Getting Started

Stock Trading: Learning the Basics

26 Jan , 2017  

Stock trading has always been very popular but even more so now when people are looking for a way to make extra money. Learning about stock trading may seem complicated and overwhelming but there are a variety of different ways to learn about stock trading. Below are just five of the simplest ways you can start learning about stock trading today.

Watch YouTube Videos

YouTube offers a variety of different videos but many people don’t realize you can learn about stock trading. Many different channels and content creators offer a variety of different stock trading tips and tricks for the everyday person as well as experienced stock traders. It is one of the best ways to learn about stock trading.

Read A Stock Trading Book

Reading a stock trading book is a great way to learn everything there is to know about stock trading. There are tons of different books on the market to choose from and each offers their own unique ideas and systems. Tons of top stock market investors have written books to help everyone learn more about the market. For better results try choosing a stock trading book that is more recent to ensure you are receiving the most up to date information.

Take A Class

Today many companies or individuals offer stock trading courses and classes. This is a great way to take in the information as well as a great way to meet like-minded individuals. The classes are filled with other people as well as teachers interested in the stock market and it is a great way to network and make connections with other people.

Follow the Market

One of the simplest ways to start learning about stock trading is to start following the stock market. Having a better understanding of the market will give you a better understanding of stock trading and how it works. Try following a few specific stocks for a few days to see the results.

Read Free Articles

If choosing the correct book seems overwhelming try reading free articles. The internet is full of free information about stock trading. It is a great way to learn about stock trading from a variety of different individuals.

Although there are many ways to learn about stock trading these are just five of the simplest ways. Stock trading can be a fun exciting experience but it is also a great way to provide financial security.

Getting Started

How Can DIY Investing Work For You?

11 Oct , 2016  

DIY investing is also known as self-directed investing, and it can be very easy when you know what you need or want to get out of it. Some people are going to perform this kind of investing to make extra money, but there are a lot more people who are going to do this because they want to be able to make a new career of it. Do-it-yourself investing only works when you take the steps necessary to ensure you are doing it correctly.

The first step in DIY investing is to have a good source of advice. The source of advice that you use should give you tips that make it easier for you to make decisions, particularly when you are a novice to the investing world. This is usually a broker who can explain to you what you need to do to make money that day, and they can help you put your trades through. You can do this online in your account, but having that broker to talk to is helpful as they spend their days studying the markets.

Self-directed investing also requires a lot of research. You need to do your own reading and research online, and you need to ensure that this is the best form of investing for your particular needs. There are websites that can help with this, such as Morningstar which can give you access to all the information you need. Keep in mind that you should be using this valuable information every day to make decisions. There are times when you will not do anything with your information because it is not the right time, and there are other times when the information must be acted on immediately. Having a broker on hand to speak with is also a valuable asset.

DIY investing matters because it is an independent part of the investment market. It is a place where you can change your career instantly, and you will be able to start making choices that impact how you live your life. You can perform all the tasks from home every day, and you can use the information that you obtain from this research to improve your lifestyle. You choose your hours, and you decide how much you will be spending on every investment. You have a lot of options at your disposal, but DIY investing is one of the most attractive to people who want to work from home or be their own boss.

Getting Started

The Top Sites For The Latest Stock Market News

4 Aug , 2016  

The stock market is always changing at a rapid pace, and sometimes finding the best way to update your knowledge of it can be daunting. Although there are plenty of sites that attempt to explain what is going on in the financial sector, it isn’t always so cut and dry. Stocks can be more than a little complicated to understand, and vague sources that speak in jargon don’t provide very much help. So, exactly which sites are best when trying to decipher all of the information that is out there on this topic?

For a safe bet, you can’t do much better than Bloomberg. Bloomberg Portal is one of the most widely used and highly regarded stock market data providers. An easy to use navigation menu on the site makes it simple when trying to find a specific area of the financial market to assess. For these reasons, Bloomberg is highly recommended.

MarketWatch News Viewer is another great option if you are looking for something a little more on the high end of the scale. Like Bloomberg, MarketWatch offers some of the most up to date information on the stock market that can be attained. There is even a tab that can be accessed that allows for real time viewing of everything.

If on the other hand, you have more of a casual interest in all of this, consider some of the more beginner friendly options. Forbes has always been one of the most reputable sources when it comes to business and finance. With information on practically everything that you could possibly want to know about, Forbes does have a dedicated section devoted exclusively to the stock market. It is important to note that the information contained in this area will probably not be as current as what can be found on the other two sites mentioned above. That does not mean that Forbes is not a quality source. This site comes highly recommended to anyone who is a little bit newer to observing stocks.

In a similar vein, there is The Wall Street Journal. Perhaps the most famous name on this list, The Wall Street Journal lives up to its name and provides a very solid platform of information on stocks. Similar to Forbes, this site does not always have the most real-time data. It is still an excellent source of information and should never be overlooked.

All four of the sites listed here are reputable and should be heavily considered if you want to get into the stock game.

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Getting Started

How To Make Money During A Stock Market Crash

6 Jun , 2016  

Stock market crashes are often seen as detrimental to current as well as future investments. However, like everything else, there is an opportunity that coincides with the stock market crashing. This opportunity involves not only making money, but also learning how to invest during the stock market crashing.

Here is a list of the top four ways to make money during the stock market crash.

1. Buy shares of businesses that generate profit

By investing in businesses during the crash that are not being affected by the crash, this will have a moderate to low debt to equity risk. These good and solid businesses tend to hold nicely and stay firm during any crash. With strong businesses, recovery is more likely even at a 75 percent decline in stock value.

2. Buy and sell at fixed rates

Buy doing this, this will avoid buying at the stock’s peak or selling out at its bottom. This not only saves the tedious issue with buying stocks at a perfect time, but also eliminates the risk of failing to buyout at the best time. This will also lead to regular share accumulation.

3. Keep the costs low

When buying several stock options, it is important to known that a low percentage rate of return can actually be beneficial. For example, over 25 years, a low percentage of return on an IRA investment begins to add up. Just by investing little by little each year can accumulate wealth over the course of 20 years. This method is also a secure method to ensure that there will be a solid and large return upon investment.

4. Have multiple sources of income

When Wall Street is crashing down, another way to continue to build cash is to create both backup cash generators as well as various other income sources. This is important because depending on one particular paycheck is the worst thing that can be done in the midst of a stock market crash. Crete other cash generators that can bring another potential income to the home. This could include things such as home renting, which will help with building up the investment portfolio. This alone will eliminate some financial dependence on one particular job or investment. During an imminent stock market crash, the first thing to go are potential jobs for individuals all around the world. Another benefit is that if there is never any stock market crash, this additional income can lead to an early and luxurious retirement.

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Getting Started

What To Consider Before Investing Your Money

13 May , 2016  

Investing your money is an activity where one must always make considerable efforts to protect their wellbeing, portfolio, and net worth. Failure to implement protective strategies and backup plans will result in the loss of all crucial finances. Knowing yourself, your general level of comfort, and overall capabilities to invest money is beneficial to generate the most financial growth and to protect your livelihood in the process.

What is your Financial Situation?

Before investing your money in anything, it is crucial to sit down and understand every aspect of your current financial situation. Receiving regular credit reports is essential, and understanding the elements of your life that may cause your credit to fluctuate, such as car payments and mortgages, is of the utmost importance. Additionally, evaluating your ratio of debt to annual income is important to better understand just where your money investing capabilities can go. When you figure out your financial situation and plan in their entireties, you can then determine where you are able to invest, for how long, and if it will be a positive or negative investment. Research is key here.

Goal Planning

Do you want to invest your money in stocks, bonds, or mutual funds? For how long? Goal planning is crucial to make sure that your overall vision of success is on the right path. Establishing an investment plan covering one, five, or even ten years is a constructive way to protect your money and time.

Are you Comfortable Taking Risks?

If you are more of a glass-half-empty kind of person, it is important that you invest your money according to that. If you like to take the safe route, investing your money in trusted stocks is the best way to go. However, if you see the value of trying new things to generate the most profit and net worth, then sure, do that, but make sure to have strong risk management strategy in place if the risk carries negative consequences. Creating and regularly maintaining an account with emergency funds is a crucial element to consider as well.

Dollar Cost Averaging

This is a strategy in which an investor contributes money to something consistently over a period of time rather than putting all of their funds in at once. This allows you to determine how much money you regularly contribute and during what times you choose to invest. Market changes are less extreme when you consider dollar cost averaging.

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Getting Started

Penny Stocks: Small Investments For Patient People

7 Apr , 2016  

Penny stocks are not for everyone. For the risk averse and investors seeking high and quick returns, penny stocks are not likely to deliver. However, they can be a valuable commodity and many a broker or investor will likely be able to identify what penny stocks are likely to grow over time, and which stocks will not return on investment. What are penny stocks? A stock trading under $5 is or share trading under $1 can be defined as a penny stock or share. These are sometimes referred to as Nano stocks as well. These stocks define the company’s market capitalization, which will vary from overall stock prices.

Micro-market

The companies that offer penny stocks are often small scale successes in their own right. Microsoft and Google need not apply. Valuable companies happen over time and do not appear overnight. Companies at this stage are offering penny stocks. While some investors may believe that sifting through penny stocks offers a way to “hit it big” in the stock market, this is unfortunately not a proven strategy to success. Penny stock investors must be consistent and invest for lengthy periods of time. This strategy will prove to be unsuccessful in most cases.

Value and Bidding

The spread value of these types of stocks round out to about 25 to 33%. They can sometimes even fall between 50 to 100%. Bidders are allowed to place inside and outside bids on penny stocks. The outside bid and ask are generally of greater value to the bidder. There are no single rate prices at which penny stocks are bought and sold, but rather, a number of different prices exist. Navigating the prices and spreads of these stocks should be done with an experienced broker as prices can sometimes be misleading.

Brokers make their money on the spread, in addition to taking advantage of buy and sell times. The difference between the bid and ask price is known as the spread. Penny stocks are known for markups in pricing due to broker’s accounting for the risk associated with the stock and price fluctuation. This can make for a complicated process when deciding on what penny stock is safe for investment. The best way to get into these stocks is through an experienced broker that is knowledgeable of the potential benefit of investing in a specific penny stock or stocks.

The risks associated with penny stocks are largely due to the lack of information that is known about this micro-market. These stocks are not traded on the stocks exchange but traded in an (OTC) market. This shouldn’t stop interested parties in exploring this very small but valuable market overall.

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Getting Started

Why Penny Stocks? Understanding Their Appeal

16 Feb , 2016  

A penny stock is almost a fabled thing, much like a unicorn or a Miss America contest winner. The celebrity of being a penny-stock winner is just one of the many reasons that penny-stock investing has gained in popularity over the years. There are various reasons, some good and some not for why one might consider getting involved in the high-risk, high-potential-gain stocks in the “penny arena.”

For any readers that are familiar with hearing the terms penny stock but aren’t fully aware of what that means, let’s do a quick recap: Essentially a penny-stock is something little more than a stock whose price is low. If a stock price is over a dollar, typically it becomes disqualified for being considered a penny stock, but being at that price level alone isn’t what makes a penny stock. The other consideration is the fact that the company is usually a startup with a high potential growth possibility. Typically penny stocks that gain a lot of attention are around companies doing research and development in new experimental technologies, medicines and breakthrough inventions.

Based on what we’ve stated so far, it is already starting to sound like a penny stock investment is a really good idea. Whether it is or not has a lot to do with how you look as an investor. If your starting capital is too low and you have a shorter time frame in which you are hoping to receive the return, you should perhaps consider if you have the ability to stomach a loss, should one of your penny stock bets fail. If the answer is no, then penny stocks is probably not for you.

The typical commonplace wisdom about penny stocks are that they are always a bad idea and are a sure-fire way to lose your entire investment capital. Despite the fact that this is the traditional wisdom, countless investors are still flocking to the asset class, but why? The answer is simple and clear: Penny stock investors are a breed of investor that probably also frequents the casinos and the horse tracks. Too addicted to the thrill and legend of a massive win and perhaps too obsessed with the risk of failure as well, the penny stock investor is surely their own breed compared to the blue chip stock investor. What type of investor you decide to be will have everything to do with your values and goals as an investor. Make sure you decide which investment classes are best for your own personal situation.

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Getting Started

Getting Started In Investing Is Easy With $1000 and A Brokerage Account

1 Nov , 2015  

Getting started in investing is not an easy task for most people. Many investment accounts have required minimum deposits. In addition, a lot of new investors are not sure where to invest their funds. They may be intimidated by the whole process of investing. Leaping into the market, even in a favorable environment still involves risk, and it’s hard to know where to begin.

The first step in getting started with investing is to open a brokerage account. This is the best strategy for new investors. The key is to choose a recognized, skillfully managed platform that offers a choice of low-fee, no-commission exchange traded funds. Traditional brokerage firms include Charles Schwab and Merrill Lynch. These companies offer personalized services. Discount brokerage firms, such as E-Trade and Ameritrade, are a low-cost alternative to traditional firms. Each of the discount firms offers low commissions and online platforms that are easy to use.

Exchange traded funds are good funds to start with as buying and selling exchange traded funds is usually cheaper. These funds can also be bought or sold at any time of the day; therefore they are fairly accessible to a beginning investor.

Here are a couple of things to consider in regards to investing:

Cost

High fees and commissions significantly reduce profits. Therefore, it is important to think about transaction and commission fees carefully. Online brokers usually charge a fixed, fee for each transaction. Exchange traded funds can cost as little as $2.95 per transaction or as much as $9.99 each. It makes sense to shop around. When trading exchange traded and mutual funds, it is important to also consider the expense ratio as this factors into profit.

Keep in consideration the possibility of inactivity fees, service fees, and other costs. It’s possible to find brokers that don’t charge these types of account fees; those brokers let you keep more of your money.

Automatic Savings

New investors should consider choosing a brokerage that offers the option of setting up easy automatic monthly withdrawals from a savings or checking account to your brokerage account. This is an easy, relatively painless way to start building up even more investment savings.

Online Tools

Knowing how to invest is very important. Beginning investors can learn a lot from the research and educational tools that are provided by brokers. Sites such as E-trade, TD Ameritrade, and Scottrade offer a number of online research and educational resources and tools to help you choose wise investments.

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Getting Started

How To Read Stock Quotes: A Beginners Guide

18 Sep , 2015  

For the uninitiated understanding a stock chart may seem like an exercise in dark magic, but successfully trading stocks starts with learning how to read a stock quote and comprehend the lingo. A typical stock quote includes several numbers that provide a look into a stock’s recent activity, and once you understand the numbers you have a better chance of figuring out if the security is a good investment.

When reading a stock quote the first things to look for are the “bid” and “ask” prices. The bid price is the amount you can sell the stock for and the ask price denotes to the price you can buy stock for. For example, assume Acme stock has a bid price of $95.85 and an ask price of $96.10, a 25-cent difference between the bid and the ask. This is the “spread” and signifies the money the stock exchange makes from a trade.

The “52-week high” and “52-week low” help investors put the stock’s current price into perspective against it performance over the past year, as these number reflect the prices of the stock for the last 12 months.

The stock’s “market capitalization,” often referred to as market “cap” for short, refers to the number of shares of stock the company has in the market that are available to be bought and sold, multiplied by the stock’s current price.

“Vol” on a stock quote stands for volume which indicates you how many shares of stock traded hands for any given timeframe. Sometimes a stock quote will display a volume figure for the current trading day, called a “session,” and a second number which is the average volume over a specific timeframe, such as 30 days.

“EPS” stands for Earnings per Share and signifies how much a stock earned per share during the last three months of trading.

Similar to the EPS, the PE Ratio is the Price-to-Earnings Ratio and compares the stock’s current price to the stock’s recent earnings. The PE Ratio is a metric investors typically use to measure whether or not a stock’s price is overestimated.

The “sector” denotes which industry, such as health care or public utilities, a stock is in and helps to understand what other companies a stock is in direct competition with.

Most online stock services include charts, stock-market news, analyst reports and company profiles, and this information will help give you get a much clearer picture of the company and its stock, the stock’s sector and the industry the sector represents.

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Getting Started

Penny Stocks: How To Get Started

16 Apr , 2015  

Penny stocks are the definitive high reward, low risk investment opportunity. With this method, it is possible to make a considerable amount of money off of a small investment. Now, it doesn’t mean you are going to become rich quick, and many of the stocks do not have a large amount of information about the company, so investing can sometimes be a bit tricky. With that being said, if you are able to locate the best penny stocks out there and invest in one that is going to have a solid turn around, you have the ability to by thousands of stocks for next to nothing and receive an excellent turnaround for it.

A penny stock is exactly what it sounds like. It is a stock that costs usually a few cents per share. This is a smaller company that is trying to raise money in order to invest back into itself. Now, most major companies with a solid financial backing do not need to do this. All these larger companies need to do is properly crowd source and it has the money it needs. However, with the help of this sort of financial investment opportunity of a penny stock, those businesses without the necessary resources can bring in a good amount of money to start to expand, and expansion for a smaller company can often lead to major financial windfalls for those who invest in the company.

For a large company such as Google or Apple, a stock is going to cost several hundred dollars for a share. This means the average investor might only be able to afford buying 10 shares for a few thousand dollars. If good news hits, the share might rise five percent in a day, meaning the person make possibly $100 on a good day of trading with those shares. However, when investing in penny stocks, if there is good news for the company and if the few hundred thousand dollars the company brought in through penny stock purchases allows it to reinvest into itself properly, it might cause the stock to increase several hundred percent. Should someone invest a few thousand dollars into penny stocks and the stock jumps a few hundred percent, now they increase their stock work by several thousand, if not tens of thousands of dollars, all off of the same monetary investment as the larger companies.

Some stocks someone can look into and invest with include Key Energy Services, SandRidge Energy, Eagle Rock, Energy XXL or Halcon Resources Corp. Now, the most important thing someone can do when it comes to penny stocks is to do their research, just like any other stock out there. After all, a penny stock has the potential to increase financial earnings, but it does also have the potentially to bottom out and disappear. Due to this, knowing more about the penny stock should prove especially helpful when it comes to trading for this kind of a stock and for financial stability for the individual.

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