Showing posts with label guide to stock trading. Show all posts
Showing posts with label guide to stock trading. Show all posts

Friday, November 20, 2009

Stock Market Guide For Beginners!

A great article for stock market newbies below. This article has some really good stock market investment strategies.

Beginner's Guide to Stock Market

First, they need people to take them by their hands and learn all about the risks and opportunities of stock market investment. They can do that by learning from their friends who are good at investment, reading investment books, attending investment seminars. Signing up, and playing for free, online simulation games is a great help to feel the pulse of the market movements.

Second, count their money to see whether they have surplus funds to invest. Investing surplus funds as opposed to putting their entire savings into the market will enable them to sleep well at night. However, if their surplus funds got stuck in their investment in an adverse market condition, they would still be able to live theirs lives as usual.

Third, choosing stocks with the potential for income and capital appreciation is important. Choose stock with long history of good dividend payouts and steady price appreciation would be a safer investment decision. Some " blue chips" stocks would fit in this category.

Fourth, knowing when to buy and when to sell is crucial when you put their money into the market. Buy low sell high would be the preferred investment strategy. Following the footstep of Warren Buffet, the guru of stock market investing, would produce positive results.

Fifth, start investing in small amount in "blue chip" stock, enjoy the dividend payout and capital appreciation. You will then become more confident in the stock market after experiencing from you small investment that there is money to be made in the stock market. Over time, increase their investments. If they stick to their " buy low and sell high " investment strategy, they would make a good start at stock market investment.

Chin M C is a Finance and Business Accountant who writes about how people earn, save, spend and invest their Money. BizCom Management

Monday, November 16, 2009

Read The Stock Market

Some great stock market investment strategies below, this article shows you how to read the market!

Effective Guide on How to Read the Stock Market

Savvy investors know that a considerable knowledge on how to read the stock market is highly necessary to succeed in stock market business. Though the data in the stock chart is not very accurate, how the investors utilize their technical ability to analyze the data found in the chart can make or break their investments.

The stock market chart comprises the data of prices and values of stocks that have been recorded over some period of time. As you may notice in the chart, you can find the prices at the vertical axis while time is can be found at the horizontal part of the chart.

The time sequence is arranged accordingly from the past up to the present. Investors will find the stock, option, commodity with its respective prices over some period of time. With those mentioned data, you may form your own technical analysis and calculated conclusion as basis of your investment decision.

Three popular stock market charts today are the following: the Line Chart, the Bar Chart and the Candlestick Chart.

Firstly, the Line Chart represents the most basic form among the three. It simply displays the prices and its respective time when the stock price was closed. Traders use this kind of chart for closing point references as well as when the latest data is not yet available.

Secondly, the Bar Chart indicates the initial prices traded during the bar. That is the highest or the lowest price traded as well as the last price traded. The timeframe found in the bar chart can be set to the earliest up to the recent trading activities in the stock market.

Finally, the Candlestick Chart shows you the prices from the highest to the lowest that have been recorded over a period of time. You can easily notice the movement and differences during the trading activities as represented by a color system.

You certainly would want to invest on some business that does not need you to come to the office regularly and yet earn as much as you deserve. Actually, this is what is happening in the Stock Market. But it is important to understand and learn How To Read The Stock Market so you know where your money is going.

http://www.tradestocksamerica.com can give you a better view on this.

Tuesday, November 10, 2009

Guide to Stock Market Depressions

10 Worst Stock Market Crashes

10th Worst Stock Market Crash (1932 – 1933): This crash required the longest recovery time of all the 10 crashes. The combination of the tech bubble bursting and the September 11th terrorist attack served a deadly blow to the stock market, but relative to markets past, this was a minor one. Date Started: 1/15/2000 Date Ended: 10/9/2002

Total Days: 999 Starting DJIA: 11,792.98 Ending DJIA: 7,286.27 Total Loss: -37.8%

9th Worst Stock Market Crash (1916 – 1917): This market suffered about a 40% loss. Date Started: 11/21/1916 Date Ended: 12/19/1917 Total Days: 393 Starting DJIA: 110.15 Ending DJIA: 65.95 Total Loss: -40.1%

8th Worst Stock Market Crash (1939 to 1942): It was one of the most grueling. It took nearly 3 years to recover from this crash! With the attack on Pearl Harbor, the markets had a very tough time. Date Started: 9/12/1939 Date Ended: 4/28/1942

Total Days: 959 Starting DJIA: 155.92 Ending DJIA: 92.92 Total Loss: -40.4%

7th Worst Stock Market Crash (1973-1974): Another long market crash -one that many people still remember (think Vietnam and the Watergate scandal). This crash lasted for 694 days before bottoming out. Date Started: 1/11/1973 Date Ended: 12/06/1974 Total Days: 694 Starting DJIA: 1051.70 Ending DJIA: 577.60 Total Loss: -45.1%

6th Worst Stock Market Crash (1901 – 1903): This is the oldest crash to make the list (DJIA records are not available before 1900). Date Started: 6/17/1901 Date Ended: 11/9/1903 Total Days: 875 Starting DJIA: 57.33 Ending DJIA: 30.88 Total Loss: -46.1%

The 5th worst stock market Crash (1919 – 1921): This crash followed a post war boom (Stock prices rose 51%). After the crash bottomed out in August of 1921, this decade saw tremendous growth in the stock market and the economy (often called the roaring twenties). Date Started: 11/3/1919 Date Ended: 8/24/1921

Total Days: 660 Starting DJIA: 119.62 Ending DJIA: 63.9 Total Loss: -46.6%

The 4th worst stock market crash in U.S. History Although this is the shortest market crash observed, it was a deadly one. Investors saw almost half their money disappear in just two months. This crash started the "Great Depression." Date Started: 9/3/1929 Date Ended: 11/13/1929

Total Days: 71 Starting DJIA: 381.17 Ending DJIA: 198.69 Total Loss: -47.9%

3rd Worst Stock Market Crash (1906 – 1907): This crash was called the "Panic of 1907." The U.S. Treasury department bought 36 million dollars worth of government bonds to offset the decline Date Started: 1/19/1906 Date Ended: 11/15/1907

Total Days: 665 Starting DJIA: 75.45 Ending DJIA: 38.83 Total Loss: -48.5%

2nd Worst Stock Market Crash (1937 – 1938): Just when investors thought the market was finally good again, following a recovery of almost half of the great depression losses, the market plunged again due to war scare and Wall street scandals. Date Started: 3/10/1937 Date Ended: 3/31/1938

Total Days: 386 Starting DJIA: 194.40 Ending DJIA: 98.95 Total Loss: -49.1%

Worst Stock Market Crash Ever: 1932 Stock Market Crash: Investors lost 86% of their money over this 813 day beast. This market crash combined with the 1929 crash, made up the great depression. The full recovery didn't take place until 1954. Date Started: 4/17/1930 Date Ended: 7/8/1932

Total Days: 813 Starting DJIA: 294.07 Ending DJIA: 41.22 Total Loss: -86.0%

Mansi aggarwal writes about stock market depressions. Learn more at http://www.stockdepression.com

Tuesday, October 20, 2009

Stock Market Wokings - A Guide For Beginners!

How Does the Stock Market Work? A Guide For Beginners

If you are a beginner, you are probably wondering how does the stock market work? The answer is surprisingly simple: Companies go public and offer shares in their company to the public. The public buys the shares through what we know as the stock exchange. Investors can then use the stock exchange to buy and sell the stocks of the companies. Buying low and selling high can make people rich overnight. Of course you have to know what you are doing, and there are many factors involved. To gain a deeper understanding of how the stock market works, why don't we discuss a few of the most common terms.

Stock Prices: Stock prices are, to make it simple, the price that a specific stock sells for. This price is set by many market factors including the economy health, current trading trends, and technical and financial reports put out by the company (or independent third party).

Market Captialization: This is the actual value of the company or stock that is up for sale. Calculating the market capitalization of a stock is done by using the following formula -

Number of Outstanding Shares X Price of Stock = Market Capitalization of the Company

Once you have learned the basic premise of the stock exchange, you will want to learn how to buy and sell shares. To purchase stock you will need to create some type of investment account. Most times you can open up an account with a local stock broker. Thanks to the wonder of the internet, you can now make trades online on your own. It is as simple as setting up an account and funding it.

Hopefully now you have the answer to your question, how does the stock market work. The next step will be to learn how to successfully profit from trading. Good luck!

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