Friday, June 6, 2014

How to get started investing or trading in stocks

How to get started investing or trading in penny stocks  

Most times, the stock market looks like a confusing maze of numbers and symbols that make no sense at all. If you are like me, then making the first step towards reaping the benefits offered by this market seems like a daunting task that you would like broken down for you to make sense of it. Fortunately, there is  a lot of information online and in stock related magazines that you can read to give you an idea of what to expect when trading.  At one time, I was as inexperienced as you and had no idea where to put my money so that I could succeed in stock trading. Therefore, if I could give any advice to beginners in trading stocks, it would be as below.
First, you need to have a basic idea of how the stock market works and the stocks that are available for you to trade with. Many first time investors have lost  big chunk of their money at their initial investment because of lack of knowledge of the market. At this point, I must say that investing in the stock market is quite risky especially when dealing with penny stocks, which are basically unregulated when compared with other types of stocks. It is important to learn the art of buying the right stocks, avoiding scams, minimizing risks as well as maximizing the chances of making great gains.
Secondly, trading stocks can only be done through a trading account which can be easily set up on the internet. In my early years, I decided to open and manage my own trading account which proved to be much more affordable than hiring a broker . I would advise you to do the same if you do not have much money but are excited about getting started. Nevertheless, working with a brokerage company has its advantages as well which may include incentives and allows you to be flexible with your trading options as well. Also, the company offering the services should be reputable to avoid being scammed which is common with penny stocks trading.

Thirdly, consider investing in penny stocks if you are looking to earn some revenue in the short term. When trading on these stocks, you will likely find them described as very risky, but if the risk is worth it, then why not invest?  Most times, they are much cheaper compared to the blue-chip stocks that have been traded for a number of years. If you want to reduce chances of losing money with penny stocks, you can work with a broker that can guide you to make better decisions. Nevertheless, I believe these stocks are your ticket to profitable gain in the stock market.
All in all, stock trading is best learnt through experience as the circumstances surrounding everyone is quite unique regardless of the information you have in hand. Over time, you will be able to trade  penny stocks successfully, almost with your eyes closed and even offer advice on various online discussions forums on the topic.
More about penny stocks

Friday, April 18, 2014

Stock Charts - Know The Basics

Stock charts can provide a wealth of information if you know what to look for. Charts are available in various forms, styles, and kinds, but a handful of straightforward charting abilities can be utilized universally throughout all charts. In addition, when using other stock indicators the main charting qualities will permit you to substantially increase your trading skills.

A lot of the most vital parts of information which can generally be discovered from charts are resistance levels. Resistance level is a price that a stock having a difficult time passing through. The bottom resistance is named a floor and the higher resistance is called a ceiling. Essentially, what comes about in the floor (base resistance) is prospective buyers enter the industry throughout the flooring rate to stabilize the worth and perhaps force the price again once again up. Whenever a stock is reaching its ceiling, sellers enter the marketplace stopping the upward momentum and perhaps crank out the stock rate once more down. The best place to seek a resistance on a stock charts is where the stock moves sideways.

Yet another crucial aspect of stock charts is the volume (the amount of shares traded daily). Most stock charts will exhibit the quantity of shares traded at the bottom of the chart. If a stock is trading on larger volume it truly is a lot much more possible to carry on. Nonetheless, if a stock price is increased on incredibly minimal volume, it might be an indication of uncertainty along with the gains could possibly be shorter lived.

A third essential chart functionality is a gap. A gap is every time a stock price jumps up or down leaving a blank space in the chart. As an example, if a stock closed the previous trading day at $24but then opens the following day at $27, this is an example of a gap up. In this instance the gap will turn into a resistance floor. As soon as the gap is filled, it loses considerably its importance on stock charts.

Use  for informational purposes. You should pondering other indicators to validate the validity on the observations. Also, Bear in mind that stock charts might be very useful tools, but the historic data and future price movements may differ. Even so, most experienced traders count closely on charts as well as other indicators to help them make informed investment decisions.

Tuesday, April 8, 2014

Dow Jones - Who or What is it?

Who or what is Dow Jones?
One of the largest business and financial news companies in the world is "Dow Jones & Company". Charles Dow, Edward T. Jones and Charles Bergstresser founded this company in 1896. The Wall Street Journal was founded by them in 1889, which remains one of the most influential financial publications.

Dow Jones Industrial Average (DJIA) can easily be confused with the Dow Jones. One of the most watched stock indexes in the world is the Dow Jones Industrial Average (DJIA), which is often referred to as "the Dow", containing companies like General Electric, Microsoft, Coca-Cola and Exxon. Many other indexes that represent different sectors of the economy are also owned by the Dow Jones (the company) along with the Dow Jones Industrial Average.

"How did New York do today?" you'll often hear people ask, in the world of finance,  or "How did the market perform today?". People are likely referring to the DJIA, in both cases, as above both the S&P 500 Index and the Nasdaq Composite Index, it is the most widely used index.

Who Was Dow Jones?
Dow Jones and the company is referred to as an American publishing and financial information firm. During 2007, after an extended takeover bid the company is said to have become a subsidiary of News Corporation. That the bid had been successful on August 1, 2007.

What is the Dow Jones Industrial Average?
You hear all the time about the Dow Jones Industrial Average, If you watch the news, such as the S&P 500 or The Russel 2000. These are designed to tell you, how companies traded on the stock market are doing in general which are known as "market averages".

The average value of 30 large, industrial stocks is simply known as the Dow Jones Industrial Average. Different kinds of companies that make up this index, such as, Goodyear, IBM and Exxon and General Motors. The  Dow Jones Industrial Average is nothing magical, which is the thing to understand. Someone has averaged the values of 30 caused companies, together by following a specific formula.

As there are all sorts of averages out there and the average value of 500 different large companies is the S&P 500. The average of 2,000 smaller companies tracks 2000 by the Russell.

What these averages talk about us as a whole the general health of stock prices. The prices of stocks as a group tend to rise, If the economy is "doing well". Prices as a group tend to fall, If it is "doing poorly,". These tendencies in the market as a whole are shown by the averages. While the market as a whole is going up If a specific stock is going down, that tells you something. The market as a whole, that tells you something as well if a stock is rising faster or slower than the market.

Monday, March 24, 2014

Stock Quotes - The Basics

Many websites in the present world, especially financial ones provide pertinent information in order to have a stock quote tool within them. You can even find toolbars which provider Internet users with their very own stock quotes. They help a lot for the investors to make their lives easy. A stock quote can be defined as the price of a stock at which a buyer agrees to sell or a broker agrees to purchase. Usually, they are classified under portfolios. If you are planning to get a stock quite, that is related to a mutual fund or any other security related matter, you just need to put a tick into the input box and click on Proceed. In case if you are not aware about the ticker symbol, you will need to search for the stock quote. The symbol lookup tool can be used to conduct this search in a convenient way.

When you proceed to check in search of stock quotes, a list of important information will appear on your screen within few seconds. In the first line of the stock quote, you can find the name of the stock or else its security. This is followed by the ticker symbol, which can be found inside parentheses. In the second line, you can find four different information pieces. They include:

1.       The Last Price: The last price refers to the value which was there in the last time, where you searched for a specific stock. It can also be considered as the rate, where you will sell or purchase the above mentioned stock. Usually, the last price is delayed in a stock quote, which means that the data is being displayed is at least 15 to 20 minutes old. If you want to acquire the latest up to date information, you can get in touch with brokers and financial advisors.

2.       Up, Down or Unchanged: You will see a red colored arrow next to the Last Price. This red colored arrow will show that the stock quote you are looking for is trading lower on that particular day, where you made the search. This is compared with the previous market session. If you cannot see an arrow, the price is similar to the previous market session.

3.       Net Change: Net change is the third most crucial information about stock quotes. It indicates the differences which lie between the price at which a stock is trading at the moment, and its previous market session. If the net change is positive, it will be indicated in green and vice versa. It will appear in black if the stock net change is unchanged.