Archive

Author Archive

Stock Trading Tips

November 27th, 2016 No comments

Stock market investing is a complex process, but potentially a very rewarding one. A little patience, self-education, and research are called for. If you want to know even more about how to increase returns, keep reading. You could start working on a profitable, stock portfolio strategy today.

Strategies are important when playing the stock market, and you will want to play around with some various methods until you find a working strategy to repeatedly use. Whether it is a high profit market or a business with a lot of cash, everyone has their own favorite type of business. There are as many successful investment strategies as there are successful investors, so you should concentrate on building a strategy that suits you.

You should have an account that has high bearing interest and it should contain six month's salary. The idea here, of course, is that should you ever need emergency funding, you can break into this fund and hopefully get by without depleting it. Or, should you really need it on an extended basis, at least the money will be there.

Keep things realistic when you begin investing. If you get into the stock market with dreams of getting rich overnight or realizing high returns annually, you are setting yourself up for failure. Realistic expectations are achievable and you will feel satisfaction at meeting your goals.

Banish all thoughts of using the stock market to strike it rich instantly. To do well, you must learn the basics about the market. Slow down, take your time and accept that you will make some mistakes. If you're planning on becoming a millionaire in one day, you are definitely going to end up being disappointed.

Keep track of the dividends of any company you own stock in. This is of particular importance for investors who are older and who are looking for a stock that is stable and pays solid dividends. Businesses which experience big profits usually reinvest it into the company, or they pay it back to shareholders using dividends. It is important to know that the annual shareholder dividends divided by purchase price equals a dividend's yield.

Aim for stocks that can net you better returns than the historical market average of 10% annually, as you could just get that from an index fund. To estimate your future returns from individual stocks, you need to take the projected growth rate earnings and add them to the dividend yield. A stock that yields 2% and has 12% earnings growth might give you a 14% return overall.

It is wise to invest in familiar things. Excellent investors, including Peter Lynch and Warren Buffet, made a lot of money by only investing in the industries that they knew well. Peter Lynch claimed he decided not to put his money into electronic stocks just because he did not have an understanding of why a light would come on when the switch was flicked. He ended up focusing his investments in underwear, pantyhose and consumer staple companies. Try to stick to the things you know.

Before going to a broker, you should do some background research to make sure you can trust them with your money. Carefully investigating before giving them your money helps you avoid unscrupulous and inexperienced brokers.

While anyone can put their money into stocks, many people lack the proper information needed for success. Take the time to educate yourself on the stock market and the companies involved before you start throwing your money into it. Keep the advice you have learned here in mind so you can begin your successful investment campaign today!

Why have a Trading Plan

November 3rd, 2016 No comments

Stock Trading System and a Trading Plan

 

No matter what type of financial instrument they are trading, successful traders will always utilize a stock trading system. In other words, they do not make random Trading System Pros - Stock Trading Systemtrades and instead they will always trade according to a carefully thought out trading plan or system.

On the other hand, unsuccessful traders do not use a stock trading system and will instead behave more like gamblers when they are trading stocks. Specifically, unsuccessful traders will attempt to apply any and all of the trading knowledge that they have gained as well as any news or “hot tips” they hear and end up trading in a completely haphazard or undisciplined manner.

Moreover, unsuccessful traders will often make trades based on emotions or what they feel to be “instinct.” And while this type of “stock trading system” can make money in the short term and also be exciting; over the long term, such an undisciplined approach is sure to be a money looser. After all, stock trading can be emotionally draining and any trader behaving like a gambler may well tire themselves out long before they run out of capital to trade or begin to suffer heavy trading losses.

Instead, successful stock traders will trade according to a carefully thought out stock trading system that will likely be really boring to execute over and over again but will surely be much more profitable over the long-term. However, using a stock trading system will require patience and discipline on the part of the trader as he or she will need to stick with the system for the long-term in order to realize any profits.

 

Stock Trading System – resist straying from your plan

Most importantly, a trader using a stock trading system will need to resist the temptation of straying away from trading plan – even when their instinct or emotions tell them to do so. In other words, successful stock traders will patiently wait for the correct trading signal to appear before they execute a stock trade. Moreover and when there seems to be reasons for a stock trading signal to be ignored or for not executing a trade, they will still execute the trade according to their stock trading system.

However, it’s important to also remember that successful stock traders do not develop a stock trading system and become successful overnight or even in a few weeks time. Likewise, successful stock traders do not become successful by reading a couple of books or taking a brief stock trading course. Instead, successful stock traders will constantly expose themselves to new and potentially profitable trading ideas and gain practical experience by watching the stock markets and how individual stocks behave on a day-to-day basis. They will then use their observations and knowledge to develop a stock trading system over time.

In other words, developing a successful stock trading system as well as becoming successful with stock trading itself will be a long term learning process requiring a significant amount of patience and discipline on the part of the trader.

 

Topic: Stock Trading System

Trading System Plan

August 24th, 2016 No comments

 

Importance of a Trading Plan

 

No matter what type of financial instrument they are trading, successful traders will always utilize a stock trading system. In other words, they do not make random trades and instead they will always trade according to a carefully thought out trading plan or system.

 

Trading System PlanOn the other hand, unsuccessful traders do not use a stock trading system and will instead behave more like gamblers when they are trading stocks. Specifically, unsuccessful traders will attempt to apply any and all of the trading knowledge that they have gained as well as any news or “hot tips” they hear and end up trading in a completely haphazard or undisciplined manner.

 

Moreover, unsuccessful traders will often make trades based on emotions or what they feel to be “instinct.” And while this type of “stock trading system” can make money in the short term and also be exciting; over the long term, such an undisciplined approach is sure to be a money looser. After all, stock trading can be emotionally draining and any trader behaving like a gambler may well tire themselves out long before they run out of capital to trade or begin to suffer heavy trading losses.

 

Read more…

Using a Stock Trading System

July 14th, 2016 No comments

 

Stock Trading System Tips

 

A stock trader who wants to be successful for the long term will first need to come up with a viable stock trading system that is grounded on analysis rather than on emotion. More importantly, a viable stock trading system will help a trader to avoid common trading pitfalls and stop them from making random stock trades in response to current market conditions.

 

Typically, a stock trading system will be based upon technical analysis where a trader examines a stock’s historical prices and assumes that any small fluctuation that has occurred in the recent past will likely continue into the near future. This analysis will include the use of common technical charts such as bar charts, candlestick charts and point and figure charts that will exhibit particular technical indicators such as support and resistance, momentum, strength and volatility. These indicators will then be built into a stock trading system to help a trader decide when to buy or sell stocks.

 

Stock Trading System Mistakes

Stock Trading SystemMoreover, a good stock trading system will provide a road-map that will prevent a trader from making some of the following common stock trading mistakes:

 

  • Avoids over or under-trading. A good stock trading system will prevent both over-trading where a trader enters and exits a trade every few seconds as well as under-trading where a trader holds on to a position all day or even longer for much longer periods of time. Instead, it will help a trader strike a happy medium.

Read more…

How to Avoid Margin Calls

May 10th, 2016 No comments

 

Stock Trading Courses and How to Avoid Margin CallsAvoiding Margin Calls

 

How to avoid margin calls while trading will be a critically important lesson that a comprehensive stock trading course will teach you. After all and if you are like most stock traders, you will probably be using leverage to increase your ability to profit with your stock trading system. However and should the markets turn in an unexpected direction, you may find yourself facing a margin call from your broker.

 

Specifically, margin calls will occur when the amount of margin posted in a margin account falls below the account’s minimum margin requirement. When this occurs, you will need to increase the amount of margin that you have deposited in your margin account or you will need to close out your trading position by selling the stock in your account. And if you choose to do nothing, your broker can decide for you by liquidating the stock in your trading account. Hence, it is critically important that you take a stock trading course that covers how to trade on margin and how to avoid margin calls.

Read more…

How To Use Stop Loss Orders

May 3rd, 2016 No comments

 

Stock Trading Courses Need to Explain Stop Loss Orders

 

Stock Trading CourseA comprehensive stock trading course will teach you how to properly use stop loss orders – a critical tool that will help you to protect your trading capital from significant losses. For starters, stop loss orders can be set to automatically sell a stock or option when it hits a particular price and their use can be especially effective if you are trading options or shorting a stock where there could be unlimited trading losses. Hence, a good stock trading course will teach you how to properly set stop loss orders based upon what you are trading.

 

Stop Loss Orders and their uses

Sell stop orders. A good stock trading course will teach you the ends and outs of sell stop orders and provide you with real world examples of how they have been used. Specifically and should the value of a stock drop below a particular price, a sell stop order will be an effective tool to ensure that a stock is sold for the next available price when the sell stop price is reached. For example: If you are worried about a stock that is currently worth $100 will drop to $85 or below, you can issue a sell stop order right at the $85 price level. In addition, you can use a sell stop order to lock in trading profits by placing one at a level higher than the stock’s original purchase price. For example: If the $100 stock that you own suddenly rises in a volatile market and you feel it may then quickly fall in price, you can have a sell stop order at the $115 level and lock in your profits.

Read more…

What Should You Trade

April 23rd, 2016 No comments

 

Selecting Your Stock Trading Course

 

Stock Trading CourseWith the proliferation of financial instruments or asset classes that can be traded, taking a comprehensive stock trading course that provides a thorough review of the choices available has become even more critical as there are many pluses and minuses to consider with each instrument or asset class. After all, just consider some of the following types of popular trading choices:

 

Popular Stock Trading Course Topics

 

Stock Trading. Many traders opt to trade stocks with so-called penny stocks (which are any stocks that trade below S$5) being the most popular types of stocks to trade. After all, if a stock that trades for only $1 dollar rises 50 cents, the trader will earn a 50% profit (as opposed to a $100 stock that rises 50 cents) and many big blue chip companies themselves would have started out as penny stocks. On the other hand, a good stock trading course will also point out that penny stocks can be extremely volatile, are subject to market manipulation and are often companies with little revenue or profits that can best be described as having products or advanced technologies that are simply way ahead of their time.

Read more…

Forex Trading

April 23rd, 2016 No comments

 

Forex Trading, Not For Beginners?

 

Forex Trading ResultsForex trading is an increasingly popular trading option for new traders due in part to the heavy promotion of Forex trading courses. After all and as many Forex trading course advertisements will point out, Forex trading has low capital requirements, is relatively easy to do, comes with fairly low trading commissions, involves low margin requirements and trading can be done 24 hours a day.

 

However, we believe that if you take a comprehensive stock trading course, you will probably think twice before doing any type of Forex trading for the following reasons:

 

Facts About Forex Trading

 

Forex trading is largely unregulated. For starters, a good stock trading course will point out that Forex trading is often done on unregulated Forex exchanges or through brokers and banks. On the other hand, currency futures and Forex futures will be traded on regulated exchanges while futures themselves are subject to far more regulations than Forex.

Read more…

Stock Trading System

April 22nd, 2016 No comments

 

Benefits of a Stock Trading System

 

A stock trader who wants to be successful for the long term will first need to come up with a viable stock trading system that is grounded on analysis rather than on emotion. More importantly, a viable stock trading system will help a trader to avoid common trading pitfalls and stop them from making random stock trades in response to current market conditions.

 

Stock Trading SystemTypically, a stock trading system will be based upon technical analysis where a trader examines a stock’s historical prices and assumes that any small fluctuation that has occurred in the recent past will likely continue into the near future. This analysis will include the use of common technical charts such as bar charts, candlestick charts and point and figure charts that will exhibit particular technical indicators such as support and resistance, momentum, strength and volatility. These indicators will then be built into a stock trading system to help a trader decide when to buy or sell stocks.

 

Stock Trading System to Avoid Mistakes

 

Moreover, a good stock trading system will provide a road-map that will prevent a trader from making some of the following common stock trading mistakes:

Read more…

Stock Trading for Beginners

April 21st, 2016 No comments

 

Stock Trading Courses for the Novice Trader

 

Stock Trading CoursesOnline stock trading at first glance may appear to be easy but without proper training from comprehensive stock trading courses, you will be susceptible to several common trading pitfalls that many beginner traders fall victim to. Moreover, the following pitfalls will not only cost you money, they may encourage you to give up trading far too quickly:

 

Pitfall #1: Not understanding technical analysis. Good stock trading courses will help you understand the basics of technical analysis as well as how to both read and understand technical charts. Specifically, a good stock trading course will teach you about chart movements and technical indicators and more importantly, how both charts and technical indicators should be interpreted and acted upon.

Read more…