Let the Stock Market Work For You in 2006 ... How to make Money with Stocks
Let the Stock Market Work For You in 2006 ... How to make Money with Stocks BY.- StressFreeTraders.com
A beginner usually feels very attracted to the stock market while for example discovering a stock that's being reported in CNBC or the news program and watching it rise fast and make new highs from $10 to $35 in just 2 months.
While learning about this successful news story he's saying to himself ... " Oh boy if I was one of those lucky guys who bought that stock back when it was priced at $10 i easily would have tripled my money by now ... That means my 20 grand would transformed in to a whooping 70 K ! hassle free ... I would have been able to grab one of those big HUMMERs on the spot and probably pick up a nice Rolex by the way !
The stock market news constantly reports of hot stocks that are breaking out and making tremendous gains on the same day or doubling in price in just a few hours. Back in the bull market of the late 90's you could easily see a good number of hot stocks sprouting out every week.
Those years surely made it look like every body could easily take LONG SHOTS and make a shiny pile of gold every day in the stock market. But today's market is a different story. A totally different animal.
Some say that the stock market has gotten more realistic. Fantasy land is over and GAMBLING YOUR WAY TO RICHES is not an option anymore. You might get lucky a few times, but your constant loses can wipe you out sooner or later.
The fact that the bull market period has ended for now doesn't mean that you can't make a great deal of money in today's market. A lot folks from many walks of life keep making excellent profits on a daily basis, pocketing hundreds & thousands of dollars by trading stocks online.
Success in stock trading & investing starts by applying a wiser and REALISTIC methodology for choosing stocks as well as for getting in and out of them with profits in mind.
You need to look at the stock market more realistically. You got to learn that you can benefit when stocks go up and also when they FALL down. You got to WORK SMARTER and get more selective about the hot stock trading opportunities that you choose. You need to embrace the nature of day trading and be fully prepared to take advantage of stocks that are poised for a BIG RISE on the same day.
It is said that the worst thing that can happen to a beginner stock trader is to get information overload.
It's better to go step by step, and test a simple strategy that can show you how to focus on concrete ways to make money. For more information on how to pick and trade stocks in a simple yet effective way visit Stress Free Traders today at http://www.StressFreeTraders.com
In the end, stock market investing & trading is all about buying and selling according to your knowledge filter. Once you master and follow youre proven filter parameters like a clock, you can expect to start making serious amounts of cash on a consistent basis
Stress Free Traders helps day traders and investors pick hot stock trading opportunities every day at http://www.StressFreeTraders.com
How to Buy and Sell Stocks ... Can You Teach Me to Trade? ... Realistic Day Trading Strategies
How to Buy and Sell Stocks ... Can You Teach Me to Trade? ... Realistic Day Trading Strategies BY.- StressFreeTraders.com
A beginner usually feels very attracted to the stock market while for example discovering a stock that's being reported in CNBC or the news program and watching it rise fast and make new highs from $10 to $35 in just 2 months.
While learning about this successful news story he's saying to himself ... " Oh boy if I was one of those lucky guys who bought that stock back when it was priced at $10 i easily would have tripled my money by now ... That means my 20 grand would transformed in to a whooping 70 K ! hassle free ... I would have been able to grab one of those big HUMMERs on the spot and probably pick up a nice Rolex by the way !
The stock market news constantly reports of hot stocks that are breaking out and making tremendous gains on the same day or doubling in price in just a few hours. Back in the bull market of the late 90's you could easily see a good number of hot stocks sprouting out every week.
Those years surely made it look like every body could easily take LONG SHOTS and make a shiny pile of gold every day in the stock market. But today's market is a different story. A totally different animal.
Some say that the stock market has gotten more realistic. Fantasy land is over and GAMBLING YOUR WAY TO RICHES is not an option anymore. You might get lucky a few times, but your constant loses can wipe you out sooner or later.
The fact that the bull market period has ended for now doesn't mean that you can't make a great deal of money in today's market. A lot folks from many walks of life keep making excellent profits on a daily basis, pocketing hundreds & thousands of dollars by trading stocks online.
Success in stock trading & investing starts by applying a wiser and REALISTIC methodology for choosing stocks as well as for getting in and out of them with profits in mind.
You need to look at the stock market more realistically. You got to learn that you can benefit when stocks go up and also when they FALL down. You got to WORK SMARTER and get more selective about the hot stock trading opportunities that you choose. You need to embrace the nature of day trading and be fully prepared to take advantage of stocks that are poised for a BIG RISE on the same day.
I think the worst thing that can happen to a beginner stock trader is to get information overload. It's better to go step by step, and test a simple strategy that can show you how to focus on concrete ways to make money.
For more information visit us today at Stress Free Traders http://www.StressFreeTraders.com
In the end, stock market investing & trading is all about buying and selling according to your knowledge filter. Once you master and follow youre proven filter parameters like a clock, you can expect to start making serious amounts of cash on a consistent basis
Stress Free Traders helps day traders and investors pick hot stock trading opportunities every day at http://www.StressFreeTraders.com
5 Tips for Investing in Penny Stocks
Investing in penny stocks provides traders with the opportunity to dramatically increase their profits, however, it also provides an equal opportunity to lose your trading capital quickly. These 5 tips will help you lower the risk of one of the riskiest investment vehicles.
1. Penny Stocks are a penny for a reason. While we all dream about investing in the next Microsoft or the next Home Depot, the truth is, the odds of you finding that once in a decade success story are slim. These companies are either starting out and purchased a shell company because it was cheaper than an IPO, or they simply do not have a business plan compelling enough to justify investment banker's money for an IPO. This doesn't make them a bad investment, but it should make you be realistic about the kind of company that you are investing in.
2. Trading Volumes Look for a consistent high volume of shares being traded. Looking at the average volume can be misleading. If ABC trades 1 million shares today, and doesn't trade for the rest of the week, the daily average will appear to be 200 000 shares. In order to get in and out at an acceptable rate of return, you need consistent volume. Also look at the number of trades per day. Is it 1 insider selling or buying? Liquidity should be the first thing to look at. If there is no volume, you will end up holding "dead money", where the only way of selling shares is to dump at the bid, which will put more selling pressure, resulting in an even lower sell price.
3. Does the company know how to make a profit? While its not unusual to see a start up company run at a loss, its important to look at why they are losing money. Is it manageable? Will they have to seek further financing (resulting in dilution of your shares) or will they have to seek a joint partnership that favors the other company?
If your company knows how to make a profit, the company can use that money to grow their business, which increases shareholder value. You have to do some research to find these companies, but when you do, you lower the risk of a loss of your capital, and increase the odds of a much higher return.
4. Have an entry and exit plan - and stick to it. Penny stocks are volitile. They will quickly move up, and move down just as quickly. Remember, if you buy a stock at $0.10 and sell it at $0.12, that represents a 20% return on your investment. A 2 cent decline leaves you with a 20% loss. Many stocks trade in this range on a daily basis. If your investment capital is $10 000, a 20% loss is a $2000 loss. Do this 5 times and you're out of money. Keep your stops close. If you get stopped out, move on to the next opportunity. The market is telling you something, and whether you want to admit it or not, its usually best to listen.
If your plan was to sell at $0.12 and it jumps to $0.13, either take the 30% gain, or better still, place your stop at $0.12. Lock in your profits while not capping the upside potential.
5. How did you find out about the stock? Most people find out about penny stocks through a mailing list. There are many excellent penny stock newsletters, however, there are just as many who are pumping and dumping. They, along with insiders, will load up on shares, then begin to pump the company to unsuspecting newsletter subscribers. These subscribers buy while insiders are selling. Guess who wins here.
Not all newsletters are bad. Having worked in the industry for the last 8 years, I have seen my share of unscrupulous companies and promoters. Some are paid in shares, sometimes in restricted shares (an agreement whereby the shares cannot be sold for a predetermined period of time), others in cash.
How to spot the good companies from the bad? Simply subscribe, and track the investments. Was there a legitimate opportunity to make money? Do they have a track record of providing subscribers with great opportunities? You'll start to notice quickly if you have subscribed to a good newsletter or not.
One other tip I would offer to you is not to invest more than 20% of your overall portfolio in penny stocks. You are investing to make money and preserve capital to fight another battle. If you put too much of your capital at risk, you increase the odds of losing your capital. If that 20% grows, you'll have more than enough money to make a healthy rate of return. Penny stocks are risky to begin with, why put your money more at risk?
Trading Penny Stocks | investment strategies for penny stocks
1source4stocks.com provides penny stock traders with online trading and investment tips, online trading strategies and penny stock picks
Investing in stocks and shares
Stocks and shares, unit trusts and investment trusts Shares give you part ownership of a company, so the value of your investment is linked to how the company - and the overall economy - performs. You can also invest in funds which buy shares in a wide range of different companies. Over the last 25 years it has become quite common for people to own shares directly through a number of different ways: * In the UK for example, many people bought shares when the government sold nationalized companies * some people were given shares when their building society or insurance company changed from a 'mutual' (where its members were the owners) into a company with its shares being bought and sold * as an employee you might also be awarded shares in your company as an incentive - this may be through a share option scheme, when you're offered the right to buy shares in your company in the future at a price agreed now
You can also buy shares directly in companies trading on the stock exchange through a stockbroker. An alternative to owning shares directly is to invest your money in a fund or a company which, in turn, invests its money in shares. Your investments will be taken care of by a professional manager who uses skill and experience to decide which companies to invest in, buying and selling shares to grow your investment. This is called a 'managed scheme'. Your investment is spread over a larger portion of the market that you could do yourself, so reducing the risk. Unit trusts can have any number of investors, so are known as 'open-ended' funds. You invest in these funds by buying one or more 'units'. The price of units varies depending on how well the fund performs. Investment trust companies invest in other companies. Because of this these shares are limited in number, unlike unit trusts, so they're called 'closed-ended'. The value of your shares still depends on the performance of the investments but also on the demand for the investment trust company's shares themselves. You make money from your shares by the companies that you invest in declaring 'dividends' or an amount payable per share. The more shares you own, the more money you make. But of course, business trends go down as well as up, so be aware that it just as possible to loose your investments as it is to make a profit!
Interested in this subject? Try this link for more of the same
How To Buy Stocks That Are Hot With No Effort
Even traders want to be trendy when they buy stocks. Many traders make trades because of public opinion, not because the trade itself makes sense. When a particular stock seems popular, they rush in so they don`t feel they`ve missed an opportunity. As a result they end up buying at a price point where the trade can`t possibly work out. You should always avoid the emotion of the HOT stock.
Here`s an example of what not to do when you buy stocks: Let`s say you`ve been following a particular stock which is in a HOT sector, and it just announced a stock split. The stock is now at $18, and you calculate it could get to $25 or more by the time of the split. The market is currently bullish, and it looks like a great trade.
The problem is that the stock has been rising for the past four days. It started at $12, but you didn`t notice it until it hit $18, and it`s still rising. The stock split is a month away, and you know it`s likely to fall in price somewhat between now and the split. Still, everyone is talking about this stock. What if it continues to rise and becomes the next blockbuster? You become afraid that if you don`t make a trade you`ll miss a great opportunity. (And besides, you want to be able to tell people that you hold a position in this stock, because it makes you seem smart.) So you buy 1,000 shares at $18.50.
During the next two weeks, the stock goes to $19, then levels off, loses momentum, and drifts down to $17. Then a couple of leading NASDAQ companies give earnings warnings, the market drops, and the stock slides to $15, triggering the stop you`d set at $16 on half your holdings. The stock trades in that range for a week, and then begins to rise slightly going into the split. Your plan is to sell a day or two after the split. The stock rises a little beyond $20.50 by the second day after the split, and then the volume dries up and you sell it for a $2 profit. But since you stopped out of half your shares at $16, you lost $2.50 per share on that half, with a net loss of $.50 on 500 shares. What went wrong?
What went wrong was that you didn`t let the stock come to you. Instead, you chased it as its price rose, knowing perfectly well that, following the stock split trend, it would probably pull back before running up again. It was more likely to pull back than it was to continue on an uninterrupted run to $25, and you knew that if you bought at $18 or higher you were probably paying too much. You ignored what you knew was more likely in favor of what might happen.
You should have given the stock a chance to come to you, at a price you felt was reasonable. If the stock had pulled a surprise and never gotten down to where you thought it would, that would be okay. There were many other stocks to trade, and some of them would have come down to your price. You didn`t have to own this particular stock.
What was the right way to play this particular scenario? When the market is bullish, it`s very likely for a stock to rise when a split is announced, drift down after a few days` rally, and then begin to rise again a week or so before the split. If that`s the trend and there`s no solid reason to think the stock will rise immediately, wait a few days for the stock to drift down and stabilize before buying it. If you had done so in this case, you could have bought it at $16.50 and then sold it for $20.50 for a $4.00 profit on the entire 1,000 shares.
If you had a solid reason to think the stock might continue to rally, you could have bought half the total number of shares you wanted at a price that might have turned out to be too high, and waited for a lower price to buy the other half. If it had turned out to be too high, it would only have reduced your profit. (No stock goes up or down in a straight line. Wait for a pullback before buying.)
There is a good way and a bad way to buy stocks or trade a HOT stock. The good way requires discipline and careful market evaluation. The bad way is to trade from your feelings. As you can see from this example, it`s always more profitable to trade the good way.
Discover BIG profits from the market by downloading your FREE copy of David's new Ultimate Trading Systems course. http://www.ultimate-trading-systems.com
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