you have to sign couple of legal documents such as broker-client agreements and POA (Power of Attorneys), which mandate court stamp fees. Therefore, ask your broker what are the extra charges (if any) for the documentation.

2. Charges - Brokerage, DEMAT and other statutory charges

Ask for detailed information about brokerage charges for intra-day, delivery, future and options transactions. Nowadays, with fierce competition, you could easily negotiate brokerage charges. For Day Trading, and Future and Options, you could easily fetch brokerage @ 0.005 to 0.05% and for Delivery Transactions, the brokerage rates vary from 0.2 to 0.5% depending upon the volume of transactions.

Check out the minimum brokerage amount payable by you and the details of statutory charges such as ST (service tax), STT (Securities Transaction tax), Turnover Tax, Stamp Duty and Exchange Transaction Charges. Find out what are the various types of charges for DEMAT account, which include Annual Folio Maintenance charges and transaction charges. You must be aware about all these charges because it adds substantially to your expense side and hence can reduce your profits.

3. Margin System

Many brokers allow you to take exposure in the markets for day trading just by paying a small amount, called as margin money. Depending upon the broker, you can get exposure from four to six times the margin amount. Some of the online stock brokers also give you a facility to trade against your shares, which are lying in your DEMAT account opened with them.

4. Online Trading Platform

Nowadays, online stock trading has become very common and popular. However, there are different methods of online trading, ranging from simple web-based applications to high-end online stock trading platforms. Most of the brokers allow you free online trading with their web-based applications but they may charge you software license fee, (monthly or one-time) for allowing you to trade through their state-of-the-art online trading platforms. If you opt for online trading software, you should ask for a demo of online stock trading system.

You might as well request the broker to give you dummy trading id and password for few days to get an idea about various features and tools of the online trading software. Some of the latest online trading platforms provide you multiple market watch, market depth, list of top gainers/losers, list high volume scrips, real-time charts and many other analytical tools and calculators.

5. Funds and Securities Pay In and Pay Out System

Make sure that the broker has a completely online back office, which is essential for monitoring your funds and stocks and for checking the historical reports about your transactions. Look out for the brokers that provide the facility of real-time funds transfer and online funds withdrawal. Check out if the broker has tie-up with your bank so that it becomes easier for you to manage your funds.

6. Contract Notes

SEBI (Securities and Exchange Board of India) has made it mandatory to issue contract notes in the specified formats. Find out how your broker will provide you the contract notes. Most of the online brokers provide ECN (Electronic Contract Notes) free of charges; however, many brokers will levy some charges for delivering physical copies of contract notes.

In the End:

Apart from all the above factors, find out the reputation and trustworthiness of brokers from the actual users through online forums where you can learn about broker reviews. You may also visit Financial Awareness Portal for reviews and comparisons of the top online stock trading brokers.

By: Dhrupad Buch
The Author is a Techno-Commercial Consultant and Freelance Content Writer. Get more info on Financial Awareness Portal and Stock Trading and Derivative Trading
also visit Financial Training: http://www.financialtraining.in/

Online Stock Trading - The Complete Idea

2011-02-14T09:52:00.000-08:00

Online stock trading is a new, improved and fast way of trading stocks. Starting stage of trading the stocks in floor has changed. They have found a new strategy of using internet for trading.

Internet provides all details regarding company. The important information like policies, history, returns and other crucial data. These data are required to take a decision regarding investing in that particular company.

First of all, to invest, to sell or to buy shares and stocks, one must have demat account. This account is necessary as one ought to register with a recognised stock broker at a nominal fee. Every buying and selling is confirmed and recorded by the stock exchange and broker. All data are saved so that its available for review readily and one can assess the profit and loss easily.

The trading is done with the permission of the stock exchange and broker. Major stock exchanges like Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) deals with brokers, investors and company. The Stock brokers hold the shares in electronic form.

Everyone investing in stocks wants to gain profit. The investor needs to know the basic facts before investing. Those are the clear idea about the company, one is investing, day to day updates about stock markets and company and diversification of shares.In this, the most important is diversification of shares.

One should invest in different companies. This will prevent unforeseen losses to the investor and help him to cope up with bear market.The status of the market can be recognised by the terms like "Bear market" and "Bull market".

By: Divya Kannan
Online Stock Trades

You can find more details on http://www.onlinestocktrades.in/

The Online Stock Trading Millionaire

2011-02-01T15:02:00.000-08:00

So you've probably heard that 98% of millionaires increase or create their wealth investing in the stock market. Did you also hear that 80% of them started with nothing? All of a sudden stock trading may seem like the way to go and you're raring to understand what you need to embark on this riveting journey.

As you've learnt by now, with high rewards also comes high risk, but it's starting to strangely unsettle you to hear about studies showing that the number of millionaires in the world are hitting new records. All you want to know is, "what do they know about the stock market that I don't?"

With online stock trading a finger-click away, there is nothing stopping you now. You want a piece of the pie, or at least, to make a reasonable profit befitting a reasonable man. It's not quite the same as playing lotto, with fingers and legs crossed, a silent prayer to boot.

But firstly let me dispel an illusion; on most occasions stock market millionaires don't pop up by making a big win on a lucky draw. No, the stock market is not the same as gambling. It's become obvious to you by now that quite a bit of strategy is involved.

So finally it comes down to this; "how much research and study do I need to do to know where to invest? To know when to buy and when to sell?" Well there are 101 websites that promise to tell you that. Some actually mean what they say, and others say what they mean. It can get a little daunting, so let me break it down;

1. Attitude is everything. Isn't that where most people go wrong? Let me put this another way; you already know how 98% of millionaires increased their wealth. But how many of the total US population are millionaires? Out of just over 300 million, the 2009 estimate was 7.9 million millionaires. That's 0.025% people with the right "millionaire mind." All of a sudden 98% takes on a whole new perspective, doesn't it?

Actually, let's not go to point 2. There's lots more to say on attitude, because that's really what's going to decide it for you. Your attitude decides your dedication, your adaptability, your approach, your ability to make contacts, to draw people who feel compelled to help you. It even decides how well you follow your instincts, how astutely you keep your greed from clouding your judgment, and how brilliantly you use your research. Now let that not dissuade from the key element; the number of millionaires are growing! And you certainly can have a piece of the pie.

Why is attitude everything? In the stock market; timing is everything! It requires an alertness; the frame of mind that helps you understand how to best use the information of rising and falling trends. Because, reality check here - most people fail on the stock market. And nothing is going to help you more than having an intimate understanding of the alertness with which a millionaire invests.

By: Devon Knight
Devon Knight is the author of the http://www.bulletproofshield.com/safes blog and provides in depth details on choosing the best online stock trading check out the blog for reviews and money saving coupons.

How to Start Investing in Online Stock Trading

2011-01-16T09:44:00.000-08:00

Many people have heard about online stock trading and how some people have earned extra money from it. However, many of you are hesitant in trying it out since you heard of the risks but it is probably due more on the scarcity of information for beginners.

Stock trading is not really that complicated as long as you have the right information. If you want to start investing your money in online stock trading, make sure you have the essential tools in hand. This is the digital age and almost everything can be found in the Internet.

A stock trading newsletter is a great source of information. It gives in-depth analysis on certain companies and how certain stocks fare in the business world. You will somehow depend on them whenever you need daily stock analysis. However, since the Internet is full of information, it does not mean that everything you see in it is factual and true.

There are also certain disadvantages that you must be aware of such as fraudulent and scamming brokerage firms. First thing you need to do is search for a reputable brokerage firm that will handle your portfolio. Do not easily get swayed by "too good to be true" offers.

If you are still quite unsure on how to handle it, you can take an online day trading course to give you a more in-depth look on trading of stocks. It will guide you on how to invest well and how to read the ups and downs of the stock market. The stock trading education that you will learn from it will give you ammunition to be more confident in your future investments.

One of the things you will learn is that subscribing to a stock trading newsletter is important to your foray into online stock trading. This great investment tool will ensure that you have free daily quotes, news, analysis, recommendations and warnings that could help you earn more and avoid making mistakes.

As in any business investments, beginners cannot expect to earn money quickly. To be a successful trader means you need to study well, learn how to weigh the news, the trends, be patient and get your facts from the right source. However, no matter how patient and cautious you are, if you do not get the right information and on the right time then you might be not be able to make money on stock trading.

If you want to achieve success in online stock trading then you need to be ready to spend more time in front of your computer as you research for daily stock analysis each day.

Next, you need to set up brokerage account online and just try out the trading tools such s tutorials and stock trading newsletter offered to you from your chosen trading site. Whenever you need to fill up any form, it would be best if you print them out so you can really read everything on it.

They may include legal forms and banking details, so it would really be best if you have them on printed form because it is easier to examine. It is also natural that you will get confused every now and then and so do not hesitate to ask for help.

By: Shane D. Engle
Shane is a financial advisor, stock broker, and professional consultant. He enjoys reporting on the latest stock market happenings and offering advice to both fledgling investors and experienced day traders.

Visit his site to learn more about stock trading newsletter and daily stock analysis. http://www.tradestocksamerica.com/daily-stock-pick-results.php

Online Stock Trading - Starting Investment

2011-01-10T09:32:00.000-08:00

Online stock trading has become a full time professional for many people. In fact there are some of them who enjoy their main profession along with online stocking as their part time mode. but not many of them taste success in this field. The main reason behind this is that they have lack of information on this topic.

Stock trading is not something that you cannot do but the only thing is that you should have complete information on it. There are some essential tools that you must have when you get to have an insight in online trading. Regarding the tools, you are on internet and in this tech savvy world, you can find everything on internet.

Gathering information: From where all can you gather information? You have internet, you have newsletter. In fact, stock trading newsletter proves to be a good source to start sharing your knowledge. You get to know about some companies standard and its on going process with stock trading. These things are very necessary when you want to know for the on going stock progress themes.

Be practical towards getting information from internet: although internet has, maximum resources of information but not all information are accurate and authentic. SO rather than trusting easily, it is important to verify some of the major facts related to stock trading. While you get in to internet then take precaution in getting with any website on online trading. This is because many of the online trading sites appear to be fraudulent.

Online tutorial: After gathering much information and learning from some friends too, you feel that you cannot get away with the fundamentals of stock marketing, then it is better to go with some kind of online tutorial that can be of help. These online tutorials give you an insight and depth analysis on trading of various stocks. This kind of education helps you come out with being more confident in your investments and shares.

Follow trends: Apart from studying, it is must to know the past trends and the current trends that is going on in investment things. It is very important for you to be patient in your process. The results does not start showing up soon. We need to be patient enough. You must keep track of accurate information while taking important decisions for stock. This will surely help.

By: Atanu Shaw
You can learn more about stock trading and how to carry on stock trading methods by visiting the site stock market chat room. It helps you in coming up with latest trends and market happenings going on in online stock trading. http://kaboomstocks.com/

Why Go For Online Stock Trading?

2010-12-26T08:02:00.000-08:00

Online stock trading offers more opportunities for more stock market success if you only know how to deal with it in a very smart way. If you are new to the stock market investment program, the Internet and other specific online trading environment can help you broaden your horizons and have investments that are more successful in return.

The fact that stock trading can be done both offline and online, your stock investing options come in a wide range of potentials for further success. If you have tried trading with the traditional way, then expect to experience even more rooms for endless success with online trading. The online stock market and the trading environment are rapidly growing. It poses a lot of advantages that may not be found in classic or traditional stock exchange methods.

Here are the top three advantages and tough points you must consider in getting more serious with your online stock investment.

1. Transaction Speed

Successful brokers and investors know so well how time delicately affects the various conditions in trading stocks. Profit and loss factors depend on how much time you need and how much time it actually takes to move your stocks in the trading environment.

The classic way to trade stocks basically involves contacting a broker to buy or sell a stock for you own investment desires. Your broker will now have to make deals and arrangements for the price and other options that may come along with it. It may take a little time before you are notified from your broker about a deal or pricing agreements. If you agree with the price and decide to buy or sell a particular stock, you, have to tell your stockbroker about it for another call to order to finalize the transaction.

On the other hand, online stock trading does not take longer than its classic mode. You just have to click your mouse to complete the online trading transactions and procedures. This helps you get faster income for greater chances of success.

2. Closer Stock Investment Control

Online stock trading lets you have a closer and more focused control of your stocks. You have the full rights to track your online stock investment status and conditions anytime you want to. You can monitor it or do regular checks for further stock trading decisions and considerations.

3. Lower Commissions and Fees

Stock trading over the Internet gives you another advantage in terms of the commissions that you need to pay for online stockbrokers. Online fees and commissions are relatively lower than the traditional stock trading costs. Online fees are even negotiable with bulk stock orders. This allows a lot of savings and more earnings on your part.

Online stock trading gives you closer control of your stock investment success and further potentials for growth. It is also highly cost-effective. It even teaches you to manage your time efficiently for greater stock trading productivity.

By: Maryrose Malinao
Maryrose Malinao is an online freelancer, teacher, researcher and an online supervisor for international services. She loves to share current trends in the online world especially about international business concerns on the road to success for lasting impact. To know more about great secrets revealed on how to excel in the stock market business, visit http://www.stocktraderschat.com. Get more creative tips and exciting opportunities for great success at http://www.wallstreetlivechat.com.

Choosing the Best Online Stock Trading Platform

2010-12-08T01:25:00.000-08:00

The meeting of technology and the lucrative stock market industry has allowed investors to buy and sell stocks online. This means that the stock broker who acted as the middleman in the stock market trading process is more or less absent thus leaving the investor to navigate alone. More and more people are increasingly looking for the best online stock trading options due to various reasons the most immediate being that this is a great stream of income flow.

The growing popularity of stay-at-home jobs has made online stock trading a feasible option for making money from the comfort of the home. Additionally, the costs that were incurred in hiring the services of a stock broker are also substantially eliminated..

These benefits can be enjoyed fully when investors choose the right online stock trading platform. As much as there are so many companies that broker trading options there are also many trading companies that offer accounts that enable one to trade in stocks. Although these companies have the same objective in mind they differ from each other substantially.

The first consideration to make when choosing the best online stock trading company is the reputation of this company. There are several ways that you can ensure that a company is most capable of handling your money. Use online portals that rank the popularity and legitimacy of the company. It is also good to inquire from fellow investors about the companies that they are using to trade their stocks online.

The best online stock trading company is the one that offers relatively low commission costs for an account. Remember that the whole idea of embarking in online trading is that it is cheaper; it eliminates the stock broker commission costs.

Trading companies have their way of making money from the online business, and one of those is through the interest rates that are generated by your account balance. However, it is important to note that the online trading firms that have bigger well established brand names may have higher commission costs than their counterparts.

Online stock trading is both simple and complex depending on the navigation tools that a company issues its traders. There are many software programs and solutions, and it can be quite difficult to use the tools in some of these sites. Choose the best online stock trading company that will allow you to use their website in an easy and functional way. Unless you are savvy about internet technology, avoid the trading platforms that are too complex. Simplicity is always best.

Finally a good stock trading company is one that hosts a myriad of companies whose stock shares the trader can buy and sell. See that you are not restricted in the options of stocks that you can trade on, after all this is the advantage of online trading- it lets you expand your scope to maximize your return.

It is important to educate yourself upfront before you begin to trade stock online. If you find the right education and learn stock trading on a real fundamental level, you can begin to grow wealth with confidence, not crossed fingers.

By: Jonathan Bowman
Before you make money with the best online stock trading platforms, there are three important things you should know. Visit Jonathan at Trillion Dollar Trading Pro to learn stock trading online without losing your shirt. http://trilliondollartradingpro.com/members

Online Stock Trading Strategies? Follow them Properly

2009-12-27T03:11:00.000-08:00

Trading in stocks is becoming very popular and more and more people are getting into online stock trading. Stock trading involves buying and selling stocks in the stock market. Here you try to buy stocks at low price and sell them at high prices later on and retain the profits. But to be successful in this market, you need to adopt certain online stock trading strategies.

Stock markets are run and governed by various factors. Religious, political, financial, and social factors immensely influence which way the stock market will go. The mercurial nature of these markets warrants that you exhibit patience and carefulness. Never be in a hurry to get rich in one day. That will be like living in a fool's paradise.

Always buy stocks of reputed blue chip companies who have great standing in the market and have very strong track records. Don't get duped by fly-by-night companies that enter the market on a regular basis to deceive unsuspecting traders and run away with their hard earned money.

The Internet has made online stock trading a lot easier and convenient. A click of a mouse button can help you buy stocks that you are interested in or sell the ones that you think can give you profits. One of the most important online stock trading strategies is to hire a broker that is reputed and trustworthy. Always check his or her background and track record. Check how long he or she has been associated with the stock market and whether he or she has made any defaults in the market.

If online stock trading strategies are followed properly, then you can derive huge benefits from them. Among various online stock trading strategies, one strategy that standouts is to hedge your position when trading online. Hedging is a kind of insurance against negative sentiments of the market. Hedging is used to mitigate stock market risks by strategically dealing in financial instruments to set off the losses that may incur due to any unexpected price movement.

As part of online stock trading strategies, you should show patience and discipline while dealing in stocks online. That is one of the most basic online stock trading strategies.

By : David Jose
This article written by David Jose is on online stock trading strategies. David Jose has been a avert writer on various online trading communities. His work has been published in several places across the web. At present David Jose is contributing towards making MTP a well known and popular online trading community - http://www.mytradepage.com/

Online Stock Trading

2009-12-12T03:07:00.000-08:00

Online stock market trading is a risky yet fulfilling activity that brings in the money. If you have what it takes to be become an expert in stock trading, then this is your field.

Active and Passive Profiting in the Stock Market

The passive way of profiting in the virtual stock trading industry would be if you own stocks or, should we say, the company to which the stocks belong. However, while you will still profit this way, you wouldn’t be earning as much as when you are in the business as an active stock trader.

An active stock trader buys and sells at the same time. Knowing when to purchase stocks and the right time to put them back into the market is the main skill in this business. This way, you get to profit more. You get financial yields in a very short span of time.

Definition of Common Stocks and Preferred Stocks

In the stock trading market, stocks are categorized in two. There is the common stock which is the stock that you often see being sold and bought during stock trading. These are stocks that companies are willing to let go. Common stock holders have the privilege of voting during the companies’ board meetings as well as other activities that need voting. Aside from the voting rights, common stock holders are second only to preferred stock holders.

A preferred stock on the other hand – as the name emphasizes – holds the ace in a company. If you own a preferred stock in a company, you have higher privileges than others. Although you have no voting rights during elections or appointments, your shares speak of higher influence. You also have priority label along with your shares.

You only have to weigh the possibilities and the opportunities between the two kinds of stocks and see which will give you greater profit.

Profit and Loss in Stock Trading

Just like any other kind of business anywhere, there is always the possibility of losing and gaining in the business of trading stocks. This is a risk that one cannot eliminate. Even in our life’s day-to-day activities, facing risks and the possibilities of winning are always there. It is all a part of life. However, the risk of losing is greatly minimized if one is wise and exercises great acumen in the conduct of business endeavors.

In stock trading, the reliability of the economy to retain its stability is not guaranteed. Even if there are predictions from economists, there are always unexpected events that could cause havoc to stock market trading.

Evaluating the profit and loss of stocks on hand or the stocks you intend to buy or sell is the wisest move to make. Just like doing mathematical calculations, computing the rate of loss against possible profit is the key to making a wise decision. In stock, trading you cannot just rely on your guts and intuition. A logical and sharp mind is always the best instrument to ensure profitable deals.

A solid example of this profit and loss business is when you own stocks. There are stocks that you can keep for as long as you like, if you don’t feel like selling them at present value. But there are too many risks involved in retaining stocks. One possibility would be if the market suddenly plummets and the company suffers great loss in which it can no longer recover. In this scenario, your investment will surely go down the drain. On the other extreme, if that company recovers in due time, then your stocks will no doubt return great profit for you. Please bear in mind that if you are faint of heart and you panic at the first sign of trouble, stock trading is not for you.

By - Sherlin Priya
Provides complete guide for online stock trading - http://stockstotrade.com/ .Learn the basics to trade your stocks,its types,risks taken,technical analysis of US stock market and individual stock trends.

Stock Market For Dummies

2009-11-24T03:03:00.000-08:00

The stock market for dummies is a form of explanation that even the least able members of any community can easily understand. That is what this article is about, a simple explanation of how the stock market works.

Stocks, securities and derivatives - not the kind of thing you may be familiar with, but these are the things that populate the stock market. My first stock market for dummies revelation is that the stock market is simply a vehicle that lets you trade stocks, securities and derivatives.

Trading in the stock market involves money of course. It's a lot of money and current estimates place the value of the stock market at somewhere in the region of 51 trillion US dollars. That's a massive amount of money! All you have to do is get a little bit of it in your pocket.

The second thing that this stock market for dummies lesson tells you is that the stock market is truly international; it operates in nearly every country in the world. However, within each country there are individual stock exchanges. You may be familiar with some of the names: Nasdaq, S&P, FTSE, NYSE, Euronext, and many more.

These stock exchanges operate for the convenience of traders who trade their stock and securities in whatever way they think is best. They examine company performance and seek out the latest news to see what might affect their decisions. They watch the stock rise and fall and always try to do whatever it takes to remain in profit.

A stock is a little bit of a company. It's not a very big bit, and if you want to have control of a company, you need to buy lots and lots of stock so that you have more than 50% of the existing stock usually.

Stocks are issued by companies to raise capital. A stock issue is normally limited to a predetermined number of shares at a given value. The stock market then adjusts that value according to what the financial health of the company appears to be. Other factors such as the company's potential for continued growth also affect the stock value, raising it or lowering it, depending on the particular situation.

People invest their money and buy stocks because they feel that the company will expand and grow and become more valuable. Through this process the stock they hold will also grow in value, thereby making them a profit. It is a lot more complicated than that of course, but for this stock market for dummies article, that's enough information to illustrate how the basic system works.

Owning stocks gives you the right to take part in the company decisions, though at what level can depend on how much stock you own. For each share you own you have one single vote. When important matters arise, the company may ask stockholders to vote on a particular matter to form a majority decision.

Owning stock can also have financial benefits. When the company does well and makes a profit, part of the profits are distributed among the shareholders in the form of dividends. Dividends are issued at least once a year, but may be issued more often if it is deemed appropriate.

There's a lot more that could be said in this stock market for dummies article, but that should give you an overall picture at least.

By : Steven Magill
Copyright (c) 2008 Steven Magill
Are You Lying Awake At Night Beating Yourself Up With What-Ifs And Desperately Searching For A Way To make some cash ? http://www.investingforex.com/index.html

The Best Timing In Doing Stock Market Trading

2009-11-12T03:00:00.000-08:00

Timing Is Everything

Aim for the best timing in stock market trading. It is the only option for a successful stock market investor.

In order to raise capital and invest in the business, companies issue their stocks and the public may then buy and sell. The price varies depending on the supply and demand. This is what a stock market trader takes full advantage of.

The business of stock market trading can offer better profits to the investor compared to ordinary stock enterprise. The stock market offers a wide variety of stocks to choose from for any investor to go on with stock trading. There is always a moving stock out there amongst the thousands of others registered.

However, a careless attempt to proceed with stock market trading can produce undesirable result. Big losses can be incurred if the market trend is not properly predicted. Small profits would also frustrate the purpose of doing stock market trading. An uninformed stock trader may also end up waiting for that decisive moment that would never come.

Market Timing

To avoid the adverse effects of poor stock market trading, investors use market timing to forecast when the market will change its course. Market timing presumes that the decisive point can be predicted ahead. The direction of the market is predicted through a thorough examination of the price and economic data.

Best Timing

The consistency of such trend prediction is subject to many factors, that is why the aim of any would-be successful investor is best timing. At first glance, market timing sounds like a guaranteed way to make it big. This however requires exertion of considerable effort and persistence in carefully studying the various factors.

Avoid mere speculating. Speculating is a desperate move when the investor hasn't done his homework.

Investors also buy stocks because they got a hot tip from someone. Most of these tips however prove to be false, as they are mostly given by parties with vested interests.

Market timing requires involvement in research to know the company's history and calculate the trend by charting the movement of the stock's price. This involves analysis of the value of the stock to come close to accurate in predicting the trend. This is ideal in developing standards for when to buy and when to sell for the investor must accurately settle on the proper time to sell. One must also correctly determine when to regain, reselling the stock bought when it reaches its peak value. This way, the maximum profits can be realized.

By : Linda Stetson

Linda Stetson is the best financial consultant. She build a web with her beloved husband in 2007. So you can get more tips in her web. http://www.comingmarket.com Good Luck and Be Success

Stock Market Crash? Your Options Explained (Part 2)

2009-10-23T02:56:00.000-07:00

Read Part 1 (Stock Market Crash? Your Options Explained)

So what should investors do?

Well, if you don't need your invested capital now (or within 1-3 years) our advice is to hang on. Don't turn paper losses into real losses by selling low. We have seen new clients tell us that they have sold when the markets went down, and bought again when they went up.

Why?

Well, they simply felt that this was the 'sensible' thing to do.

This is the classic way for investors to lose money, time after time. For example, if you had missed the best 25 days out of the 7,300 days between 1986 and 2006, your compound annual returns would be 6.72% instead of the 11.74% the market returned.

Here is a recent article that discusses these issues:

http://tinyurl.com/3cucrb

Key Considerations:

The old adage of buy and hold is very true. If you do not need the money our advice is to hang on.

ACTION POINT

Perhaps inaction is a better way of putting it - ride out the storm.

If the volatility has really upset you, then revaluate if you should be reducing your risk here, or should you be in the stock market at all?

By : Ray Prince
Ray Prince is an Independent Financial Planner with Rutherford Wilkinson plc, and helps UK Resident Doctors and Dentists get the best deals on mortgages, protection and investments, as well as helping them achieve their financial objectives. Just visit http://www.medicaldentalfs.com to get your free retirement planning guide. Rutherford Wilkinson plc is authorised and regulated by the Financial Services Authority.

Stock Market Crash? Your Options Explained (Part 1)

2009-10-16T02:53:00.000-07:00

We live in interesting times...

You cannot switch on the TV or read a newspaper without hearing of doom and gloom. If it's not property and stock market crash and falls, it's oil prices going through the $100 level, and the situation in Iraq seems to be deteriorating.

Well, we will stay clear of most of that, except the issue of markets across the world going down. At this point we feel like saying please take a deep breath everybody.

It's certainly true that the 'sub prime' crisis has badly affected the confidence in the markets. Just as has the Northern Rock fiasco in the UK and the Bear Stearns collapse in the US. Are there any more 'nasties' around the corner people will rightly ask?

The answer is yes there could be, and things may take several more months for any residual problems to make an unwelcome appearance.

So what has happened?

Well, in a nutshell, it's partly down to greed.

In the last few years many banks have devised complex products to sell on at a profit, with the full ramifications of what they were selling not known at the time.

They packaged various types of debt together - good, average and poor quality - and sold it on. The banks priced these packages with a formulae devised by themselves.

With the benefit of hindsight, it could be argued that they got it wrong in spectacular style.

Roughly speaking, the high risk debt became worthless, the medium grade debt halved in value, and even the high quality reduced in value by circa 30%. This was made worse of course because in forced sales you tend to get less.

There is also the issue of how banks lend to each other, called the Interbank rate, so that they have the money to lend to people like us.

Gone are the days (but coming back?) when the bank used purely savers' money to then lend. So when confidence is hit, and banks are reluctant to lend to each other, and any lending they do do they charge a lot more for.

What we need of course is a period of stability, with bad debt being written off, and Interbank rates settling down. Working capital needs to be found, with wealthy companies called Sovereign funds helping - at a price.

As a background to all this, it must be said that the last 15 years have been quite amazing with low interest rates and high growth. This 'Goldilocks' period is ending, with growth down and inflation up. This brings to mind the dreaded word stagflation, and this is perhaps worse than recession.

Another point is that compared to other periods of stock market volatility the fall in the markets has not looked huge. Compared to the end of 2007 the FTSE is down around 14% and of course may fall further or recover. But in 1974 the market fell 51%, before bouncing back in 1975!

By : Ray Prince
Ray Prince is an Independent Financial Planner with Rutherford Wilkinson plc, and helps UK Resident Doctors and Dentists get the best deals on mortgages, protection and investments, as well as helping them achieve their financial objectives. Just visit http://www.medicaldentalfs.com to get your free retirement planning guide. Rutherford Wilkinson plc is authorised and regulated by the Financial Services Authority.

10 tips for creating wealth from the stock market

2009-09-25T02:48:00.000-07:00

1. Do not spread your money too thin.

My friend has a little over $200,000 invested in the stock market through 27 different Mutual funds. In my opinion, 27 Mutual funds is 27 too many collecting load fees, management fees, commission fees, operating and advertising fees. Diversity is important, but just as important is over-diversification. Also, in my opinion, $200,000 should not be put into more than 12 stocks, let alone 27 different Mutual funds.

2. Do not pay commission fees to purchase a stock.

If you are going to invest your hard earned dollars into a company, the least the company could do is provide you a way to invest in their company commission free – and they do!

3. Only purchase those companies that pay a dividend.

The same company that you invest in commission free should also offer you another incentive for you to invest – a dividend for the use of your money.

4. Only purchase those companies that have a history of raising their dividend every year.

The same company should continue rewarding you for your faith in their company by increasing the amount of their dividend every year. Rising dividends are also the proof that the company is dong something right.

5. Dollar-cost average into each stock position.

By dollar-cost averaging (buying the same stock at different prices through the years) you’ll never pay too much for the company’s stock, even if the initial purchase is at a 52 week high. Have all the dividends from each company rolled back into more shares of each company, until retirement. The companies you invest in should do this for you, automatically, commission free.

6. Forget making a profit; instead focus on the income provided from your stock portfolio.

That’s right! Forget making a profit. The burden is now lifted - no more pressure on making a buck in the stock market (Instead of trying to bend the spoon, that is impossible, instead just think of the spoon as – omigosh! - I’m in the Matrix). When you focus on the amount of money your holdings are providing in dividends – and when those companies selected have a history of raising their dividends each year – a lower stock price allows the dividends that are being rolled back into the stock to accelerate your income. The total value of your portfolio may go lower, but your income from that lower priced portfolio would increase dramatically. Profit by income!

7. Make every stock purchase with the intent that the purchase will be a long-term investment.

Do not trade in and out of your holdings. There have been many up and downs in the stock market. The down markets only accelerate your income. GE has raised their dividend for 28 years in a row. Why sell it? 100 shares of GE ten years ago has turned into 1200 shares today due to stock splits, and that is not counting how many shares you would have now if the dividends were being rolled back into more shares of the stock through those years.

8. Understand that a lower stock price, after your initial purchase may be a blessing in disguise.

The income from your stock holdings should grow every quarter, no matter what the total amount of your stock portfolio is worth. (If your Mutual fund declines in price from one year to the next and if your income is not increasing (accelerating) from that fund, why are you in that fund?) A company pays their dividend not on how much their stock is worth in the market place. For example, a company pays a quarterly dividend of 50 cents a share. A company has little control on how much its stock price is worth in the market place on any given day. You will receive 50 cents a share per quarter whether the stock price is at 50 dollars a share, or drops to $40 a share or goes up to $70. While the stock is down at $40 a share your dividend reinvestment is loading up on more shares.

9. Develop a savings plan to add to your holdings each quarter to help your dividend reinvestments to accumulate more shares on a dollar-cost averaging basis.

The savings could be as little as $5.00 a week. Why put that savings in a savings account at 1.2 percent, when there are so many companies out there that are paying a 4 to 5% dividend yield and increasing their dividend every year? And since none of the companies you are investing in charge a commission, all of that $60.00 a quarter you saved and invested would help your dividend reinvestments to dollar-cost average into your holdings. Every cent you save and invest would work toward your ROI (Return on Investment).

10. Read my book ‘the Stockopoly Plan’ soon to be released by American Book Publishing.

I believe it will profit you and your family for the rest of your lives.

For more excerpts from the book ‘The Stockopoly Plan’ please visit http://www.thestockopolyplan.com

By : Charles M. O’Melia
Charles M. O’Melia is an individual investor with almost 40 years of experience and passion for the stock market. Author of the book ‘The Stockopoly Plan’, soon to be released by American Book Publishing.

How To Create Wealth In The Stock Market

2009-09-11T02:42:00.000-07:00

First and foremost, an opportunistic strategy for creating stock market wealth is needed. And the opportunistic strategy for creating wealth in the stock market must have two ingredients, a plan and a goal. The plan must be a definite, concrete plan of investing that would profit you and your family for the rest of your lives.

This opportunistic investment plan you begin should not profit anyone else – not a stockbroker, a mutual fund or a financial advisor. This means you have to have confidence in yourself and in your own judgment as to whether the investment plan you begin has merit. And this means that the investment plan would and should have already been proven to you!

This definite, concrete plan you begin for creating wealth through opportunities in the stock market must also have a goal. The goal should be clear and specific, and once your have made up your mind to achieve that goal, then go forward and make that goal a reality.

What are the opportunistic traits of a strategic investment plan built on concrete that would actually allow the shareholder to profit through all the turmoil of an up and down stock market? The secret for creating wealth in the stock market; no matter what direction the market is heading?

As in what appears to be the most difficult investment question of all to answer, the answer lies in simplicity itself – investing in those companies that have a historical record of raising their dividend every year. Whether or not you can take this statement of fact to heart is your own judgment call. But it is this opportunistic trait that can and will create wealth for you and your family for the rest of your lives.

A company’s ability to raise its dividend every year, coupled with stock appreciation is a very powerful wealth creating formula!

I’m going to provide you with two examples, though there are many more, some with even better results. The two examples are from my book, soon to be published by American Book Publishing – The Stockopoly Plan (where an investment plan and a goal are written in stone).

The first example would be a stock purchased in 1990, Comerica (CMA). What led to the purchase of CMA? – In 1990 CMA had a 21 year history of raising their dividend every year. Today’s CMA has a 35 year history of raising their dividend every year. This opportunistic trait in CMA stock has garnished a little better than a 15 percent return a year, compounded annually (just by having the dividends reinvested back into the stock each quarter through those years – I prove this to you in The Stockopoly Plan), for the past 14 plus years. Today’s CMA stock just recently touched a new high at $60 dollars a share, with a dividend yield of around 3½ percent. In April of 2003 the stock was selling around $37.50 a share, paying a dividend yield of around 5% a year. Am I tempted to sell my position in CMA? Do I care if the stock drops from this lofty price back to $37 a share? Why should I? If the stock drops back to $37 a share, my dividends being reinvested back into the stock each quarter purchases more shares, and my dividend income from CMA simply and dramatically accelerates. I am also already prepared that if a buy-out offer is ever made for the company to reap the profits of owning the stock (as well as the possibility of another stock split).

The second example is (unfortunately) in my book, also. I say unfortunately because my book is in the final copy edit stage, so no one has had a chance to read and benefit from it, and since a buy-out offer was made for the stock last week or so, the stock will no longer exist (this means a rewrite for me, before publication). The company in question is the Rouse Co. (RSE), which was just purchased by General Growth Properties (GGP). Oddly enough, you’ll find GGP in my book, also – if you bother to pick it up. Anyway, that’s neither here nor there - RSE, on the takeover bid jumped over $16.00 a share in one day! Whew! Why couldn’t they have waited a couple of months until my book was released? RSE had the opportunistic trait of raising their dividend every year since 1993 and I was quite content with its performance through the years.

Well, that last paragraph blew my train of thought on this article. All I can think about at the moment is my rewrite.

I would like to take this time to explain something to you. I have never considered myself a writer nor am I a stock market professional. I am simply a man with 39 years of experience and a passion for the stock market, trying to share what wisdom those years have given me. When I sit down to write an article, I seldom have an idea on what I’m going to say. It was the same way when I sat down to write my book. I just meant to put down a few words on paper for my 18-year old son so he would have a sound, concrete plan for investing in those companies that make up the stock market (quite frankly – I didn’t want him to blow his inheritance). Whether you find merit in what I say, I have no idea. What I do know is that life is just too short to learn everything you need to learn by yourself, without the help of others.

There, now I’m satisfied with that ending!

For more excerpts from the book ‘The Stockopoly Plan’
visit http://www.thestockopolyplan.com

By : Charles M. O’Melia
Charles M. O’Melia is an individual investor with almost 40 years of experience and passion for the stock market. Author of the book ‘The Stockopoly Plan’, soon to be released by American Book Publishing.

Basics of Stock Market

2009-08-23T02:40:00.000-07:00

Financial markets provide their participants with the most favorable conditions for purchase/sale of financial instruments they have inside. Their major functions are: guaranteeing liquidity, forming assets prices within establishing proposition and demand and decreasing of operational expenses, incurred by the participants of the market.

Financial market comprises variety of instruments, hence its functioning totally depends on instruments held. Usually it can be classified according to the type of financial instruments and according to the terms of instruments’ paying-off.

>From the point of different types of instruments held the market can be divided into the one of promissory notes and the one of securities (stock market). The first one contains promissory instruments with the right for its owners to get some fixed amount of money in future and is called the market of promissory notes, while the latter binds the issuer to pay a certain amount of money according to the return received after paying-off all the promissory notes and is called stock market. There are also types of securities referring to both categories as, e.g., preference shares and converted bonds. They are also called the instruments with fixed return.

Another classification is due to paying-off terms of instruments. These are: market of assets with high liquidity (money market) and market of capital. The first one refers to the market of short-term promissory notes with assets age up to 12 months. The second one refers to the market of long-term promissory notes with instruments age surpasses 12 months. This classification can be referred to the bond market only as its instruments have fixed expiry date, while the stock market’s not.

Now we are turning to the stock market.

As it was mentioned before, ordinary shares’ purchasers typically invest their funds into the company-issuer and become its owners. Their weight in the process of making decisions in the company depends on the number of shares he/she possesses. Due to the financial experience of the company, its part in the market and future potential shares can be divided into several groups.

1. Blue Chips

Shares of large companies with a long record of profit growth, annual return over $4 billion, large capitalization and constancy in paying-off dividends are referred to as blue chips.

2. Growth Stocks

Shares of such company grow faster; its managers typically pursue the policy of reinvestment of revenue into further development and modernization of the company. These companies rarely pay dividends and in case they do the dividends are minimal as compared with other companies.

3. Income Stocks

Income stocks are the stocks of companies with high and stable earnings that pay high dividends to the shareholders. The shares of such companies usually use mutual funds in the plans for middle-aged and elderly people.

4. Defensive Stocks

These are the stocks whose prices stay stable when the market declines, do well during recessions and are able to minimize risks. They perform perfect when the market turns sour and are in requisition during economic boom.

These categories are widely spread in mutual funds, thus for better understanding investment process it is useful to keep in mind this division.

Shares can be issued both within the country and abroad. In case a company wants to issue its shares abroad it can use American Depositary Receipts (ADRs). ADRs are usually issued by the American banks and point at shareholders’ right to possess the shares of a foreign company under the asset management of a bank. Each ADR signals of one or more shares possession.

When operating with shares, aside of purchase/sale ratio profits, you can also quarterly receive dividends. They depend on: type of share, financial state of the company, shares category etc.

Ordinary shares do not guarantee paying-off dividends. Dividends of a company depend on its profitability and spare cash. Dividends differ from each other as they are to be paid in a different period of time, with the possibility of being higher as well as lower. There are periods when companies do not pay dividends at all, mostly when a company is in a financial distress or in case executives decide to reinvest income into the development of the business. While calculating acceptable share price, dividends are the key factor.

Price of ordinary share is determined by three main factors: annual dividends rate, dividends growth rate and discount rate. The latter is also called a required income rate. The company with the high risks level is expected to have high required income rate. The higher cash flow the higher share prices and versus. This interdependence determines assets value. Below we will touch upon the division of share prices estimating in three possible cases with regard to dividends.

While purchasing shares, aside of risks and dividends analysis, it is absolutely important to examine company carefully as for its profit/loss accounting, balance, cash flows, distribution of profits between its shareholders, managers’ and executives’ wages etc. Only when you are sure of all the ins and outs of a company, you can easily buy or sell shares. If you are not confident of the information, it is more advisable not to hold shares for a long time (especially before financial accounting published).

By : Dr. John Goldfinger
Dr. John Goldfinger - www.financegaes.com
FinanceGates: (http://www.financegates.com) free financial advice. Educational articles, financial news and reviews on investing, personal finance, stocks, funds.

The Great Stock Market Secret

2009-08-10T02:35:00.000-07:00

When the stock market is going up and all your stocks and mutual funds are making money you feel like a genius. It is too bad that some folks don’t remember what happened in 2000. Of course, right now we are in one of those genius phases. Your broker and financial planner are encouraging you to buy, buy, buy. And I can’t fault that at this time. You remember back in 2000 how many times they told you to buy, buy, buy while the market was going down, down, down. Are we in another of those periods now that are leading up to a humongous crash? Hey, I don’t predict, but I do listen to the voice of the market.

The great Wall Street mantra is “buy a good stock and put it away”. Did you keep WorldCom and Global Crossing? Even if these were exceptions because of fraud a smart investor would not have lost any money. In fact he could have made a nice profit.But Al, they went under! Yes, I know, but the smart money still made out because they sold near the top.

As a former exchange member and floor trader I was not right every time I bought something and I especially did not like giving back nice profits that had accumulated. You don’t have to be psychic to know when to sell and don’t think you are going to be able to pick the top. A really smart trader waits for a stock or fund to start up and then jumps on it with both feet. When it starts down he jumps off looking for another equity that is going up. The wise trader knows he can’t buy the bottom and sell the top. What he wants is a big bite out of the middle.

When you make a sandwich most of the meat is in the center and a professional trader does the same with his trading. He wants to take a bite out of the middle of the move. You can do this too by looking for stocks, mutual funds or Exchange Traded Funds that have a nice upward pattern. As I said before buying is not the secret. Then what is?

You must learn to sell - for two reasons. First to protect your equity after your initial purchase and second to keep from giving back profits you have made as the equity advances. The great Wall Street secret is an exit strategy: knowing when to sell. Unless you learn to sell you will not be successful in the market. Brokerage companies do not want you to sell and rarely issue sell signals. You must decide how much you are willing to risk before you buy.

The simplest way is with a percentage stop loss order of 5%, 7%, 10%, 12%, whatever you can live with. Instruct your broker to place a trialing stop or you can change it yourself every week. Do not lower a stop.

Selling is the great secret you will never hear from your broker.

By: Al Thomas
F*R*E*E investment letter www.mutualfundmagic.com
Author of best seller "IF IT DOESN'T GO UP, DON'T BUY IT!" Never lose money in the market. Copyright 2004 Albert W. Thomas All rights reserved.Former 17-year exchange member, floor trader and brokerage company owner. al@mutualfundmagic.com

Invest in the stock market for the RIGHT reason, using the RIGHT choices

2009-07-22T02:34:00.000-07:00

Investing in the stock market is not purchasing a stock at 25 dollars a share, hoping it will go to 35 so you can sell it, then hoping it will drop back to 25 so you can buy it back, so that you can sell it again at 35, and so on and so forth.

In my opinion, that is gambling. And, I would imagine, some would believe that ANY investment in the stock market is gambling.

So, for the sake of argument, let’s assume that every investment in the stock market is a gamble (whether you’re trading in and out of a stock position or a long-term investor). If every investment in the stock market is a gamble, then, how does the investor/gambler stack the odds in their favor?

What are the right investment choices for the right reason that will stack the odds in favor of the individual investor, to receive a return worth the gamble? What is the RIGHT reason, and what are the RIGHT choices to make when investing/gambling in the stock market when looking for a return better than a passbook savings account, a CD, Bond or Mutual Fund?

The right reason to invest/gamble in the stock market, believe it or not, is not to make a profit! That’s right! The right reason to invest/gamble in the stock market is to provide an INCOME! Actually, I’ll go even one step further! The right reason to invest/gamble in the stock market is to receive an EVER-INCREASING CASH income every quarter from every stock that you own!

Once you have set your mind toward this right reason for investing/gambling, then the right choices will become very clear.

If every stock owned (every quarter) is going to supply an ever-increasing cash income, then two right choices, right from the get-go, are necessary. One, that every company’s stock purchased must pay a cash dividend, and two, that every cash dividend paid by the company would have to be rolled back into more shares every quarter, until retirement. Those two right choices means that every quarter there will be more shares of each company owned, which, in turn, will create an ever-increasing cash dividend income (as long as the companies owned maintain their dividend).

To stack the odds further in favor of the investor/gambler, another right choice is necessary. Only those companies with a long-term history of raising their cash dividend every year will be chosen. This right choice will provide a yearly increase in the cash dividend income for the retirement years, when the dividends are being sent home to help ends-meet, and are no longer adding shares to the portfolio. The rising yearly dividend increase will, therefore, help off-set the risk of inflation.

Now, there is another right choice to make. To receive the best return on your investment/gambling dollars, all companies chosen will be purchased commission-free. All dividends from each company, each quarter being rolled into more shares, will be commission-free. Therefore, every cent earned in ever-increasing cash dividends every quarter and any extra cash put into your investment/gambling plan will work toward always increasing your cash-dividend income.

By investing for the right reason and using the right choices you automatically become a long-term, dollar-cost averaging, buying investor/gambler of company’s shares, free of commission charges, whose companies raise their dividend every year, with the investor’s / gambler’s idea or purpose being to provide an 85% tax-free income, through ever-increasing cash dividends for the rest of your life, no matter what the price of the stock at any given time in the market place may be.

For more excerpts from the book ‘The Stockopoly Plan – Investing for Retirement’ visit: http://www.thestockopolyplan.com

By : Charles M. O’Melia
Charles M. O’Melia is an individual investor with almost 40 years of experience and passion for the stock market. The author of the book ‘The Stockopoly Plan’; published by American-Book Publishing. The book can be purchased at www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml

Good Stock Market Tip; Good Return!

2009-07-06T02:31:00.000-07:00

Forget making a profit; instead focus on the income provided from your stock portfolio. That’s right! Forget making a profit. The burden is now lifted - no more pressure on making a buck in the stock market. (Instead of trying to bend the spoon, that is impossible, instead just think of the spoon as – omigosh! - I’m in the Matrix!)

When you focus on the amount of money your holdings are providing in dividends – and when those companies selected have a history of raising their dividends each year – a lower stock price allows the dividends that are being rolled back into the stock to accelerate your income. The total value of your portfolio may go lower, but your income from that lower priced portfolio would increase dramatically. Profit by income!

To demonstrate this tip, I’m going to take you back in time, but the strategy of that time is just as viable today, as it was in the past. The year is 1990, the stock for the demonstration is Comerica, and the amount of money invested was $3,333.34. Comerica (CMA) was selected for one simple reason – in 1990 CMA had a historical record of raising their dividend for the past 21 years. Today’s CMA has a 36 year history of raising their dividend every year.

In January 1990 Comerica was selling at $48.38 a share, paid a quarterly dividend of 65 cents a share, with a dividend yield of 5.37% (.65 divided by 48.38 x 4 x 100 = 5.37%). The result of just holding this stock through the years, never taking a profit, and simply having the dividends reinvested each quarter (commission-free) back into the stock is chronicled below: These are the actual returns based on the closing prices of the stock on the company’s dividend payout date (the date a company purchases their stock on the open market for investors enrolled in their stock dividend reinvestment plan; The figures were taken from the research I did, and is from an excerpt from my book The Stockopoly Plan – Investing for Retirement.)

Comerica: (with the dividend each quarter rolled back into the stock) $3,333.34 into CMA in January, 1990 at $48.38 a share: Shares purchased, 68.90 shares.

Total Amount of shares at the end of 1990: 72.92 shares.

Total Amount of shares at the end of 1991: 115.01 shares.

Total Amount of shares at the end of 1992: 118.85 shares.

Total Amount of shares at the end of 1993: 245.78 shares.

Total Amount of shares at the end of 1994: 256.96 shares.

Total Amount of shares at the end of 1995: 268.78 shares.

Total Amount of shares at the end of 1996: 277.83 shares.

Total Amount of shares at the end of 1997: 285.32 shares.

Total Amount of shares at the end of 1998: 436.65 shares.

Total Amount of shares at the end of 1999: 446.04 shares.

Total Amount of shares at the end of 2000: 463.82 shares.

Total Amount of shares at the end of 2001: 474.47 shares.

Total Amount of shares at the end of 2002: 490.23 shares.

Total Amount of shares at the end of 2003: 512.60 shares.

Total Amount of shares as of April 1, 2004: 522.23 shares.

On April 1, 2004 Comerica closed at $54.65, for the total market value of $28,539.87 for 522.23 shares of stock. To put the total $28,539.87 into perspective, an interest rate of 15 percent a year on $3,333.34, compounded annually for fourteen and a quarter years would return $28,282.15.

Since this excerpt from my book Comerica has raised their dividend again, from 52 cents a share per quarter, to the current 55 cents a share per quarter, payable to shareholders of record on March 15, 2005.

I own Comerica stock and I have no intention of ever taking a profit! I will continue being a buyer, as long as the company continues its program of raising their dividend every year.

However, I also understand that in the stock market there are no guarantees! It is for this reason and this reason alone, that diversity is a necessity. If I knew for certain that CMA would continue its program of raising their dividend every year, and that the next 14 years would provide better than 15 percent return on my money, I would only own CMA stock. It is because of this ‘risk of no guarantees’ in the stock market that the rewards for investing in the stock market are much higher than a passbook savings account, CD’s or Bonds.

So, to beat the ‘risk of no guarantees’, and to reap the benefits of a better return, I diversify into other companies with the same historical performance. Through a systematic approach of dollar-cost averaging into my stock positions every quarter, along with my quarterly dividend reinvestment, I increase the amount of dividends paid to me each quarter, from every company that I own. My measurement for success in the stock market is not measured by the amount my portfolio is worth. It is measured by the amount of ever-increasing cash dividends received from every stock that I own. As a matter of fact, when my portfolio dips in net-worth, my dividend income accelerates. The reason for this is simple. The lower my port- folio’s net-worth, the higher the dividend yields of the stocks in my portfolio.

All my personal holdings in the stock market have the same basic theme. They are all purchased commission-free, have a long-term history of raising their dividend every year, and are purchased with the intent of supplying ever-increasing dividend income for my retirement years. The Stockopoly Plan was written with this purpose or goal in mind. The Plan itself uses a timing approach for purchases of more shares each quarter, along with the dividend reinvestments.

For more excerpts from the book ‘The Stockopoly Plan – Investing for Retirement’ visit: http://www.thestockopolyplan.com

By : Charles M. O’Melia
Charles M. O’Melia is an individual investor with almost 40 years of experience and passion for the stock market. The author of the book ‘The Stockopoly Plan – Investing for Retirement’; published by American-Book Publishing. The book can be purchased at http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml

Stock Market Diversification

2009-06-19T02:28:00.000-07:00

In one of my previous articles (Investing in the stock market -9 powerful tips), tip number one was:

1. Do not spread your money too thin.

My friend has a little over $200,000 invested in the stock market through 27 different Mutual funds. In my opinion, 27 Mutual funds is 27 too many collecting load fees, management fees, commission fees, operating and advertising fees. Diversity is important, but just as important is over-diversification. Also, in my opinion, $200,000 should not be put into more than 12 stocks, let alone 27 different Mutual funds.

If I may, I would like to explain where I’m coming from by stating that tip.

On October 16, 1990 the Royal Swedish Academy of Sciences awarded 3 men each a third of the Nobel Peace Prize for their work in the theory of financial economics – Harry Markowitz, Merton Miller and William Sharpe.

Harry Markowitz’s work involved the theory of portfolio choice. (This in layman’s terms was the introduction of a diversified portfolio to help offset the uncertainty and risk of investing in the stock market. Harry Markowitz has been labeled the ‘Father of Diversification’.

William Sharpe used Markowitz’s model from an individual investment theory to a market analysis theory based on price formation for financial assets. This formulation is called Capital Asset Pricing Model (CAPM). From what I understand about this model is that it places a “beta value” on a share, the higher the beta value, the higher the risk. By knowing the ‘beta value’ of each stock in a portfolio, the portfolio can be adjusted to either involve more or less risk.

Merton Miller’s work involved dividends supplied by companies to a shareholder and its effect on stock market value and the effects of taxes. Miller’s theorems are used for theoretical and empirical analysis in corporate finance.

Markowitz received his award for an essay published in 1952, “Portfolio Selection” and for his book in 1959, Portfolio Selection: Efficient Diversification.

Harry Markowitz, in his Nobel lecture given in 1990 says: “an investor who knew the future returns of a security with certainty would invest in only one security, namely the one with the highest future return’.

Nowhere could I find that an investor should own 27 different mutual funds.

For more excerpts from the book ‘The Stockopoly Plan’ please visit http://www.thestockopolyplan.com

By : Charles M. O’Melia
Charles M. O’Melia is an individual investor with almost 40 years of experience and passion for the stock market. The author of the book ‘The Stockopoly Plan – Investing for Retirement’; published by American-Book Publishing. To order a copy of the book: http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml

Stock Market Retirement Investment Plan

2009-06-07T02:25:00.000-07:00

For a successful in the retirement investment plan in stock market to work, some ‘reasonably sure’ assumptions would have to be made:

The retirement investment plan must take into consideration the one prevailing constant in any stock market security – risk and uncertainty. Understanding that risk and uncertainty are the key factors that propels the return on investment in the stock market far beyond the returns of Passbook Savings Accounts, CD’s or Bonds are a start. The plan’s key factor would be to use the risk and uncertainty of a stock market security to its advantage.

The retirement investment plan should be founded on the belief that no one can successfully retire without financial freedom. Therefore, the retirement investment plan’s main role would be to supply you with income during your retirement years, while also taking into consideration the risk of inflation. This should be accomplished without having to touch the principle. The retirement investment plan would require discipline to accomplish its goal. The goal should be clear and specific, and the discipline necessary to accomplish the goal, just as clear and specific. Also, the retirement plan should not be financially out-of-reach, allowing as little as 100 dollars to begin, with as little as 10 dollars a quarter to continue.

The retirement investment plan’s return on investment should be aimed toward providing income, and the income from the holdings in the plan should accelerate every week of the year, until retirement. This should be the case, no matter what the price of the security at any given time in the market place. The retirement investment plan should be proven to you. Once proven, you must have the confidence in yourself to carry the plan forward. This do-it-yourself confidence means that the retirement plan’s ROI benefits only you and your family and no one else. A no-fee plan enhances the return on investment, allowing every cent put into the plan to work for you.

Companies owned in the retirement investment plan should have a historical record of raising their dividend every year. Therefore, a future dividend increase for the 10th or the 35th consecutive year in a row can be ‘reasonably sure.’ The guide for the selection of each security is its historical performance of rising dividends every year.

To receive the best return in the retirement investment plan, all companies in the plan would be purchased commission-free. All dividends from the companies would purchase more shares of each company commission-free. Therefore, every cent earned in ever-increasing cash dividends every quarter and any extra cash put into the retirement plan would work toward increasing the cash dividend.

Why bother beginning a retirement plan is best expressed, in my opinion, by a quote by Charles Kettering:

“I expect to spend the rest of my life in the future, so I want to be reasonably sure of what kind of future it’s going to be. That is my reason for planning.”

To read the PREFACE from the book ‘The Stockopoly Plan – Investing for Retirement’ visit http://www.thestockopolyplan.com

By : Charles M. O’Melia
Charles M. O’Melia is an individual investor with almost 40 years of experience and passion for the stock market. The author of the book The Stockopoly Plan – Investing for Retirement; published by American-Book Publishing. The book can be purchased at http://www.pdbookstore.com/comfiles/pages/CharlesMOMelia.shtml

Stock Market Fundamentals : Time is the Essence

2009-05-18T02:24:00.000-07:00

There are those who like to invest in stock market and shares with the belief that they are fuelling the economy or the industry they trust in. They ‘buy and hold’ shares for longer periods hoping to be rewarded with bigger fortune. This may sound appealing to most investors seeking long-term goals like saving for a college education or a peaceful retirement. But then the tour to the exchange is a bit adventurous, for the future is blurred and meets no end.

Though many advocate the ‘buy and hold’ philosophy on the grounds that it lowers your taxes and saves on your commission, the share holding may ultimately yield low profits. Eventually when the time comes to sell, it may be a bear market. Even if the market were to be bullish, there is the possibility of inflation eating into the dollars you made.

In the last 100 years in the history of trading there have been 30 occurrences of a bear market. The ‘corrections’ that followed never brought up the market to the post bear market position. It is a fact that every stock exchange faces a bear market periodically as a part of an established linear cycle. Though brokers always believe the market will come back, sometimes, it may be too little or too late for many.

While trading in shares or stocks, the foremost aim is to protect the original cost of your holding. In “market timing” you buy the shares and hold them in your portfolio on line for further trading. Shot term bullish and bear market trends are required to be monitored so that one knows the moment when to buy or sell. The ‘market timing’ investor aims to keep his losses low and protect his capital too. He is more sensitive to the volatility of stocks and shares. He believes he is lowering his risks and looking at long time trading gains that are consistent.

The ‘Buy and Hold’ believers have great faith in utility stocks. However exchange records reveal that after every crash the utility stocks index never manage to reach back to their old heights. Instead of parking your dollars in shares for a long and doubtful period, it is better to buy and sell over shorter periods of time pulling out and trading in according to what the stock exchange market prices indicate.

One must not mistake ‘market timing’ trading as speculation. Here the investor has a different goal. He is like the businessman who buys and holds goods as per the trends in the market. He will want to sell the latest goods in the market when they are still in demand and get rid of those that are no more in fashion.

Even high-quality stocks and shares have suffered from the bear market. ‘Buy and hold’ approach does not appeal to those who find reading the market regularly and keeping themselves alert at all times an exhaustive exercise.

But once you master the art ‘market timing’ by keeping your ears to the ground and acting on the signals, you will realize you have made your gains while others were simply waiting.

By : RNCOS
RNCOS (rncos.com), formed in 2002, offers outsourcing solutions for your business needs and aims to put an end to your information pursuit. We provide e-publishing solutions, which constitutes articles, newsletters and content for magazines and bespoke work. At RNCOS, we provide you complete e-publishing solutions and online help. We offer the best in technical writing, editing, and illustration for digital and printed documentation. For further information write us at info@rncos.com.

Stock Market Savvy Students

2009-05-06T02:15:00.000-07:00

Investing with your Child

Many children study about business and finance in their schools. These small students are made to work on imaginary situations to make them realize the actual situations of the market. Children can learn a lot from the stock market to understand business. If your child is a stock market savvy, then you very well work with him.

You can actually invest and teach your child the basics of investing in the stock market. It is imperative for your child to know what exactly bonds and shares are and how do they function. As the concepts related to bonds are even difficult for adults to understand, present your child relevant books and magazines that explain them in detail. There are many books available in the market and your local library.

However, the basic task is to explain the child the concepts. There are also guides available in the market that tell you how to invest. There are also many television shows on many business channels that let your child have an in-depth look in investing but make sure that your child does not get carried away with the lure of investing heavily in the stock market.

Once your child has understood the concept of investing, you may look for a certain bond or share that you may be interested in. In this time, you may also look for the business that interests you. The founders of these businesses are usually colorful personalities and have very unique tale to narrate.

Now that your child understands the concepts behind investing, you can begin your search for a specific stock or bond. Take this time to research about specific businesses in which you are interested. Quite often, these businesses have interesting stories and their founders may be colorful characters with inspirational tales to narrate. Investing requires more than just throwing money on bonds and shares. Every abbreviation in the stock market denotes a very unique business. If you teach this to your child, he will learn more about the stock market. Another interesting activity will be to find the story behind investment houses. Ask your child to find answers to the questions such as, "What is Charles Schwab known for?" or "When did Merrill Lynch become a listed company?" Moreover, there are other social groups that are as popular for investing. A popular example of investment group for making wise decisions at stock market is the Beardstown Ladies. A book named "The Beardstown Ladies' Common-Sense Investment Guide" that is written by these ladies will prove to be extremely useful to you and your child.

Teaching your child about the stock market is a rewarding experience in the sense that your child will learn about real-world application and you will spend quality time together, which is the best investment on a higher plane.

By : Frank Marque
Frank Marque is the administrator and delegate of E Commerce Needs, your online source for all electronic commmerce. Visit us online at: www.ecommerceneeds.com .E Commerce Needs, your online source for all electronic commmerce.

Of Stocks, Stockholders And Stock Market

2009-04-21T02:10:00.000-07:00

A copper mining enterprise Stora Kopparberg first introduced the system of stock in the 13th century. The financial backers and owners felt the need to raise money for investment in the new projects of the same company so they started the method of stock and shares. It was also required in order to ward off the threat to the ownership rights if the company was sold, which would mean complete loss of control.

The investors got the monetary support they were looking for and at the same time solved ownership issues in case the company was sold by granting stocks to the people. Plus, they sold a part to people and still retained control over the company. Thus, the owner had some portion of the assets, some power to make decision conditionally. In return, they shared a part of the profit with the stockowner as dividend.

Financially, stock implies the ownership or share in a corporation. It gives the stockowner the right to claim a share in the assets and income of the corporation. The two types of stocks, preferred and common differ in many respects. The common stock owners can vote at the shareholders' meetings whereas the preferred stockowners cannot vote.

Common stockowners get dividends declared by the company, whereas preferred stock owners have higher claim in assets and income of the company. Preferred stock entitles the owner to have his dividends earlier than the common stock owner. Preferred stock owner gets the priority when the company goes bankrupt. Besides these two, the other types of stock are dual class shares and treasury stock.

A stock-owner is not liable to losses in case the company closes and has loans to pay back. The loss of the stockholders is limited to the money that would have been made by converting the assets into cash since all the money would be used to repay the loans to the creditors.

A stock market exchange is the place where trading of shares is carried out. Individuals and companies sell and purchase shares on a large scale. Generally, a particular company trades only in one specific market and is said to be on the list of that particular stock exchange. However, big multinational companies can be listed on many stock exchanges. This is called inter-listed shares.

There are various methods to buy or sell finance stocks, but the commonest among them is through the mediator called stockbroker, who actually transfers the shares from one owner to another. Stocks can be bought directly from the company also.

The stock market of a country is an indicator of its economy, which just goes to show the growth and power of the stock market.

By: Sintilia Miecevole
Sintilia Miecevole, host of http://www.fulstock.com has everything from stock quotes, news, portfolio management resources, international market data, mortgage rates to mutual funds, dividends, trading and much more. Be sure to visit http://www.fulstock.com for further information.

The Stock Market Report That Wall Street Does Not Want You To Read

2009-04-06T02:08:00.000-07:00

The best way to maximize your profits is to be prepared to give some back to the Stock Market. When most traders first hear this, they are a little taken back. Why would you give any of your profits back to the Stock market; because you are never going to be able to exit right at the peak of the Stock market trend. But, you can still stay with the trend as it develops, and let your profits run in the Stock market. Then, when the price turns, you can exit.

Traditionally, an inexperienced trader will exit a position once they see a little bit of a profit in their trading account. They want to crystallize that profit immediately. People don`t like to lose, and they believe that those profits, made in the Stock Market, are their profits, and once they have them, they don`t want to risk giving them back to the Stock market.

Is the Stock market strategy written about in this article doomed to failure, since it breaks one of the cardinal rules of trading; to let your profits run? It is always wise to implement cardinal rules like this, but how do you implement this in the Stock market? Well, after you`ve defined your trading float, set your maximum loss, calculated your stop losses, and also calculated your position sizing – you can determine how to handle profits.

Once you`ve set your initial stop loss, you`ve ensured a mechanism to cut your losses short. Now you need to introduce a rule that allows your profits to run. By simply setting these two rules, you can control two important variables - whether or not you make a profit, and how much profit you`re going to make.

Of the two types of exits you use in the Stock market, hopefully it`s the ones we`re about to discuss now that you`ll get to implement more often, as these are the ones that are implemented once you`re in a profitable situation. Trailing stop losses will allow you to follow a trend as it develops in the Stock market, and exit the position at the point where you can realistically maximize your profits.

A simple example can illustrate the importance of a trailing stop loss. If you received a buy signal and purchased XYZ, and set your initial stop loss, you`d be sure to keep your losses small. But, your initial stop does not move. What happens if, after purchasing XYZ, the asset runs up a few hundred percent?

Unless you have a way to lock in the profit, you could keep that position until the share reverts all the way back down to your stop loss, where you would exit the trade. You would end up losing money even though there`s potential for some fantastic gains.

Obviously, you need to have a way to keep a situation like this from ever happening, and that`s exactly what a trailing stop does. This form of stop is adjusted on a periodic basis according to a mathematical formula that keeps it moving upward as the price moves upward.

After the first day of trading, if the price moves in your favour, or even if the shares volatility shrinks, then the trailing stop is moved in your favour. If the Stock Market then moved against you enough for your stop to be triggered, you would still take a loss, but it would not be as large as your initial stop loss.

The key to the trailing stop loss in the Stock market is that you need to adjust the asset continually to make sure that the stop is moved in your favour. A trailing stop loss is calculated in a way that is very similar to the way we calculated our initial stop loss. The only difference being rather than calculating our trailing stop loss from the entry price, we`re calculating our stop loss from the highest price since entry.

With a trailing stop loss in place, you will be able to let your profits run, and let your trading system deliver the maximum profit in the Stock Market.

By : David Jenyns
David Jenyns is recognized as the leading expert when it comes to designing profitable stock trading systems.Discover the "secret formula" of trading that anyone can use to consistently generate BIG profits from the market by downloading your FREE copy of David's new Ultimate Stock Trading Systems course.
Go here to download Stock Trading Systems ==> http://www.ultimate-trading-systems.com/stocks.htm

How I Made 120% In The Stock Market In 6 Weeks - Working A Day Job!

2009-03-14T02:05:00.000-07:00

Hi - let me introduce myself. My name is Alex Chambers. I'm a UK medical doctor who has an interest in the stock market. I use a system first invented by a dancer called Nicolas Darvas in the 1950's. He made $2,000,000 working part-time - whilst travelling round the world on a dancing tour.

Why am I telling you this? Because his methods still work today. And they are deceptively simple to use. I used them to snag a lovely 120% gain on TZOO (NASDAQ) in 6 weeks in 2004 - using weekly data only and working my day job.

Nicolas Darvas was one half of a dancing team in the 1950’s called Julia and Darvas. Dancing was his day (or night) job. His dance team was one of the highest paid dancing acts in the world and Nicolas Darvas was successful in almost everything he did - this includes playing championship table tennis and creating crossword puzzles.

However, the stock market was his true love and it is this that really fascinates me about the guy. He was self-taught in the market but managed against all odds to accumulate a fortune, working part-time, of just over $2,000,000 in 18 months. Nicolas Darvas started from a stake of about $25,000 and made his fortune whilst travelling round the world on various dancing commitments.

Darvas detailed his exploits and how he created his system in his classic 1963 text, "How I Made $2,000,000 in the Stock Market". It’s a great read and I highly recommended it. Many investors regard the text as a classic. In it he provides an honest and open look at his experience from his naive start to his eventual success. He lays out, in great detail, exactly what he did and how foolish some of his actions were. Then he explains how he came to find success by focusing on the price and volume action of stocks.

A key message of his strategy is as quoted as follows:

"...My only sound reason for buying a stock is that it is rising in price. If that is happening, no other reason is required. If that is not happening, no other reason is worth considering..."

Sounds simple eh? The only other investor I know of before Darvas who used such a strategy was the legendary Jesse Livermore.

Also, remember that there was no internet in the 1950s and Darvas had to rely on outdated information in the form of a newspaper and daily telegrams on selected stocks to acquire information for his trading system. His broker mailed a copy of Barrons newspaper each week which contained weekly prices of stocks together with volumes for the week.

Darvas used a top down approach to investing - he only watched stocks from futuristic industries. In the 50's these were credit card industries and the jet age. Darvas realised that the expectation of earnings was one of the greatest lures to raise stock prices higher, and together with the futuristic industry screen, these were the only fundamental factors used in his Darvas Trading System. Today all you have to do is log onto Yahoo.com, go to Finance, and all this information is free.

Once he had satisfied his requirements for fundamentals, he tracked technical data in the stock. He liked stocks that were:

1) At or near their all-time high

2) Bouncing up and down in their "Darvas Boxes" (trading ranges - see below)

3) Had "Boxes" stacked on-top of each other like a pyramid

4) Showing an increase in volume with advancing prices

5) Priced greater than $10

He used "Darvas Boxes" as a way of entering and exiting stock positions. These are in essence a definition of a high and low trading range. A buy signal was created if the price just pushed through the top of a Darvas Box and the price reached a new all-time high. He used stop losses at the low of the trading ranges to protect the downside, and raised the stop loss as new higher boxes were formed. I believe Darvas was the first to use stop loss orders in such a way, and many financial institutions today still use Darvas Boxes as trading ranges, albeit on a smaller time scale.

That's essentially it. The story is utterly remarkable and has placed Darvas in the legends of investing history. If you're interested in more details and about how I use his system, please check out my website. All information is free.

To your stock market success also, Alex Chambers

Copyright 2006 http://darvas-investing.chambers-media.com

By : Alex Chambers
Alex Chambers is a UK medical doctor who likes to buy & sell profitable shares. He also likes to go out dancing and lie around in bed, as well as enjoy the company of ladies. http://darvas-investing.chambers-media.com

Is Investing In The Stock Market Like Going To Las Vegas?

2009-03-03T02:02:00.000-08:00

Some people say that there is no difference between investing in the stock market and gambling in Las Vegas. This is a happy fiction for casino owners, but unfortunate for casino gamblers. It means you might be tempted to "invest" in blackjack or poker, instead of stock or bond mutual funds. In this article, we compare the similarities and differences between casino gambling and stock market investing. Make up your own mind if they are the same kind of investment.

What casino games have in common is that the gambler has a very small chance of winning any single hand, be it roulette, blackjack, or slot machines. For instance, there are 38 numbers on a roulette wheel, and, if you bet on a given number, the rough odds of winning a single game is, 1 in 38, or 2.6%. This means, of course, that the casino has a whopping 97.4% probability of beating you! This is great for the casinos but not so great for attracting gamblers.

Fortunately for the casinos, the likelihood of winning or losing in the short term is not that clear at all. Wins and losses in any casino game follow a random sequence of winning streaks or losing streaks, which cannot be predicted in advance. A long sequence of losses (a losing streak) can bankrupt a gambler, while a long sequence of wins (a winning streak) can generate huge gains.

When a gambler gets on a losing streak, he attributes it to bad luck. But something in human psychology needs to attribute a winning streak to superior gambling skill, instead of just good luck. In reality, they are neither skill nor luck. Winning and losing streaks are demonstrably random, unpredictable events.

To understand this, consider a simple coin toss game, where everyone knows that there is a 50% probability of getting either heads or tails with each coin toss. But many people would be surprised to find that if they tossed the coin many, many times they could get a lucky streak of say, nine heads in a row. It’s hard to believe, but it’s true, and you can try it for yourself.

Toss a coin many times and write down the outcome; you will see that 4 to 9 successive heads or successive tails will occur pretty regularly. These sequences are a graphic demonstration of "streaks". If "heads" represent a win and "tails" a loss, we can see winning streaks and losing streaks even in a simple coin-toss game.

So you can see that there is a way to beat the casino if a gambler hits a "winning streak" of 4 to 9 consecutive wins, leaves the table, cashes out and runs. But if he gets on a "losing streak" he’d better pack it in, accept the loss, and leave the table immediately before more damage can be done.

Gambling is fine for someone who wants to play with cash for the entertainment value, but it is not for the investor who wants to make some serious money.

The odds of winning in the stock market are incredibly more favorable. During a bull-market of rising prices, your odds for making money on any given day are 66.7%! Contrast that with the 2.6% probability of winning at roulette! On the other hand, during a bear-market when prices are dropping regularly, you are likely to lose money 66.7% of the time. So even during a bear-market you are losing less than you would in a casino.

And just like in casino gambling, there will also be winning and losing streaks with many consecutive days where the money comes pouring in, and many consecutive days where the money just seems to evaporate.

But if you knew ahead of time the periods when a bull or bear market is likely, then you could make adjustments in how you invest, so that you could maximize earnings or conserve money and prevent losses.

For instance, if a bull-market is likely, you would invest in stock mutual funds, and then sit back and watch the 66.7% odds of success pull the portfolio higher. Conversely, if a bear-market is likely, you would pull the money out of the stock market and into the safety of Money Market funds, then sit back and watch the market get hammered with the 66.7% odds of losing.

This system works because Market Timing Indicators (see website listed below) can be used to predict whether the environment is favorable or not for future stock market gains. This is unlike casino gambling where there are no indicators and every round is unique, so that the odds of winning are unknown,

These ideas are the very essence of long-term market timing, as practiced by the author in his FREE newsletter at www.predictableinvesting.com. By side stepping the awful 2000-2002 bear market, and reinvesting near the bottom in June 2003, the simple one fund portfolio has grown to 411% of its original value in just over 11.5 years. This system beats a buy-and-hold approach hands down and has made 81% more profit.

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NOTE: This is a clarification for my math and science savvy readers. The statistics used to calculate the odds have been intentionally simplified to make the article readable for the average non-technical reader. If you want a fuller explanation please email me at Sanjoy@PredictableInvesting.com.
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By : Dr. Sanjoy Ghose
Dr. Sanjoy Ghose spent his 40 year career in technology research and development of computer storage devices. He was a senior executive at several well known California Silicon Valley companies and startups. Since his retirement from high-tech, he has been publishing his FREE newsletter on investing, a subject he has studied and followed extensively for over 16 years. To find out more, please visit www.PredictableInvesting.com

Sustaining The Future Of Your Stock’s Market

2009-02-20T02:00:00.000-08:00

After investing your money into the stock market, it doesn’t mean that it has a life on its own and it would generate lots of money every month. Of course, you are the most important factor in the success of your investment.

Whether you are the stock broker or you buy your stocks individually, it is important to be aware of the correct timing in making use of your money. Here are some few tips that could maintain the money you are making from the stock market and prevent future losses:

* Stock listings. For your investments to grow rapidly, you should have your own lists of the companies you have bought shares on. With this listing, you would be able to check up the profit each company is earning every month. Thus, making your money assured from losses.

* Proper timing. Knowing the general market’s condition would play a vital role in the profiting and losing of your money. Although you have invested on a company with stable earning sales, you are still not safe from losing your money. When the market moves into an opposite direction, you would not be making earnings. It is now your decision to buy or sell your stocks.

Note: Never be too attached with investments. Remember that stock market is a game that needs high mental capacity and less emotional burdens. Meaning, you should begin to move on when you have been proven wrong with your timing. Accept your losses and try winning your money back.

* Buying and selling. If you have lost money from the companies you have invested on, don’t fret. It is still in your hands whether you would continue to trust the company’s competence or not. Many brokers advice that cutting down the losses in your list of stocks is significant for the future of your investment.

When buying for new stocks, it is sensible to test the stocks first by investing a smaller amount of money. By doing this, you would be able to analyze the market condition and if losses occur, it wouldn’t be too much of a load in your part.

* Balance. To know which stocks are suitable to buy, you should observe the price, volume, and daily highs and lows in the environment of the stock market. By doing so, you would be able to know the market trends and analyze your prospect companies.

For your stocks to provide you with high ROI, know the environment and trust your judgment in deciding the right timing to buy and sell. By doing this, you would ensure that the future of your investment would be in safe hands.

By : Mohamed Rabea
http://www.online-stocktrading-guide.info
http://www.onlinestocktrading-now.info

Stock Market Speculation or Gambling. What is the Difference?

2009-02-04T01:50:00.000-08:00

The art of speculating in one form or another has been around forever in stock market world.

When it comes to speculating, there are always three things that you can be sure of – there will be always people willing to speculate, there will always be people who will love to play the game with the first group. Lastly history can be counted on to repeat itself.

Sure the object of speculation may change, the rules may change and the technology may change. But in the end it is always the same.

However what has happened before is 100 % sure to happen again. You can count on it. Everyone thinks always that they are so original when it always the same story again and again. Whether it is tulip bulbs, precious metals, mutual funds, lottery tickets or penny stocks human nature is human nature.

Ignorance, greed, fear and hope determine how people react and thus how prices move and markets behave. People have speculated on everything at one time or another,

For the last hindered years and certainly into the foreseeable future speculating on stock prices offers liquidity combined with legitimacy and purpose. Stock speculation, trading and investing have become an essential and vital parts of both our economy and our lives.

Trading is just another word for speculating and investing is nothing more than speculating, except that it supposedly encompasses a longer time horizon and for some odd reason implies less risk. Speculators speculate, trader’s trade and investors invest to make money. Traders buy stock or any other object of speculation because they anticipate a price appreciation.

Speculation and gambling are similar, with a few important distinctions. One difference is the perception, sometimes true, that successful speculators profit due to their skill or an unseen advantage, while gamblers prosper due to chance or luck.

Remember though that it may not happen to you but in the end given enough time or chances the odds will always prevail. The casinos in Atlantic City and Las Vegas were not built with winner’s money.

Another distinction is that gambling in most forms has been illegal (at least until government got involved and changed the rules in their favor) while speculation plays an essential role in our markets and thus our economy.

These important distinctions make speculating which indeed is what our investment industry purveys as an accepted occupation – indeed one with one prestige and gamblers not being accepted in the same light.

Whether a gambler, a trader or a speculator, in all cases the attraction is the same – the chance to make a lot of money in a hurry. It is the immediate gratification of the win that makes these games irresistible - an opiate of sorts.

Indeed problem gamblers have been compared to alcoholics in needing that rush which gives them such pleasure and serves amazingly to release endorphins to relax their troubled minds.

On top of that the unpredictability of the wins serves to even reinforce this addictive behavior.

Not far off of the methods of B.F. Skinner and the rats of operant conditioning fame.

Indeed some people will tell you that “it will almost always end with crying!”

By : Amy Goodmann
Senior Investment Analyst
Substantial Incomes Com
http://www.forexforexforexforex.com
http://www.substantialincomes.com

7 Stock Market Tips You Can't Live Without

2009-01-16T01:49:00.000-08:00

Every day there are a dozen new HOT stock market tips that guarantee your financial success. Every day there are hundreds if not thousands of people that jump on the bandwagon, and every day, each of those people are disappointed.

When it comes to popular stock market tips, there is no golden ticket to striking it rich. So I'm going to show you how to make your own HOT guidelines that will ensure you stay on the right course-the one that leads to success.

Stock Market Tip #1: Play Your Game

Develop a set of rules that you can follow. Whether they include some of the tips in this article or are strategies you've always lived by, STICK WITH THEM. An inconsistent, but more importantly an undisciplined trader will never make a profit. Chasing stock market tips won't make you money. Your rules are your money. Again, there will always be hot stock market tips that ensure success, but if you continue to whole-heartedly practice your own tips, you'll see profits in no time.

Stock Market Tip #2: Control Your Risk

There are many adventurous traders out there…and those are the ones that loose their fortunes. If you always look out to protect your capital base you'll ensure your financial safety. Now one of the most important stock market tips I can give you is to continue to let that capital base grow. That way, even if all of your investments fail, you won't be jeopardizing your previous profits. As a general stock market tip, never risk more than 3% of your portfolio on any one trade.

Stock Market Tip #3: The High Road in Cutting Your Losses

Things happen. People lose money…LOT'S of money. So don't be one of them. Basically this stock market tip means don't be stupid. If one of your investments turns sour don't stick around hoping it will right itself. Have a set target loss percentage where you can cut and run. Again, it's about being disciplined, remember? Set it no higher than 15% of your opt in, and you'll have a save exit with every trade.

Stock Market Tip #4: The Sky's the Limit

In contrast to Stock Market Tip #3, if a stock is rising beyond belief, don't jump out in fear of it suddenly falling back to reality. Instead, ride it out as long as humanly possible. This is how the biggest and most talked about gains are made-this is how FORTUNES are made. This stock market tip will ensure that you give yourself the best chance possible of striking that gold mine. Now if the stock does in fact start to fall, go ahead and opt out. It'll be worth more to you to risk that little loss in the end for that huge gain you'll make.

Stock Market Tip #5: Back to School

You know the saying, “Learn one new thing every day?” Do it. Seriously. Our stock market is ever-changing, diversifying, and adjusting, and YOU need to do your homework. It takes a lot to stay on top of it all. So if you come across something that you're not familiar with just look it up. If you think you know it all…go LOOK for something. One of the easiest ways to accomplish this stock market tip is to know all of the trading vocabulary. That's also the easiest way to ensure you're prepared to take on any obstacle that comes your way.

Stock Market Tip #6: How to Bring Your “A” Game

Stock market trading isn't only about successful financial advancements. Well actually it is, but you're not going to be able to do that every day if you don't have the emotional strength to pull it off. This stuff is supposed to be fun. If you're not at your best psychologically, you're not going to be focused, you'll make poor judgments, and most importantly you won't make money. Just think about the meaning of this stock market tip. If you're enjoying yourself, it's no longer work, so you are free to “work” in a mentality that will, in fact, play to your strengths…and wallet.

Stock Market Tip #7: Staying Above the Curve

You don't have to make a fortune with every trade you make. You don't have to become a millionaire at the end of every trading day. Here's stock market tip #7: You won't. The people that shoot for that glory every day are the ones that are losing fortunes, not making them. What you need to do is play above the curve. Don't be average, but don't be extraordinary. Extraordinary has WAY too many risks to worry about. Fortunes are made gradually. It takes discipline and consistency…something the “average” trader lacks.

By : Joe Harris
Joe Harris provides all the proven stock market investing tools you need to succeed today, including the best tips and strategies. For details visit his site: http://www.myeinevstor.com

Fast Facts: Trading Stocks in a Fast Moving Market

2009-01-02T01:47:00.000-08:00

The U.S. Securities and Exchange Commission warns investors that buying and selling "hot" stocks that have the tendency to rise and fall quickly can be dangerous if unexpected delays occur. Without even realizing it, investors can find themselves losing money in stock market.

The U.S. Securities and Exchange Commission warns investors that buying and selling "hot" stocks that have the tendency to rise and fall quickly can be dangerous if unexpected delays occur. Without even realizing it, investors can find themselves losing money.

Just because you can access your account online, doesn’t necessarily mean that your trades are instantaneous. Limit your losses in these fast-moving high tech markets by:

·knowing what you are buying
·understanding the risks involved in your trade
·know the trading process for fast-moving markets

Guard against some of the most common problems investors encounter in fast-moving markets.

Market Orders vs. Limit Orders

When stocks drop or soar suddenly, being stuck in the process of trading can mean the difference between making a sizable profit, and losing a bundle. Delays can develop in fast-moving markets, slowing down executions and trade confirmations. What you thought you were selling at one price, may be end up selling for quite another. Avoid buying and selling at prices higher or lower than you expected by placing limit order instead of a market order. Limit orders are executed automatically when they reach a set upon price, unlike a market order which is filled at the price that second, not necessarily the price set at purchase time.

For example, when you place an order for a $10 stock, placing a limit order will ensure that you don’t end up paying $35. The same is true for selling. The stock will sell when it hits the target limit, eliminating sudden losses. The risk here is a loss of control to hold certain stock just a little longer in the hopes that it will continue to rise. Once it hits the selling target, it is sold.

Remember, Online Trading Isn’t Instantaneous

Trading online can feature its own dangers. Problems with modems, servers, or delayed broker-dealer hardware can all cause a delay or failure in an immediate stock trade. Know what trading alternatives your firm offers (telephone, fax, etc), in the event a technological problem interrupts your transaction.

Avoid Double Buying/Selling

Too often investors mistakenly think that their order did not go through and place another order. This can cause them to buy stock they did not want, or even sell stock they did not own in the first place. Be sure to check with your broker on what to do if you aren’t sure if your trade has gone through.

Choose the Best Broker

Buying and selling in a fast-paced market takes a broker who’s capable of handling transactions quickly. There are no Securities and Exchange Commission rules that require any trade to be executed in a specific amount of time. Finding a broker that doesn’t delay is up to you, the investor. Take your time and research brokers carefully in order to avoid losing important assets unexpectedly.

By : Bob Freeman
For the past ten years Bob Freeman has been helping people build more money in their retirements. Now he has taken his successful strategies to a new level by offering teleseminar courses to help people make a better retirement for themselves than they ever thought possible. For more tips and strategies see http://www.retirementwealthforyou.com

Stock Market Wisdom from Chicken Little

2008-12-17T01:44:00.000-08:00

One day, while Chicken Little was walking in the woods, an acorn fell and hit him on his head.

"Goodness gracious me!" said Chicken Little, "The sky is falling, the sky is falling. I must go warn everyone."

We see this all the time. The stock market goes straight up for eight or nine months, and if there are 2 or 3 down days in a row, there is hand-wringing and the moaning all over the place.

Who are these people that panic at the first sign of a downturn or with the slightest bit of profit taking?

The first group are people who get in the near the top and are now worried that their small losses will turn into big losses. Also, people who haven't invested in the stock market are in this same box. For many, many years they were wrong to not have invested, but now that the market has declined very slightly for a few days they would like the point out how smart they are and how dumb everyone else is.

Short–sellers are the next group. Short selling is selling a security that the seller does not own but is committed to repurchasing eventually. It is used to take advantage of an expected decline in the security's price.

The press comes next. You have heard this before: "bad news sells newspapers."

The 24–hour television news stations must make every tiny move in a stock or in the stock market seem like a momentous occasion. Imagine hearing such a stupid statement as "this is the largest stock market decline since last week."

The slimiest are the politicians whose party is out of power. They try to make themselves look good by making the other guys look bad. It does not matter which group you belong to or who is in power or out of power at the moment.

An out of power politician must find the cloud in every silver lining.

So, how can you protect yourself? What should you do to keep out of "the sky is falling" trap?

The most important thing that you can do is to be clear about your long-term financial goals and objectives. Yes, in the very short run, many circumstances can affect the value of your portfolio. In a well-diversified portfolio, these declines will be relatively small and short lived.

Twenty years from now, it will not have mattered who was shot during the past twenty years or who was in power or who went to jail or to war. Simply ask yourself, "how will three dollar a gallon gasoline affect my retirement twenty years from now?"

Don't worry about tales of imminent doom and gloom. Don't listen to, and certainly, don't act upon rumors and scare stories. And, most of all, don't spread these stories yourself.

By : Gary Wollin
Gary Wollin is a Warren Buffet style investment advisor with 45+ years of Wall Street experience. He has been regularly featured in The Wall Street Journal and New York Times. He writes and speaks on sales, customer loyalty, and the stock market. http://www.garywollin.com

Stock Market Wisdom from The Tortoise and the Hare

2008-12-03T01:41:00.000-08:00

Once upon a time, there was a young hare, a hotshot rabbit investor who would always brag to anyone that would listen and that he was the smartest, fastest, best performing investor in the world. He would constantly tease the old tortoise about his slow, solid investment style.

Then, one day, the annoyed tortoise answered back: "There is no denying that you are very aggressive in your investment strategy. You take very high risks and get high returns. But even you can be beaten."

The young hare squealed with laughter. "Beaten? By whom? Surely not by you. I bet there's nobody in the world that can win against me, because I'm so good. If you think that you can beat me, why don't you try?"

Provoked by such bragging, the tortoise accepted the challenge. Each of them put an equal amount of money into a new account and the race was on. The hare yawned sleepily as the meek tortoise trudged slowly off.

As might be expected, the tortoise invested in high quality blue chips, companies with household names.

The hare, as anticipated, invested his money in dotcom stocks and options.

You know the story. The aggressive hare jumped out to a big early lead. In a rising market, the highest risk stocks perform the best. This is called momentum investing. Money flows into the investments that are performing the best in stock market.

The hare, having jumped out to such a large early lead, stopped paying attention to the market environment. Basically, he fell asleep. He thought to himself, "I'll have 40 winks and still remain way ahead of that stupid old turtle."

The hare awoke from his sleep and gazed around looking for the tortoise, who was nowhere in sight. Unfortunately, while he was sleeping, dreaming about what he would do with his winnings, the market turned against him.

His very high-risk portfolio had taken a terrible beating and was now practically worthless.

The tortoise, a Warren Buffett style investor, had passed the sleeping rabbit long ago. He had been plodding forward, steadily, since the beginning of the contest. The Tortoise never for a moment stopped, but went on with a slow but steady pace straight to the end of the course.

The hare realized that the tortoise was way ahead of him, and away he dashed. He leaped and bounded while gasping for breath, but it was too late. The tortoise had beaten him.

There are two very important lessons to be learned here.

First – slow and steady wins the race.

Second – never confuse your own intelligence with a bull market.

By : Gary Wollin
Gary Wollin is a Warren Buffet style investment advisor with 45+ years of Wall Street experience. He has been regularly featured in The Wall Street Journal and New York Times. He writes and speaks on sales, customer loyalty, and the stock market. http://www.garywollin.com

Investing In The Indian Stock Market

2008-11-17T01:39:00.000-08:00

Investing in Indian Shares - The Indian Stock Market and Technical Analysis

After every trading day, data from the Bombay Stock Exchange and the National Stock Exchange is scanned by a program which uses a sixteen part mathematical filter. This filter looks for price trend patterns which indicate a top performing Indian stock.

By using this mathematical process (technical analysis) the hot stocks can be discovered and listed according to performance. This result is completely free of personal opinion or any other sort of deliberate bias. Indian shares listed in the free daily report have been showing excellent technical characteristics up to the date of analysis. This does not mean that the good performance will continue.

The Indian Stock Market report contains:

(1) Name of the security.
(2) Previous closing price.
(3) Percentage rate of change over the past ten and sixty days trading.
(4) Index Relativity.
(5) Percentage drop from the highest price over the past sixty trading days.

The Index Relativity compares the percentage rate of change of the price over the past five trading days to the BSE Sensex Index percentage rate of change over the same period. This will tell you, the investor how the Indian stock is performing when compared to the market index.

It is an advantage to combine the technical analysis (link) report with quality fundamental analysis (link). When both agree then there is a higher probability of continuing performance. These fundamentals can be obtained from your Stock Broker.

You can obtain this free daily report without any registration or signups required. It is produced for you after every trading day and is available from http://www.sharesdaily.in

By : Charlie Rufus
Charlie Rufus has been a Technical Analyst since 1982 and has produced a free report covering both the Bombay Stock Exchange and the National Stock Exchange of India. His website is http://www.sharesdaily.in

Options – Your Choice In The Stock Market

2008-11-01T01:36:00.000-07:00

As you read this stock market article, you have a few choices. You could choose to continue reading, or you could choose to stop reading it and watch t.v. It’s your option. You don’t have the obligation to go and watch t.v, just the option.

For the average person, the share market is the most visible form of financial market, and perhaps the only market in which they have some direct contact. The options market is usually seen to be too risky or too complicated. Well, the truth is, the options market provides many benefits to share investors and traders, for those that spend some time learning what options have to offer.

Options warrant attention

There have been options traded on the Australian share market since the 1960’s, and they are still big business today. Exchange traded options (ETO’s) became very popular in the 70’s, as these allowed a greater number of traders to enter the market. So why are options so popular? Options provide a variety of benefits over ordinary shares, which, when used correctly, can drastically reduce the risks involved in owning shares.

But before we understand how options can help us, it is necessary to know what an option is.

An option is a contract between two parties regarding the price direction of a particular share. One party believes the price of the share is going to rise in a certain time, the other believes the price is going to fall in that time. Depending on which direction each party believes the price is going to go, they will either buy or sell an option.

The person who purchases the option has the right but not the obligation, to buy or sell a set number of shares, at a pre-determined price on or before a set date in the future.

As you can purchase the right to either buy or sell shares, there are thus two types of options, a Call option and a Put option. A Call option gives the owner the right to BUY shares, whereas a PUT option gives the owner the right to SELL shares.

For example, let’s say that you believe that XYZ limited shares are going to rise in value over the next month. They are currently trading at $1.00 per share. You can either purchase 10,000 shares right now, and invest $10,000 or you could buy the right to purchase them at $1.00, one month from now. For this right, you will pay premium. The premium you will pay will be approximately 4 cents per share. Therefore, you will invest $400 ($0.04 x 10,000).

If the share price of XYZ goes up to $1.20 in the month, then you can exercise your right to buy the shares at $1.00. You will therefore make a profit per share of 16 cents ($0.20 profit – $0.04 premium). With 10,000 shares, you will make a profit of $1,600, or 400% on your original investment.

Had you invested $10,000 in the first place, you would have only made $2,000, or 20% profit.

At the same time, had the price fallen below $1, say to $0.80 cents, then you would not exercise your right to buy the shares and you would walk away, losing only your $400. You have the option to buy the shares, not the obligation. But, if you had bought the shares, you would have lost $2,000, or 20% of your original capital.

Options can act as a risk management tool. That is, you can limit your losses, whilst still taking advantage of the share price increases.

One of the major advantages over purchasing shares outright, is that with options, you can also buy the right to sell, in case the share price falls. Therefore, you can profit from the market if it is rising or falling in value!

Options are a little more complicated than shares to understand, but with a little practice, you will discover that options are a fantastic financial instrument. With options you can “insure” your share portfolio, generate a monthly income and return 100% and more on trades. You just have to know how. The Platinum Pursuits report will feature many articles on options and we welcome you to attend our monthly seminars, where we will teach you how to profit with options.

By : Daniel Kertcher
Daniel Kertcher is a licensed stock market educator. Daniel has trained many people from North America, Australia and Europe in various trading systems. Join his trading mail list http://www.danielkertcherlive.com and read more about him at his personal website http://www.danielkertcher.com

Mastering Your Mind For Stock Market Profit

2008-10-21T01:31:00.000-07:00

The stock market is made up solely of buyers and sellers. These buyers and sellers may be super-huge, billion dollar institutions trading enormous amounts of money everyday or private individuals trading just one or two parcels of shares each year. Regardless, at its core, the market is made up 100% of people. People with emotions just like you and me.

You’ve no doubt heard the phrase, “History repeats itself”. Well, despite all of our technological achievements, we have still not mastered our emotions. History in the stock market always repeats itself because the markets are driven by two of the strongest human emotions, FEAR and GREED.

Markets boom and bust with cyclical regularity because of human nature. We are creatures of habit. For those who can accept this and learn to control their emotions, the rewards are outstanding. By recognising emotion in the markets, we can time our entry and exit strategies and profit from history repeating itself time and time again.

Investors like Warren Buffet recognise that investing is 80% psychological and only 20% mechanical. It doesn’t matter how good your system or strategy is. Unless you are mentally focused and as emotionless as possible, you will fail. This is much easier said than done, of course. Why? Because we spend our entire lives developing our psychological feelings towards money. These feelings are often referred to as Comfort Zones.

Comfort Zones

One of the most basic human needs is the feeling of Certainty. When we are certain of our surroundings we can rest easy and enjoy our lives. Uncertainty brings risk and makes us feel anxious and very uncomfortable. Since we were little children we have developed our comfort zones and we all have different comfort zones when it comes to money. Some of us feel that we must work very hard to make money. Others feel that they will never have money, or they don’t deserve to have money.

If you look at the wealthiest people in the world, very few live within these comfort zones. Their money comfort zones see them having an abundance of money. They believe that there is an enormous amount of money, more than enough for everyone to enjoy. They know that there are trillions of dollars circulating the world everyday looking for a home. They know how to make money and that making it is ridiculously simple.

Our emotion of certainty dictates our comfort zones. If we are certain that money is hard to make, then it will be, and we will be certain in our comfort zone. We would probably not be rich, but in our minds, we would be right. Alternatively, if we are certain that money is easy to make, and we just have to know how, than it will be easy to make, and we will be certain in our comfort zone.

Obviously, if your comfort zone has you believing that money is difficult to make, or some other negative feeling, then you will have to break out your comfort zone and climb into another one. When you do this, you will feel very uncertain. This can be very scary and is the reason why, despite all of the opportunities available, 95% of people end up broke or financially dependent when they reach 65 years of age.

By : Daniel Kertcher
Daniel Kertcher is a licensed stock market educator. Daniel has trained many people from North America, Australia and Europe in various trading systems. Join his trading mail list http://www.platinumpursuits.com and read more about him at his personal website http://www.danielkertcher.com

Plan For Stock Market Success

2008-09-05T10:01:00.000-07:00

To be a successful stock trading investor or trader, a written investment plan is a must! In fact, most broking firms will not allow its professional traders to trade money without a trading plan!

Each and every trader must submit their plan and have it approved to be able to start trading money on behalf of clients. The trader is then judged and compensated for how well he follows his own plan and how well he does financially. If he violates his own plan, he may be subject to immediate dismisssal!

So it’s crazy for us non-professionals traders to start trading without a plan, especially when things don’t go our way, and they won‘t always go our way, you can be assured of it!

Now, before we begin to write our plan, take just a moment to think about your true investment objective. What do you want to accomplish with this trading account? Simply saying “ I want to make money” is not an investment objective. You have to have a specific objective, like, “To outperform the All Ords by at least 10% annually”. That’s an objective.

Then you must decide what type of industry and sector of shares you are going to invest in. The energy sector, the housing sector or the retail sector are unlikely to outperform the All Ords. That means you might have to look at the more volatile, but more rewarding sectors, like the computer sector, telecommunications, etc. This will likely give you lots of volatility in your portfolio and you’ll have to accept it or don’t get involved in that sector in the first place.

There are 7 necessary ingredients in your investment plan:

Reasonable investment objective

What growth factor do I want to achieve? Be realistic. Are you actively trading or long-term investing?

Risk tolerance statement

What industries, sectors and types of shares will I invest in?

Diversification plan

How many different types of companies do we buy on average? Between 10 –20 should be a maximum.

Price range of the shares we buy
Do we buy $30 shares, or only the sub $10 shares? Do we invest only in Australia, or overseas too?

A defense strategy

How much price decline are we willing to accept? Be sure to use a Stop-Loss!

Contingency / Repair plan

What do we do in a potential large market correction? How do we prevent and/or repair large market losses?

Timeframe

How often do we, or will we, re-assess our investment strategy? It should be reviewed every 3-6 months and updated if and when the market conditions change.

To help tailor your investment strategy, try asking yourself these questions:

Do I usually average down in price, or do I take a small loss?
How many shares do I buy and sell everyday and do I diversify well?
What is the usual size of my trades? 500 shares, 1000 shares, or even more?
When do I take my profits? When I’m up 10%, 20% 50% or more?
If I have a profit in a stock, do I hold it overnight?

When you have considered all the above aspects, you will be well underway to finalising a very valuable and effective investment plan in stock trading.

by Daniel Kertcher
Daniel Kertcher is a licensed stock market educator. Daniel has trained many people from North America, Australia and Europe in various trading systems. Read more about him at his personal website http://www.danielkertcher.com

What Is The Single Most Important Reason A Stock Moves Higher

2008-08-25T09:53:00.000-07:00

In stock trading, interestingly the types of answers you get would vary widely, from a great news release to more buying than selling. Although there are those who will debate the issue, for the most part a stock moves higher when buying volume exceeds selling volume. The old law of supply and demand comes into play. Basically, if you own a stock and don't really want to sell it, what would get it out of your hands? A higher selling price, right? Right. So, if we exclude market maker games and dirty tricks, the bottom line is that a stock will gain in price when more people want the stock, than want to sell it.

But you will find the "overall market tone" is a much more accurate measure of whether a stock will go up or down on any particular day. For instance, take a look at a stock with a really great chart. Starting from the bottom left side of the chart, the stock moves up and to the right corner at a 45 degree angle right? Right, but it isn't a perfectly straight line is it? No, along the way, daily pull backs, stall outs, and one day dips are seen all over the place. So, here we have a stock that for lack of a better term is "in demand", and yet there were definitely days when profit taking hit, volume sagged, or it simply dipped on the day.

So, what is the point, you may be wondering? My point is this, "overall market tone" (feeling positive or negative) and individual sector strength is what will determine daily movements even though the overall movement for the long term is to the upside. With that thinking in mind try this one on and see how it fits: The ACME company is making money, it's growing earnings and they have made good statements about the future. A couple analysts have upgraded it and it looks good for a nice steady move higher. Well, chances are that indeed the stock is going to move higher and over the course of a number of months, it could even double its share price. But what will happen to that stock tomorrow if we wake up and the futures are down 85 points and when the opening bell rings, the market is in the toilet? We suggest ACME is going to take a hit for the day! Likewise if ACME is a "chip company" and the chip sector is down on news that DRAM prices have sagged, it probably doesn't matter that the entire market is in rally mode, ACME will probably be falling with its brothers in the chip sector.

So, when you are looking at a stock with an impressive chart and you want to get some of that stock, chances are a poor market day, or an "out of favor" sector day will give you the chance to pick up that stock a few dollars cheaper. The whole reason we are mentioning this is because "sector rotation" happens in a matter of days now. Years ago if the computer sector was in the dumps, it would be there for 3 months. Now, HWP, DELL, CPQ, can be out of favor one day and upgraded the next. That goes for chips, networkers, Internets, etc. Same with the overall market. So, buying into it on the poor market days and/or poor sector days is generally a good bet.

One of the hardest things to do is stock trading just minutes before the closing bell, after it has fallen a gazillion points on the day. In your mind you are thinking, "wow, this thing lost 15 points today, it may lose 15 more tomorrow", and you "could" be right. But if the stock has been moving up nicely and it dropped 15 points because the NASDAQ dropped 150 on the day, was it your stock's fault or the overall market's fault? Right, it was probably down simply because the market was down. Buying it at that depressed price was probably a good idea. When isn't it a good idea? If during a big one day fall like that the stock falls through some key support levels, or it released some type of horrible news. Either of those instances could see it fall a bunch more.

Yes, supply and demand causes individual stocks to move higher or lower in the long haul. But daily events are dominated by overall sector and market health. Remember this and it will help you enter trades at a much nicer price!

By Larry Potter
Larry Potter is a recognized authority on the subject of trading. For a FREE report on HOW TO TRADE FAST and a 2-week trial to Stocks2Watch®, visit: http://clik.to/stocks2watch

Should You Buy Stocks on Margin?

2008-08-14T09:10:00.000-07:00

Sooner or later many investors come across the concept of buying on margin, or using borrowed money to purchase more on stock trading to get extra oomph in their portfolio. But new stock trading investors should think twice before taking the plunge.

Brokers in stock trading are only too happy to lend you money to buy stocks and bonds if you open a margin account. You have to put up only part of the securities' price, and your broker lends you the rest. You just sign a couple of forms, and your broker runs a routine credit check on you. Brokers are eager to approve your application because margin accounts lead to more business and higher profits for them.

You can come out ahead in rising markets because you put up only 50 percent of the cost of your stocks and 25 percent of the cost of your bonds. So your money works at least twice as hard for you. The interest that you pay on your margin loan is not only relatively low but is also deductible from your taxable income up to the amount of your net investment income for the year.

Consider this scenario: It's late October 1998. After a sharp downturn over the past several months, the market has turned up. You find a stock you like. It's speculative, but you're willing to take the risk. The name is eBay. It's part of the red-hot Internet group in which Amazon.com and Yahoo! are doing so well. You have $10,000 to invest in your margin account. The quote on eBay is 50. With margin you can borrow money from your broker to buy additional eBay shares. Using 100 percent of your margin capability, you have buying power of $20,000-$ 10,000 of your money and $10,000 from the broker.

You buy $20,000 of eBay and get 400 shares. The price of eBay's stock soars to 733/8 the next day, and it's off to the races. The price skyrockets to 234 by November 24. You cash out, selling 400 shares and getting back $93,600. By using margin, your profit is $73,600 ($93,600 minus $10,000 of your capital and $10,000 to pay back the loan). If you hadn't used margin, your profit would only be $36,800.

Sound easy? Maybe too easy. You look brilliant. But wait a minute. New investors must be careful when borrowing money from a brokerage and using it to buy additional stock. It's a two-edged sword. If the price of the stock were to go down, the invested money would decline twice as fast. In the stock market crash of 1987, many stocks fell 40 percent or more in just a few days. Any account margined to the hilt suffered horrendous losses.

Margin isn't free: You pay interest on the borrowed money. The rate is marked up from the broker loan rate. A typical interest rate charged in early 1999 was 9.75 percent on a loan of less than $50,000. For larger loans the rate may be as much as two percentage points less.

It's wise not to venture out on margin until you've made several profitable trades. The best time to use margin is during the early phase of a new bull market. Once you recognize a new bear market, though, you should get off margin immediately and raise cash. An account should not be fully margined all the time. When progress is being made during a bull market, heavy margin can be used.

But when a correction sets in you should reduce your margin by selling shares. It's important to remember that it is a market of stocks, not a stock market. You must watch your stock positions and respond accordingly. Don't take solace in the general market averages. During the market retreat that occurred in 1998, many stocks turned lower well before the Dow Industrials revealed serious weakness in July and August.

If your stock trading rises-great! If it rises enough, you could sell some shares, pay off the margin loan and come out ahead. But if the gains in your stock don't cover your interest payments, you lose money. And if the stock price falls, you could suffer in two ways. Not only would your investment dwindle, but you could receive a call from your broker-a so-called margin call-to put up more cash.

A margin call occurs when the value of your collateral falls below a certain percent of your total purchase price-usually 30 to 35 percent. If the worth of your holdings drops under that level, your broker will demand that you deliver enough cash or other securities to bring your collateral back up to the required amount. If you can't deliver sometimes by the next day-the broker will sell your stock, take back what was lent you, and collect interest.

Before you decide to borrow on margin, ask yourself this key question: "Do I believe in the shares so wholeheartedly that I would be willing to borrow money even from a bank in order to own them?" If not, a margin account is not for you. If you do invest on margin, keep a close eye on your stocks. Check the prices often. You don't want a margin call to take you by surprise.

- By Alan Serling
For more information on using margin when investing in stocks visit About Investing Info.

How to Select Winning Stocks in a Down Market

2008-08-08T09:04:00.000-07:00

There is an old and true saying, "When the markets go down 75% of stocks go down.". This is the old saying is the glass half full or half empty. I see this statement to mean that 25% of all stocks will rise in down markets.

I never recommend going short on a stock. In a down market I recommend going to cash, buying puts, or if you must invest, buy stocks that will not cave in to the markets pressure. Easier said then done, but I will attempt it here.

Since the stock market is much like the ocean, it goes up and down. Sometimes the waves are strong and suck you under. To stay afloat you need a life preserver. The life preserver I use in the ocean of stocks is Sectors. There is always one sector that seems to move higher when everyone else is being sucked under. Currently (06/30/08) the hot sectors are Energy and Petroleum. The markets are down 14% for the year and these sectors are producing stocks that have gained 400% and more over the last few months.

To identify the hot sectors (you should be hearing about them in the news consistently) you can always look in the financial papers or online website also. Once you have located the hot sectors, look at all the stocks in those sector. Some will be leaders and some will be laggards. The leaders will be the biggest names in that industry/sector. If you look at their charts you will see a pattern of the stock moving consistently higher over the last 6 months or more. These usually make great long term investments during a down market.

Now if you are looking for some great short term profits over a weeks time or a month, here is what you do. Look in the same sectors but look at the laggards (usually the stocks in the $2 to $5 range). Look at their chart and find the ones that look like they have reached a bottom. You don't want to see a chart where the price is getting lower each day. You want to look for one that hit its low point and is either moving sideways or been rising the last week or so. Put these on a watch list. Watch these stocks for one that gains 10% or more in one day on BIG volume. This would make a great short term play.

The reason this works is all in the mentality of the investors. When a sector takes off, it's the leaders in that sector who gain the most. They lead the way. As more and more investors get in on the bandwagon, this sector and the leaders rise in price. Soon more people want to invest in this popular sector. When they look at the prices of the leaders they see three digit numbers. "That's too expensive" they think, but they don't want to be left out either so they buy the laggards. Now all these companies with horrible earnings start to take off. You want to jump in right when they take off. So keep an eye out for the 10% jump.

Here is a warning, like the housing bubble, like the tech bubble, the energy and petroleum sectors will someday pop too and it is the laggards that drop the most first. This is why I recommend them as short term investments only.

- By W. Henry Boyett

About The Author

W Henry Boyett retired from his job three years ago and now trade stocks and options for a living. He shares his picks and knowledge with others so that they too can retire sooner, by trading stocks and options.

To get his latest stock picks and tips, visit http://www.stocklocater.com and sign up for free

Stock Trading Terms You Must Be Familiar With

2008-08-01T09:00:00.000-07:00

Every field of human endeavor have its own terminology that is associated with it, the stock market is no exemption. Therefore this article seeks to make you get familiar with some of the day-to-day terms of stock trading.

a. Share. Describes the total share holding of a company divided into bits or slices to be purchased by institutions or individuals.

b. Securities. The unit shares you hold are well protected to the extent you invested by the regulatory authorities. Once a share is created, it cannot be destroyed, stolen, and can only be transferred.

c. Equity. Means the distribution and sales of shares are equitably done i.e. once a price is fixed; it remains the same for everybody irrespective of where you live unlike property investment whose prices are affected by location.

d. Stocks. Describes the total volume of shares held by the individual in company.

e. Rally. Means simply that the stock market goes up from whatever point it stood at when the rally started.

f. Blue Chips. Describes solid, quality stocks on the stock exchange e.g. Nestle, First Bank, Cadbury, Nigerian Breweries, Zenith Bank. The term is derived from the blue chip used in gambling especially in poker, which has the highest value.

g. Correction. When the market has moved rapidly in one direction, then changes (usually not so rapidly) in the other direction.

h. Long pull. How high an investor thinks a stock price will go before they sell.

i. Pull back. When the price rise reaches its peak, slows and then stops and begin to decline or fall back, people begin to sell at this point.

j. Bottom out. When the price has gone as low as it can, investors begin to buy again.

k. Liquidity. When we talk about liquidity on a stock exchange, we are talking about how easily and quickly a company shares can be converted to cash. If it is very liquid, it means is easy to trade in the shares.

l. Bull trend. Upward move or trend. It means the market is going up and is doing well, as reflected in share prices.

n. Bullish. Investor who believes that the market prices are going to go up.

o. Bearish. Investor who believes that the market prices are going to go down.

p. Stag. Investor who wants to make profits from new issues of shares. He buys the shares before they are listed. Then sells them at a higher price soon after they are listed.

q. Automated Trading. Is when the buying and selling of shares is done on a computer? dealers enter buy and sell orders for shares into an electronic trading system on a computer. The computer automatically does a transaction with the best selling and buying prices.

r. Brokers Contract Note. The broker's contract note is very important. It shows everything about the deal that the stockbroker has done for you. It tells you how much you have to pay the stockbroker for the shares he has bought for you. If you have sold shares it tells you how much you will receive for the sale of your shares.

s. Certificate of Stockholding. Shows how many shares you own. It is a very important document. You must keep it safe place.

t. Capital Market. Refers to the Stock market, it is a platform for raising money or capital from the investing public to meet company's financial needs.

u. Money Market. Refers to Banks and other financial institutions that offer loans investment opportunities and capital for businesses

By Efetobor John

Watch out for other incisive and impact articles, in case you want to get other enriching articles go to: http://stocktradingrevolution.blogspot.com

John Efetobor is an Investment Communicator, Analyst, Motivational Speaker, Coach, Trainer, Human Developer, Investor and Businessman. He has a Stock Trading Revolution Blog where he writes informative articles on Stocks, stock trading and other Vital aspect of stock investment Visit: http://stocktradingrevolution.blogspot.com for more information.

How to Buy Good Value Stocks?

2008-07-26T08:33:00.000-07:00

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
- By Micheal James

Stock Market and Taxes

2008-05-20T00:12:00.000-07:00

The stock market for newbie can be quite an intimidating prospect. Figuring out all the terminology and what it all means can be quite hard at first. Unfortunately, these are the things that you must go through in trading in stock market, you will be responsible for reporting and paying tax on your trades.

Lets assume you bought and sold your first stock and where lucky enough to make a gain. That's fantastic, but you now owe taxes. There's saying, "there are only two sure things in life, death and taxes". Sure enough, the IRS is going to want it's cut of that nice gain you just made from trading in stock market. When you start stock market trading, you must be sure to keep good records of all your transactions.

When tax time comes you are going to be required to fill out Schedule D and report the gain you're earning in stock market trading. In order to do this, make sure that you have precise records of all your buys and sells and the dates they took place. Stock market trading just made your tax life a little tougher and there is nothing you can do about it.

Every single time you sell a stock, whether it be for a gain or a loss, is going to have to go on that Schedule D and that is important. The brokerage companies are required to report all your transactions to the IRS and so there is no escape. If you fail to report your gains and losses, your information will not match what the IRS has on you and bad things will start to happen. At best you will be required to make your return correct and at worst you will owe more money in penalties and fines.

If the stock you sell for the year adds up to be a loss, you can use up to $3000 of that loss on your return. Anything over that amount in losses has to be carried forward until the next year. This is just another thing that makes reporting your stock trading gains and losses a headache.

The stock market for newbies is hard enough before you add in the taxes. Unfortunately, the government won't have any sympathy for you as they consider you rich for just having enough money to invest in stock market.

Get Wealthy Online with Stock Market - Beginning

2008-04-23T03:21:00.000-07:00

Stock Market : A stock market is a private or public market for the trading of company stock and derivatives of company stock at an agreed price; both of these are securities listed on a stock exchange as well as those only traded privately. - Source Wikipedia

So you want to get wealthy. Try the stock market. Unfortunately, you don’t know how and where to start. So what you need to know and do?

Well, the first relevant thing to do is ask the basic question of what is a stock and its significance.

A stock symbolizes ownership of a company. Some view stock as certificates. So the more stocks a person owns of a particular company, the more of the company they own. And the more the company they own, the bigger the influence they have in running the company. This is called equity investment.

The next thing to do is familiarize yourself with financial terms such as ‘price-earnings ratio’, ‘margin’, ‘option’, ‘earnings per share’ and ‘leverage’.

Then, it’s on to knowing where and how to actually buy stocks.

There are two ways to buy stocks:

1. brokerage service
2. online exchanges (e.g. banks)

Exchanges are services that allow investors to access stocks all over the world. Here, they can buy and sell stocks without the need for a broker. Certain banks allow you to set up your own stock portfolio and buy and sell stocks online using the money you have in these banks.

Brokerage services are rendered by brokers. These middlemen do all the work for you. They research the stock market, give advice, and buy and sell stocks according to the wishes of their clients. These brokers earn a commission from the stocks bought or sold.

Once you have chosen how to buy and sell stocks, the next thing to do is to open an account.

As stated earlier, exchanges allow you to monitor and control your stock portfolio personally. If you choose to enter the stock trade with a bank, then ask your bank the specifics of setting up your own account.

If you choose to trade stocks via a broker, find a reputable broker and ask them to open and manage an account for you.

After you have successfully set up an account, it’s time to study the stock market and plan your strategy: will you be conservative in investing your money? Or will you be aggressive? Are you in it for the long term? Or are you a day trader?

After you have identified your plan, it’s time to do some research on the stocks offered in the market. Having a broker will significantly make it easier for you as they will do the research and give you advice. But, it is still best to study the market yourself.

Be warned though, the stock market is volatile. Be prepared for ups and downs.

Financial Planning Services : Plan the Growth of Your Money

2008-04-11T03:41:00.001-07:00

Do our finance needs planning? Definitely it needs otherwise it would be very difficult to keep it on a right track. Suppose you are earning money easily but you do not know how to save it or how to invest it. You are watching various investment options but are confused as which would be the best option. Now, a single bad financial decision can result in poor profit and earnings. To avoid the situation like this you can utilize various financial planning services.

Generally, we can say that financial planning is a process of money management that includes budgeting, tax planning, retirement and estate planning, investment strategies and insurance. The services help individuals and companies change their financial future at the different stages of their lives. Financial planning firms suggest you various tools like bonds, equities, funds etc. They can provide better advices regarding banking solutions for savings and better financial management.
The financial planning services firm coordinates different elements of finances with the aim of building, protecting, and maximizing net worth of an individuals and companies. They provide proposals regarding financial issues like investment, retirement planning, estate planning and financial protection.

A question may arise as what process these financial planning services firm applies. First of all they clarify your present financial situation by collecting relevant information like net worth and cash flow statements, investment portfolios, tax returns, pension plans etc. Then they identify your both financial and personal goals and objectives like providing education to children or supporting elderly parents etc.

After that, financial planning services firm try to identify different financial obstacles then they design the plan. They provide written recommendations and alternative solutions. They implement the plan and lastly do the periodic review. So, these firms try to remove financial bottlenecks, if any, like too little or too much insurance coverage or a high tax burden.

Financial planning services ensure that you achieve your financial goals and your hard earned money is invested in better options. Thus, for providing right way to your finance you may utilize these services.

Investing for Retirement

2008-04-01T13:32:00.000-07:00

Retirement may be a long way off for you – or it might be right around the corner. No matter how near or far it is, you’ve absolutely got to start saving for it now. However, saving for retirement isn’t what it used to be with the increase in cost of living and the instability of social security. You have to invest for your retirement, as opposed to saving for it!

Let’s start by taking a look at the retirement plan offered by your company. Once upon a time, these plans were quite sound. However, after the Enron upset and all that followed, people aren’t as secure in their company retirement plans anymore. If you choose not to invest in your company’s retirement plan, you do have other options.

First, you can invest in stocks, bonds, mutual funds, certificates of deposit, and money market accounts. You do not have to state to anybody that the returns on these investments are to be used for retirement. Just simply let your money grow overtime, and when certain investments reach their maturity, reinvest them and continue to let your money grow.

You can also open an Individual Retirement Account (IRA). IRA’s are quite popular because the money is not taxed until you withdraw the funds. You may also be able to deduct your IRA contributions from the taxes that you owe. An IRA can be opened at most banks. A ROTH IRA is a newer type of retirement account. With a Roth, you pay taxes on the money that you are investing in your account, but when you cash out, no federal taxes are owed. Roth IRA’s can also be opened at a financial institution.

Another popular type of retirement account is the 401(k). 401(k’s) are typically offered through employers, but you may be able to open a 401(k) on your own. You should speak with a financial planner or accountant to help you with this. The Keogh plan is another type of IRA that is suitable for self employed people. Self-employed small business owners may also be interested in Simplified Employee Pension Plans (SEP). This is another type of Keogh plan that people typically find easier to administer than a regular Keogh plan.

Whichever retirement investment you choose, just make sure you choose one! Again, do not depend on social security, company retirement plans, or even an inheritance that may or may not come through! Take care of your financial future by investing in it today.

Save money by spending wisely..

2008-04-01T13:18:00.000-07:00

Have you ever noticed that the things you buy every week at the grocery and hardware stores go up a few cents between shopping trips? Not by much…just by a little each week but they continue to creep up and up.

All it takes for the price to jump up by a lot is a little hiccup in the world wide market, note the price of gasoline as it relates to world affairs.

There is a way that we can keep these price increases from impacting our personal finances so much and that is by buying in quantity and finding the best possible prices for the things we use and will continue to use everyday… things that will keep just as well on the shelves in our homes as it does on the shelves at the grocery store or hardware store.

For instance, dog food and cat food costs about 10% less when bought by the case than it does when bought at the single can price and if you wait for close out prices you save a lot more than that.

Set aside some space in your home and make a list of things that you use regularly which will not spoil. Any grain or grain products will need to be stored in airtight containers that rats can’t get into so keep that in mind.

Then set out to find the best prices you can get on quantity purchases of such things as bathroom items and dry and canned food.

You will be surprised at how much you can save by buying a twenty pound bag of rice as opposed to a one pound bag but don’t forget that it must be kept in a rat proof container.

You can buy some clothing items such as men’s socks and underwear because those styles don’t change, avoid buying children’s and women’s clothing, those styles change and sizes change too drastically.

Try to acquire and keep a two year supply of these items and you can save hundreds of dollars.