Wednesday, October 28, 2009

What women should know while investing in the stock market?

Women are gaining strongholds in all fields and it is not long when the stock market will be dominated by women. Women have rational thinking and they are known to be masters in multitasking. So do not be surprised if all the successful investors inthe stock market are women. Women need to save money for retirement and the stock market can help you achieve this saving. You should not be too conservative, as stock markets require you to take some risks. Learn to practice asset allocation and diversify your portfolio to get maximum returns.

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

You might be aware of the fact that great leaders are not born, but created in this very earth, and the same implies to investors and traders too. If you have self-confidence, the right motivation, perseverance, discipline and self confidence you can battle out all odds in the online share market. But those who lack basic confidence and persistence will be losers in the long run.

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

The stock marketis certainly not a gamble place and certainly not you are like your superstore where you get the exact price of each commodity. The stock market is a vast ocean of stocks and you should learn about stocks, funds, buying and selling of stocks thoroughly before taking a plunge into this vast ocean. You can succeed only if you do proper research and learn the tricks of the trade in the stock market. This will come through experience and learning.

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.

Sunday, October 18, 2009

Cashflow Strategies in the Stockmarket





Perhaps you have now decided to begin investing your savings in the stock market, (or share market)but are not sure of the best strategy to use to make the best use of your funds. The stock market is a volatile market and is often in the news for losing peoples money, but less often is it reported for making people money. By using the correct strategies and having the right knowledge it is possible to make very good returns, and not put all your savings at risk. There is a lot more to investing in the stock market than simply buying stocks and waiting for them to go up in value.In this article we will look at various strategies for wealth creation and income generation in the stock market.

Income can be created in the stock market using many different methods, and there are many different courses and seminars in the market to teach you these methods. However you need to be cautious, there is lots of great information available, but also lots of not so great information. There are many expensive courses out there, but you need to be sure that the people teaching have learned how to do it for themselves. So if you are looking in the market to choose an education program, do some research before purchasing. Find out if other people have had success using the strategies being taught.The number of alternative ways to make money in the stockmarket is growing all the time due to the new products and derivatives which seem to regularly appear. This can make things very confusing for the new investor, but there are some very good books and free infometion available to get an overview of the basics so that your initial research needn't cost very much. Choosing the correct strategy to use also means assessing your time available to watch the market, some strategies require hours every day, where as others only require a quick monitor daily and maybe an hour once a month.There are also differences in the type of account you will need, either online where you do everything yourself, and these are very low cost, or the total opposite which is a full service broker who you will speak to on the phone before placing orders.

Here are a couple of examples of different methods that I like to use to generate cash flow. The first is using options using a "spread" where the cost of taking the position is quite low in relation to the potential reward. as an example, it could cost $500 to put on the position, with a profit potential of $2000. I can monitor this daily, and if I feel it is going against me, can exit without losing all my initial outlay.If it goes my way, I can close once it reaches my target and take my profit and any risk off the table.This may happen fairly quickly, sometimes within a few days.

The next example is a strategy I refer to as share renting, or covered calls. This requires more capital to make a decent dollar return, as the percentage return is lower. However the risk is also lower, and less stressful. This involves buying shares and then writing a call option against them, which then puts money in your account as soon as you sell the option.By the end of the month you may be exercised on your shares for a possible return of around 5 to 10%.

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Thursday, October 15, 2009

How to make money in the bull and bear market conditions

If you are an avid investor in the stock market then you will be quite familiar with the bull and the bear market conditions and will not be perturbed when the conditions in the stock market change. If is possible to trade and make money no matter what the conditions in the stock market. The market will see ups and downs depending upon the domestic as well as international economic situations. You can trade safely and minimize losses if you invest in quality stocks that are not affected greatly by general market conditions. If you invest in quality stocks you are destined to make profits no matter if it is a bull or bear market. In a bear market the general trend of the stocks is downwards, while in the bull market the stocks show an upward trend. During the start of a bear market, you should take a good look at your portfolio and determine the risks and profits of each stock. Growth stocks take a beating in bear market conditions so you can replace growth stocks with value stocks in case you feel that the bear market conditions will not improve. Value stocks are low risk stocks and are more stable during the bear market conditions. Value stocks give dividends and this is an added advantage. You should be skilled and experienced and have techniques and strategies to minimize risks in any conditions in the stock market. If you have stocks of sound companies do not worry if the price lowers as your investments are in safe hands, and your stock value will increase as soon as the market rises. In the bull market investors buy early and sell at peak so that you can attain profits. Getting the right stocks and picking it up at the right time requires great skill and you should master this skill to make profits. As prices fall in bear market conditions it is necessary to trade carefully with great rational thinking. The risks of loss are higher because the market drops further and so does the price in stocks. It is not possible to gauge the changes and so you should be ready to face risks. Do seek expert opinions but do your research as well. People have make money and some people have lost money in the stock market but with the right motivation and determination you can certainly survive and make profits in the stock market.