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Online Stock Market Trading

Secrets of Successful Stock Market Trading

For making profitable stock market trading you need not be a professional expert on stock market, just follow these simple steps and make profits.

Information is the key – For successful stock market trading, you have to keep regular tab on the market and industry. For example, you can read the newspaper and financial articles, do your research online, read the magazines, form a network of trusted friends or do anything but be sure that you have all the news that might affect the stock market. Just keeping track of the stock prices is not enough. You have to keep alert on anything including politics, industry news, policies that affect the industry and commerce.

Avail of the Consultancy services – Doing extensive research and keeping tab on different aspects of stock market sometime is not enough. You need professional help to take major decisions. So, try find out some trustworthy stock consultancy firms and get registered with them. They provide effective tips and solutions for investing in the stock market and you can always make profit from these tips. But remember not to follow the tips blindly. For first couple of occasions, do not make investment based on the tips, rather keep a watch on the referred stocks and if they show really good movements then only trust on their advice.

Don’t be copycat – Always remember that stock market investment is unique for each individual. Everybody has their own resources, objective and ways of doing stock trading. So, simply copying one’s stock investments blindly might not do any good for you. You should try and take your own decisions. It might give you some problems initially but even if make losses you will always learn from your mistakes.

Have a strategy – It always helps to have a strategy when it comes to stock market trading. Be sure which sectors you would like to invest in would be your way of trading, i.e. you will do only day trading or long term trading or invest in specific industries. Selecting a sector always helps as you can keep comprehensive information on that sector and take timely decisions. For examples if you are investing in steel industry, infrastructure and construction industry, it would be helpful for you as they are somewhat related to each other.

Choose your broker diligently – A broker is a key person when you invest in the stock market. When they will execute your buying and selling decisions in the market, you have to depend on them. So, choosing a stock broker is a crucial decision. Consider the experience of the broker, brokerage rate and consultancy services for hiring your stock market broker. In fact instead of hiring a broker you can register with any online stock trading firm as that make things less complicated and the brokerage rate will also be less. Do not get tempted by the attractive broking rates offered by the discount brokers and make sure it is competent professional service provider before selecting your broker.

Select the market – There are so many trading stock options available for the investors these days. You can even invest in more than one market. Things have become even easier with the online stock trading options. But before you start investing select the market that you are confident about. Remember investing in foreign stock market may be tempting but you need extensive knowledge and resources of that particular market for you to win the game.

Stock Market Trading

Stock Market Trading Tips

Trading stocks can be extremely rewarding if done correctly. Many people who get involved in stock market trading are just normal everyday people. This has been made possible by advances in technology. It is now easy to make your own stock picks and execute the order to buy or sell through an online broker. There are many books which one can learn from in order to trade effectively in the stock market today. Understanding how to read stock charts and perform technical analysis will greatly improve your stock picking skills. With thousands of companies listed on the stock market, making the right choices can be very challenging.

Make sure that your broker is competent and is able to carry out your trades in a timely manner. This is important in order to get you the best price for your stock. The broker will either route your trade through to an ECN, or may be using his or her own. Depending on what kind of broker you use, full service or discount, you may not get any stock tips or advice. It is crucial that you then familiarize yourself with the different kinds of stock orders and what they mean.

The simplest and quickest of these is the “market order”. If you give your broker a market order for a stock, he will buy or sell it immediately at whatever its current price is. If you give a “Limit order”, your broker will buy or sell the stock at a specific price only. If the price specified cannot be obtained, then the stock will not be bought or sold.

Another stock order that is used in stock market trading is the “stop order”, which will automatically sell or buy a stock when it hits a specific price. This can be useful if a stock starts to decline and you want to limit your losses. It is important to note that when the system reaches the stop order price, it will place a market order to sell the stock immediately. This means you will get whatever the current going price is, and there may be slight variance between the stop price and actual price.

Other things to learn before getting involved with stock market trading would be chart analysis; this will help you in better predicting where a stock’s price may change direction. The most effective charts would use candlestick patterns, which provide an excellent visual representation of how the stock is trending. Candlestick charts are also easy to read and interpret.

Stock Market Tips – The Good, The Bad and The Ugly

Do Stock Market tips work?

In 1994 I made a windfall profit of over $7,000 from index options. I was barely out of investing ‘nappies’ then, but in my euphoria I thought I was the next Warren Buffet in the making. In those days, I was hot on Stock Market tips. After what was for me an unprecedented profit, I believed that whatever I touched would turn to gold. Don’t laugh!

I was on a roll, and quickly bought options in a company that I had every reason to believe was heading for the stratosphere. I invested most of my $7,000 profits. Two weeks later I closed the trade at a big loss. Luckily, I had learned the value of stop losses; otherwise my loss would have been much worse.

What really upset me wasn’t so much the money that as lost as the manner in which I went about losing it. The one and only reason I made the investment was because I heard a news report about the company’s recent success and how the company’s share price was bound to go higher. That was the only thing I needed to hear, and off I was like a dog at the races.

I learned the hard way that Stock Market recommendations do not work. I think they are bad, and dangerous to ones financial health. If I had my way, giving or receiving tips would be classed as a federal offense. Yes.

Is there a good side to Investment tips though? Yes, but only if you use them as a starting point to do your own analysis.

If my very good friend who is a Fund Manager phones me tomorrow and tells me to buy shares in General Motors (GM) because they are unbelievably undervalued, I would say, “thank you very much”. When I get home, I will do my own research. If my research confirms the tip my friend gave me, I would then proceed to happily invest in General Motors. That is the good side of Stock Market tips.

Unfortunately though the limited benefit of tips is by far outweighed by their ugly side.

Many a time, especially on Internet forums, Investment tips are used to defraud the unsuspecting public. This usually happens with penny shares in what are popularly known as ‘pump and dump’ operations.

Typically con artists would buy a significant stake of a penny share, and then under the guise of offering Stock Market tips, they promote (pump) it heavily on bulletin boards and other forums. They do this to whip up a buying frenzy, and then quickly sell (dump) all their shares to their victims who scramble to get in on the act.

The con artists smile all the way to the bank with huge profits, and start the process all over again with another penny share and a different set of innocent victims.

Do not let yourself be one of their victims.