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Stock Market Tips – Detailed Advice

The stock market is a good place for those individuals who want to double their money. However, not everyone can invest and buy shares. Most often, those who belong in the middle class or those who are considered to be part of the privileged class are the ones who take risk in investing in the stock market. They say it can bring success story to those who invest but unfortunately, not for everyone.

A lot of people in our society have the extra funds but do not know where to invest it. For some, they rather invest it in the stock market while for others they invest in a kind of business thinking it would give them success.

Even though there have been so many stories of triumph in this kind of game, there have been also some who failed. The reason behind this failure is that the money that they invested were gone because of the depreciation of the stocks. For them, it was an experience that they wished that never happened.

The conversion of cash to shares and then to success is not an assurance of what the company’s history depicts. Most often, people risk because they have seen the company’s success story when it comes to its play in the stock market. However, it does not necessarily imply that what it shows in the past few years will be the same in the upcoming years. Honestly, no one can really tell. It may serve as a guide to those who would invest but it doesn’t give a 100% guarantee that what they invest will double.

No fortune teller can tell on what might happen next inside a company’s financial situation. A very significant moment was during the economic crisis during the last quarter of 2008. No one really expected it to happen, even experts. Everyone was in jolt when they found that the company they have invested most of their money on, suddenly went to the lowest. Of course, everything followed as well as the stocks for the company. That certain event in the stock market left tears to the eyes of the big investors.

No one can really tell on what would be the future outcome when investing in the stock market, even the business specialists. As a general tip, be wise and know when or not to sell out your stocks. There have been a lot of mistakes when dealing with the stock market and all the things that goes with it so practically, we should know the tricks and tips about it.

Being sensible is a must when we are serious in dwelling in the stock market. We all should know when the right time to buy shares of a certain company and when to sell it. Actually, the tricks and tips are just running inside a circle and could be so simple for those who have experienced the best of it but could be difficult for the starters.

Online Stock Trading Tips

Those who trade in the stock markets have to consider many aspects related to:

1. Investment decision

2. How much to invest

3. What to invest in

4. When to invest etc.

The stock market can be a tricky place for newcomers as it is vast and capricious. Those who trade in the financial markets must be vigilant towards the changes and be able to improve or change their strategies accordingly to be able to enjoy success. This article discusses a few tips that stock market traders can make use of:

a) Keep in mind the time to trade

According to many seasoned stock market traders who have made a name for themselves from these markets, the best time to trade is usually the slot between 1:00 PM to 2:30 PM. The reason being that around this time almost everyone is working and all the organizations are functioning. Also any effects as a result of any global or local events that might have a direct or indirect influence on the financial markets will have been absorbed or settled by mid-day; thus curbing risks for those that trade after 1 PM.

There should be no abrupt changes in the stock markets at that time of the day. The daily happenings of the state of affairs have been digested with no abruptness to cause stir or changes in the market that usually affects the stock markets in the mornings. Additionally, by this time the corporate earnings reports have also been released.

b) Buy the stocks that are being traded at $10 a share

Other than a few close end funds, all stocks traded at $10 or more should be preferred. These close end funds are traded at a lower value since the management wants to keep the share price affordable to small and medium investors. However, when trading in the stock markets it must be considered that:

1. Lower than $10 stocks are more often quoted at greater percentage spreads between the buying and selling prices. Therefore, the investors will require a higher price to break even.

2. More often companies that are prone to financial troubles or bankruptcy have low-priced stocks

This is the reason stock market investors are advised to choose stocks with a trading value of more than $10 a share.

c) Best time of the month for stocks

When it comes to buying stocks, individuals who trade in the financial markets should be vigilant about the time period when:

1. The cash flows into the market and is at its lower ebb

2. The prices are low

The best time for people trading in the stock markets to invest in buying the stocks is from the 18th through to the 22nd. It is preferred that financial market traders become aggressive at buying stocks during the months of September and October. However, those who are looking to sell their stocks should choose the first two and the last two days of any month. Also, the best months to sell stocks are considered to be April and early May.

Mining Share Market Tips Made For Managing Migraines

If you are new to the world of speculating in resource stocks, especially junior mining companies, there are some pivotal pieces of advice that can make or break you. Unless you have nerves of steel and an iron stomach, I suspect you’ll benefit from these mining share market tips. Some of these could literally keep you from unnecessarily wanting to throw yourself under a bus.

First, let’s clear the air and confess that we are talking about speculation. Yet, let’s also be fair and acknowledge that there is a world of difference between educated speculation and rank gambling that approximates throwing darts. When I’ve been reckless with my investment dollars, I’ve tossed money to the toilet like I was taking out the garbage. Been there, done that. But, with well-researched, prudently-placed bets, I’ve also watched my portfolio rack up 20 or so triple digit winners, and I’ve even seen a four-digit return! This isn’t so much one of my mining share market tips, but it’s healthy to put things in their proper perspective from the outset.

With that out of the way, let’s look at the second point I want to make. You are investing in perhaps the most violently volatile sector in all of the investing world. If you can’t handle, wild, unjustifiable swings, stay away. And I’m not talking about 5 or 10% moves. I’m not even talking about 15 or 20% moves. I’m talking about stocks that can move 30, 40, or 50% over time. If there is just one of my mining share market tips you need to understand, it is this one. You will drive yourself nuts if you expect these companies to trade like your average NASDAQ or DOW stock.

More really needs to be said about this most important of the mining share market tips, so here’s a poignant example. Heck, in the meltdown in the fall of 2008, I watched some of my positions give up 90% or better! Some of you would be mortified as the red glow of all those 90%+ losses lit up the room. I backed up the truck and bought like a madman. Today, I’m blessed for having done so. Just understand that these aren’t just small cap companies we’re talking about. Some of these are more like sub-micro caps! They are thinly traded and it doesn’t take much action to see big price swings in either direction. But, let’s face the facts. A 40 cent company can endure a 10,000% return and still trade for just $40. By contrast, a $40 stock would be at $4,000 a share if it increased 10,000%. I really don’t see that happening.

Third, and building upon the prior mining share market tips, understand how this volatility might affect your trading strategies. I thought I had discovered the Fountain of Youth the day I discovered trailing stops. But trailing stops in this market sector will get you in big, big trouble. I repeat the fact that these stocks can swing big, even to the downside, and essentially nothing has happened fundamentally with the company. I’ve even seen companies improve fundamentally over time, and yet their share price is 20% lower than before. You’ll learn that movement is your friend, allowing you to buy bargains when others are running for the hills. Trailing stops in this arena will only get you stopped out of a great position, while handing the house your money unnecessarily.

The fourth of my mining share market tips has to do with patience. If you have done your homework, or relied upon advice you trust, then you have to be patient. Not too long ago, I was growing incredibly inpatient with a company called Hathor. I had watched my other positions move nicely on a decent leg up. Hathor was just camping out; in fact, it was down a bit from previous highs. If anything, the company was a better investment than when I first took a stake. One morning I was increasingly disturbed, watching my capital stand still while other positions lifted like a hot air balloon. The next thing I knew, later that very day, all hell broke loose. It never looked back and continued climbing. It went from about $1.75 to $3.50 in a couple of months, for a nice double. The lesson is that, had I sold, I’d have been racing to catch a runaway train. I don’t see Hathor ever coming back to $1.75. As I like to say, you have to arrive at the party before there’s a party!

I have more mining share market tips for you. Fifth, at some level, accept the fact that you’re trying to catch a falling knife. There is a temptation to chase stocks. The bottom line is that I’ve been stubborn and refused to pay the extra penny to get on board. I’ve regretted it as the bus left the station. Specifically, I could have had Great Panther at $1.09. I therefore refused to buy it when I reconsidered at $1.38, on the grounds that it was now too expensive. I watched it go to over $2.00! I was later glad to get in at $1.71. I’ve also jumped on board with heart racing, only to see the stock go on sale. My best advice here is to take a partial position if you’re ambivalent. If you can’t decide whether to buy or wait, then do both! Get an initial “tranche,” and then keep some powder dry for a rainy day. If the stock runs away, at least you’re on board to some extent. If it goes on sale, average down and count your blessings!

Sixth, and for the last of my mining share market tips, let’s talk about market orders. If you are trading these stocks on the pink sheets in the United States especially, you will not want to use market orders. The bid-ask spread is far too great and you will get murdered. The market makers are glad to take you to the cleaners. Use strict limit orders, but heed the advice of the other mining share market tips, particularly number 5 above. Keep these things in mind and you can make a fortune in junior resource stocks, without having to spend it all on medicine for your migraines!