Simple Stock Market Trading Tip – 1 Single Tip That Can Make You Hundreds of Dollars in 30 Minutes!

If you are new to the stock trading world, learning how to pick stock is not an easy task. You will lose a bit of money here and there throughout the learning curve. You seek for stock market trading tip around every corner of the internet. But I am telling you that, investing your money into a stock just because you see someone recommending it in a forum, a newsletter or a TV ad won’t help you much either.

You need a solid stock trading strategy that works for you and stick to it. I would rather learn from the 1 single guide for the 1 single strategy that makes me money, rather than learning from a thick 400 pages of stock investing tutorial which account for making me more and more confused. (I found out one for myself, and it is doing pretty well for me).

I have seen numerous guides telling people about paying really close attention to the market, investigate very carefully on a company’s background, pay close attention to the performance of some particular stock markets for the recent months, take notice of the company’s news, and so on. While all of those are true facts, I still prefer to trade with simplicity.

The Tip

Trading a correct stock index for 15 – 30 minutes with proper guidelines for every trading day is the only stock market trading tip that I need. The real deal lies between the differences of gap for the stock index! This usually happens at the first hour right after the market opens. I can easily make 50 – 100 ticks within the said time frame — that would be equal to around few hundred dollars depending on my amount of investment.

Few Tips to Avoid Risks in the Stock Market

Stock trading has its risks. But there are some simple methods that can reduce the amount of risk significantly. A smart trader will always try to eliminate as mush risk as possible with good trading strategies. Here we are offering some useful tips that will help to avoid risk at stock market.

Choose fundamentally strong stocks – The best way to reduce risk from stock trading is to make safe investments at stock market and for that your need to pick up stocks that are fundamentally strong. So you need to invest in companies that have high earnings, low debt, and good asset value. You should always invest in companies that re posting good profit consistently. So you need to keep watch for the quarterly and annual reports of the companies so that you can determine which companies to invest.

Do not trade against the trend – The stock market goes through different phases at different times that are also termed as the stock market trend. As a trader you must not try to trade against the trade as that would only increase your chance of losing money at the stock market. You should remember that it takes time to go through one trend and start other. So depending on which trend the market is going through you should plan your trading.

Do not follow the crowd – Take your own trading decisions, based on the result of the analysis and your trading strategy. Remember that blindly following the advice or tips that are available everywhere is not a sign of a good trader. You should invest in stocks that you think is right. While trading you should concentrate on the performance of the stocks and not on the promises that they will do good in the future. You should not invest in a stock simply because your friends or colleague is investing in them. Remember each investor has his own plan and objective and trading strategy that might not the same as yours. So take your trading decisions based on your analysis and do not get influenced by others.

Make good use of the stop loss technique – Stop loss is a technique that is used by smart traders while placing a buying or selling request. While placing the order, if you mention a stop loss, the system will always close the position whenever the stock reaches that price. In that way you can ensure that your loss is least. For example you have a speculation that the stock will rise at the market, but for some reason the stocks performed badly, if had a stop loss request it will automatically sell the stock that will prevent further loss of money at the market.

Diversify your portfolio – This is a smart of minimizing your risk at the stock market. If you invest all your money to a specific stock or in few stocks from a specific sector you run a greater risk. This is because if that particular stock or sector fall at the market you suffer huge loss and you will not have any other option to make up for that loss. But if you can choose potentially good stocks from sectors and invest in them, you will have the options for making up the loss in one sector or two from other stocks in your portfolio. So diversify your portfolio to effective reduce risk.

Do not fall in love with stocks – As a trader you should never fall in love with the stocks, even if the stock had earned you great return in the past. While trading stocks you should only pay attention to the numbers and charts and not your emotions.

Impact of Oil Prices on the Stock Market, When Gas Zooms, Stocks Reach the Abyss

Anyone who has cared to study the market for the last ten years or so would be able to see that the impact of oil price is inversely proportional to the stock market indices.

In other words, whenever the oil price shoots up, the stock market consistently goes down. And the opposite is equally true. When prices go down, it is time for the stock market to rise. At least that’s what has happened for the last several years or so. But does this mean that the impact of oil prices on the market is a predominant factor for all commercial transactions in a country? The answer could be both “yes” and “no”.

Let us start with the yes part first. Movement in oil prices undoubtedly creates uncertainty in the stock market for the simple reason that, the former upsets the entire market trend that includes all types of transportation, manufacturing processes and it also often halts industrial growth to some extent. And this in turn, affects the life of a nation in an adverse way.

How Does the Oil Price Affect the Stock Market?

Price of oil affects the price of stocks in several ways.

When the oil price goes up, it usually leads to inflation. For the business, this means increased expenses to procure goods that go into the production process. Increased transportation costs as the goods are shipped. Increased marketing costs because the distributor expenses are also up. And even the advertisers might be charging more. So the entire economy becomes more expensive.

Inflation because of oil price hike is a problem for the sales team too. Consumers have less money in hand because they have to spend more on essential items. Because of this the demand for the produced good goes down.

Thus we see when the price of oil goes up, the expenses are increased, but the incomes are reduced. This naturally is a serious problem for the business. The stock market and investors understand this, and businesses across the spectrum lose value.

The stock market may move in the opposite direction to the oil price, but it does not happen the other way round. In other words, the price of stocks has no impact on the crude price, even though a lot of oil companies are also traded in the stock market. The oil price is controlled by the OPEC countries.

Is the Entire Stock Market Affected?

However, fluctuations in crude prices need not necessarily affect the stock market in its totality. Some stocks are affected more than others always. For example, the prices of stocks of automobile companies, consumer durables, entertainment and hospitality businesses, TV manufacturers, those making electronic gadgets are always affected more than others.

Of course, it affects the financial sector too. This may include banks, investment institutes managed by government or quasi-government bodies, real estate, insurance companies and others. In course of any oil price hike, it may be prudent to hold on to energy stocks.

It does not even mean that all companies in these sectors will witness a drop in the price of their stocks. Often, if there is an inherent demand for the stock of a particular company, it will rebound quickly and may even surpass the high price from where it fell.