Stocks Archives
Why The Smaller Investor Has Advantages Over Huge Multinational Funds When It Comes To Higher Investment Returns
You would be forgiven in thinking that with all the professional managers, funds and resources. at their disposal that investment funds would win head over heels against the smaller investor like you and I. In fact this is not at... more
Why Invest In The Stock Market?
The potential for higher returns are far better from the stock market than from many of the safe investments available. $1 wisely invested in the stock market can bring many multiples in returns when compared to leaving money in a bank (where interest can be shockingly low). more
Six Crucial Steps To Take Before You Select Your Broker
When you make big, financial decisions in your life, you usually weigh all the options and consider all consequences before you jump in feet first, right? Making an investment is no different. Before making an investment, you must decide which more
Day Trading - Don't Get Greedy!
I'm always getting friends trying to get that 'golden nugget' of information from the horse's mouth ( that would be me - sometimes it's a different end ). more
What Does It Take To Be A Successful Day Trader?
Floyd's Four-Gets! Picture this. You can't make any sense of the market, and things are going haywire. You take a deep breath, and quickly click your mouse. You breathe a sigh of relief when the sell confirmation appears on the more
What Is Day Trading? Day Trading VS Investing
What is Day Trading? Have you heard of day traders? These are people who reap profits from Wall Street day in day out. They do nothing but trade, they answer to no one but themselves. Day trading is their livelihood, their more
Don't Overlook Three Symbol Stocks
One of the things a new trader learns within a few weeks or so of beginning his new adventure into the world of day trading is the difference between three symbol stocks and four symbol stocks. The first thing more
Placing Stock Orders
Once you have made the buy or sell decision, what's the best way to accomplish it? Some rules of thumb for placing stock orders for exchange-listed and over-the-counter stocks. Once an individual investor decides to buy or sell some more
Wealth Creation As A Stock Market Investor - Is It Risky?
When creating wealth in the stock market, you need to build a certain understanding of the risks involved. How do you assess the risk? When do you listen to other people's opinion and when do you make up your own mind more
Shorting Strategy And Value Investing
How does shorting work? Shorting strategy has been very popular since the bubble burst of technology stocks in 2000. Shorting a stock is simply a bet that the stock price will drop. An investor can sell a stock he/she more
Against The Top Down Approach To Picking Stocks
If you have heard fund managers talk about the way they invest, you know a great many employ a top down approach. First, they decide how much of their portfolio to allocate to stocks and how much to allocate to bonds. more
Basics of Investing In Stocks
You need to consider some basics before you enter the world of investing in stocks. The main reason: the stock market is a field dominated by savvy investors, who know the ins and outs of making profitable trades. For people who more
Do Not Invest In Sectors
This is a common occurrence. You heard people say that 'the real estate sector is hot' or 'the internet sector is growing rapidly' or 'let's buy the oil sector now. Energy price will rise again' next year. Sounds familiar? It is. more
Finding Stocks To Trade Shouldn't Be That Hard
Every morning the trader sits down at his computer to begin the day, and the dilemma faced is always the same - finding a stock or two or three to make a buck on for that day. This really shouldn't be more
Online Investing - The Road To A Fortune Or To Ruin?
Online investing is becoming more and more popular with each passing day, but is this really the way to make your fortune and should you rush to join this online investing crowd? Investing in individual company stocks and in shared more
Emini Futures Trading - Characteristics Of A Good Day Trading Instrument
In 1997 the Chicago Mercantile Exchange created a new financial instrument known as the emini futures contract. It started off small but now is a fully mature market with excellent liquidity. Now in 2005, the emini futures contract is more
Trading Psychology: Mistakes In A Trading Environment
When it comes to trading, one of the most neglected subjects are those dealing with trading psychology. Most traders spend days, months and even years trying to find the right system. But having a system is just part of the game. more
Chasing The High Flyer Of The Day - Don't Do It!!
I am not a big fan of chasing the "hottest" play of the day. Too many traders feel they have to be in the "big one", the one that went to the moon, etc., etc. I never felt that way when more
Popular Option Trading Strategies: Profit In Bull And Bear Market Directions
Options trading allows a market trader many ways in which to profit. Whether a stock goes up, sideways or even down, there are options strategies that allow a trader to profit from any move. Add to this the cost of a more
Dealing With Market Corrections: Ten Do's And Don'ts
A correction is a beautiful thing, simply the flip side of a rally, big or small. Theoretically, even technically I'm told, corrections adjust equity prices to their actual value or "support levels". In reality, it's much easier than that. Prices go more
Why Index Funds Are Your Best Investment Bet
When planning for retirement, many people will suggest that you individually manage your funds, searching for the best specific stocks. You'll often get tips from friends - buy this or that company, invest in the next up and comer. The smartest more
Short Selling...What, When, Where, How
Shorting a stock, or short selling, means to sell a stock that you do not actually have ownership of so you may profit from its potential decline in price. The shares of the stock are borrowed by your broker and then more
Small Cap And Big Cap Investing
To be honest, it doesn't matter what type of stocks we invest in. Common stock with small capitalization (defined as having market capitalization of $ 500 Million or less) and big capitalization (market capitalization of $ 5 Billion or more) can more
Daytrading And How To Get Started
One working definition of a Day Trader is, "A person whose goal is to make his or her profits from a security in the shortest amount of time [preferably during a single day.]" Though this definition is simplified, the day-to-day job more
How Many Stocks Is Enough?
For most investors, they have their full time job other than watching the stock price movement daily. Stock is investments not jobs. However, that does not mean you should ignore your stock after you have bought it. You have already put more
Dollar Cost Averaging: Taking Some Volatility Out Of The Portfolio
One of the holy grails of investing is the ability to achieve a decent return without volatility. After all, I think we all learned somewhere along the line that the shortest distance between two points is a straight line. To say more
Think, Buy, Sell... Repeat As Needed
Generally, a trader should meet buying with selling and vice versa when it comes to the stock market. Typically, stocks (especially when considered on an intra-day basis) will only go so high, or so low, before tending to attract the next more
How To Know Whether A Stock Is Heading Higher Or Lower
A great way to identify and measure the trend of a stock is by using moving averages. A moving average is simply an average ofclosing prices over a specified time span. Charting software really makes your job easier as all you more
Make Trading Decisions Without Emotion
To trade without emotional involvement. It is a necessity, and yet it is virtually impossible. Certain things in life just bring out emotion, like making decisions that effect your financial outlook. There are two things that make this uniquely harder for more
How To Avoid A Bad Mutual Fund
We have all heard the advantages of investing in a mutual fund over trying to pick individual stocks. First of all mutual funds hire professional analysts that are market experts and devout many hours of study to the various stocks. Unless more
Trade Within Your Comfort Level
Stock prices fall into two basic categories; penny stocks (a.k.a. stocks trading under $1.00) and pretty much everything else. To some degree, you can lump stocks under $5.00 into the penny stock category as well. However, keep in mind that this more
Mutual Fund Versus Stocks
If you have money to invest, you might contemplate investing in mutual fund. What is mutual fund? Mutual fund is simply a collection of stocks that are bought using money pooled from various individual investors. Historically, average mutual fund returns 2% more
Trading Fears... We All Have Them.
All market timers, traders and investors, in every kind of market, feel fear at some level. Turn on the news one day and hear that a steep unexpected sell-off is taking place, and most of us will get a queasy feeling more
How To Become A Successful Stock Investor
The key to becoming a successful stock investor is to know the difference between a great investment and a bad investment. Many investors assume that great companies are great investments, but this is not always an accurate assessment. Sometimes, a wonderful more
Online Trading - It's Easy To Get Started!
Online Trading - It's Easy to Get Started !By: Steve Loughlin You've read the ads : + Work in your underwear and make thousands a week ! + Fire your boss and start trading stocks online... + You don't more
The Importance Of A Stop Loss
When you understand the basic principles of technical analysis, you already have got some knowledge that will help you to trade well. Technical analysis is important, but what's even more important is something we refer to as money management. In order more
The Power Of Stock Buybacks
Company with excess cash flow has two options to return the money to shareholders. One is to give out dividends. The other one is to initiate a stock buyback program. Stock buyback is a program where a company use its more
Emini Futures S&P 500 And Nasdaq 100 : Basic Trading Info
What are Index Futures? Future contracts originate from commodity trading. A future contract is an obligation to buy/sell a certain quantity of commodity at a specific date for a specific price determined at the outset of the contract. Future contracts are more
Not Using Stops While Trading
For those of you who follow our trading on our blog at www.livingonlargecaps,blogspot.com, you will have noticed we do not enter a stop, when we enter our positions. It is actually the #1 question we get in our email as well. more
Three Steps To Stock-Picking Success
With thousands of stocks, mutual funds and exchange traded funds to choose from, it may seem like a daunting task to separate the wheat from the chaff. Don't let the shear numbers discourage you. By applying three simple steps, more
Investing Stock Market ABC's
While most folks today trust mutual funds and their professional managers with their investments, it's still important to understand the basics of the stock market. Although investing in individual stocks may not be right for everyone, a basic understanding of the more
Fair Value Of A Common Stock
A lot of discussions have been devoted towards finding fair value of an investment. The goal of every investors is to find undervalued investment and sell it when it reaches fair value. Admittedly, this is the hardest part of investing. So, more
Stocks Or Foreign Exchange - Which One?
Many people would like to invest in stocks or Forex but are not really sure of the difference between the two and don't know which is the right choice for them. There is little doubt that there are many options out more