Wednesday, October 28, 2009
What women should know while investing in the stock market?
Here are some facts that women should know while they consider trading options. Women can be great investors, and ignore the saying that women are not suited for this business. It is easier for women to followthe stock market , and trade quickly because you just need an internet connection and everything is there online. There are many sites that will help you get the required information. Women can surely outsmart men by justinvesting wisely and following the market properly.
Women are generally cautious by nature and so fit perfectly into the stock market trading conditions. You should be up to date with the latest social, political, domestic and international news so that you can take the right financial decision at the right time. if women startinvesting at the earliest they will observe that they can amass a fortune if the trends in the stock market are their favor. Start with small investments and if all goes well, widen your horizon.
If you invest in too many conservative stocks then tax and inflation can gobble up all your money. Take risks and you will see opportunities that can be converted into profits. Buy and hold on to good companies for long term and try and make short term profits depending upon the market sentiments.
Asset allocation is one of the terms that you have to study and increase your knowledge. Spread your money so that you are not at risk.. One bad day and one bad stock trade can leave you devastated if you put all your money on a certain stock. Don’t be scared to invest,the stock market is not only for men, women too can earn a fortune with the right kind of investments.
Take expert opinions in case of doubt and you can get information about all the companies on the internet with a click of a button.
Stock Market Trading Tips and Suggestions
Great trade masters like Gerald Appel, Robert Prechter and even Elliot Waves have stressed the importance of discipline while trading in the stock market. A disciplined trading will reach rich benefits, and experience coupled with the right discipline will take you to great heights inthe stock market sector.
Some ground rules to be followed while trading
The first all important quality that an individual should posses is acceptance of losses. People falter when there is a loss and they do not posses the ability to accept losses when the need arises. Although losses may hinder your sleep, learn to live with the fact that every cloud does have a silver lining and tomorrow things may change. Law of nature states that everything that goes up will come down and this applies tothe stock market too. Be grounded and accept realities. Losses will turn into gains if you stay cool
Persistent is another word that should be accepted by all traders. Continue trading and be persistent even if the results are not too good. Bad times are followed by good times and vice versa.. You have to trade cautiously and persistently in bad and good times to taste the sweet fruit of success.
Try and specialize in a particular market. You can choose stocks, equity shares, dividend payouts or any other area that interests you.. Take one market at a time, become a specialist in that particular field and tone your skills. As time passes you will eventually become a master in all fields.
Do not overtrade and overburden yourself. Do not get addicted to trading. There are days when the market does not offer you anything and these days preserve your capital and try to avoid losses. Trading is not necessarily an everyday event. There are certain days where the market is very bearish and you do not have good options. Play safe on these days.
The above tips will help you stay grounded and keep your cool whiles trading in the stock market. You should hold your nerve, be disciplined and persistent to really stay ahead of everyone during trading sessions.
The size of the company matters while purchasing stocks
While investing in stocks, you should make a not of the company size, as size does matter. Some investors are very choosy and stick to companies of a particular size while some risk takers spread their stock portfolio among companies of various sizes. Small as well as large companies react differently to the stock market so while picking up a stock you should bear this in mind.
But the question is how will you determine the size of the company? Simple, there are two ways, revenue and market capitalization which will help you gauge the size of a particular company. Market capitalization is a better way to determine the size of a company than revenue method because differences in company policies make it very difficult to compare revenues.
Market capitalization is the standard method or standard procedure used to measure the size of a company. Market capitalization is determined by multiplying the outstanding shares with the current stock price. If you compute the market capitalization of two firms then it is very easy to make a comparison of two companies.
The simplest and easiest way to determine the market cap without having to struggle with calculations is to get into sites like yahoo finance or Google finance and just request the market cap quote for any company stock. You will get it in seconds. Investors then categorize the stock based on its size.
Investors place companies in the following segments according to their market capitalization
Mega cap- $ 100 billion and above
Large cap- $(8-100) billion
Mid cap-$( 1-8) billion
Small cap-$ 1 billion and under
Micro cap-$300 million and lower
Although this is not the standard prescribed size, it is accepted worldwide by most investors and analysts. The stock market usually uses the small, mid and large rankings to size a company. The survival of a company does not depend upon its size but you will get a fair idea of the company’s market capitalization and can judge the company better.
Tuesday, October 27, 2009
Sunday, October 18, 2009
Cashflow Strategies in the Stockmarket
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