It may not be the NBA Finals, but as Dallas Mavericks billionaire owner Mark Cuban once quipped, “If you don′t follow the stock market, you are missing some amazing drama.”
As the stock market continues to reach record highs this year, a majority of Americans feel confident about their portfolios and their equity investments. According to a March poll by business channel CNBC, 60 percent of Americans feel confident that their stocks will trade higher this year, even after the survey was completed during a downturn in the market.
The market has seen an extraordinary run since last summer, going from the 10,000s to the high-13,000. Americans are becoming more secure with their financial aptitude nowadays, and realize that regular stock investing over time can result in tremendous returns.
The stock market isn′t without its defects, but a practical, easy-to-understand advice follows the logic that stocks have historically outperformed all other investments, averaging a 10 percent gain in the S&P 500 since 1926.
It’s no real secret that a diversified portfolio over the long run is part of a smart financial strategy. But there are rules to investing, and I believe the new book “How Come That Idiot’s Rich and I’m Not.” offers up some common-sense solutions for everyone who wants to invest in stocks and mutual funds.
Trying to outwit the experts is fruitless. People [who go to Vegas] always tell you about the time they went and won, but they never tell them about the other eight trips where they lost. If you′re a hobbyist picking stocks part time thinking you′re going to outsmart Wall Street, you′re out of your mind.
Robert Shemin, JD, MBA, and Wall Street Journal bestseller, who was once considered the “least likely to succeed,” is a multi-millionaire who speaks to hundreds of thousands yearly, regularly sharing the podium with such financial luminaries as Donald Trump, Robert Kiyosaki, David Bach, Suze Orman and Tony Robbins. Shemin has worked with high-net-worth individuals for Goldman Sachs, helped create four companies, and been involved in over l,000 real-estate transactions. Find out more about Robert at http://www.claimmybonus.com
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January 20th, 2008 by admin
It’s not unusual to find people who would work two jobs for more income. You may have been working for more than eight hours a day, five days a week. For a time, your pay was good enough. Later on you feel that you need more. So you work harder. Then you realize that no matter how much effort you do, your pay stays proportional. Then you decide to buy penny stock shares because you heard somewhere that it can make your rich.
Not in all instances is this true. Owning shares in a company also means putting your money at risk. If you gain some, that’s good. That means you earned some money without practically lifting a finger. But what if you lose your investment? To buy penny stock shares also requires a little bit of work. The difference is that the work is more on research and learning, and not on pleasing your boss.
1. The penny stock broker. Your next step is to know where to start. Penny stocks are shares bought at an amount less than one dollar. Some stocks are higher and would go to a three dollar mark but not beyond five. That is the basic rule. You need a penny stock broker to assist you with your investment. But make no mistake. There are many swindler brokerage firms out there.
2. Learn and understand the stock market business. Basically it’s a buy and sell concept. Your stock broker will give you advice on what stock to buy and when to get them. They will also help you in understanding the trade. But it doesn’t mean you stop learning. Brokers will still rely on your trading decision. They will still consult you if you wish to buy penny stock of a small company. So it pays to do you part in research too.
3. Know how far you’re willing to go in terms of investment. By nature, all business investments have risks. But they behave differently from each other. The penny stocks have a unique risk level. It’s not as liquid as those with large and medium cap shares. And often there is the lack of information of the shares and small companies’ credibility. The real risk is when swindlers manipulate this part of the system. Beware of this type of investment propositions.
4. Never go and invest beyond what you can afford. Remember that your decision to buy penny stock investments is because your salary is not enough. The implication is that if you invest more than what you normally earn, the more you won’t have enough. If you invested so much and lost, you will lose it forever. Regulate your investment. Learn to bank roll your funds. This is just common sense in business. Buy less and sell more.
This is not yet enough to get you started. To buy penny stock that gives you big smiles at the end of the year, you have to know more.
Stock market and stock trading is a very dynamic field wherein you can gain or lose everything in a matter of seconds. If you know your part of the deal well, you will have a better chance of earning more than you anticipated. Don’t stop learning and most importantly don’t overspend.
Be informed. Learn the moves of penny stock investing before you buy penny stock.
It’s not unusual to find people who would work two jobs for more income. You may have been working for more than eight hours a day, five days a week. For a time, your pay was good enough. Later on you feel that you need more. So you work harder. Then you realize that no matter how much effort you do, your pay stays proportional. Then you decide to buy penny stock shares because you heard somewhere that it can make your rich.
Not in all instances is this true. Owning shares in a company also means putting your money at risk. If you gain some, that’s good. That means you earned some money without practically lifting a finger. But what if you lose your investment? To buy penny stock shares also requires a little bit of work. The difference is that the work is more on research and learning, and not on pleasing your boss.
1. The penny stock broker. Your next step is to know where to start. Penny stocks are shares bought at an amount less than one dollar. Some stocks are higher and would go to a three dollar mark but not beyond five. That is the basic rule. You need a penny stock broker to assist you with your investment. But make no mistake. There are many swindler brokerage firms out there.
2. Learn and understand the stock market business. Basically it’s a buy and sell concept. Your stock broker will give you advice on what stock to buy and when to get them. They will also help you in understanding the trade. But it doesn’t mean you stop learning. Brokers will still rely on your trading decision. They will still consult you if you wish to buy penny stock of a small company. So it pays to do you part in research too.
3. Know how far you’re willing to go in terms of investment. By nature, all business investments have risks. But they behave differently from each other. The penny stocks have a unique risk level. It’s not as liquid as those with large and medium cap shares. And often there is the lack of information of the shares and small companies’ credibility. The real risk is when swindlers manipulate this part of the system. Beware of this type of investment propositions.
4. Never go and invest beyond what you can afford. Remember that your decision to buy penny stock investments is because your salary is not enough. The implication is that if you invest more than what you normally earn, the more you won’t have enough. If you invested so much and lost, you will lose it forever. Regulate your investment. Learn to bank roll your funds. This is just common sense in business. Buy less and sell more.
This is not yet enough to get you started. To buy penny stock that gives you big smiles at the end of the year, you have to know more.
Stock market and stock trading is a very dynamic field wherein you can gain or lose everything in a matter of seconds. If you know your part of the deal well, you will have a better chance of earning more than you anticipated. Don’t stop learning and most importantly don’t overspend.
Be informed. Learn the moves of penny stock investing before you buy penny stock.
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January 12th, 2008 by admin
Online stock trading is the easiest way to make money. You just need a computer and an Internet connection. You are not required to have huge investment, expertise, or any strategic kind of specialized business training involving business secrets. The initial investment can be ludicrously minimal; it can just be $ 3, the cost of a pack of cigarettes. In case you lose, you do not lose your entire investment. It is only a small percentage, which comes to a few pennies in this case.
If you are a beginner, you can grow gradually-learn while you earn. Your stockbroker is always ready to help you understand the strategies of making money through stock trading. It is in his vested interest to help you to earn. The more you earn and stay with him, the more he earns in the form of brokerage. If you lose and leave, he loses his business.
A good broker offers investment products that are oriented towards every type of investor. Both the beginners and the advanced professionals can benefit from such dispensation. You can build a long term and diversified investment portfolio without using expensive and complicated strategies or techniques. You can benefit from a broad spectrum of investment products ranging from stocks to index tracking exchange traded funds. Besides, you can also use fractional share investing in your long term investment plans.
You can invest in two ways. The first is to invest through an automated investment plan. If you have no time to attend to your portfolio frequently, you can opt for an automated investment plan. Automated investment plan, as the name suggests, allows the investor to make everything happen by itself. You can schedule your plan on daily, weekly or monthly basis - whenever the markets are open. All you are required to do is to set up automatic funding and decide what stock to buy, how much to buy and how often to buy. You leave your broker to do the rest.
The brokers generally devise various automatic investment options to suit the needs of the various investors. Each plan or option is given some name for the convenience of identification. In case of automatic investment plan, there may be three or four options. The best option, let us say is called platinum plan, may allow the investor to make 15 free trades per month. He may do more trades at an additional payment of $ 1.00. In the next best plan, let us say it is called gold plan, an investor may avail 5 free trades per month. He may have to pay $ 2 for every additional trade. In the next plan option, the investor may have to pay $ 3 per automated trade.
The second option for stock trading is the real time market trade. The best plan- say the platinum plan-may allow the investor to $ 1.5 per trade for any number of trades. The next best plan-say the gold plan– allows the investor to pay $2.00 per trade. And in the third plan, an investor has to pay $ 3 per trade.
The third investment option is the real time limit trade. The fees charged in this scheme are the same as in real time market trade.
It must be noted that “for trades above 5,000 shares, the commission cost may be the regular commission plus a small fee, say $ 0.005 for each share traded above 5,000 shares.”
If you are a long term investor, you can opt for Dollar cost averaging and compound interest return plans. These do-it-yourself plans allow your investments to grow over a long time. You can avoid paying middlemen costs such as management, load and administrative fees. Your returns can dramatically increase through such strategies.
Yet another trading option is to invest in index-tracking exchange traded funds or ETFs. These funds allow for automatic diversification and reduce the risks associated with putting all the eggs in one basket.
It must be noted that exchange traded funds can be traded like any stock. The benefit of this option is that the ETF tracks the value of a stock index or the market as a whole. There are several popular exchange traded funds in the market. Some of the most popular ETFs are QQQQ which tracks the NASDAQ 100. ETFs are liquid funds. So you can buy and sell them very easily.
Open an account with sogoinvest
If you are new to sogoinvest: Online stock trading investment
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January 12th, 2008 by admin
Economics. Double ugh! No, you aren′t required to understand “the in elasticity of demand aggregates” or “marginal utility”. But a working knowledge of basic economics is crucial to your success and proficiency as a stock investor. The stock market and the economy are joined at the hip. The good (or bad) things that happen to one have a direct effect on the other.
Getting the hang of the basic concepts
Alas, many investors get lost on basic economic concepts (as do some so called experts that you see on television). I owe my personal investing success to my status as a student of economics. Understanding basic economics helped me (and will help you) filter the financial news to separate relevant information from the irrelevant in order to make better investment decisions.
Be aware of these important economic concepts:
Supply and demand:
How can anyone possibly think about economics without thinking of the ageless concept of supply and demand? Supply and demand can be simply stated as the relationship between what’s available (the supply) and what people want and are willing to pay for (the demand). This equation is the main engine of economic activity and is extremely important for your stock investing analysis and decision-making process. I mean, do you really want to buy stock in a company that makes elephant-foot umbrella stands if you find out that the company has an oversupply and nobody wants to buy them anyway?
Cause and effect:
If you pick up a prominent news report and read, “Companies in the table industry are expecting plummeting sales,” do you rush out and invest in companies that sell chairs or manufacture tablecloths? Considering cause and effect is an exercise in logical thinking, and believe you me, logic is a major component of sound economic thought.
When you read business news, play it out in your mind. What good (or bad) can logically be expected given a certain event or situation? If you′re looking for an effect, you also want to understand the cause.
Here are some typical events that can cause a stock’s price to rise:
- Positive news reports about a company: The news may report that a company is enjoying success with increased sales or a new product.
- Positive news reports about a company’s industry: The media may be highlighting that the industry is poised to do well
- Positive news reports about a company’s customers: Maybe your company is in industry A, but its customers are in industry B. If you see good news about industry B, that may be good news for your stock.
- Negative news reports about a company’s competitors: If they are in trouble, their customers may seek alternatives to buy from, including your company.
Economic effects from government actions:
Political and governmental actions have economic consequences. As a matter of fact, nothing has a greater effect on investing and economics than government. Government actions usually manifest themselves as taxes, laws, or regulations. They also can take on a more ominous appearance, such as war or the threat of war. Government can willfully (or even accidentally) cause a company to go bankrupt, disrupt an entire industry, or even cause a depression. It controls the money supply, credit, and all public securities markets.
What happens to the elephant-foot, umbrella stand industry if the government passes a 50 percent sales tax for that industry? Such a sales tax certainly makes a product uneconomical and encourages consumers to seek alternatives to elephant-foot umbrella stands. It may even boost sales for the wastepaper basket industry.
The opposite can be true as well. What if the government passes a tax credit that encourages the use of solar power in homes and businesses? That obviously has a positive impact on industries that manufacture or sell solar power devices. Just don′t ask me what happens to solar-powered elephant-foot umbrella stands.
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January 12th, 2008 by admin
You probably learned fundamental analysis from Econ 101. In fact, it is one of the most important analysis to outlook the value of a stock. Fundamental analysts care about the nature of the economy and the nature of the company, It focuses on the nuts and bolts of the company and the economy to establish the value of a company and to predict what a company’s stock should sell for.
Let’s look at how fundamentalists examine the bigger picture, the economic environment in which company operates. There are several indicators fundamentalists regularly look at:
The Dollar. If the dollar is strong, that means that the goods import into this country will be cheap. The inflation will decrease, but American industries which rely on exporting get hurt because exports will be more expensive. A weaker dollar means American manufacturers will also helped since their goods will be cheaper overseas, but it could boost inflation on the other side.
Interest Rates. Rising interest rates are considered to be bearish. When interest rates increase, the stocks hardest hit initially will be high price to earning (P-E) stocks (since the value of their future earnings decreases), high-flying technology stocks, Internet stocks, banks, and car makers.
Inventory. This number includes how much a company’s raw materials, work in progress, supplies, and finished goods on hand are worth. If a company is not selling its goods or products, it will have more inventory than it should. The price of that inventory has to be reduced to clear it out, and that means less money coming in for the company to buy new products and hire consultants. That’s means the value of their future earnings decrease.
Personal Income. If people are making more money, they will spend more money. If they are making less money, they will spend less.
CPI. This indicator measures the rate at which consumer prices go up or down for food, housing, transportation, medical care, clothing electricity, services, and entertainment.
The fundamental analysis tries to predict the future direction of the market as a whole, and it tries to predict the direction of stocks you own now and may own in the future. You can read your Econ 101 text book for more information about fundamental analysis.
In fact, if you are new to stock market and want to make a fortune, you need a good stock trading software to help you make decision. I strongly recommend Marl’s Stock Trading Robot. I have made $632 in 2 months following the software’s stock picks. This is not a lot of money but it works. You can read the full review of the software here: Marl’s Stock Trading Robot Review
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January 4th, 2008 by admin
If you want to know how to make money in stocks the first thing you need to learn is how to make efficient decisions. This will take up a fair bit of your time and involve some research to begin with. Intuition does not have as much of a place in the stock market as it once did, sure some investors going on intuition can make some good money to begin with but 99% of the time it’s just beginners luck.
The biggest mistake people make when learning how to make money in stocks is to invest with their emotions rather than using good old fashioned experience. The stock market is a volatile place so you need to keep a clear head if you are to make it big time.
To become one of the big players you will need to spend some time deciding on an investment strategy that suits your personality. This is the only way to make a long term career of investing in the stock market. If you allow your emotions to get in the way of a sound investment plan particularly while learning how to make money in stocks you will end up falling flat on your face.
The most important part of investing in the stocks is to limit your losses, and there will be losses. It is a part of this business that you are going to loose money at some time or another no one make a profit on every trade, the trick is of course to make more profit than loss. To limit your losses you will need to ensure you sell your stocks at the right time, this can only be decided on by carefully following your chosen strategy and doing some good research.
For those new to the game it can be hard to decide on a solid strategy, many of the strategies floating around on the internet and other places tend to fail to deliver what they promise. The best way to go then while learning how to make money in stocks is to stick to your chosen strategy and try to follow others who are more successful than you.
This may all sound rather confusing to those new to the stock market, in this case the best place to start is probably the trailing stop method. The trailing stop method helps to limit losses and maximize gains if followed correctly. The method involves the use of proven mathematical equations to predict the market and takes two variables in to account. These are the current stock price and the stop selling price. This has the effect of detaching your emotions from the trade.
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