Many traits are important to investing successfully in the stock market, but doing your research is the key. Devote a lot of time to picking profitable stocks.
Difficulty: Moderate
Instructions
Things You'll Need:
* Access to company financial reports (often found in Yahoo Finance, or like sites)
* Access to daily, monthly and yearly stock quotes
* Access to daily, monthly and yearly personal investment statements
1.Do your homework. Research any stock and company associated with a stock before investing in it. Research company reports, financial statements and projected outlooks for the company -- both financially and through potential acquisitions or changes.
2. Follow a stock you want to buy for at least one month before investing in it. Follow each day's gain or loss and compare it to performance the year before. This will allow you to assess how strong the company is financially and whether it is on the right track.
3.Don't pick an obscure stock just to try and cash in if it hits big. Picking a stock to get rich quick is like trying to win the lottery. These types of stocks are few and far between, so avoid falling into an investment trap when your money could be seeing better gains elsewhere.
4.Evaluate what industries are seeing the most gains or are in the news the most. For instance, if computer companies are seeing record stock gains, it's too late for you to get in on the action. Don't buy in at a higher price just because the price is still going up -- remember that what goes up, must come down -- or at least level off. Instead, focus on industries with steady streams of income and might be more up-and-coming --perhaps instead of computer companies, companies that create computer parts.
5.Don't panic, and don't fall in love. Don't panic if a stock you have invested in all of a sudden plunges. The market works on fluctuations, and it will more than likely come back up again over time. In addition, don't fall in love with the products a company makes. This may make the investment more personal, and you may not treat it as business and a way of making money. Remember the age- old mantra, "It's business, not personal" as you evaluate stocks.
Sunday, January 23, 2011
How to Become a Stock Market Day Trader |
Things You'll Need:
* HIgh speed internet
* confidence
* money
* online broker account
1. What is day trading? It's buying and selling any stock in the same day. PERIOD ! Day traders never hold any stock over night or during the weekends because of the unpredictability of world events. Yes stocks are effected one way or the other by the entire world.
The first step after you secure a reliable computer with high speed internet connections.
2. Next your will need to open an online broker account, like e trade or one of the other dozens or so online brokerage firms. Starting accounts with brokerage firms can range anywhere from $500.00 minimum deposit up to $ 75,000.00 minimum deposit. Don't worry these firms usually offer interest.
Be selective of the firm you choose cheaper deposits does not mean faster or inexpensive trades. What do I mean by trades? Every time you execute an order to buy or sell any amount of stock the firm is going to charge you anywhere from $5.00 up to $29.00 per trade. That's 29.00 when you buy and another 29.00 when you sell.
Continue reading the next step to see why this can make or break your trading day.
3 Let's say you buy stock in YXZ corporation. You buy 100 shares this stock on the cheap for $ 1.00 a share. Your total cost would be $100.00 for the stock plus an additional $ 29.00 for the brokerage firm to execute the order. Total $ 129.00. The stock than doubles and you sell your 100 shares for the going price of $2.00 per share. Sweet You just got back $ 200.00. WRONG it's going to cost you another $29.00 for the firm to execute your sell order. Now your total become 129.00 initial investment plus trade fee plus and additional 29.00 trade fee. Total 158.00. The $ 200.00 return and you only profited $ 42.00.
4. Remember day trading is a daily business you buy than sell in one day. Professional traders actually buy than sell within a few minutes. So the seasoned experienced day trader would of made 42.00 for just a few minutes.
The professional day trader would of used a lower charging broker with reliable execution and fast turnable and only paid $ 15.00-$20.00 per trade. Profiting him/her even more.
5.
Day traders trade stock hundreds of times a day. Not are are profitable trades. Day traders usually only profit 2.00-5.00 per trade but trade 100 times or more a day making him or her a couple hundred dollars.
6.Sound good? It can be done and many do do it today. Day trading is not without risk. It is not for everybody. Do not quit your job. Just because your friends cousins sister in law twice removed makes 500.00 a day as a stock market day trader does not mean the majority who venture out do.
7. You profits depend on:
Gaines per trade
The number of trades
Commissions or transaction cost ( as I explained above)
8 My advise to you : Try paper trading first for a long time. It's a day trading version were no real money is exchanged. Google the subject you'll find many sites and brokerage firms now offer free paper trading so you can learn how it works and realize how much you could of lost or gained for that matter.
9. While paper trading make sure you are conducting your own research on what stocks to buy, sell or stay away from. Information, is your best friend. Day traders generally work alone and never buy into those day trading insider trade secrets. Insider trading is illegal. Just ask Martha! A good place to start is Yahoo!Finance (quote.yahoo.com)
10.
Is day trading right for you ? What does it take Knowledge is one thing - Understanding how the market works.
You have to be willing to fail and take responsibility for your actions. Meaning knowing you could and most likely will loose some money. Confidence: You can not second guess, say things like I should of waited could of made. Just execute your trades take your profit or your loss than move on.
You must also be very patient waiting for the right moment that's best for your investment portfolio .
You should also establish daily goals whether earning and hopefully not losses. Don't get caught chasing losses . If your down 50.00 for that day don't waste another dollar trying to chase down that 50.00
Of course you will need Money to invest. Better if you actually have money to loose.
11. Can you loose your house or your shirt investing and day trading? Sure can if you bet those items. Otherwise you only loose the amount for money you spent buying into a stock. Unless the companies goes bankrupt the stock is yours if you choose to hold onto it.
* HIgh speed internet
* confidence
* money
* online broker account
1. What is day trading? It's buying and selling any stock in the same day. PERIOD ! Day traders never hold any stock over night or during the weekends because of the unpredictability of world events. Yes stocks are effected one way or the other by the entire world.
The first step after you secure a reliable computer with high speed internet connections.
2. Next your will need to open an online broker account, like e trade or one of the other dozens or so online brokerage firms. Starting accounts with brokerage firms can range anywhere from $500.00 minimum deposit up to $ 75,000.00 minimum deposit. Don't worry these firms usually offer interest.
Be selective of the firm you choose cheaper deposits does not mean faster or inexpensive trades. What do I mean by trades? Every time you execute an order to buy or sell any amount of stock the firm is going to charge you anywhere from $5.00 up to $29.00 per trade. That's 29.00 when you buy and another 29.00 when you sell.
Continue reading the next step to see why this can make or break your trading day.
3 Let's say you buy stock in YXZ corporation. You buy 100 shares this stock on the cheap for $ 1.00 a share. Your total cost would be $100.00 for the stock plus an additional $ 29.00 for the brokerage firm to execute the order. Total $ 129.00. The stock than doubles and you sell your 100 shares for the going price of $2.00 per share. Sweet You just got back $ 200.00. WRONG it's going to cost you another $29.00 for the firm to execute your sell order. Now your total become 129.00 initial investment plus trade fee plus and additional 29.00 trade fee. Total 158.00. The $ 200.00 return and you only profited $ 42.00.
4. Remember day trading is a daily business you buy than sell in one day. Professional traders actually buy than sell within a few minutes. So the seasoned experienced day trader would of made 42.00 for just a few minutes.
The professional day trader would of used a lower charging broker with reliable execution and fast turnable and only paid $ 15.00-$20.00 per trade. Profiting him/her even more.
5.
Day traders trade stock hundreds of times a day. Not are are profitable trades. Day traders usually only profit 2.00-5.00 per trade but trade 100 times or more a day making him or her a couple hundred dollars.
6.Sound good? It can be done and many do do it today. Day trading is not without risk. It is not for everybody. Do not quit your job. Just because your friends cousins sister in law twice removed makes 500.00 a day as a stock market day trader does not mean the majority who venture out do.
7. You profits depend on:
Gaines per trade
The number of trades
Commissions or transaction cost ( as I explained above)
8 My advise to you : Try paper trading first for a long time. It's a day trading version were no real money is exchanged. Google the subject you'll find many sites and brokerage firms now offer free paper trading so you can learn how it works and realize how much you could of lost or gained for that matter.
9. While paper trading make sure you are conducting your own research on what stocks to buy, sell or stay away from. Information, is your best friend. Day traders generally work alone and never buy into those day trading insider trade secrets. Insider trading is illegal. Just ask Martha! A good place to start is Yahoo!Finance (quote.yahoo.com)
10.
Is day trading right for you ? What does it take Knowledge is one thing - Understanding how the market works.
You have to be willing to fail and take responsibility for your actions. Meaning knowing you could and most likely will loose some money. Confidence: You can not second guess, say things like I should of waited could of made. Just execute your trades take your profit or your loss than move on.
You must also be very patient waiting for the right moment that's best for your investment portfolio .
You should also establish daily goals whether earning and hopefully not losses. Don't get caught chasing losses . If your down 50.00 for that day don't waste another dollar trying to chase down that 50.00
Of course you will need Money to invest. Better if you actually have money to loose.
11. Can you loose your house or your shirt investing and day trading? Sure can if you bet those items. Otherwise you only loose the amount for money you spent buying into a stock. Unless the companies goes bankrupt the stock is yours if you choose to hold onto it.
Monday, January 10, 2011
Trading The Stockmarket In Minutes
How do you become stockmarket savvy if you do not have the time to learn, as frequently these days most of us do not? Do you enrol on an expensive course and hopefully after 3 days of solid tuition you come out a trader? Most people after they have completed a course do not trade or take what they have learned to the next level.
What if you have the time but not the money? You need to find out where the good sources of information are, who to talk to for advice and maybe join a group of like minded individuals or a seek out a mentor. Also what markets and indices are you going to trade? FOREX, Derivatives, Shares each has their nuances? One thing to bear in mind at this stage is that doing this studying alone will be an uphill battle. In his book 'Think And Grow Rich' Napoleon Hill talks about a Master Mind group. The basic premise is that why do everything yourself when surrounding yourself with experts in their chosen field, allows you to become wealthier by tapping into their knowledge?
With this in mind, if you decide to use one of the many financial services available who do the hard work for you, while you keep the money, then ensure that they give you free trial to try their services out. If you are then happy to take up their service make sure that they offer a guarantee that if you don't make 20 times the cost of your subscription they'll refund your membership fees. In this way it is a win situation for you. To save you time looking for a service that matches these requirements the service offered by The 5minutetrader will start you on your path to creating wealth right now.
Here's some of the services The 5minutetrader offers you :
1). 89.3% Accurate Stock Recommendations. You'll get about 20-25 Swing Trading recommendations per month, about 15 short selling recommendations per month, short [average 40 days] and long term trade recommendations.
2). Market Notes - these are running commentaries provided by us on the nature of the markets and stock recommendations.
3). One on One support should you need it.
4). Entry Price, Exit Price and Stop Loss - we give you exact details when to buy and sell the stocks we recommend.
5). Stock market training guides and notes to put you in the top 10% of traders.
6). An 8 week action plan which has been proven to improve the rate of success by 500%.
What if you have the time but not the money? You need to find out where the good sources of information are, who to talk to for advice and maybe join a group of like minded individuals or a seek out a mentor. Also what markets and indices are you going to trade? FOREX, Derivatives, Shares each has their nuances? One thing to bear in mind at this stage is that doing this studying alone will be an uphill battle. In his book 'Think And Grow Rich' Napoleon Hill talks about a Master Mind group. The basic premise is that why do everything yourself when surrounding yourself with experts in their chosen field, allows you to become wealthier by tapping into their knowledge?
With this in mind, if you decide to use one of the many financial services available who do the hard work for you, while you keep the money, then ensure that they give you free trial to try their services out. If you are then happy to take up their service make sure that they offer a guarantee that if you don't make 20 times the cost of your subscription they'll refund your membership fees. In this way it is a win situation for you. To save you time looking for a service that matches these requirements the service offered by The 5minutetrader will start you on your path to creating wealth right now.
Here's some of the services The 5minutetrader offers you :
1). 89.3% Accurate Stock Recommendations. You'll get about 20-25 Swing Trading recommendations per month, about 15 short selling recommendations per month, short [average 40 days] and long term trade recommendations.
2). Market Notes - these are running commentaries provided by us on the nature of the markets and stock recommendations.
3). One on One support should you need it.
4). Entry Price, Exit Price and Stop Loss - we give you exact details when to buy and sell the stocks we recommend.
5). Stock market training guides and notes to put you in the top 10% of traders.
6). An 8 week action plan which has been proven to improve the rate of success by 500%.
Stockmarket Investing
Are you thinking about the future? This is a crucial question to consider, regardless of your age. When it comes to retirement, none of us want to be left with hardly anything to get by on. The fact of the matter is we all want to live comfortably and not have to worry about how we're buying groceries for this week. This is why you need to plan ahead of time. In what way do you intend to set aside extra money? Will your job take care of you after you've put in those twenty years? But what about the termination issue? Maybe that large company will dump you after an eighteen year run. This could throw your entire retirement plan out the window. Then you're basically left with nothing. How will you survive if this occurs? Maybe it's time you started thinking outside of the box. Have you ever considered Stockmarket Investing? A great number of people do this and are able to produce enough capital for their retirement.
What do you know about Stockmarket Investing? Do you see random infomercials regarding this issue? It seems like most ads make the stock market appear glamorous and wonderful. All you will ever do is earn, earn, and earn more cash. Soon you will be a billionaire with a house in the Hamptons and a private helicopter. Does this sound ideal? Well sure it does. However, Stockmarket Investing is not always as simple and easy as it looks. There is some imperative knowledge involved. First of all you should keep a close eye on what you're investing. Things can change at the drop of a dime. Sometimes your stock will plummet and on other occasions it will climb forever. This is part of the intrigue and excitement that goes along with Stockmarket Investing. Secondly, you don't want to invest what you can't afford to lose. This will certainly bite you in the butt when you least expect it. All of a sudden you will have lost your home from being careless. Therefore it's prudent to only invest what you can deal with losing.
Want to get started in Stockmarket Investing? This is not a problem to say the least. Hop online and pop open that trusty Google search engine. Punch in the keywords "Stockmarket Investing". You will get flooded with websites regarding investing. Browse through infinite tips and pointers that will aid you in getting started right.
What do you know about Stockmarket Investing? Do you see random infomercials regarding this issue? It seems like most ads make the stock market appear glamorous and wonderful. All you will ever do is earn, earn, and earn more cash. Soon you will be a billionaire with a house in the Hamptons and a private helicopter. Does this sound ideal? Well sure it does. However, Stockmarket Investing is not always as simple and easy as it looks. There is some imperative knowledge involved. First of all you should keep a close eye on what you're investing. Things can change at the drop of a dime. Sometimes your stock will plummet and on other occasions it will climb forever. This is part of the intrigue and excitement that goes along with Stockmarket Investing. Secondly, you don't want to invest what you can't afford to lose. This will certainly bite you in the butt when you least expect it. All of a sudden you will have lost your home from being careless. Therefore it's prudent to only invest what you can deal with losing.
Want to get started in Stockmarket Investing? This is not a problem to say the least. Hop online and pop open that trusty Google search engine. Punch in the keywords "Stockmarket Investing". You will get flooded with websites regarding investing. Browse through infinite tips and pointers that will aid you in getting started right.
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